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Regional Travel Boom Redefines Economic Landscapes
A massive surge in travel across the American South and Heartland has pushed tourism spending to unprecedented levels throughout 2024 and 2025. While Texas continues to dominate in total revenue, states like South Carolina and South Dakota are redefining their economic models by shifting focus from raw visitor volume to higher per-trip expenditure and diversified regional attractions.
According to recent economic impact studies and state government data published as of September 2026, these four regions have successfully leveraged a mix of cultural heritage, natural landmarks, and urban hubs to outpace national growth averages.
South Carolina Prioritizes High-Value Visitor Spending
South Carolina has pivoted its tourism strategy to emphasize "value over volume," focusing on attracting travelers who contribute more per visit. This approach yielded a record $29.2 billion in domestic visitor spending in 2024. By 2025, the state’s total economic impact reached a historic $31 billion, representing a $1 billion increase over the previous record. A significant portion of this growth was driven by $6 billion in revenue from hotels and short-term rentals.
Charleston remains the primary economic engine for the state. In 2024, the city saw 7.89 million visitors, with tourism accounting for nearly 25% of the local economy. This momentum continued into 2025, with visitor numbers rising to 7.9 million and the local economic impact climbing 2.4% to $14.3 billion.
However, the growth has not been uniform. Statewide hotel occupancy dropped by 3% in 2025, and traditional coastal hubs like the Grand Strand in Myrtle Beach experienced a cooling period. Additionally, industry reports indicate a decline in Canadian visitation due to trade tensions, which has negatively impacted cross-border spending.
| Metric | 2024 | 2025 |
|---|---|---|
| Statewide economic impact | ~$30B | $31 billion (record) |
| Domestic visitor spending | $29.2 billion | Data pending full release |
| Charleston-area visitors | 7.8 million | 7.9 million |
| Charleston economic impact | $14 billion | $14.3 billion (+2.4%) |
| Hotel/vacation rental revenue | — | $6 billion |
| Statewide hotel occupancy | Stable | Down 3% |
| Key headwind | — | Canadian visitor decline |
| Key strength | High-end, longer-staying visitors | Inland/nature-based destination growth |
South Dakota Expands Beyond Mount Rushmore
South Dakota has demonstrated an ability to grow its tourism sector even when its most famous landmark faces challenges. In 2024, statewide visitor spending reached $5.1 billion—a 4.1% increase over 2023 and a staggering 24.4% rise compared to 2019 pre-pandemic levels. This was supported by 14.9 million total visitors.
Interestingly, Mount Rushmore experienced a visitation drop of nearly 24% in 2024, falling to 1.85 million visitors. This decline was partially attributed to maintenance issues with the elevator system at Wind Cave, which halted cave tours for several months. Despite this, the state's overall growth suggests that travelers are exploring a wider array of attractions beyond the primary monument.
The trend continued into 2025, with 14.97 million visitors spending a record $5.16 billion, a 1.1% increase over the prior year. The sector now supports 59,145 jobs and generates $2.3 billion in household income, representing 4.7% of the state's total economy. This activity has resulted in roughly $1,121 in tax savings for every household in the state.
| Metric | 2024 | 2025 |
|---|---|---|
| Total visitors | 14.9 million | 14.97 million (+0.38%) |
| Visitor spending | $5.1 billion (+4.1%) | $5.16 billion (record, +1.1%) |
| Mount Rushmore visitors | 1.85 million (down 23.9%) | 1.74M through Sept (+2.8% YoY) |
| Jobs supported | — | 59,145 |
| Household income generated | — | $2.3 billion |
| Tax revenue generated | — | $406.1 million |
| Tax savings per household | — | ~$1,121 |
| 2026 positioning | — | America 250 tie-in |
Tennessee Maintains Multi-Year Growth Streak
Tennessee currently holds the most consistent growth record among the analyzed states, marking four consecutive years of record-breaking tourism. In 2024, the state saw 147 million visits, resulting in $31.7 billion in direct visitor spending—a 3.3% increase over 2023. Since 2018, Tennessee has grown by 36.6%, more than double the national average of 17.4%.
Nashville (Davidson County) continues to be a powerhouse, contributing $11.2 billion in 2024, which is approximately one-third of the state's total tourism revenue. This averages out to $30.7 million spent daily in the city.
The streak extended into 2025, with visits rising to 150 million and spending hitting a record $32.5 billion, a 2.7% increase. This growth outpaced the national rate of 1.9%. The state and local governments collected $3.3 billion in tax revenue, with $874 million allocated to the state's education fund. The Great Smoky Mountains National Park remains a critical asset; notably, during a federal government shutdown, local and tribal partners kept the park open for 40 days, attracting over 2.4 million visitors.
| Metric | 2024 | 2025 |
|---|---|---|
| Total visits | 147 million | 150 million |
| Direct visitor spending | $31.7 billion (record) | $32.5 billion (record, +2.7%) |
| Growth vs. national average | 36.6% since 2018 vs. 17.4% US | 40% since 2018 vs. 22% US |
| Nashville/Davidson County spending | $11.2 billion | County data due Sept. 2026 |
| State/local tax revenue | $3.3 billion | $3.3 billion |
| Tax savings per household | $1,170 | $1,180 |
| Key driver | Fourth straight record year | Great Smoky Mountains NP resilience |
Texas Leads in Total Economic Scale
In terms of sheer financial volume, Texas remains the undisputed leader. In 2024, the state hosted 62 million out-of-state travelers and 67 million residents taking overnight trips within state lines. This combined activity generated $97.5 billion in visitor spending.
The total economic impact for Texas reached $199.5 billion in 2024, supporting 1.3 million jobs and contributing $9.2 billion in state and local taxes. While 2025 data indicates continued growth, state officials have maintained a more conservative tone in their recent releases compared to the aggressive surges seen in smaller states.
Why This Matters: The Shift in American Travel
For the modern traveler, these trends signal a move away from "bucket-list" tourism—where one visits a single famous landmark—toward "experience-based" travel. The fact that South Dakota grew despite a dip in Mount Rushmore visitation proves that travelers are now seeking broader regional experiences, such as culinary tours and outdoor adventures, rather than just a photo opportunity.
From a logistical and economic standpoint, the "value over volume" model seen in South Carolina suggests that tourism is becoming more sustainable. By focusing on longer stays and higher spending per person, destinations can increase their revenue without putting excessive strain on local infrastructure or causing the "over-tourism" often seen in major global cities.
Furthermore, the resilience of Tennessee's tourism—specifically the ability of local partners to maintain the Great Smoky Mountains National Park during federal shutdowns—highlights a growing trend of public-private partnerships. This ensures that travel remains stable even during political or administrative volatility, providing a more reliable experience for the visitor and a steady income stream for the local workforce.
