An outlook on visitation and spending, including international spend and visitor forecast for 13 priority markets, featuring both baseline and downside scenarios.
Takeaways
According to Tourism Economics’ May baseline forecast, California’s visitor volume is forecast to increase 1.5% in 2026, adding 4.1 million visits and bringing the statewide total to 275.5 million visitors.
Visitor spending is forecast to grow by $7.6 billion (+4.8%) in 2026, reaching $166.5 billion. Rising prices, particularly higher gas prices, are expected to contribute to overall spending growth.
Domestic travel spending is forecast to increase 4.8% in 2026, following a 2.5% gain in 2025.
International visits are forecast to rise 2.4% in 2026. Overseas arrivals are expected to increase 1.8%, partially recovering from the 5.0% decline recorded in 2025.
Visits from Mexico are projected to grow 2.8% in 2026 after a strong 7.5% increase in 2025. Meanwhile, visits from Canada, which declined by 20.1% in 2025, are forecast to rebound modestly by 2.6% in 2026.
International visitor spending, which fell 4.4% in 2025, is forecast to rebound 5.8% in 2026.
According to Tourism Economics, the downside forecast assumes a prolonged conflict in Iran keeps gas prices and inflation elevated, weakens international traveler sentiment toward the U.S., and creates continued trade-related disruptions with Canada and Mexico.
Under the downside scenario, California’s total visitor volume growth would slow to 1.2% in 2026, with domestic visitation increasing 1.3%. International visitation would decline 0.4%, driven by a 1.2% drop in overseas arrivals and a sharp 6.1% decline in visits from Canada, while growth from Mexico would slow to 1.1%.
Total Annual Domestic and International Travel Spending and Visitation
Source: Tourism Economics
Total Annual Travel Spending and Visitation
Source: Tourism Economics
Total Domestic Annual Spending and Visitation
Source: Tourism Economics
Total international annual travel spending & visitation