May is California Tourism Month – a time to recognize one of the most dynamic engines of the state’s economy: the travel and tourism industry.
In 2024, visitor spending in California reached $157.3 billion, supported 1.16 million jobs and generated $12.6 billion in tax revenue for the state and local governments.
Visit California Forecast
The industry continues to demonstrate resilience, but this year brings new challenges that accentuate just how vital this sector remains. A new forecast from Visit California anticipates overall visitation in the state to decline by 0.7% in 2025 to 268 million visits – the first projected year-over-year decline in visitation since the pandemic.
Despite global uncertainty and worsening international travel sentiment, California remains the No. 1 travel destination in the United States. International travelers spent $26.2 billion here in 2024 – a 16.4% increase over the prior year.
However, 2025 forecasts predict a 9.2% decline in international trips, reflecting a potential slowdown driven by weakening consumer sentiment, economic and geopolitical pressures, including a strong U.S. dollar that makes travel more expensive for visitors from other countries, and reduced airlift from key global markets.
These headwinds are real – but so is California’s unmatched appeal. Decades of investment in strategic brand building continue to pay dividends, as travelers from around the world maintain a strong connection to the Golden State.
California Travelers
Travel is more than just welcoming guests from another state or country – California’s 40 million residents are important contributors to the state’s tourism economy. Visit California is urging Californians to take the opportunity to explore our own backyard. By choosing to travel in-state, Californians can help support local businesses, sustain jobs and boost local economies.
Learn more about the impact of tourism in California here.
