Minnesota Joins Alaska, Florida, Utah, California, and Idaho in Driving a Tourism Shockwave With Record Arrivals and Hotel Occupancy in 2025 Despite US Travel Slowdown: New Report

Published on August 20, 2025

By: Rana Pratap

Minnesota joins Alaska, Florida, Utah, California, and Idaho in driving a tourism shockwave in 2025 because travellers are flocking to states that offer strong nature, adventure, and lifestyle experiences even as the wider US travel slows down. Record arrivals and hotel occupancy are being fuelled by pent-up demand, cheaper domestic travel compared to international trips, and state-level investments in tourism campaigns. The new report highlights how Minnesota is drawing lake and outdoor lovers, Alaska is winning cruise and wildlife travellers, Florida is surging on theme parks and beaches, Utah is booming on national parks, California is thriving on entertainment and culture, while Idaho is rising as a hidden gem. Together, these six states show that targeted experiences and local strengths are beating the US tourism slowdown with unprecedented numbers.

The new report shows that arrivals are climbing at record levels in these destinations. Hotels are full, rates are rising, and travellers are not holding back. Minnesota leads the trend, yet Alaska, Florida, Utah, California, and Idaho are right behind. Each state is capturing demand in its own way, but the shockwave is clear. While other regions face a slowdown, these states are creating momentum.

The tourism shockwave shows resilience in the face of challenges. Minnesota, Alaska, Florida, Utah, California, and Idaho highlight how travellers still crave experiences. From the mountains of Utah to the beaches of Florida, from the wilderness of Alaska to the cities of California, demand is spreading. Idaho and Minnesota are proving that secondary destinations can surge too. In 2025, despite the US tourism slowdown, these states are producing record arrivals and hotel surges. The new report confirms that a powerful tourism shockwave is driving America forward.

Florida’s record arrivals test airport capacity

Florida welcomed 15.9 million visitors by July 2025. More than 99 percent arrived by air, showing the state’s heavy reliance on airports. June saw 1.6 million arrivals, while July rose to 1.8 million. This air-driven model makes Florida resilient to road fluctuations but vulnerable to airport delays. Orlando, Miami, and Tampa airports face daily congestion as airlines add routes and expand schedules. The constant surge highlights Florida’s strength as a global destination, but also exposes its dependence on infrastructure that is already running near maximum capacity.

Hotels in Florida thrive under this demand. Resorts in Orlando fill with families visiting theme parks, while Miami’s hotels benefit from luxury travellers and cruise passengers. Occupancy rates remain high, forcing hotels to raise nightly rates to match demand. The hotel sector enjoys record revenues but must cope with staff shortages and pressure on facilities. Florida’s success is clear, but its airports and hotels require urgent investment. Without more capacity, growth may outpace infrastructure, risking delays and declining visitor satisfaction. The Sunshine State shines brightest, but it must strengthen its foundations.

California balances road and air while hotels adapt

California dominates the US tourism landscape with 77.5 million visitors until July 2025. Road arrivals lead, with 43.5 million, while 17.3 million came by air. June hosted 8.3 million travellers, though July dipped to 7.7 million. This mix shows California’s unique position as both a domestic and international hub. Road trips from neighbouring states fill beaches, parks, and wine country, while international travellers keep San Francisco and Los Angeles hotels busy. California’s ability to balance domestic and global markets gives it a natural resilience, even as global headwinds challenge overseas arrivals.

Hotels across California reflect this mix. Urban hotels in Los Angeles and San Francisco report strong occupancy, while luxury properties in Napa and coastal resorts command premium prices. San Diego hotels exceeded 81 percent occupancy in June. But international arrivals fell nine percent, led by weaker Canadian demand. Hotels adjusted rates to balance lower overseas bookings with rising domestic road traffic. The state’s lodging industry thrives on diversity, yet the decline in international numbers reminds leaders that California must remain globally competitive. Investment in marketing and infrastructure is key to sustaining its hotel sector dominance.

Utah grows through air arrivals but faces risks

Utah’s tourism story is driven by air. By July 2025, the state welcomed 502,011 visitors, with over 99 percent arriving by plane. June recorded 57,076 tourists, while July climbed to 59,528. Salt Lake City airport is the essential hub, connecting skiers, hikers, and international travellers to the state’s attractions. Air arrivals make Utah’s growth clear but also highlight its vulnerability. A heavy dependence on airlines means disruptions in schedules, costs, or global shocks could slow growth overnight. Utah’s adventure tourism appeal keeps it strong, but dependence on one entry mode creates risk.

