Published on December 24, 2025
By: Tuhin Sarkar
Indiana has joined Arizona, California, Florida, Tennessee, Illinois, and other U.S. states on the rise as the tourism economy soars to a record high. Last year, tourism in these states reached new heights, with visitor spending and job creation thriving like never before. However, in 2025, Canadian tourists are punishing the U.S. travel sector, causing significant disruptions. Despite the surge in U.S. tourism, Canadian visitors are choosing other destinations, impacting the overall growth. This article explores how Indiana and other states are coping with this challenge while their tourism economies continue to rise. Read on for the full story.
Indiana has witnessed an impressive resurgence in tourism, surpassing pre-pandemic levels and showing remarkable growth in visitor spending, jobs, and tax revenue, according to the latest report released by Governor Mike Braun. The data paints a positive picture for the state’s economy, with tourism serving as a significant engine of growth, driving billions of dollars in spending, supporting hundreds of thousands of jobs, and bolstering local communities.
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In 2024, Indiana welcomed 83 million visitors, marking a 1.9% increase from the previous year. This steady growth not only reflects the state’s appeal as a travel destination but also indicates a return to normalcy in the tourism sector after the disruptions caused by the pandemic. The state’s attractions, events, and unique experiences continue to draw visitors from across the country and around the world.
Visitor spending hit a remarkable $16.9 billion, a 4.7% increase from the previous year. This increase in spending signifies a full recovery to pre-pandemic levels, a major milestone for the state. With a growing trend in visitor spending, Indiana is cementing its status as a key player in the tourism sector.
The upward trend in visitor spending is evident in the $203 spent per visitor in 2024, a figure that continues to rise year after year. This not only highlights the growing attractiveness of the state as a tourist destination but also underscores the value visitors place on the diverse range of experiences Indiana has to offer.
Tourism has become a pivotal part of Indiana’s economy, providing critical support for more than 210,000 full- and part-time jobs across the state. This represents a significant contribution to the local economy, ensuring that communities benefit from the influx of visitors. These jobs span various sectors, including hospitality, transportation, retail, and entertainment, each of which plays a vital role in ensuring that tourists have a seamless and enjoyable experience.
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The economic impact of tourism extends far beyond job creation, with the industry generating a staggering $3.2 billion in tax revenue. This includes $1.4 billion in federal tax revenue, $1.1 billion in state tax revenue, and $740 million in local tax revenue. This influx of tax dollars has a direct impact on funding essential public services, such as infrastructure, education, and healthcare, ultimately benefiting residents and visitors alike.
Indiana’s tourism growth is not limited to leisure travel. Business travel has also surged, with a 10% increase in both group and transient segments. This rebound is a clear indicator of the state’s growing reputation as a business hub, with meetings, conventions, and events becoming an integral part of the state’s tourism landscape.
In addition, international travel has seen a steady rise, growing by 4.7% in 2024. This continued positive trajectory highlights the state’s increasing prominence as a destination for global travelers. With its diverse offerings and welcoming atmosphere, Indiana is becoming more recognized on the international stage, attracting tourists from Europe, Asia, and beyond.
One of the most significant impacts of Indiana’s booming tourism industry is the way it strengthens local communities. With every $1 spent by visitors, 65 cents remains within Indiana’s economy. This money circulates through local businesses, contributing to job creation, infrastructure development, and the enhancement of public services. Communities large and small are reaping the benefits of the state’s tourism success.
Local businesses, from small family-owned restaurants to large hotels and resorts, are seeing the positive effects of increased tourism. The surge in visitor spending is also providing opportunities for entrepreneurs and innovators to launch new ventures, further diversifying the state’s economy and ensuring that Indiana’s tourism industry continues to evolve and grow.
The U.S. tourism industry is experiencing a phenomenal boom as the economy rebounds from the pandemic and visitors flood into the country like never before. From California’s sun-kissed beaches to New York City’s towering skyscrapers, tourism in 2024 and 2025 is defying expectations and proving to be one of the largest engines driving the economy. With soaring visitor spending, an ever-expanding hotel industry, and tourism-supported jobs skyrocketing, the U.S. is back in business and stronger than ever.
In 2024, tourism spending in the United States hit $1.335 trillion, an incredible 2.4% increase from the previous year, marking an unmistakable recovery from the pandemic. The growth didn’t stop there. U.S. travel spending is set to rise even further, with estimates suggesting it will reach $1.35 trillion in 2025. According to the U.S. Travel Association, domestic travel accounted for nearly 97% of this total, proving that the U.S. remains a tourism powerhouse. With inflation-adjusted growth, the tourism sector’s massive spending surge has been pivotal for revitalizing local economies and communities across the country.
