The projected downturn is a departure from a trend of consistent and reliable growth for travel in California. In 2024, travelers in California spent $157.3 billion, a record high and a 3% increase from the year before. Visitor spending grew in 50 out of 58 California counties. The industry added 23,950 new jobs across the state, growing total travel & tourism employment to 1,165,760. State and local governments also benefited, with visitor-generated tax revenues reaching $12.6 billion in 2024.
“California tourism is a cornerstone of what is now the world’s fourth-largest economy, and the industry has proven its resilience time and again,” said Caroline Beteta, president and CEO of Visit California. “Despite pressures, especially on international visitation, Visit California remains optimistic about the state's long-term global brand strength and is focused on supporting the businesses and communities that will drive our industry forward.”
In 2024, international visitors spent $26.2 billion in California — a 16.4% increase over the prior year. However, forecasts for 2025 predict a 9.2% decline in international trips, due in part to weakening consumer sentiment, limited airlift from key global markets and a strong U.S. dollar that makes travel more expensive for visitors from other countries.
Despite these challenges, California remains the No. 1 travel destination in the United States. Visit California’s decades-long investment in cultivating global brand affinity continues to pay dividends, as travelers from around the world maintain a strong connection to the Golden State. While sentiment toward U.S. travel is worsening internationally, California’s distinct culture tends to differentiate the state from the nation as a whole.
While the threats to international travel are concerning, domestic visitors account for more than 80% of all travel spending in the state. Visit California invests 79% of its marketing to target U.S. consumers. Last year, Visit California’s domestic marketing drove an additional $27 billion of visitor spending in 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 spotlights the state’s $157.3 billion tourism economy, the state’s message to travelers around the globe remains simple and strong: You are welcome here.
Learn more and view Visit California’s 2024 Economic Impact Report here.
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.