Small business owners in popular U.S. tourist spots are observing that more Americans are choosing to stay closer to home this summer. Instead of international travel, many opt for road trips, prefer shorter day trips over extended vacations, and cook their meals rather than dining out to save money. This shift to domestic tourism arises from increased travel costs due to rising airfares and gasoline prices.
The AAA has estimated that 72.2 million Americans will travel at least 50 miles from home between June 27 and the upcoming Sunday, a slight increase from last year’s Fourth of July period. Most of this increase comes from people using cruises, buses, and trains, with no change expected in those driving or flying.
The change in travel patterns has potential benefits for local businesses dependent on tourists.
Tarik Dogru, an associate professor at Florida State University’s Dedman College of Hospitality, notes that fewer people traveling abroad or across the country means their vacation spending stays local. This shift could benefit small businesses like regional restaurants, local attractions, Airbnb hosts, and roadside businesses.
This trend may help reduce the travel and tourism trade deficit seen since the COVID-19 pandemic, where Americans spend more on international travel than foreign tourists spend in the U.S.
Morgan Kain, a Baltimore teacher, is among those restricting travel due to financial considerations. Her family typically enjoys multiple trips each summer and spent six weeks in Italy last year. However, they only plan a few short trips this summer due to rising costs.
Despite higher gasoline prices, AAA reports that 85% of travelers for Independence Day are expected to drive. Driving remains the cheaper option compared to flying for many.
In Lake Tahoe, a popular destination, several businesses have noted increased visitor traffic from nearby cities. Ron Williams, owner of Tahoe Sports, expressed concern early in the season due to economic worries but is pleased with the season’s progress. His bookings are up compared to last year.
Jerry Bindel, managing rental properties around Lake Tahoe for Pyramid Global Hospitality, noted increased demand for rentals as ski season bookings dwindled with warmer weather. He observed visitors saving money by cooking in rental kitchens and using outdoor grills.
Asheville, North Carolina, seeks a tourism rebound following Hurricane Helene’s significant damage. Aubrey Anderson, owner of a tubing outfitter, has hired more staff due to increased reservations. Visitor profiles include day-trippers from surrounding states, contributing to Asheville’s local economy.
French Broad Chocolate factory tours have seen a surge, with visitors often shopping for chocolates and enjoying the on-site cafe.
Soccer fans have flocked to Kansas City, Missouri, one of the North American sites for World Cup matches. Keith Bradley, co-owner of Made in KC, reports significant traffic spikes in their cafes and shops offering locally made products and World Cup merchandise.
Smaller Midwestern cities have drawn American tourists, offering an affordable option for World Cup experiences compared to larger host cities. Mollie Lothman, co-owner of McLain’s Bakery, notes that Kansas City’s lower costs have been a substantial attraction.