What does this mean for you? More opportunities to explore, shop, eat, and stay in some of the most iconic locations, from the beaches of Florida to the peaks of the Rockies. As visitors flock to U.S. cities and destinations, it creates a ripple effect of positive growth across sectors like hospitality, entertainment, and retail.
As tourism grows, so does employment. According to the U.S. Travel Association, more than 210,000 jobs were added to the tourism sector in 2024, bringing the total number of tourism-supported jobs in the U.S. to an astounding 15 million. This includes roles in hospitality, transportation, event planning, and more. This is a significant boost for local economies, with tourism creating high-paying, diverse opportunities across the country. The hotel industry alone employed over 2.17 million people, contributing a hefty amount to the national economy.
As states like California, New York, and Florida continue to dominate the tourism job market, places like Tennessee and Arizona are also reporting record-breaking job growth. For every $1 spent by visitors, an impressive 65 cents stays within the local economy, benefiting everyone from restaurant owners to guides, creating a vibrant economic ecosystem.
The United States isn’t just booming for domestic tourists. International visitors made a monumental return in 2024, with the National Travel and Tourism Office (NTTO) reporting 72.4 million international visitors. This was a 4.7% increase compared to 2023 and reflects rising global confidence in the U.S. as a destination for adventure, business, and leisure. The projected increase in 2025, reaching 77 million international visitors, will continue to fuel this upward momentum.
As international travellers flock to New York, California, and Florida, states like Arizona and Illinois are also seeing a surge in foreign visitors, creating a dynamic blend of cultures across U.S. cities. This increased international tourism is expected to continue as the U.S. reaffirms its position as a top global destination.
The hotel industry has seen a dramatic rise in both occupancy rates and spending. Hotel occupancy rates in 2024 averaged around 63%, and that number is projected to continue to grow in 2025. Hotels in cities like New York, Los Angeles, and Miami are reporting record-high revenues, with $162 per room in the average daily rate (ADR). This indicates that visitors are not just coming in large numbers—they are spending more money per visit. The hotel industry alone supports millions of jobs, with more than 2.17 million people employed in hospitality.
In California, Florida, and New York, the hotel sector is experiencing unprecedented growth, both in terms of revenue per room and the number of rooms sold. Visitors are flocking to luxury resorts, boutique hotels, and budget accommodations alike, all contributing to a strong hotel market across the U.S. States like Tennessee, Arizona, and Illinois are also seeing rising hotel revenues, with the hotel tax revenue hitting new highs.
While national figures are impressive, specific states are seeing even more spectacular numbers. Arizona, for example, saw $29.7 billion in visitor spending in 2024, up 1.1% from 2023. In New York City, tourism boomed with a 3.5% increase in visitors, hitting a record-breaking 64.3 million visitors. The California tourism economy alone generated a massive $48.5 billion in 2024, ranking it among the top tourism destinations globally. These states—along with Florida and Virginia—continue to outperform in terms of tourism revenue, visitor numbers, and job creation. Visit California, Visit Florida, and other state tourism boards are optimistic about 2025, predicting even greater numbers.
California continues to dominate the U.S. tourism market. In 2024, the state saw a massive surge in visitor spending, contributing $48.5 billion to the economy. The state’s iconic attractions like Los Angeles, San Francisco, and San Diego remain top destinations for both domestic and international travelers. The hotel industry in California had its best year yet, with $813 million in increased spending on accommodations. California’s tourism sector generated over $5.3 billion in tax revenue, benefiting both state and local governments. Hotels across the state reported record occupancy rates and increased Average Daily Rates (ADR), further boosting the economy. California’s tourism infrastructure is set to expand even more in 2025, with growth in visitor arrivals expected to continue at a steady pace.
Florida’s tourism sector is thriving with record visitor numbers and $31.7 billion in tourism spending in 2024. The state welcomed more than 100 million visitors, a testament to its status as one of the top global travel destinations. Orlando, Miami, and the Florida Keys continue to attract both domestic and international tourists, driving hotel stays and visitor spending. Florida’s tourism industry also generated $5.5 billion in state and local taxes, reinforcing the importance of tourism as an economic driver. The hotel market in Florida is booming, with rising occupancy rates across its resort and hotel sectors. In 2025, Florida is projected to see even higher numbers in terms of both international and domestic visitation, with tourism employment continuing to rise.
New York City remains a powerhouse of tourism. In 2024, New York City attracted 64.3 million visitors, a growth of 3.5% over 2023. The city’s renowned landmarks, including the Statue of Liberty, Times Square, and Central Park, continue to be major draws for tourists. Visitor spending in the city reached an all-time high of $51 billion, generating substantial tax revenue for the city and state. The hotel industry in New York City has seen a significant increase in room nights sold, with tourists willing to pay higher prices for the city’s diverse accommodations. The recovery of business travel in New York City, driven by conferences, meetings, and events, has also contributed to the city’s economic boom. New York is on track to welcome 67 million visitors in 2025, solidifying its position as a global tourism leader.
