Half Dome in Yosemite National Park
NPS Photo
What you need to know: California remains the #1 state for tourism, with record-high tourism spending reaching $157.3 billion in 2024. However, the Trump administration’s policies and rhetoric are driving away tourists, killing tourism and hospitality jobs, and already leading to decreased tourism projections.
May 5, 2025 - SACRAMENTO — Governor Newsom and Visit California today announced that California’s tourism spending continued to grow in 2024, reaching a record-high of $157.3 billion in tourism spending throughout the state — an increase of 3% from 2023, another record-spending year. This comes after recent news that California’s economy is now the fourth-largest economy in the world and experienced a population increase for the second year in a row.
“California dominates as a premier destination for travelers throughout the nation, and around the globe. With diverse landscapes, top-rate attractions, and welcoming communities, California welcomes millions of visitors every year. We also recognize that our state’s progress is threatened by the economic impacts of this federal administration, and are committed to working to protect jobs and ensure all Californians benefit from a thriving tourism industry.”
Governor Gavin Newsom
The announcement comes with the release of Visit California’s 2024 Economic Impact Report and revised 2025 forecast released today. According to Visit California’s report, in 2024:
- Visitors spent $157.3 billion at businesses across the state.
- Tourism spending supported 1.2 million jobs and created 24,000 new jobs.
- $12.6 billion in state and local tax revenues was generated from tourism.
Economic progress at risk of Trump Slump
However, the forecast also anticipates a 1% dip in overall visitation and a 9.2% decline in international visitation in 2025, in direct response to federal economic policy and an impending “Trump Slump.” Looking ahead, 2025 is projected to be more challenging, particularly due to global economic pressures and a slowdown in international tourism, the direct result of declining global sentiment about travel to the United States. California is already seeing the impact, with a sharp year-over-year decline in March of this year.
In anticipation of the slump caused by the Trump administration, Governor Newsom and Visit California are encouraging Californians to continue to travel within the state to help support the booming tourism industry. The Governor has also launched a new campaign encouraging Canadian consumers to continue to travel to the Golden State.
More people moving to California
In addition to record-breaking tourism, California is welcoming more new residents. Governor Newsom recently announced California’s population increased for the second year in a row. The announcement also noted that previous reports that California’s population had declined by hundreds of thousands of people in 2021 and 2023 were found inaccurate, and since 2021, California’s population has increased by nearly 275,000 people.
California’s economic leadership
With a nation-leading GDP and more Fortune 500 companies than any other state, California’s economy remains a global powerhouse driven by diversity, creativity, and opportunity.
- 4th largest economy in the world: California’s $4.1 trillion GDP recently surpassed Japan.
- #1 in the nation: Leads the U.S. in Fortune 500 companies, new business starts, venture capital access, manufacturing output, high-tech industries and agriculture.
- Major trade powerhouse: Over $675 billion in two-way trade, making California the largest importer among U.S. states and a key driver of job creation.
- Manufacturing hub: Home to 36,000+ manufacturing firms, employing over 1.1 million workers, with strengths in aerospace, electronics, and zero-emission vehicles.
- AI & innovation leader: California hosts 32 of the world’s top 50 AI companies and produces 25% of global AI patents and conference papers.
Source: Office of the Governor
