California continues to reign as the top dog in tourism with record-breaking spending, despite looming concerns of a downturn in visitor numbers due to current federal policies. Governor Gavin Newsom and Visit California announced the Golden State saw tourism spending surge to $157.3 billion in 2024, marking a 3% climb from the previous year. This economic uptick bolsters an already strong standing, propelling the state's economy to a notable spot as the world's fourth-largest, as reported by the Governor's office. Despite these gains, a projected decline in visitation has been pegged to "Trump Slump," a term coined to describe the fallout from the administration's economic stance.
According to the 2024 Economic Impact Report released by Visit California, the tourism industry has been a juggernaut of job creation, with 24,000 new jobs and support for 1.2 million existing ones. Furthermore, the sector has generated a substantial $12.6 billion in state and local tax revenues. Made public alongside the report, Visit California cautions that 2025 could paint a bleaker picture. They predict a 1% decrease in overall visitation and a more significant 9.2% dive in international travelers, attributed to the unfavorable global view of the current U.S. administration. Learning that tourists are turning away from U.S. travels, Newsom has thus taken to encouraging Canadian visitors, in particular, to buck the trend and continue enjoying all that California has to offer.
The state has experienced a population increase for the second consecutive year. Prior claims of a population decrease in 2021 and 2023 were corrected, revealing nearly 275,000 new Californians since 2021. This growth accompanies California's standing as a beacon for Fortune 500 companies, startup ventures, and access to venture capital.
Actively seeking to mitigate the impact of this "Trump Slump," Newsom is galvanizing Californians to explore their backyard, with state-sponsored campaigns aiming to lure travelers from north of the border. The Governor's efforts reflect a dual strategy to safeguard the existing tourism infrastructure and amplify the diversity of the tourism portfolio amidst global economic pressures. Despite worries over international tourist footfall, Governor Newsom's administration remains steadfast in fortifying the local tourism industry, ensuring the sector's resilience to external political fluctuations.
