Travel and Leisure

Travel and leisure represent one of the largest service industries in the United States. Total 2024 expenditures for domestic and international travelers in the United States were more than $1.3 trillion, according to the U.S. Travel Association, including food services, lodging, transportation, recreation and amusement, and retail sales. The U.S. travel industry overall contributes $2.9 trillion in economic output, representing about 2.5 percent of the national gross domestic product. As described by the U.S. Travel Association, "travel is a top services export for [the U.S.] and has the unique ability to generate a trade surplus for the U.S. economy."

According to the International Trade Administration, the top foreign countries from which visitors came to the United States by 2024 arrivals were: Canada (20.2 million), Mexico (16.9 million), United Kingdom (4.0 million), India (2.1 million), Brazil (1.9 million), Germany (1.9 million), Japan (1.8 million), France (1.7 million), and South Korea (1.7 million).

The recession that began in 2008 had a serious impact on the travel and tourism industry, and 2009 was its most difficult year since the 2001 attacks, according to the U.S. Office of Travel and Tourism Industries. In 2009, 3 million fewer international visitors came to the United States than in the previous year, and 329,000 industry jobs were lost. The economy had strengthened in the years since, and the travel and tourism industry was rebounding, both in the United States and in other countries as well, up until early 2020. The market research group IBISWorld reports that the U.S. tourism industry grew modestly, by nearly 2 percent annually, from 2015 to 2019. In 2020, however, U.S. travel and tourism industry revenue dropped by more than 50 percent over 2019, due to the coronavirus outbreak. The pandemic had a major impact on every sector of the travel and tourism industry, due to the worldwide lockdowns and travel restrictions that were imposed in many countries, including the U.S. Many hotels, resorts, restaurants, entertainment venues, airlines, travel and tourism companies, and other related businesses were either operating at minimum capacity with new protocols, closed temporarily and laid off employees, or permanently stopped operations.

Post pandemic, the economy is rebounding and pent-up demand for travel and leisure contributed to strong growth in the industry in 2022 and 2023. According to IBISWorld, in spite of tariffs between the U.S. and other countries, the global tourism industry is expected to have annual growth in revenue of nearly 14 percent through 2025, with 1.7 percent growth in 2025 alone. Steady growth is projected through 2030. Disposable income is projected to increase in the coming years, with growth anticipated in domestic and international travel. As of early 2025 the global tourism industry was valued at $1.5 trillion, with 638,000 businesses employing 7 million people.

Air travel remains one of the most popular modes of transportation. Employment in the air transportation industry will be competitive. The U.S. Department of Labor projects most jobs in this industry, such as airline pilots, copilots, flight engineers, and others, will increase by about 5 percent through 2033, or about as fast as the average for all occupations.

Employment growth in hotels and other lodging establishments varies by specialty. The U.S. Department of Labor predicts 10 percent employment growth, much faster than average, for lodging managers through 2033. A growing number of people have been traveling for a combination of business and leisure, and prefer extended-stay accommodations, which will increase job opportunities for lodging managers. A decline in employment growth is projected for hotel, motel, and resort desk clerks and secretaries. Waiters and waitresses are expected to have 1 percent job growth, slower than the average, through 2033. Bookkeeping, accounting, and auditing clerks will have a 5 percent decline in employment in the coming years.

In 2020, the U.S. restaurant industry experienced a significant drop in revenue due to the lockdowns and social distancing requirements during the onset of the pandemic. Total revenue in the U.S. restaurant industry in 2020 was $659 billion, representing a $204 billion decrease in revenue compared to 2019. The industry has been rebounding since 2021, and is projected to reach $1.5 trillion in sales by year-end 2025, with steady growth in the years to come, according to the National Restaurant Association. Post pandemic, consumers' pent-up demand for dining out as well as for other options such as quick-service and delivery is contributing to steady growth in the restaurant industry.

Job growth in the restaurant industry varies depending on the job. According to the U.S. Bureau of Labor Statistics, food service managers and food and beverage service workers will have slower than average employment growth through 2033. There should be jobs available for chefs, cooks, and other kitchen workers. Food and beverage serving and related workers will have average employment growth through 2033. Job growth will also be due to more restaurants opening and more grocery stores, cafeterias in hospitals and residential care centers, and other nontraditional food service operations serving more prepared meals. Competition for positions at high-end restaurants will be keen as turnover is usually low at such establishments.

Job opportunities for workers in the recreation industry are expected to grow by 5 percent through 2033, about as fast as the average. Several factors contribute to the health of the industry, including double-income families, and growth at facilities catering to the middle-aged and elderly population, including golf courses, cruise lines, and other facilities that target the 50- to 75-year-old age group. The pandemic slowed growth for recreation workers in the U.S. in 2020 and early 2021, as many gyms and fitness centers, health spas, and related facilities closed to protect public health. Casinos and other recreation venues were also closed in many states. As these businesses reopened, attendance and memberships have increased and there will continue to be need for recreation workers. Overall, sports facilities, health spas, and fitness centers are popular outlets for the health-conscious public and younger adults with steadily rising incomes. Casinos will also continue to provide jobs for the industry in the years to come, as many more states pass legislation in favor of land-based casinos. Many cities and nearby suburbs house satellite betting parlors that collectively employ thousands of workers. Theme parks and amusement parks are constantly expanding and modernizing their attractions to appeal to the public.