SACRAMENTO, CALIFORNIA - FEBRUARY 01: California Gov. Gavin Newsom speaks during a press conference on February 01, 2023 in Sacramento, California. California Gov. Gavin Newsom, state Attorney General Rob Bonta, state Senator Anthony Portantino (D-Burbank) and other state leaders announced SB2 - a new gun safety legislation that would establish stricter standards for Concealed Carry Weapon (CCW) permits to carry a firearm in public. The bill designates "sensitive areas," like bars, amusement parks and child daycare centers where guns would not be allowed. (Photo by Justin Sullivan/Getty Images)
Sacramento, California – California’s tourism industry reached an all-time high in 2024, with visitors spending $157.3 billion across the state — a 3% increase over last year’s already record-setting total, Governor Gavin Newsom and Visit California announced Monday. The economic boost, driven by millions of domestic and international visitors, underscores the Golden State’s enduring appeal as one of the world’s top travel destinations.
But even as tourism thrives, state officials are signaling concern about what’s coming next.
According to Visit California’s newly released Economic Impact Report and 2025 forecast, a slowdown may be on the horizon. Analysts are projecting a modest 1% dip in total visitation next year, with a more troubling 9.2% decline in international travel to the state. The anticipated downturn, which some officials call the “Trump Slump,” is attributed to federal economic policies and a sharp drop in global enthusiasm for travel to the United States.
“This is a moment to be proud of California’s position as a global tourism leader — but also a time to stay alert,” Governor Newsom said. “We recognize that our progress is threatened by the economic impacts of this federal administration, and we’re committed to protecting jobs and ensuring Californians continue to benefit from a strong tourism economy.”
Tourism continued to be a vital force in the state’s broader economic picture in 2024, supporting 1.2 million jobs, creating 24,000 new positions, and generating $12.6 billion in local and state tax revenue. These gains are part of a larger economic success story: California’s GDP has now surpassed Japan’s, making it the fourth-largest economy in the world. Meanwhile, population growth has returned for the second consecutive year, with nearly 275,000 new residents added since 2021.
Still, the 2025 forecast has officials urging caution. The state is preparing for potential challenges, particularly in attracting international visitors, who contribute significantly to California’s tourism dollars. A sharp year-over-year decline in international arrivals this March has already raised concern.
In anticipation of a softening market, the Governor has launched a campaign to boost travel from Canada. He is encouraging Californians to explore more of their home state to help sustain the tourism sector through a potentially problematic year ahead.
While California’s economy remains a global powerhouse — leading the nation in tech, manufacturing, and innovation — the road ahead may require careful navigation to ensure continued growth in the face of shifting economic and political headwinds.