Texas is seeing significant growth in tourism, particularly in domestic travel. In 2024, the state welcomed millions of visitors, with Austin, Dallas, and Houston emerging as top destinations for both leisure and business travel. Texas tourism spending hit $34 billion in 2024, and the state saw strong performance in hotel stays, particularly in major metropolitan areas. The hotel occupancy rate in Texas was near 70%, reflecting the rising demand for travel to the state. The surge in tourism-related employment in Texas has been significant, with more than 350,000 jobs supported by the tourism industry. Texas is set to continue its tourism expansion in 2025, with increased spending and hotel demand expected across the state.
Tennessee is experiencing an unprecedented tourism boom, with $35.1 billion in visitor spending recorded in 2024, an increase of 5.4% from the previous year. The state’s music scene, with iconic destinations like Nashville and Memphis, continues to attract tourists from all over the world. Tennessee’s hotel industry has flourished, with increased demand for rooms, particularly during peak tourism seasons. The state’s tourism sector has generated $2.5 billion in state and local taxes, providing much-needed funding for infrastructure and public services. With continued growth in both leisure and business travel, Tennessee’s tourism outlook for 2025 is exceptionally bright, and the state is poised for even greater success.
Illinois is another state seeing remarkable growth in tourism. In 2024, the state recorded $48.5 billion in visitor spending, with Chicago remaining the key tourism hub. The city’s iconic architecture, museums, and attractions continue to draw millions of tourists each year. The hotel sector in Illinois experienced a significant boost, with record-breaking room nights sold and rising Average Daily Rates (ADR) across the state. In addition, Illinois saw strong growth in international tourism, with a substantial rise in visitors from Europe and Asia. The tourism industry in Illinois supported 282,165 jobs in 2024, making it a major contributor to the state’s economy. Illinois is expected to continue its upward trajectory in 2025, with more visitors and higher spending anticipated.
Virginia’s tourism sector has been on the rise, with $35.1 billion in visitor spending recorded in 2024, a 5.4% increase from the previous year. The state’s diverse offerings, from the historic landmarks in Virginia Beach to the cultural attractions in Richmond and Charlottesville, continue to attract visitors. The hotel industry in Virginia has also experienced growth, with rising hotel occupancy and increased visitor spending. In 2024, the state generated $4.6 billion in tax revenue from tourism-related activities. With strong performance in both leisure and business travel, Virginia’s tourism industry is expected to continue its robust growth in 2025.
Arizona is another state where tourism is thriving. In 2024, Arizona’s tourism spending reached $29.7 billion, reflecting a 1.1% increase from the previous year. The state’s iconic attractions, including the Grand Canyon, Sedona, and Phoenix, continue to draw millions of tourists. Arizona’s hotel market saw significant growth, with record occupancy rates and higher Average Daily Rates (ADR). Tourism also supported 193,860 jobs in the state, with employment in the hospitality and travel sectors seeing strong growth. Arizona’s tourism sector is set to continue expanding in 2025, with further increases in visitor spending and hotel stays expected.
Hawaii’s tourism sector is showing no signs of slowing down. In 2024, Hawaii saw 7.3 million visitors, with total visitor spending reaching $16.17 billion, a 4.9% increase from the previous year. Hotel stays in Hawaii continue to be in high demand, with resort occupancy rates at record levels. The tourism industry in Hawaii supports a large number of jobs, with over 190,000 workers employed in tourism-related positions. As one of the most sought-after travel destinations in the U.S., Hawaii is poised for further growth in 2025, with both domestic and international visitors flocking to the islands.
For example, Virginia hit $35.1 billion in visitor spending in 2024, an increase of 5.4% from the previous year, with 230,000 jobs supported by tourism. This growth was led by an increase in international tourism spending, which grew by 16.5%. Arizona also reported strong growth, with $29.7 billion in visitor spending and a 3.2% increase in jobs supported by the tourism industry. These examples show how state tourism is the driving force of local economies.
Looking forward, 2025 is set to bring even more impressive results. Projections suggest that U.S. tourism revenue will continue to grow, with international visitation projected to rise to 77 million by the end of the year. The U.S. will remain a top destination for global travellers, as more cities expand their tourism infrastructure, tourism-driven jobs increase, and visitor spending rises year on year. States like New York, California, and Florida will lead the charge, while others like Tennessee and Illinois continue to rise in prominence.
With more international travellers seeking out unique American experiences and the U.S. continuing to offer unmatched tourism offerings, 2025 promises to be another stellar year for U.S. tourism. If you’re planning a trip to the U.S., get ready for a booming tourism landscape with more jobs, higher wages, and unforgettable travel experiences. U.S. Travel Association.
