Rise of Domestic Tourism: Small Businesses Thrive in US Tourist Destinations
Small business owners in US tourist destinations are noticing a change in summer travel patterns, with more Americans opting for domestic trips. This shift is attributed to the rising costs of airfares and gasoline, prompting vacationers to choose road trips, day excursions, and home-cooked meals to save money. The FIFA World Cup and the nation's 250th birthday celebrations have also encouraged some US residents to create summer memories closer to home. According to AAA, 72.2 million Americans are expected to travel at least 50 miles from home during the summer travel period.
The increase in domestic tourism could benefit local businesses that rely on tourist spending. Tarik Dogru, an associate professor at Florida State University, believes that the current economic and tourism dynamics may redirect spending towards small businesses such as regional restaurants, local attractions, Airbnb hosts, and roadside businesses along drive routes. This shift in spending could potentially reduce the travel and tourism trade deficit that the United States has experienced since the COVID-19 pandemic.
Many Americans, like Morgan Kain from Baltimore, are scaling back their travel plans due to financial constraints. Despite higher gasoline prices, the majority of Independence Day travelers chose to drive to their destinations, as car trips remain a more affordable option compared to flights. Businesses around Lake Tahoe and Asheville have seen an increase in visitors driving in from nearby cities, supporting local tourism.
In Asheville, small business owners have seen a rebound in tourism following the aftermath of Hurricane Helene in 2024. River tubing outfitter Aubrey Anderson has hired more staff for the current season as more visitors, including day-trippers from neighboring states, are enjoying outdoor activities in the area. Similarly, French Broad Chocolate has experienced a surge in factory tours this summer, attracting visitors looking for unique experiences.
In Kansas City, Missouri, the World Cup has drawn soccer enthusiasts from across North America. Local businesses like Made in KC and McLain's Bakery have seen an increase in traffic during the tournament, with tourists exploring the city and purchasing World Cup-related merchandise. The affordability of food and lodging in Kansas City compared to larger host cities has made it an attractive destination for visitors.
Overall, the shift towards domestic travel in the US is providing opportunities for small businesses in tourist destinations to thrive and attract visitors looking for memorable experiences closer to home.