CEO Update: Focused strategy and collective momentum for the road ahead

Dear Industry Partners,

Last week, Visit California held its Fall Board Meeting in Dana Point, where we shared the latest forecast for the state’s travel economy. Despite ongoing headwinds, the data shows California is outperforming earlier projections.

In May, Tourism Economics projected a 0.7% decline in visitation to California for 2025. The updated October forecast now shows a 0.8% year-over-year increase, signaling stronger-than-expected performance across key segments.

Domestic travel continues to be the foundation of California’s tourism economy. In-state and regional demand remained steady, with domestic travelers accounting for 94% of total visitation and 83.5% of all travel spending last year. In response, we’ve adjusted our strategy to reflect this strength. For FY25/26, 91% of Visit California’s media investment is focused on the domestic market, up from 72% the previous year.

International markets are also showing pockets of momentum. Mexico, one of our most important inbound markets, has seen a notable turnaround. In May, we projected a 12% decline in visitation from Mexico for 2025. That outlook has now shifted to a 5.9% increase, highlighting a meaningful gain in market strength and traveler confidence. Italy and Japan are also trending in a positive direction, with Italian visitation expected to increase 5.4% over the previous year and Japanese visitation up 5.1%, including a 20% spike in air arrivals in August. At the same time, challenges remain. Eight of California’s 13 priority international markets are still down, with Canada seeing the steepest declines.

To reengage this critical market, Visit California will lead a CEO mission to Canada next week alongside destination leaders from across the state. The delegation will visit Toronto, Calgary and Vancouver to reconnect with trade and media partners, strengthen airline relationships and rebuild demand. Canada has long been a top source of visitors to California, and this mission builds on our work to restore confidence in the brand and accelerating recovery.

While the balance of our investment has shifted, our international offices remain fully operational and engaged. We continue to prioritize long-term global competitiveness while responding to near-term realities with discipline and clarity.

The Fall Board Meeting also marked an important leadership moment. We welcomed four new officers to the dais: Chair Ken Potrock of The Walt Disney Company, Vice Chair of Marketing Kurt Stocks of LEGOLAND California Resort, Vice Chair of Operations Kevin Fat of Fat Family Restaurant Group and Chief Fiscal Officer Shuaib Bulhan of The Hertz Corporation. The board unanimously approved their officer platform, reaffirming our shared commitment to brand stewardship, future-proofing industry marketing and passing the upcoming renewal referendum.

This comprehensive officer platform comes at a pivotal time for our industry as we prepare for the upcoming marketing renewal vote. Every six years, the tourism community reaffirms the funding that powers Visit California’s global marketing program. A YES vote ensures we can continue to drive demand, support jobs and keep California competitive. Ballots will be available starting Dec. 1 and can be submitted online or by mail. Now is the time to stand together and vote YES on the renewal.

Thank you, as always, for your partnership and support. Together, we’re navigating this moment with focus and purpose. I look forward to continuing this important work with you.

Sincerely,
Caroline Beteta
President & CEO
Visit California