A report released this week shows how tourism continues to support the California economy and communities throughout the state.
California remained the nation’s top travel destination in 2025, with total travel spending reaching $158.9 billion, a 1.7% increase from 2024, even as national travel demand declined.
The confirmation of the travel industry’s strength, released on April 20, was a welcome prelude to the start of California Tourism Month on May 1.
“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.”
Jobs and Revenue
The travel industry supported 1.2 million jobs in 2025, a slight increase from the previous year.
Travel-generated state and local tax revenue grew to $13.6 billion, a 3.6% increase from 2024, helping fund essential public services.
Hotel demand and occupancy exceeded national averages. Spending on accommodations grew to $35.2 billion, an increase of 2.2%. Spending on food service generated $38.5 billion, an increase of 4.6%.
Looking Ahead
Visit California says the state’s tourism industry is poised for steady growth. California is projected to welcome 276.6 million visitors this year and travel spending is expected to increase to $164.8 billion.
Major global events, including the FIFA World Cup, will showcase the state to 6 billion viewers worldwide.
In contrast, other geopolitical events may interfere with these positive trends. Recent international conflicts have increased oil prices and may increase the cost of both domestic tourism and international air travel in the near future.
Travel California
Visit California reminds Californians that their travels are critical to sustaining local economies. California’s 40 million residents help keep communities lively year-round by visiting nearby destinations, dining locally and supporting small businesses.
Learn more about the economic impact of travel in California.
