California Governor Gavin Newsom announced that the state achieved record-high tourism spending in 2024, reaching $157.3 billion, a 3% increase from the previous year. This growth supported 1.2 million jobs and generated $12.6 billion in state and local taxes, according to a report from Visit California, the state’s nonprofit marketing agency. However, Governor Newsom warned of a potential decline in tourism due to President Donald Trump’s tariffs and policies, which are causing what is being termed a “Trump Slump.”
The state’s tourism sector, which supports over one million jobs, is expected to face challenges in 2025, with a projected 1% drop in overall visitation and a 9.2% decline in international arrivals. The downturn is attributed to negative global sentiment towards the Trump administration’s economic policies. In March, California experienced a significant year-over-year decline in tourism, raising concerns ahead of the summer travel season.
Governor Newsom is encouraging Californians to travel within the state to support the tourism industry and has launched a campaign to attract Canadian tourists. Despite a 12% drop in Canadian visitors in February, Canada remains California’s top international source of visitors, with 1.8 million Canadians visiting the state in 2024 and spending an estimated $3.72 billion.
Newsom emphasized California’s commitment to protecting jobs and ensuring a thriving tourism industry. The state plans to expand its domestic and international tourism campaigns and monitor travel trends to mitigate the expected losses from fewer international visitors.
Recent Comments