Published on February 21, 2026
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In 2025, despite a strong decline in international tourism, states like Texas, California, Florida, New York, Pennsylvania, Georgia, and other states have witnessed impressive domestic revenue growth across the U.S. This growth is primarily fueled by increased spending on domestic travel, as U.S. travelers have opted for local vacations and regional tourism due to the challenges facing global travel. The sharp decline in international tourism, caused by factors like high visa fees, geopolitical tensions, and the strong U.S. dollar, has impacted traditional international markets. However, states with strong domestic appeal have leveraged local tourism, successfully mitigating the loss of international visitors. Texas, for instance, has seen substantial spending despite the broader tourism slowdown, with visitors flocking to its diverse attractions, from vibrant cities to stunning natural parks. Other states like California and Florida have also capitalized on their rich tourism infrastructure, drawing millions of U.S. travelers to beaches, theme parks, and cultural landmarks. These states’ ability to adapt to shifting tourism dynamics showcases the resilience of the U.S. domestic travel market in the face of international setbacks.
In 2025, the U.S. travel economy is navigating a complex landscape, with domestic travel showing remarkable growth despite a decline in international tourism. Domestic leisure travel is projected to hit a record-breaking $894.5 billion, reflecting a strong performance in local tourism. However, total U.S. travel spending growth remains subdued at 1.1%, reaching $1.35 trillion, primarily due to a sharp 6.3% decline in international inbound visitation. This drop is attributed to factors such as high visa fees, a cooling Canadian market, and changing global sentiment that has led many international travelers to seek alternatives. While international tourism struggles, the domestic travel market has proven resilient, fueled by increased demand for local vacations, business trips, and regional tourism. States across the U.S. are benefiting from this shift, with growing spending on domestic travel supporting local economies. Despite challenges in the global tourism sector, the strength of domestic travel spending highlights the U.S.’s ability to sustain growth and adaptability in the face of external disruptions.
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Texas is another powerhouse in the U.S. domestic travel sector, with 2025 domestic travel spending expected to reach $97.5 billion, driven by 129 million visitors. The Lone Star State has long been known for its unique blend of Western charm, big-city excitement, and expansive natural beauty, which together make it a top destination for both leisure and business travelers. From the bustling streets of Austin to the vibrant cultural scene in Houston and the scenic landscapes of Big Bend National Park, Texas offers something for everyone. Travel Texas and the Office of the Governor have consistently pushed to promote the state’s vast tourism potential, helping to draw in both domestic and international visitors. Despite the international tourism slowdown, Texas has benefitted from strong in-state and regional travel, with travelers flocking to the state’s world-class festivals, arts, and historical landmarks. The steady growth of domestic tourism is helping Texas cushion the effects of the broader decline in inbound visitation, showcasing how the state’s diverse tourism infrastructure can continue to thrive even amid external challenges to the U.S. travel economy.
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California remains the undisputed leader in U.S. domestic travel, contributing a staggering $158.6 billion to the national economy in 2025. With an estimated 271.6 million visitors forecasted, the Golden State continues to be a major driver of tourism despite the muted 1.1% growth in total U.S. travel spending. California’s vast array of attractions—from the iconic beaches of Southern California to the world-renowned wine regions of Napa Valley and the tech hub of Silicon Valley—attracts millions of travelers each year. Moreover, the state’s investment in tourism through Visit California and Tourism Economics has helped foster consistent growth, despite global challenges. Even as international tourism faces declines due to factors like high visa fees and geopolitical uncertainty, California’s domestic tourism market thrives, buoyed by local residents and nearby visitors. From Hollywood’s allure to the natural beauty of national parks like Yosemite and Sequoia, the state’s diverse offerings ensure it remains a top destination for leisure and business travelers alike. As California continues to capitalize on its vast tourism infrastructure, it provides a vital boost to the national economy, proving that the domestic market can help offset international declines.
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Florida’s tourism economy in 2025 is forecasted to contribute $126.1 billion, making it one of the most influential states in driving domestic travel spending. With 143.3 million visitors expected, Florida is experiencing a significant rise in travel activity despite the broader slowdown in U.S. tourism growth. The state’s wide appeal, from its pristine beaches to its family-friendly theme parks, has always been a cornerstone of American leisure travel. VISIT FLORIDA’s robust marketing efforts, combined with the state’s diverse offerings—from the vibrant nightlife of Miami to the natural wonders of the Everglades—attract millions of visitors each year. As international arrivals slow, Florida has been able to lean heavily on the domestic market, with more American tourists seeking sun-soaked vacations within the state. The strong draw of Walt Disney World, Universal Studios, and other world-class resorts continues to be a key factor in its tourism success. With its warm climate and year-round appeal, Florida remains an essential pillar in U.S. tourism, demonstrating how a state can remain resilient even amid broader economic challenges in the travel sector.
