May is California Tourism Month — a time to recognize one of the most dynamic engines of the state’s economy: the travel and tourism industry.
In 2024, visitor spending in California reached $157.3 billion, supported 1.16 million jobs and generated $12.6 billion in tax revenue for the state and local governments.
The industry continues to demonstrate resilience, but this year brings new challenges that accentuate just how vital this sector remains. A new forecast from Visit California anticipates overall visitation in the state to decline by 0.7% in 2025 to 268 million visits — the first projected year-over-year decline in visitation since the pandemic.
Despite global uncertainty and worsening international travel sentiment, California remains the No. 1 travel destination in the United States. International travelers spent $26.2 billion here in 2024 — a 16.4% increase over the prior year.
But 2025 forecasts predict a 9.2% decline in international trips, reflecting a potential slowdown driven by weakening consumer sentiment, economic and geopolitical pressures, including a strong U.S. dollar that makes travel more expensive for visitors from other countries, and reduced airlift from key global markets.
These headwinds are real — but so is California’s appeal. Decades of investment in strategic brand building continue to pay dividends, as travelers from around the world maintain a strong connection to the Golden State.
Travel is more than just welcoming guests from another state or country — California’s 40 million residents are important contributors to the state’s tourism economy. Visit California is urging Californians to take the opportunity to explore their own backyard. By choosing to travel in-state, Californians can help support local businesses, sustain jobs and boost local economies.
Learn more about the impact of tourism in California here.
