CEO Update: California Tourism Month celebrates state’s travel economy

Dear Industry Partners,

As we approach California Tourism Month in May, I am pleased to share the 2025 Economic Impact of Travel report that quantifies the critical role travel plays in California’s economy and in the strength of 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 our industry.

In 2025, California’s visitor economy generated:

• $158.9 billion in visitor spending, up 1.7% over 2024
• $13.6 billion in state and local tax revenue, up 3.6%
• 1.2 million travel jobs for California workers

These numbers speak to the scale of travel’s contribution across California, and they serve as a reminder that tourism’s value is not abstract. It is visible in the economic health of regions across the state and in the public services that visitor-generated tax revenue directly supports.

The broader national picture makes California’s performance even more meaningful. California sold an additional 1.2 million room nights in 2025, an increase of +0.8%. Nationwide, room demand declined by -0.5%.

This was not a year marked by the dramatic gains the industry saw in the immediate post-pandemic period, but California’s visitor economy continued to deliver meaningful returns for businesses, workers and communities across the state.

That kind of stability does not happen on its own. It reflects decades of work to build and sustain California’s global travel brand, along with an industry that knows how to adapt when conditions shift. As international markets remained uneven, Visit California intensified its focus on domestic travelers, helping sustain visitation and spending at a time when competition for travel demand was especially intense.

California is also seeing encouraging signs in the months ahead. Tourism Economics projects California visitation will reach 276.6 million in 2026, a 1.8% increase over last year, with travel spending expected to rise 3.5% to $164.8 billion. That outlook is supported by a strong start to the year. In January and February, California posted RevPAR growth of 2.5% and 15.4%, outpacing the U.S. and pointing to healthy demand across the state.

That momentum comes at an important time. California is entering a period of extraordinary global visibility, with major international events set to take place in our state with billions of potential travelers around the world watching. Few destinations are better positioned to turn that attention into lasting demand.

This is why California Tourism Month is so important. It gives our industry a platform to tell a fuller story about the power of travel and the benefits it delivers in every corner of the state. Tourism remains one of the clearest ways to show how a healthy visitor economy contributes to the broader health of California.

The data released today gives all of us a stronger foundation for making that case. It helps lawmakers, civic leaders and other key stakeholders see more clearly how travel supports economic opportunity and community vitality across California.

To support that effort, Visit California has developed an  industry toolkit for California Tourism Month with resources to use in your own outreach. I encourage you to share materials with elected officials, business leaders and community partners so the value of travel is being communicated clearly, consistently and in ways that resonate at the local level.

As California Tourism Month begins in May, we have an important opportunity to celebrate travel’s contributions, while ensuring those contributions are better understood by those whose decisions will shape our future.

Thank you for your partnership.

Sincerely,
Caroline Beteta
President & CEO
Visit California