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Tourism crash coming? 32 Million visitors may not be enough to save California economy

Jacob Shelton May 27, 2025

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A statue stands at the Cabrillo National Monument across the bay from downtown San Diego on Mar. 20, 2008.

San Diego, California – San Diego’s tourism industry, which supports more than one in eight local jobs, is showing signs of slowing down as it heads into the summer — raising concerns for one of the city’s most vital economic sectors.

The San Diego Tourism Authority has reported early indicators of a downturn, even after a strong performance in Fiscal Year 2024. That year, the region welcomed 32 million visitors, generating an estimated $22 billion in economic impact. The figure marked an increase of 2 million visitors over the previous year and reflected growing travel demand following pandemic-era restrictions.

Tourists continue to arrive for holiday weekends and summer getaways, with many drawn by favorable flight deals, moderate hotel rates, and the city’s iconic beach weather. Local businesses remain optimistic heading into the peak summer season, hoping for another strong showing of both domestic and international visitors.

Beachside shops, rental companies, and water sports operators are gearing up for the seasonal crowds. Popular destinations like Mission Beach and local rental services anticipate increased foot traffic from families, groups of friends, and travelers looking to cool off along the coast. Preparations are already underway to accommodate an expected influx of tourists eager to enjoy the shoreline, rent boats or jet skis, and explore the city’s attractions.

The Tourism Authority is actively monitoring trends and adjusting its strategies in response to shifting travel behavior. Part of that effort involves maintaining partnerships across the community and identifying opportunities to attract new visitors. Looking ahead, tourism leaders are positioning San Diego to benefit from major international events, including the World Cup and the 2028 Olympics, by targeting attendees who may extend their stays or make side trips to the region.

Despite recent gains, industry leaders remain cautious. A report from Visit California found that visitors spent $16.6 billion in San Diego County in 2024 — a modest increase from $16.4 billion in 2023. The steady growth offers encouragement, but the broader economic outlook remains uncertain.

As summer approaches, the city is preparing for its peak tourism season, a crucial time for many local businesses. With favorable conditions and strategic planning, tourism officials hope San Diego can weather any potential slowdown and continue to thrive as a top travel destination.

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