The New Landscape of American Tourism

By Danny Guerrero

The American tourism industry stands at a critical crossroads. Recent data reveals a concerning trend: international visitation to the United States is experiencing a significant downturn. According to preliminary government data as reported by the Associated Press, visits from overseas fell 11.6% in March compared to the same month last year, signaling what could become a prolonged slump in foreign tourism. Industry forecasts that once predicted a 9% growth in international arrivals have now reversed, projecting a 5.5% decline instead (Tourism Economics). This shift could result in up to $18 billion in lost tourism spending this year alone.

Now, as external factors including geopolitical tensions and policy changes have contributed to the decline in international tourism, the reality is clear: the U.S. tourism industry can no longer rely as heavily on international visitors to drive growth. This new reality presents both a challenge and an opportunity—one that requires a strategic pivot toward a more diverse domestic visitor base.

Since 2018, I've observed that diverse domestic traveler audiences haven't been adequately researched or intentionally incorporated into the multi-billion dollar tourism economy. This recognition led to the founding of The Culturist Group, with a focus on research, cultural relevance, and inclusive marketing to help bridge this gap.

The Untapped Potential of Diverse Domestic Markets

Even as international tourism faces headwinds, America's domestic travel market—valued at approximately $1.4 trillion—continues to thrive. Yet within this robust market lies significant untapped potential: diverse demographic segments whose travel spending power continues to grow but remains underserved by the tourism industry.

Consider the economic impact of these diverse communities:

• Hispanic Americans: Hispanic buying power reached $1.9 trillion in 2020—larger than the entire GDP of Italy. According to a September 2024 study by Airbnb, Hispanic travelers are expected to generate an estimated $165 billion in economic contributions by 2025, with plans to increase their annual leisure trips by 10% and spend approximately $180 more per trip compared to previous years. The study also found that 74% of Hispanic travelers take trips with extended family, emphasizing the importance of accommodating multi-generational travel experiences.
• Black Americans: According to the latest research from MMGY Travel Intelligence released in 2024, Black leisure travelers in the U.S. took over 184 million trips in 2023, with a total spend of $145 billion. This represents a 33% increase from MMGY's 2019 survey, which reported the same group spending $109.4 billion. Beyond the numbers, Black travelers are increasingly seeking authentic experiences that connect with their heritage and interests.
• Asian Americans and Pacific Islanders: This demographic spent $82.6 billion on domestic travel in 2019, making them the fastest-growing demographic in terms of travel spending. According to Nielsen, AAPI buying power has grown dramatically, increasing by 222% to $891 billion since 2000. Research from the New American Economy shows that AAPI households held $543.4 billion in spending power after taxes, with South Asian Americans, particularly those from India, contributing significantly to this economic impact. With multi-generational family travel being especially important to Asian American families, destinations that create tailored experiences for extended family groups capture valuable market share from this growing segment.
• LGBTQ+ Travelers: According to recent market research, the LGBTQ+ tourism market is projected to reach $568.5 billion globally by 2030. In the United States alone, this segment represents a market worth over $200 billion annually. IGLTA (International LGBTQ+ Travel Association) research shows that LGBTQ+ travelers tend to travel more frequently, stay longer, and spend more per trip than their non-LGBTQ+ counterparts. Notably, businesses and destinations that actively support LGBTQ+ rights see significant economic benefits, with 72% of LGBTQ+ travelers expressing a strong desire to support LGBTQ+ owned businesses during their travels. The power of inclusive marketing is clear – destinations that authentically welcome diverse travelers not only tap into this valuable market but build loyalty that extends beyond a single trip.

These numbers reveal more than just impressive spending power—they reflect communities with distinct travel preferences, expectations, and aspirations that have been historically underrepresented in tourism marketing and experiences.

Why Diversification is No Longer Optional

The case for diversifying the domestic tourism base extends beyond simply replacing lost international revenue. It represents a fundamental strategic shift that the industry must embrace for several compelling reasons:

1. Demographic Reality

America's population growth is now primarily driven by multicultural communities. The future of domestic tourism will inevitably reflect this changing demographic reality. Destinations that fail to connect authentically with diverse travelers will find themselves increasingly irrelevant in the coming decades.

I've observed that over the last decade, 100 percent of the growth in this country has been multicultural. I was honored to collaborate with Share More Stories, JMI, and Esra Calvert Consulting on the groundbreaking "Future of Travel" study, sponsored by Miles Partnership, Virginia Tourism Corporation, Richmond Region Tourism, and more recently by Visit California for the 2025 edition. This collaborative research confirmed what many of us in the industry have long suspected—that multicultural travelers represent the largest high-growth audience we'll see in our lifetime.

2. Resilience Through Diversification

The pandemic and recent international tourism downturn have demonstrated the vulnerability of tourism economies overly dependent on any single market. Destinations that cultivate relationships with multiple domestic demographic segments create natural hedges against market-specific disruptions.

3. Year-Round Visitation Patterns

Diverse domestic travelers often exhibit different seasonality patterns and destination preferences compared to traditional domestic or international visitors. This diversity can help flatten the seasonal curves that challenge many destinations, creating more stable year-round economies.

