Economic Impact of Travel in California 2014-2023
Authored by Dean Runyan Associates, Inc.
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Impact Report (PDF) PDF
(Date Of Publication: April 30, 2024)
Impact Report (PDF) PDF
(Date Of Publication: April 30, 2024)
This report assesses the economic impact of travel to the state of California, the 12 tourism regions, and 58 counties.
The travel industry represents an important component of California's state economy. This report describes the economic activity associated with travel throughout the state, detailing important trends within the industry. Spending, employment, earnings, and taxes are the key metrics used to measure the economic impacts of travel. Note that some destinations in California calculate visitation and economic impacts using different definitions of visitors and different data-gathering methods, so figures may not match.
MAJOR TAKEAWAYS
- In 2023, travel spending grew to $150.4 billion, a 5.6% increase from the prior year. Since the peak of 2019, travel spending has grown by 3.8%.
- The travel industry supported approximately 1.2 million jobs in 2023, a 5.9% increase from the prior year. As of 2023, California’s travel industry has restored 98% of the jobs compared to 2019.
- Travel-generated state and local tax revenue increased to $12.7 billion in 2023, an increase of 3.7% from the prior year. Compared to 2019, travel-generated tax revenue has grown by 3.0%.
- Visitors who stayed in a hotel or motel spent $63.3 billion in 2023, an increase of 5.4% from 2022. Visitors who stayed in a short-term vacation rental (STVR) spent $12.7 billion in 2023, an increase of 1.5% compared to 2022.
California’s travel and tourism industry is represented by accommodations, transportation and rental cars, restaurants, retail stores, attractions, gasoline service stations, and other businesses that serve travelers. Traveler spending benefits tourism providers across all industry segments and across all of California's regions.
EMPLOYMENT
Travel-related spending in 2023 supported 1.2 million jobs statewide. Direct travel-generated employment refers to the total number of full and part-time jobs directly attributable to travel spending. A significant share of many industries’ earnings comes from travel-related spending. Part of these earnings are used to pay employees in the form of income and benefits. Based on average salaries for employees in the various travel-related industries in California, a total employment number attributable to travel can be reached.
