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Economy

OUR GROWTH ECONOMY

CALIFORNIA'S ECONOMIC ENGINE

Tourism powers communities across the state
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Achieving consistent and reliable growth over the past decade, the tourism industry remains a foundational force driving California forward – a muscular pillar of the world’s fourth largest economy. From the biggest international gateway cities to rural towns throughout the state, the impact of travel spending on local economies cannot be understated. In 2024, California’s tourism economy produced $157.3 billion in travel spending, surpassing the $150.4 billion spent in 2023.


Propelling California

Travel is one of California’s most reliable engines for job creation, revenue generation and regional vitality. In 2024, visitor spending saw a healthy 3% increase over the prior year. Growth was widespread, with spending increasing in 50 of California’s 58 counties.

The industry added 24,000 new jobs last year, with total tourism employment reaching 1.17 million. State and local governments benefitted directly, with visitor-generated tax revenues climbing $300 million over the previous year to $12.6 billion.

Source: Dean Runyan Associates

$157.3B
Travel Spending, 2024
1.17M
Jobs, 2024
$12.6B
State and Local Tax Revenue, 2024

Funding Essential Public Services

In addition to the revenue generated for tourism businesses and destinations, the travel industry is one of the biggest drivers of state and local tax revenues that fund essential public services.

These services – which include public safety, infrastructure, development, local libraries and more – benefit all Californians. Without the revenue generated by visitor spending, each California household would have had to pay an additional $938 in taxes in 2024.

taxes drive tourism forward

California’s Top Export

Tourism has historically been among California’s biggest exports.

International visitors spent $26.2 billion in California in 2024, a 16.4% increase over 2023 and 8.8% below the $28.6 billion peak in 2018. Travelers from China and other parts of Asia have been slow to return after the pandemic, hindering full recovery from the international sector.

Unfortunately, economic and geopolitical headwinds are expected to result in a 9.2% slide in international visitation to the Golden State in 2025. This is forecasted to contribute to an overall drop in visitation to California by 0.7%, representing the first projected year-over-year decline in visitation since the pandemic.

ADDITIONAL RESOURCES

For further research, explore the following resources.

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