The U.S. travel sector is experiencing a remarkable resurgence, with New York City leading the charge. As global temperatures rise and summer vacations take off across North America and Europe, the tourism sector is bouncing back stronger than ever. The COVID-19 pandemic dealt a significant blow to international travel, but by 2024, the sector is on track to fully recover. In 2023, international tourism reached 88% of 2019 levels, contributing over $230 billion in exports and accounting for 22% of all U.S. services exports globally.
New York City remains at the forefront of this recovery, solidifying its status as a top global destination. In 2023, New York welcomed over 9 million overseas travelers, drawn by its world-class shopping, iconic landmarks, and renowned museums. Despite a sharp decline in 2020, when visitor numbers plummeted by 66.5%, the city rebounded impressively with 62.2 million visitors last year, just 6.6% below its 2019 peak.
The economic impact of this tourism surge is profound. In 2023, visitor spending in New York City exceeded $48 billion, with tourism-related tax revenues growing by 16% from FY 2020 to reach $4.9 billion in FY 2024. Although international spending has not fully returned to pre-pandemic levels, the city anticipates a complete recovery by 2025, especially in the international business travel segment.
Miami, Los Angeles, and Orlando are also experiencing significant growth in tourism. Miami, with its pristine beaches, vibrant nightlife, and cultural diversity, attracted 4.36 million overseas visitors in 2023, leading the nation with 1,632 visitors per 1,000 residents. Los Angeles follows closely, welcoming 3.6 million overseas visitors in 2023, marking a 31% increase from the previous year. Orlando, renowned for its world-famous theme parks and family-friendly attractions, also saw a surge in international tourism, attracting 3.5 million overseas visitors in 2023.
Beyond these leading cities, other regions across the U.S. are also witnessing significant increases in overseas visitors. San Francisco-San Mateo-Redwood City in California recorded a 31.2% increase in overseas visitors, welcoming 2.28 million travelers in 2023. Las Vegas-Paradise, Nevada, saw a 25.1% increase in overseas visitors, with 2.08 million international tourists in 2023. Washington-Arlington-Alexandria in the DC-VA-MD-WV region experienced a significant 38% rise in overseas visitors, totaling 1.61 million in 2023. Chicago-Joliet-Naperville in Illinois welcomed 1.41 million overseas visitors in 2023, representing a 33.2% increase from the previous year. Honolulu, Hawaii, experienced an impressive 85.9% increase in overseas visitors, attracting 1.32 million tourists in 2023. Boston-Quincy, Massachusetts, saw 1.15 million overseas visitors in 2023, a 56.1% increase from the previous year. Houston-Sugar Land-Baytown in Texas welcomed 887,000 overseas visitors in 2023, representing a 48.8% increase from 2022. Atlanta-Sandy Springs-Marietta in Georgia saw an impressive 111.3% increase in overseas visitors, totaling 765,000 in 2023. Fort Lauderdale-Pompano Beach-Deerfield Beach in Florida attracted 749,000 overseas visitors in 2023, an 11% increase from the previous year. San Diego-Carlsbad-San Marcos in California welcomed 655,000 overseas visitors in 2023, with a 17.4% increase from 2022. Dallas-Plano-Irving in Texas also saw 655,000 overseas visitors in 2023, representing a 44.6% increase from the previous year.
Virginia’s tourism sector is thriving, reflecting the broader recovery seen across the U.S. In 2023, the state welcomed 112 million visitors, resulting in a $50.6 billion tourism impact. The “Virginia is for Lovers” campaign played a key role in this success, driving a nearly 10% increase in direct visitor spending to $33.3 billion. The state also saw a modest 3.2% increase in the number of visitors in 2023, bringing Virginia closer to pre-pandemic levels. Revenue from visitor-generated state and local taxes rose by 13.2%, adding an extra $3.1 billion to the state’s coffers.
Colorado continues to witness steady growth in its tourism sector, welcoming a record 93.3 million tourists in 2023. This influx of visitors generated $28.2 billion in travel spending, significantly boosting the state’s economy. The Denver Metro Area and Front Range counties played a crucial role, with travelers spending approximately $13.9 billion in the Denver region alone. Direct travel-generated earnings in Colorado rose by 13.3% to $9.9 billion, with the Accommodation & Food Services sector contributing $4.4 billion, up 7.9% from the previous year. State and local tax revenues from tourism also saw a 5.7% increase, reaching $1.8 billion in 2023.
Business travel remains a cornerstone of the U.S. economy, contributing $484.4 billion annually, or 1.9% of the U.S. GDP, based on 2022 data. In 2022, a total of 429.9 million business trips were taken within the U.S., with 67% for transient purposes like sales, client services, and government travel. The remaining 33% represented conference and event travel. Business travelers are staying longer, with the average trip length increasing to 4.1 days in 2022, up from 3.3 days in 2017. The average amount spent per business trip was $632, with lodging representing the largest spending category at $214. Blended travel, where business and leisure trips are combined, made up over a third of all travel, with travelers staying for an average of 4.4 days. The top 15 states ranked by business travel spending accounted for 65% of total U.S. business travel expenditures. California and New York led the pack, with spending of $35.62 billion and $23.31 billion, respectively. Nevada ranked first in terms of its ratio of business travel spend to GDP, with $6 billion of business travel spend comprising 3.2% of the state’s GDP.
The U.S. Travel & Tourism sector has contributed more to the U.S. economy in recent years than ever before. According to the World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR), the sector’s GDP contribution grew by 7% in 2023, reaching a total of $2.36 trillion, exceeding the previous record by $100 billion. This growth was accompanied by a rise in sector jobs, which increased by 656,000 to reach 18 million across the country, breaking the previous record of 17.4 million. Domestic visitors spent $1.37 trillion in 2023, up more than 9% from the previous peak in 2019. However, international visitor spending remained more than a quarter below its 2019 peak, at $156.1 billion.
International tourism continues to play a critical role in the U.S. economy’s recovery. In June 2024 alone, international visitors contributed $21.2 billion to the U.S. travel and tourism sector, a 16% increase from the previous year. This spending includes $11.7 billion on various travel-related goods and services, $3.5 billion on airline tickets purchased from U.S. carriers, and $6.0 billion on medical and educational tourism, which saw a 9% increase from 2023. Year-to-date, inbound international visitors in 2024 are up 18%, contributing nearly $126.2 billion to the U.S. economy. This resurgence underscores the importance of international travel as a driving force behind the broader recovery of the U.S. tourism sector.
In conclusion, the surge in the U.S. tourism sector is a testament to the resilience, adaptability, and innovation within the travel industry. Major destinations like New York, Miami, Los Angeles, and Orlando are not only leading in visitor numbers but are also setting new global benchmarks for tourism recovery and economic impact. This upward trend reflects the enduring appeal of these cities and the broader revitalization of the U.S. as a premier global destination. Whether it’s exploring iconic landmarks, enjoying cultural experiences, savoring diverse cuisines, or experiencing the vibrant nightlife, the U.S. offers a wealth of opportunities for travelers to create unforgettable memories and contribute to the thriving tourism economy.
