The Secret Vacation Hotspots: Why U.S. Drive-To Islands Are the Next Big Investment Play

The travel world is shifting. With rising costs of airfare, overcrowded airports, and a growing preference for “staycations,” Americans are rediscovering hidden gems within driving distance. Enter the drive-to islands—those coastal gems reachable by car or bridge, offering pristine beaches, cultural charm, and, most importantly, under-the-radar growth potential. These islands are poised to become the next tourism goldmine, and investors who act now could reap massive rewards. Here's why.

The Infrastructure Resilience Play

Let's start with the elephant in the room: climate change. Rising sea levels, hurricanes, and flooding are existential threats to coastal communities. But here's the twist—resilience is a growth driver. Federal programs like the PROTECT Act (part of the $1.2 trillion Bipartisan Infrastructure Law) and FEMA's Building Resilient Infrastructure and Communities (BRIC) initiative are pumping billions into upgrading bridges, flood defenses, and stormwater systems.

Take Jekyll Island, Georgia, a 2025 TripAdvisor Travelers' Choice winner. Its $42 million underground storm surge control facility—part of the Island End River Project—protects critical infrastructure and tourism assets. Or Mackinac Island, Michigan, where car-free policies and over 70 miles of trails in Mackinac Island State Park are being bolstered by grants to enhance trail resilience against extreme weather.

These projects aren't just about survival—they're about attractiveness. Tourists crave destinations that blend adventure with safety. The data backs this up:

The Economic Potential Goldmine

While international travel to the U.S. faces headwinds (Canadian land arrivals fell 31.9% in 2025!), domestic tourism is booming. Why? Americans are prioritizing road trips, and drive-to islands are the perfect fit. Consider:

1. South Padre Island, Texas: With its 30-mile beaches and the Beach Waterpark, it's a year-round destination. The Queen Isabella Memorial Bridge upgrade ensures accessibility, and its average 74°F temps attract snowbirds fleeing winter.

2. The Florida Keys: The Overseas Highway, one of the world's longest overwater roads, links 40 islands. The Keys' 2023 tourism revenue surged 47% over 2022, thanks to upgrades like the new eco-friendly shark observatory in Key Largo.

3. Dauphin Island, Alabama: Its $3 billion NOAA-funded coastal restoration projects (part of the Gulf Coast resilience push) are turning it into a hotspot for eco-tourism and fishing.

These islands are also job engines. For every $1 million spent in tourism, roughly 30 jobs are created. With unemployment near record lows, destinations offering skilled and unskilled jobs will thrive.

The Investment Angle: Where to Play

1. Real Estate & Hospitality: Look for boutique hotels, vacation rentals, or resort operators in these regions. Example: The Hilton Head Island luxury market has seen 22% average occupancy rate growth since 2023.

2. Infrastructure Firms: Companies like AECOM (ACM) or Louis Berger (now part of Stantec) are winning contracts for bridge upgrades and flood defenses.

3. Renewable Energy: Islands like Sanibel Island, Florida, are investing in solar-powered water treatment systems. Follow NextEra Energy (NEE) or local solar installers.

4. ETFs: The Global X U.S. Infrastructure Development ETF (PAV) tracks companies involved in infrastructure projects—perfect for a diversified play.

Risks? Yes, But Manageable

Climate disasters and funding delays (like the BRIC program's 2023 hiccup) pose risks. But with federal backing and rising private investment, these are temporary speed bumps.

Final Takeaway: Buy the Dip, but Act Fast

These islands are the next Florida or Hawaii—but at a fraction of the cost. Investors who buy into real estate, infrastructure, or local businesses now can capitalize on a wave of growth. As Jim would say: “This is a 'buy' with a capital B!”

Don't wait. The drive-to islands are the secret sauce of the 2020s. Get in before the mainstream catches on.

Invest smart, invest bold.