Propelling California
Since the Great Recession of 2008, the Golden State tourism industry has generated steady economic growth every year for the past decade. The industry reached new heights in 2023, when tourism contributed over $150.4 billion in travel spending, $12.7 billion in tax revenue. Tourism created 64,900 new jobs in 2023, bringing total industry employment to 1,155,000 (98% of 2019 levels).
The coronavirus pandemic ended California’s decade of travel-related growth in 2020, but the industry has bounced back and revived its economic contributions beyond 2019 levels.
Source: Dean Runyan Associates
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 $966 in taxes in 2023.
California’s Top Export
International markets accounted for nearly $1 of every $5 of visitor spending in the state before the pandemic. Tourism was historically California’s biggest export.
International visitors spent $24.3 billion in California in 2023, a 38% increase over 2022 and 15% 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.
ADDITIONAL RESOURCES
For further research, explore the following resources.
- Economic Impact by County and State, Dean Runyan Associates, Inc.
- Recovery and Growth Insights Dashboard, U.S. Travel Association
- Download Travel & Tourism Economic Impact 2024: United States, World Travel and Tourism Council