
Why Economic Developers Should Prioritize Domestic Tourism in 2025
April 21, 2025
Domestic tourism is emerging as one of the most important opportunities for communities looking to grow their local economy in 2025. According to the Tourism Economics Report, international travel to the United States is expected to drop by over 5% this year, with a projected $64 billion decline in total travel spending. Visits from Canada—the largest inbound tourism market—could fall by as much as 15%.
Combined with reduced consumer spending power due to inflation, this shift creates an urgent need for tourism organizations, economic development professionals, Main Street programs, and chambers of commerce to refocus their strategies on attracting U.S.-based travelers. In some situations, travelers looking to save money could be an advantage for communities as people elect to drive, instead of fly, and may opt to visit locations nearby as a result.