The Economic Impact of Travel in California report, prepared by Dean Runyan Associates, found that visitor spending increased by 1.7% in 2025, demonstrating the resilience of the state’s travel industry in the face of global economic and geopolitical uncertainty.
The industry supported 1.17 million jobs statewide and generated $13.6 billion in state and local tax revenues to support essential public services. Travel spending expanded across 55 of California’s 58 counties, underscoring tourism’s impact across the state.
“Tourism remains an incredibly resilient pillar of California’s economy thanks to the strong foundation built over decades by the state’s travel industry,” said Caroline Beteta, president and CEO of Visit California. “Despite global challenges, the state’s brand continues to shine, drawing visitors to California’s diverse destinations and experiences and boosting local economies.”
Even as national travel demand softened last year, California outperformed the rest of the country to remain the No. 1 tourism destination in the United States. While room demand fell by 0.5% across the country in 2025, California sold an additional 1.2 million hotel room nights, an increase of 0.8%.
Stable growth in the sector can be attributed to several factors, including proactive promotion by Visit California and the state’s destinations to shore up domestic travel market share as inbound travel demand faltered. Some international bright spots also drove steady spending, including arrivals from Mexico, Japan, Italy and India.
Coming up in California
The state will celebrate California Tourism Month in May, a designation created by the State Legislature in 2016 to recognize the tourism economy’s contributions to Californians and their communities.
In June, all eyes will be on the Golden State as the FIFA World Cup kicks off with matches broadcast to an expected 6 billion viewers around the globe.
California — with its breadth of iconic destinations — is well-positioned to turn the spotlight into lasting travel demand. Megaevents such as the World Cup and the 2028 Olympics in Los Angeles have the power to shape travel decisions for a generation, Beteta said.
“California is excited to welcome the world and to show visitors why our state is the Ultimate Playground,” Beteta said. “With our 840 miles of coastline, 9 national parks and some of the world’s most iconic backdrops, California delivers an unmatched diversity of experiences that gives travelers every reason to visit and to keep coming back.”
Learn more and read Visit California’s 2025 Economic Impact Report here.
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ABOUT VISIT CALIFORNIA:
Visit California is a nonprofit organization with a mission to develop and maintain marketing programs – in partnership with the state’s travel industry – that keep California top-of-mind as a premier travel destination. For more information about Visit California and for a free California Official State Visitor's Guide, go to VisitCalifornia.com. For story ideas, media information, downloadable images, video and more, go to media.VisitCalifornia.com.