Amid growing challenges, Visit California has now released a new projection from Tourism Economics indicating that total visitors to the state are expected to decrease by 1% in 2025, totaling around 268 million trips. This marks the initial predicted yearly drop in tourism numbers post-pandemic.
The anticipated economic decline marks a shift away from the steady and dependable growth typically seen in California’s travel sector. In 2024, Californian travelers expended an all-time high of $157.3 billion, marking a 3% rise compared to the previous year. Spending by visitors expanded in 50 out of 58 counties within California. Throughout the state, this industry created 23,950 additional jobs, bringing the total number employed in travel and tourism roles up to 1,165,760. Additionally, both state and local government coffers swelled as visitor-generated taxes reached $12.6 billion in 2024.
Tourism in California serves as a pillar for one of the globe’s largest economies,” noted Caroline Beteta, who leads Visit California as both its president and CEO. “Even with ongoing challenges, particularly concerning travel from abroad, Visit California continues to hold an upbeat outlook regarding the enduring appeal of California worldwide. Our efforts remain concentrated on backing enterprises and regions that will propel our sector ahead.
In 2024, tourists from abroad contributed $26.2 billion to California’s economy—an increase of 16.4% compared to the previous year. Nonetheless, predictions for 2025 suggest a downturn with an expected decrease of 9.2% in international visits. This forecasted drop can be attributed partly to reduced consumer confidence, insufficient air connectivity from major worldwide regions, and the stronger value of the U.S. dollar which escalates travel costs for foreign travelers.
Even with these obstacles, California stays as the top tourist spot in the United States. The state’s long-term commitment to building a worldwide reputation keeps yielding rewards, since tourists across the globe continue to be closely connected to the Golden State. Despite declining international interest in visiting the U.S., California’s unique cultural identity sets it apart from the rest of the country.
Although concerns about threats to international travel persist, domestic travelers contribute over 80% of total travel expenditures within the state. Visit California allocates 79% of its promotional efforts towards American consumers. In the previous year, the organization’s targeted domestic campaigns spurred an extra $27 billion in visitor spending throughout the state.
California’s 40 million residents are important contributors to the scale of the state’s tourism economy. Visit California urges Californians to explore their own state on vacations this year. By choosing in-state travel in 2025, Californians can help sustain local businesses, drive regional economic growth and contribute to preserving the state’s competitive edge.
“Californians can make a real impact by exploring our own backyard,” Beteta said. “Every local getaway helps sustain jobs, boost regional businesses and ensure California’s diverse destinations continue to thrive.”
As California Tourism Month highlights the state’s $157.3 billion tourism industry, the message conveyed to visitors worldwide stays clear and firm: You are welcome here.
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