4. Innovation Catalyst

Serving the unique needs and preferences of diverse travelers drives innovation in product development, service delivery, and marketing approaches. These innovations frequently benefit all visitors while creating distinctive competitive advantages.

5. Economic Imperative

According to Expedia Group's "Journeys for All" research, two in five (40%) underserved travelers feel limited by their identity when selecting destinations or activities. Yet these same travelers represent growing market segments with significant spending power. The study reveals that underserved populations will continue to increase both in size and buying power through 2040. Tourism businesses that fail to address this market reality risk leaving substantial revenue opportunities untapped.

Building Trust and Repeat Visitation

Successfully appealing to diverse domestic travelers requires more than superficial marketing adjustments. It demands a comprehensive approach centered on building genuine trust and fostering repeat visitation:

Authentic Representation

Diverse travelers need to see themselves authentically represented in destination marketing and experiences. This means moving beyond tokenism to showcase genuine connections between communities and destinations. Marketing imagery, storytelling, and messaging must reflect the true diversity of both visitors and hosts.

Expedia Group's research highlights that representation in travel advertising significantly impacts decision-making. Their "Journeys for All" study found that 80% of underserved travelers face significant barriers during research, trip planning, and on-property experiences. For these travelers, seeing authentic representation helps reduce the extensive time they spend—an average of nine hours—ensuring destinations and accommodations are safe, welcoming, and truly inclusive.

In our work on the "Future of Travel" research, we specifically focused on multicultural travelers as core to the sample of our study —38% Black, 22% Hispanic, 16% Asian, with 27% identifying as LGBTQ+. Our collaborative findings reinforced that authentic representation isn't just a social imperative but a critical business strategy for connecting with what has become the fastest-growing segment of the U.S. travel market.

Cultural Competence + Relevance

Destinations must invest in developing cultural competence throughout the visitor journey. This includes staff training, language accessibility, accommodating diverse dietary needs, and understanding the unique safety concerns that may affect different communities when traveling.

The "Journeys for All" study reveals that safety is the top concern across all traveler groups, but the emphasis on feeling welcomed is particularly strong among Black (85%) and Latino (82%) travelers—significantly higher than the general population (75%). Understanding these nuanced priorities is essential for creating truly inclusive experiences.

In the "Future of Travel" we stress that building trust with diverse travelers requires a consumer-centric approach that goes beyond mere representation. Our findings showed that deepening connections and establishing trust leads to a sense of belonging—the ultimate goal for destinations seeking to attract and retain diverse visitors.

Community Partnerships

Meaningful partnerships with community organizations serve multiple purposes: they provide authentic cultural insights, create trust-building connections with potential visitors, and ensure tourism benefits flow back to the communities being represented.

Expedia's and the Future of Travel research both show that underrepresented populations place more importance and trust in recommendations from those who share their identity than the general population does. Establishing partnerships with identity-specific organizations helps create authentic connections with these communities and builds credibility through trusted voices.

Product Development

Beyond marketing, destinations must evaluate their actual product offerings through a lens of inclusivity. This might include developing new heritage tourism experiences, ensuring accessibility for visitors of all abilities, or creating opportunities that appeal to multi-generational travel—particularly important for many Hispanic and Asian American families.

The Expedia Group study found that 74% of Hispanic travelers take trips with extended family compared to 65% of non-Hispanic travelers, and visiting family is the top reason for travel for 61% of US Latino and Hispanic travelers. Similarly, LGBTQIA+ travelers spend the most extensive time planning—averaging 12 hours for research and planning—to ensure their accommodations are safe and truly inclusive. Destinations that create tailored experiences for these distinct travel patterns capture valuable market share.

Conclusion: A More Resilient Future

The changing landscape of international tourism to the United States presents a clear imperative for the industry: adapt or decline. By strategically diversifying the domestic visitor base to include historically underrepresented communities, destinations can not only offset international losses but build a more resilient, dynamic, and inclusive tourism economy for the future.

The numbers clearly demonstrate that Hispanic, Black, Asian American, and LGBTQ+ travelers represent not just considerable spending power but are a key future of American tourism. Destinations that recognize this reality and take meaningful action to welcome these communities will emerge as the industry leaders of tomorrow.

The travel industry must recognize that underserved travelers want to explore the world but face significant barriers. Addressing these barriers isn't just a moral imperative—it's a business opportunity. When underserved travelers spend an additional five hours researching to ensure destinations and accommodations are safe and welcoming, it represents both a challenge to overcome and an opportunity to differentiate through genuine inclusion.

The Future of Travel study demonstrates that multicultural travelers are seeking experiences that honor their intersectional identities and create a sense of belonging. By understanding these insights and implementing strategies that demonstrate nuance, balance, and cultural relevance, destinations can forge meaningful connections with the very communities that will define the future of tourism.

The path forward requires more than superficial changes—it demands a fundamental rethinking of who we serve and how we serve them.

But for destinations willing to make this commitment, the rewards extend far beyond the bottom line to creating a tourism industry that truly reflects the rich diversity of America itself.

Danny Guerrero, MBA (he/him) is the founder and CEO of The Culturist Group, the leading multicultural and inclusive, integrated marketing practice for travel brands and destinations, and a 2024 Executive MBA graduate with a Certificate in Entrepreneurship from the UCLA Anderson School of Management.