Hotels in Utah mirror this pattern. In 2024, hotel occupancy averaged 63.7 percent, with average daily rates climbing nearly four percent to $161. Revenue per room grew by three percent. Hotels in ski towns and national park gateways enjoy seasonal peaks in June and September. Yet short-term rentals compete strongly, although their occupancy lags behind hotels. The lodging industry must innovate, adding capacity and diversifying offerings. Utah’s hotels thrive today, but unless the state strengthens its access model and manages competition, its growth could face sudden limits.

Minnesota balances visitors across road and air

Minnesota welcomed 2.2 million tourists until July 2025. Of these, 1.2 million arrived by air, while 901,731 travelled by car. June brought 257,502 visitors, and July climbed to 266,630. This balance demonstrates Minnesota’s strength in attracting both road-trippers and air travellers. Families drive in for lake retreats and outdoor festivals, while flights bring visitors to Minneapolis for cultural attractions and events. International arrivals, however, are down 13 percent compared with 2024, creating pressure on hotels and airlines. The state must balance international weakness with domestic growth to maintain momentum.

Hotels across Minnesota remain steady thanks to this dual inflow. Urban hotels in Minneapolis benefit from air arrivals and business travel, while rural and lakeside resorts fill with car-based visitors. National hotel occupancy dipped slightly in Q2, but Minnesota’s balanced system helps keep its rates competitive. Road access allows resilience, cushioning the drop in international demand. For Minnesota, the challenge is sustaining growth while rebuilding international markets. Hotels remain busy in summer, but long-term success depends on stronger overseas connections and year-round strategies.

Idaho thrives on road trips but lags in flights

Idaho’s tourism is built on the road. The state saw 276,379 tourists until July 2025, with 214,482 arriving by car and just 1,977 by air. June reported 34,279 visitors, while July spiked to 48,880. These numbers confirm Idaho’s status as a road-trip destination. Mountains, rivers, and natural escapes attract domestic travellers who prefer driving. Air arrivals remain tiny, limiting Idaho’s ability to reach national and international markets. While road-based tourism provides stability, it also caps potential growth. Idaho must attract more airlines if it wants to expand its tourism footprint.

Hotels in Idaho benefit from this strong domestic road trade. Inns, motels, and cabins see high summer occupancy. Families and adventure seekers dominate stays, keeping rural properties busy. But the hotel sector faces limits because air travel is so weak. Without strong flight access, upscale hotels and city properties cannot attract enough international guests. This leaves growth concentrated in peak summer months. Idaho thrives on its natural appeal, but its hotels must push harder for air links and marketing campaigns to grow beyond its strong road base.

Alaska balances cars, flights, and cruises

Alaska recorded 265,000 visitors by July 2025. Of these, 136,000 arrived by car and 113,000 by air. June saw 56,800 arrivals, with July rising to 63,000. Cruise ships add millions more, funnelling travellers into Alaskan ports. This balance between car, air, and cruise makes Alaska unique. Its mix reduces risk, but dependence on cruise schedules also creates vulnerability. When cruise capacity rises, hotels and towns thrive. But when it dips, occupancy falls sharply. Alaska’s remote geography makes it resilient yet fragile at the same time.

Hotels in Alaska feel these trends directly. Properties in Juneau and Ketchikan fill quickly during cruise season, often selling out weeks in advance. Lodging remains limited in many towns, leading to capacity stress. Air arrivals bring adventure tourists, while road traffic from Canada adds balance. Yet the hotel sector struggles to expand due to high costs and limited infrastructure. Without investment, Alaska risks bottlenecks that frustrate travellers. The state proves that success can also create strain. Hotels must expand strategically to meet demand while protecting fragile ecosystems.

Minnesota joins Alaska, Florida, Utah, California, and Idaho in driving a tourism shockwave in 2025 because travellers are choosing states with powerful natural attractions, diverse experiences, and strong local tourism investment, leading to record arrivals and hotel surges despite the wider US travel slowdown.

Strength, strain, and urgent lessons

The combined story of arrivals and hotels across these six states shows both resilience and risk. Florida and California dominate, but face capacity pressure. Utah thrives on air but risks over-dependence. Minnesota balances arrivals and proves stability. Idaho thrives on road travel but lacks flight connectivity. Alaska balances three modes but suffers from hotel shortages. Each state has unique strengths, but all face urgent challenges. The lesson is clear. Invest in airports, strengthen hotels, diversify arrivals, and adapt quickly. Tourism in 2025 is powerful, but without action, it could expose cracks instead of delivering growth.