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New York’s tourism sector continues to shine in 2025, with domestic travel spending estimated at $82.9 billion. With a forecasted 72.6 million visitors, the state remains a top destination despite the 1.1% national growth rate. The allure of New York City, with its iconic landmarks like Times Square, Central Park, and Broadway, continues to attract millions of domestic travelers year after year. Beyond the city, New York State offers attractions like the Finger Lakes, the Adirondacks, and the Catskills, providing a diverse range of experiences that appeal to all types of travelers. NYC Tourism + Conventions and the New York State Comptroller’s office have worked tirelessly to promote the state as a year-round destination. While international tourism has faced setbacks due to visa issues and global uncertainties, New York’s strong domestic tourism base has ensured consistent visitor volume. The city’s blend of arts, culture, shopping, and dining continues to captivate millions of U.S. visitors, and the state’s investment in tourism infrastructure ensures it remains a vital contributor to the national travel economy, highlighting the state’s resilience in the face of international challenges.
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Pennsylvania’s tourism sector is projected to generate $54.2 billion in domestic travel spending in 2025, driven by 216.6 million visitors. With a rich history, vibrant cities, and breathtaking natural landscapes, the state offers a unique blend of cultural and outdoor experiences that continue to draw millions of domestic travelers. From the historic streets of Philadelphia to the scenic beauty of the Pocono Mountains, Pennsylvania remains a top destination for travelers seeking both history and adventure. The state’s Department of Community & Economic Development has worked to attract visitors with a focus on history, arts, and outdoor activities, ensuring that tourism continues to thrive. Despite global tourism challenges, Pennsylvania has capitalized on the demand for regional travel, with many U.S. visitors opting for more affordable, local vacations. Whether it’s the allure of the Liberty Bell, the charm of Amish country, or the excitement of Hersheypark, Pennsylvania continues to leverage its cultural and historical heritage to maintain a steady stream of domestic tourism, boosting the state’s economy and adding stability to the broader U.S. travel market.
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Georgia is set to see domestic travel spending reach $41.5 billion in 2025, with 131.4 million visitors expected. Known for its warm hospitality, diverse cities, and natural beauty, Georgia is a key player in the U.S. tourism industry. The state’s tourism sector benefits from strong regional visitation, with Atlanta acting as a major gateway for both leisure and business travelers. The Georgia Department of Economic Development and the Georgia World Congress Center Authority have been instrumental in promoting the state’s tourism potential, which includes everything from the historic charm of Savannah to the mountain landscapes of North Georgia. The state’s thriving convention and events scene also helps drive significant traffic, especially in urban centers like Atlanta. As international tourism faces setbacks due to visa restrictions and changing global sentiments, Georgia has successfully capitalized on increased domestic travel, especially from neighboring states. The state’s rich cultural offerings, vibrant festivals, and burgeoning culinary scene continue to make it a favorite destination for U.S. tourists, contributing to the national tourism growth despite challenges in the global market.
U.S. tourism in 2025 is shaped by distinct regional trends as each state adapts to the challenges and opportunities within the travel landscape. California, while hitting an all-time high in spending at $158.6 billion, is experiencing tempered growth, with a modest 0.8% increase in visitor volume. High inflation and federal tariffs have led to a noticeable 18.4% drop in Canadian visitors, reflecting broader economic challenges. Florida has pivoted successfully towards domestic tourism, with 91.5% of its 143.3 million visitors being U.S.-based, compensating for cooling international markets, particularly in Europe and Canada. Governor DeSantis’ focus on U.S. travelers has helped keep the state’s tourism sector strong. New York is showing signs of a fragile recovery, with a 1.5% increase in domestic leisure travel. However, the state fell short of its recovery goals as international arrivals from Western Europe and Canada declined by 5%. Finally, Pennsylvania is experiencing above-average growth, partly driven by investments related to the U.S. Semiquincentennial (250th Anniversary) celebrations in 2026. The state is already seeing an uptick in heritage and “historic route” travel, with $65 million earmarked for promoting this surge in 2025. These trends reflect how states are adapting to shifting tourism dynamics amid external pressures.
In 2025, Texas joins California, Florida, New York, Pennsylvania, Georgia, and other states in witnessing domestic revenue growth amid the strong decline in international tourism, driven by high visa fees and global travel challenges.
Texas, alongside California, Florida, New York, Pennsylvania, Georgia, and other states, has seen notable domestic revenue growth despite the strong decline in international tourism. This shift is largely attributed to rising demand for local vacations and regional travel, as U.S. travelers opt for domestic destinations amidst global uncertainties such as high visa fees, economic shifts, and geopolitical tensions. While international markets have struggled, the resilience of domestic tourism has provided a much-needed boost to state economies, showcasing the ability of these states to adapt and thrive despite external challenges. As these regions continue to capitalize on local travel trends, their strong tourism infrastructure positions them well for sustained growth, even as international visitation faces setbacks.
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Tags: domestic travel, International tourism, revenue growth, US Tourism

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