In this article, we will discuss the 25 states with highest tourism revenue in the US. If you want to skip our discussion on the US tourism industry, you can go directly to the 5 States With Highest Tourism Revenue in the US.
According to the International Trade Administration, overseas tourists contributed $233.5 billion to the US economy in 2019. The travel and tourism industry in the US played a vital role, contributing significantly to the economy by generating $1.9 trillion in economic output and providing 9.5 million American jobs. This contribution accounted for 2.9% of the overall US GDP. Additionally, tourism industry statistics reveal that international travelers spend more in the US than in other countries, accounting for 14.5% of the total global expenditure on international travel. You can read about the 30 Top Tourists Attractions in the USA here.
In 2020, US travel expenditures recorded a 42% decline due to the challenges posed by the COVID-19 pandemic. However, as of April 2022, a recovery has taken place, with US travel spending increasing to $100 billion. This 3% increase surpasses pre-pandemic levels, driven primarily by leisure travel. On the other hand, the scenario for business travel remains complex as the increased use of video conferencing tools has resulted in remote meetings being more convenient in many situations. The historical data from the US Travel Association indicates that US travel spending typically grows by 2% to 4% annually, suggesting that there is still potential for a more substantial rebound in the future.
Major Players Shaping the Tourism Landscape
Several companies can be viewed as key players in the tourism industry. One such company is Airbnb, Inc. (NASDAQ:ABNB), which aims to offer budget-friendly accommodation options and focuses on travelers who want a more localized experience. Many tourists are interested in “living like a local,” a phrase Airbnb, Inc. (NASDAQ:ABNB) employs to attract the audience to their platform. Looking at the US tourism statistics by city in 2022, Airbnb, Inc. (NASDAQ:ABNB) hosts in the US facilitated over 44 million guest arrivals in regions without hotels. This resulted in host earnings of $10.5 billion as well as additional economic activity.
The Walt Disney Company (NYSE:DIS) stands as another major player in the tourism industry with its theme parks and hotels. A recent study by Oxford Economics revealed that The Walt Disney Company (NYSE:DIS) resulted in a total statewide economic impact of $40.3 billion in Florida during 2022. Furthermore, the company also created 263,000 direct and indirect jobs, contributing to 1 out of every 32 jobs in the state. The Walt Disney Company (NYSE:DIS) also generated a total of $6.6 billion in tax revenue. Moreover, The Walt Disney Company (NYSE:DIS) has engaged 2,500 small businesses based in Florida, contracting them to provide various products and services.
Story continues
Ranking on Fortune’s World’s Most Admired Companies List, Booking Holdings Inc. (NASDAQ:BKNG) is another notable player in the industry. It is the parent company of well-renowned brands, including Priceline.com, Booking.com, and Cheapflights. Based in Connecticut, the company’s network is spread across more than 220 countries. Booking Holdings Inc. (NASDAQ:BKNG) remains the key provider of online travel and related services, offering facilities like flight ticketing, accommodation reservation, rental car booking, and price comparison, among other things. The US travel market size is evident in the remarkable recovery of Booking Holdings Inc. (NASDAQ:BKNG) from the significant downturn during the COVID-19 pandemic. In 2022, the company reported a revenue of $17.1 billion, reflecting an increase of $6 billion from the previous year. Room reservations accounted for 91% of the total bookings made through the company this year. Furthermore, international travel statistics indicate that Booking Holdings Inc. (NASDAQ:BKNG) facilitated the booking of over 60 million rental car days and 20 million flight tickets in the same period.
Here’s what RiverPark Advisors said about Booking Holdings Inc. (NASDAQ:BKNG) in its Q3 2023 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG): BKNG was a top contributor in the quarter following better than expected bookings, revenue and profit margins in the company’s 2Q driven by strong summer travel demand. BKNG reported $40 billion of bookings, $5.5 billion of revenue, and 23% EBITDA margins, which were $1.5 billion, $300m, and two percentage points ahead of expectations, respectively. In addition to strong summer demand, management pointed to continued strength in leisure travel (they raised travel booking guidance for the remainder of the year), building momentum in its alternative accommodation business and improvement in marketing efficiency.
Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com, and OpenTable. The company has been a dominant online travel agency for more than a decade with a high-margin business model that requires limited capital expenditures, typically less than 3% of revenue, producing $6.2 billion of free cash flow for 2022 and $7.2 billion expected for 2024. The company has used its free cash flow for episodic acquisitions as well as to return cash to shareholders. BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations.”
25 States With Highest Tourism Revenue in the US
James Kirkikis/Shutterstock.com
Our Methodology
To determine the 25 states with highest tourism revenue in the US, we referred to data provided by the International Trade Administration. The states were shortlisted, taking into account the number of visitors, as a strong correlation exists between heightened visitor numbers and revenue generation. We have ranked the states in ascending order of both the number of visitors and their respective market shares in the US tourism industry.
States With Highest Tourism Revenue in the US
25. Indiana
Market share: 0.7%
Visitation figures 2022: 168,000
Indiana has gained recognition for its association with auto racing, particularly hosting the renowned Indianapolis 500 at the Indianapolis Motor Speedway. Indiana also boasts a cost of living that is 10% below the national average.
24. Wisconsin
Market share: 0.7%
Visitation figures 2022: 175,000
Wisconsin is famed for its dairy industry and boasts scenic beauty. Many tourists visit Devil’s Lake, renowned for camping and hiking opportunities. Wisconsin Dells is famous for having one of the largest water parks in America.
