CEO Update: California Tourism Month kicks off with new data & forecast

The CEO Update newsletter to provides critical updates on the tourism industry and visit California. Subscribe today.

Dear Industry Partners,

May is California Tourism Month, and this year our industry finds itself facing mounting headwinds that demand our shared focus and strategic alignment.
 
Today, Visit California released two key reports that bring our industry’s story into sharper focus, inform planning for destinations and businesses statewide and strengthen our collective voice in advocating for travel: the 2024 Economic Impact of Travel Report and a revised visitation and spending forecast. These reports provide a comprehensive view of the current strength of California’s tourism economy and offer a forward-looking assessment of the challenges on the horizon. They equip our entire industry with the context needed to inform local priorities, sharpen messaging and reinforce tourism’s central role in California’s economic future.

2024 Economic Impact

The Economic Impact of Travel Report confirms what we’ve long known: Travel is one of California’s most reliable engines for job creation, revenue generation and regional vitality. In 2024, visitor spending reached $157.3 billion — a 3% increase over the prior year. That growth was widespread, with spending increasing in 50 of California’s 58 counties. This year’s report provides county- and region-level detail across the state, giving destinations and businesses the data they need to measure performance, communicate value and drive investment. The industry added 24,000 new jobs last year, with total tourism employment reaching 1.17 million. State and local governments benefitted directly, with visitor-generated tax revenues climbing $300 million over the previous year to $12.6 billion.

2024 Revised Forecast

At the same time, the revised forecast signals a more cautious outlook. While growth continued in 2024, the latest projections from Tourism Economics anticipate overall visitation in the state will decline 1% in 2025, to 268 million visits. This revision reflects a complex set of challenges, particularly in international markets, where changing global sentiment, a stronger U.S. dollar and limited airlift are starting to exert pressure. We are not alone in grappling with this difficult operating environment — destinations across the United States face similar challenges. These are clear indicators that we must remain vigilant, nimble and aligned in our response.

California Loves Canada campaign

In light of these international challenges, Visit California is taking decisive action. Tomorrow, May 6 we will launch “California Loves Canada,” a campaign aimed at reigniting travel from one of our most important international markets. The campaign rollout includes a new video from Visit California highlighting how important Canadians are to California and the debut of a partnership with Expedia that provides discounts of up to 25% on over 950 California hotels, activities and attractions through a landing page made for Canadians.

This effort reflects our broader strategy as a data-driven, industry-funded and industry-led organization committed to making smart investments that drive business statewide. We’re continuing to track global sentiment in real time, and despite ongoing uncertainty, California’s brand remains resilient. Our strong advertising metrics in all markets is proof of the enduring appeal of our diverse experiences — momentum we must carry forward with clear, consistent storytelling during California Tourism Month.    

While international headwinds are concerning, it’s important to remember that domestic travel accounts for more than 80% of visitor spending in California — and Visit California invests 79% of its marketing budget in reaching U.S. consumers. Last year, Visit California’s domestic paid marketing drove an additional $27 billion of visitor spending in the state.

Earlier this morning, I hosted a call with media to ensure these insights reach a broad audience and reinforce a message we all know to be true: tourism is not a luxury, it is a foundational part of our state’s economy and deserves a seat at every decision-making table. To help our industry tell this story, we’ve developed a California Tourism Month Toolkit that includes talking points, social media assets and a customizable press release to help amplify your efforts.

This California Tourism Month, we must all step forward. The data we are releasing today tells a powerful story of an industry that lifts communities, sustains livelihoods and fuels growth. But we cannot assume that story will be told unless we tell it ourselves. We encourage you to use these tools to engage your local stakeholders, influence public conversation and reinforce tourism’s value in every forum available to you.

California’s travel industry has proven its resilience time and again. This is our opportunity to ensure that resilience translates into recognition — and into action that protects and strengthens our future.

Sincerely,
Caroline Beteta
President & CEO
Visit California