Research Brief
Rumors of US hospitality sector demise have been exaggerated
Despite fewer international visitors and weakening economic confidence, the US leisure and hospitality sector is proving resilient
August 25, 2025
Updated July 16, 2026Most metros have seen strong growth in leisure and hospitality jobs over the past year, and this trend is expected to hold across 2025.
Oklahoma City, Orlando, Honolulu, Tucson, and Buffalo have seen the strongest gains among the major metros.
Domestic travel demand is driving much of the growth and helping to offset a decline in international visitor numbers.
Tariffs are fueling an economic slowdown and higher inflation, which will particularly affect lower-income consumers.
Declines in inbound travel demand will persist in 2025, particularly from Canada and Mexico.
The One Big Beautiful Bill Act, the 2026 World Cup, and the 2028 Olympics will boost consumer spending and attract visitors to major metros.