23. Connecticut
Market share: 0.9%
Visitation figures 2022: 225,000
Connecticut’s major attractions are its museums as well as art galleries, including the Yale University Art Gallery. Connecticut’s Beardsley Zoo and Mystic Aquarium also provide a fun experience for many families.
22. Michigan
Market share: 1.1%
Visitation figures 2022: 261,000
Michigan is famous amongst tourists due to its breathtaking landscapes and many outdoor activities, including rafting in the Menominee River. One of the most popular outdoor locations for visitors in Michigan is the Tahquamenon Falls State Park.
21. Ohio
Market share: 1.1%
Visitation figures 2022: 273,000
Ohio’s tourism sector recorded $53 billion in revenue from tourists in 2022. Popular theme parks like Cedar Point and Kings Island and locations like the Hocking Hills, Lake Erie shores, and the Cuyahoga Valley National Park are among the popular attraction points for tourists.
20. Tennessee
Market share: 1.2%
Visitation figures 2022: 292,000
The American Museum of Science and Energy in Oak Ridge, the Parthenon in Nashville, Downtown Knoxville, Andrew Jackson’s Hermitage, and the Great Smoky Mountains National Park are some of the major attractions in the state. Visitors contributed $27.5 billion in revenue to Tennessee’s tourism industry in 2022.
19. Louisiana
Market share: 1.3%
Visitation figures 2022: 314,000
The rich and diverse culture attracts tourists to Louisiana. The fur-producing region of Avery Island, the Cajun and zydeco music of Southwest Louisiana, and the State Capitol in Baton Rouge are among the popular tourist destinations.
18. Colorado
Market share: 1.3%
Visitation figures 2022: 321,000
Visitor spending in Colorado was recorded at $21.9 billion in 2021. The Colorado Springs Garden of the Gods, the Denver Zoo, and the Rocky Mountains are some of the major tourist attractions in the state.
17. Maryland
Market share: 1.4%
Visitation figures 2022: 326,000
Some of the state’s attractions are the National Cathedral in Washington, D.C., Baltimore’s Inner Harbour, and the National Aquarium.
16. North Carolina
Market share: 1.4%
Visitation figures 2022: 340,000
In 2022, North Carolina recorded visitor spending of $28.9 billion. The Blue Ridge Mountains, the Smoky Mountains, and the Outer Banks are some of the state’s top tourist destinations.
15. Utah
Market share: 1.7%
Visitation figures 2022: 412,000
In 2021, visitor spending in parks alone in Utah was recorded at $1.6 billion. The vibrant city of Salt Lake City, the state’s national parks, and dark sky parks offer visitors exceptional outdoor experiences.
14. Virginia
Market share: 1.8%
Visitation figures 2022: 438,000
The state boasts Colonial Williamsburg, a living history museum that offers an immersive experience into the era of America’s founding. Furthermore, nature enthusiasts are drawn to the state’s Shenandoah National Park, home to beautiful hiking trails that showcase Virginia’s natural beauty.
13. Georgia
Market share: 1.9%
Visitation figures 2022: 465,000
The state’s capital, Atlanta, is a famous travel destination with places like the World of Coca-Cola, the Georgia Aquarium, and the Martin Luther King Jr. National Historic Site. Another tourist destination in Georgia is Savannah, which is famous for its beautiful parks and historic neighborhoods.
12. Washington
Market share: 2.0%
Visitation figures 2022: 467,000
Washington has a range of geological features, including the Cascade Mountains, Columbia River, and Coast, which attracts many tourists. The variety of landscapes offers an opportunity for outdoor activities such as camping, wildlife viewing, and winter sports.
11. Pennsylvania
Market share: 2.5%
Visitation figures 2022: 592,000
Pennsylvania has popular tourist destinations, including Philadelphia’s Independence Hall and the Liberty Bell. The Pocono Mountains and other natural landmarks are located in the state. Pennsylvania is also famous for Hershey’s Theme Park.
10. Arizona
Market share: 2.8%
Visitation figures 2022:663,000
Millions of tourists have been drawn to the state due to its natural features, which include the Grand Canyon, Sedona, Monument Valley, and the Sonoran Desert.
9. Massachusetts
Market share: 3.4%
Visitation figures 2022: 807,000
Massachusetts attracts tourists due to its rich history and cultural sites. It is also known for universities such as Harvard and MIT. Historic downtown Boston has sites like the Freedom Trail. Meanwhile, Faneuil Hall Marketplace provides entertaining shopping and dining experiences for visitors.
8. New Jersey
Market share: 3.6%
Visitation figures 2022: 867,000
New Jersey has many natural features, including beaches and mountains, that make it popular among tourists. The Jersey Shore and Atlantic City are some of the famous destinations. The state also has many historic places, including the Ringwood Manor and Batsto Village. New Jersey has secured the ninth place on our list of 25 states with highest tourism revenue in the US.
7. Hawaii
Market share: 4.0%
Visitation figures 2022: 953,000
The state is a very popular location for tourists due to its natural beauty. There are many activities for visitors in Hawaii, including hiking, golfing, snorkeling, and surfing. The Hula culture in Hawaii is also a major attraction for tourists as it is a blend of traditional music and choreography.
6. Illinois
Market share: 4.7%
Visitation figures 2022: 1,135,000
Chicago is a famous tourist destination with places like Navy Pier, Millennium Park, and the Art Institute of Chicago. The state’s historical sites include Lincoln Home National Historic Site in Springfield.
Click to continue reading and see the 5 States With Highest Tourism Revenue in the US. Suggested articles:
Disclosure: None. 25 States With Highest Tourism Revenue in the US is originally published on Insider Monkey.