How Canadian Tourists Are Impacting U.S. Tourism in 2025
In 2025, Canadian tourists are significantly reducing their visits to the United States, resulting in a notable decline in visitor spending, hotel stays, and overall tourism growth. This shift is having a direct impact on the U.S. tourism industry, particularly in states that heavily rely on cross-border traffic. A combination of political tensions, rising costs, and diplomatic disputes has led many Canadians to cut back on U.S. travel, with many opting for alternative destinations like Europe, Mexico, or domestic getaways.
Statistics show that Canadian visits to the U.S. have fallen sharply in 2025, with a 26.3% decrease in travel in October alone compared to the previous year. This decline is particularly evident in cross-border travel, with car visits dropping by 30.2% and air travel falling by 15.1%. According to Statistics Canada, this marks a steep drop from previous years, signalling a broader trend. The reduction in Canadian visitors is especially impactful in border states like Washington, Michigan, and New York, which depend heavily on cross-border tourism.
States near the U.S.-Canada border are feeling the brunt of this decline. For instance, Washington State experienced a 24% drop in border crossings in 2025, while New York and Vermont are also seeing fewer Canadian visitors. These states rely on Canadian tourists to fuel local businesses, with industries such as hospitality, restaurants, and retail being the hardest hit. Hotels are reporting lower occupancy rates, and local retailers are seeing reduced sales as fewer Canadians come to shop, dine, and stay overnight. The tourism sector in these states has faced millions in lost revenue, and many local businesses are struggling to stay afloat in the wake of these decreases.
A significant factor contributing to this decline is political tensions between the U.S. and Canada. Many Canadians have openly stated that they are choosing to avoid U.S. travel due to diplomatic conflicts and policy changes that have soured relations between the two countries. The ongoing tariff disputes, coupled with the economic impact of trade tensions, have led to a boycott mentality among a segment of Canadian travellers. As a result, Canadians are making a conscious decision to visit other destinations, leaving U.S. tourism struggling to recover its former strength.
The drop in Canadian tourism is also impacting U.S. airlines. Air Canada and WestJet have reduced the number of flights on popular U.S.-Canada routes, citing lower demand. With fewer Canadian visitors flying to major U.S. cities, airlines are adjusting their capacity and redirecting resources to routes with more stable demand. This shift is reflected in the air travel sector, which has faced increased cancellations and reduced seat availability for U.S.-bound flights from Canada. Forbes reports that these changes are making it harder for the U.S. to attract international tourists, especially from Canada.
As the decline in Canadian tourism continues into 2025, U.S. tourism officials are working hard to counteract the negative impact. They are exploring new ways to market the U.S. as an attractive travel destination for Canadians and are adjusting their strategies to appeal to other international markets. However, restoring the steady flow of Canadian visitors will take time and effort. With political and economic tensions remaining high, it is uncertain when, or if, Canadian tourism will fully rebound.
In conclusion, Canadian tourists are punishing U.S. tourism in 2025 with a drastic reduction in visits. The result is a loss of revenue for border states, a slowdown in the hotel and hospitality industries, and a significant shift in travel behavior driven by political and economic factors. For U.S. tourism to recover, it will need to focus on strengthening relationships with Canadian visitors while expanding outreach to new international market.
As we look to the future, Indiana’s tourism industry is poised for continued growth. The state has shown resilience and adaptability, bouncing back from the pandemic stronger than ever. With a strong foundation of visitor spending, job creation, and tax revenue, Indiana is well-positioned to continue attracting visitors from across the globe.
The state’s tourism success is not just about numbers – it’s about creating experiences. Whether it’s exploring the vibrant cultural scene in Indianapolis, enjoying outdoor adventures in Indiana’s many parks, or attending one of the state’s world-renowned events, visitors are drawn to Indiana’s diverse offerings. This broad appeal ensures that tourism will remain a cornerstone of the state’s economy for years to come.
Governor Mike Braun’s report emphasizes that tourism is a vital part of Indiana’s economic success, and with the continued growth in visitor numbers, spending, and international interest, the future looks brighter than ever for the Hoosier State.
Indiana’s tourism sector is thriving, with record-breaking growth in visitor spending, job creation, and tax revenue in 2024. The state’s appeal as a destination for both leisure and business travelers has never been stronger, and the positive trajectory is set to continue in 2025 and beyond. With tourism continuing to be a major driver of economic growth, local communities, businesses, and the state as a whole will continue to benefit from this vibrant and dynamic industry. As Indiana’s tourism economy flourishes, the state remains a key player in the national and international travel landscape.
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Wednesday, December 24, 2025
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Wednesday, December 24, 2025
Wednesday, December 24, 2025
Wednesday, December 24, 2025