"otherwise" usually = "alternatively" (but you almost never say "alternatively" unless you are writing). Could also mean "in another case", "if not" and "or else", but it all depends on context. Here are some other translations for your original sentence "In this way, he said, people who might alternatively have comtemplated a vacation in the United States will be happy to stay on this side of the Atlantic." or "In this way, he said, people who might (without this new information) have comtemplated a vacation in the United States will be happy to stay on this side of the Atlantic." Also, here are examples of usage: "I'm glad I told him that the road was closed, otherwise he would have been stuck in traffic." = "I'm glad I told him that the road was closed; if I didn't tell him, he would have been stuck in traffic" or "... or else/if not he would have been stuck in traffic." "I hope you go to the party, otherwise your sister will be sad." = "I hope you go to the party; if you don't go, your sister will be sad." "The government announced that it is not safe to travel. People who otherwise would have gone on vacation have now cancelled their plans." = "... If the government hadn't announced this, people would have gone on vacation..." Hope that helps.

otherwise = if not Unfortunately you left out the preceding sentence. There should be something there. If that wasn't the case, people would contemplate a vacation in the US. Sorry, but without the preceding sentences I can't help further.

The meaning comes from: in another wise, in another way, in another fashion but is not really identical. In your sentence it could be 'as an alternative', 'as a preferred alternative' Other meanings: /in other circumstances, /under other conditions/