In the face of mounting headwinds, Visit California’s new forecast from Tourism Economics anticipates overall visitation in the state will decline 1% in 2025, to 268 million visits. This is the first projected year-over-year decline in visitation since the pandemic.
“California tourism is a cornerstone of what is now the world’s fourth-largest economy, and the industry has proven its resilience time and again. Despite pressures, especially on international visitation, Visit California remains optimistic about the state's long-term global brand strength and is focused on supporting the businesses and communities that will drive our industry forward.”
The projected downturn is a departure from a trend of consistent and reliable growth for travel in California. Visit California’s 2024 annual economic impact report shows:
- Travel spending reached $157.3 billion, a 3% increase from the year before.
- Spending exceeded 2023 levels in 50 out of 58 counties.
- California saw $12.6 billion in state and local taxes generated by visitors in 2024, a 3.1% increase.
- Tourism created 23,950 new jobs in 2024, bringing total industry employment to 1,165,000. This is a 2.1% increase, but industry employment remains below 2019’s pre-pandemic peak of 1.2 million jobs.
- International visitors spent $26.2 billion in California, a 16.4% increase from 2023.
