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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 2025, California’s tourism economy produced $158.9 billion in travel spending, surpassing the $156.2 billion spent in 2024.


Propelling California

Travel is one of California’s most reliable engines for job creation, revenue generation and regional vitality. In 2025, travel spending saw a modest 1.7% increase over the prior year. Growth was widespread, with spending increasing in 55 of California’s 58 counties.

The industry added 4,350 new jobs last year, with total tourism employment representing 1.17 million jobs in California. State and local governments benefitted directly, with visitor-generated tax revenues increasing 3.6% to $13.6 billion.

Source: Dean Runyan Associates

$158.9B
Travel Spending, 2025
1.17M
Jobs, 2025
$13.6B
State and Local Tax Revenue, 2025

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 $1,008 in taxes in 2025.

taxes drive tourism forward

California’s Top Export

Tourism has historically been among California’s biggest exports. With international visitors spending $25 billion in the Golden State in 2025, travel & tourism export surpassed other leading state sectors, including aerospace ($17 billion) and agriculture ($22-$24 billion), and was second only to computers & electronics.

ADDITIONAL RESOURCES

For further research, explore the following resources.

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