As higher airfares and gas prices make vacations ‘crazy expensive,’ small business owners say Americans are staying closer to home this summer

Small business owners in U.S. tourist destinations say they’re seeing more Americans sticking closer to home this summer, trading overseas travel for road trips, choosing daylong sojourns over extended beach stays, and cooking instead of eating out while on vacation to save money.

The reported boost to domestic tourism, though anecdotal, comes as higher airfares and gasoline prices have made vacations more expensive. The FIFA World Cup soccer tournament and celebrations of the nation’s 250th birthday have given some U.S. residents additional incentives to create summer memories without going far.

Motor club federation AAA estimated that 72.2 million Americans would travel at least 50 miles from home between June 27 and this Sunday. That’s 0.5% more than the number who got away during last year’s July Fourth travel period, but the forecasted increase is almost all due to people taking cruises, buses and trains; AAA expects no change in the number driving or flying to their destinations.

A meaningful reduction in summer globetrotting might have an upside for businesses that depend on tourists, said Tarik Dogru, an associate professor at Florida State University’s Dedman College of Hospitality. Fewer U.S. residents heading abroad or flying across the country means more of their vacation budgets are staying local too, Dogru said.

“The current economic and tourism dynamics are likely to redirect spending toward small businesses, such as regional restaurants, local attractions, Airbnb hosts, and roadside businesses along drive routes that serve budget-conscious and close-to-home travel,” he said.

If the trend holds through the summer and the rest of the year, it could reduce a travel and tourism trade deficit the United States has run since the COVID-19 pandemic. Each year since 2020, Americans spent more on foreign travel than international visitors spent on travel-related goods and services in........

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