Visit California’s 2025 economic impact report shows that, despite challenges, the visitor economy continued to deliver meaningful returns for businesses, workers and communities across the state.
In a year marked by economic uncertainty, shifting consumer behavior and significant pressure across the travel landscape, California remained the nation’s top tourism economy and continued to show the resilience of the travel industry.
The Economic Impact of Travel in California report, prepared by Dean Runyan Associates, found that visitor spending increased by 1.7% in 2025, demonstrating the resilience of the state’s travel industry in the face of global economic and geopolitical uncertainty.
“Tourism remains an incredibly resilient pillar of California’s economy thanks to the strong foundation built over decades by the state’s travel industry. Despite global challenges, the state’s brand continues to shine, drawing visitors to California’s diverse destinations and experiences and boosting local economies.”
Even as national travel demand softened last year, California outperformed the rest of the country to remain the No. 1 tourism destination in the United States. While room demand fell by 0.5% across the country in 2025, California sold an additional 1.2 million hotel room nights, an increase of 0.8%.
Takeaways
- In 2025, travel spending in California reached $158.9 billion, a 1.7% increase from $156.2 billion in 2024.
- Travel-generated employment grew by approximately 4,350 jobs in 2025, bringing the total number of travel-supported jobs in California to around 1.2 million — a 0.4% increase from the previous year.
- Travel-generated state and local tax revenue grew to $13.6 billion in 2025, up from $13.2 billion in 2024 — a 3.6% increase.
- Spending on accommodations grew to $35.2 billion in 2025, an increase of 2.2%. Spending on food service generated $38.5 billion, an increase of 4.6%.
- Visitors who stayed in a hotel, motel, or short-term vacation rental (STVR) spent a combined $83.0 billion in 2025, an increase of 2.7% compared to 2024.
