US Tourism Sector Shows Divergent Recovery from Domestic Travel

New York City welcomed 52.4 million domestic visitors in 2025, a 1.7% increase from the previous year, generating $84.7 billion in total economic impact. The city’s hotel sector led the top 25 US markets with 84.2% occupancy. Meanwhile, Nevada (Las Vegas), Arizona, Hawaii, and Florida are emerging as tourism growth leaders, benefiting from regional travel patterns and luxury tourism demand. NYC Tourism projects 66.3 million visitors for 2026, with 53.4 million from domestic travel.

Morgan Stanley analysis indicates that Middle East travel accounts for only     5% of US-specific outbound travel    , meaning US tourism exposure to the conflict is limited. Mastercard and Visa have estimated net revenue exposure to Middle East travel at just     1-2%     of total revenues .

However, TUI Group reports that     US-bound travel from Europe has declined approximately 4%     in recent months, with stricter immigration enforcement and tariff concerns contributing to softer demand. Notably, this US decline is coinciding with a surge in bookings to Middle East and Asian destinations from European travelers—a diversion pattern rather than a contraction of overall outbound travel .

The US National Travel and Tourism Office confirms that while Western European visitation has softened, certain source markets continue sending steady flows, albeit at slower growth rates