California Issues Tourism Warning

Newsweek

06-05-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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California Governor Gavin Newsom has warned that federal policies under President Donald Trump are threatening the state's tourism economy, even as 2024 saw record-high visitor spending.
"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," Newsom said in a statement on Monday.
"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."
Why It Matters
The tourism sector supports more than one million jobs and generates billions in revenue in California.
A projected decline could harm employment, public services funded by tourism taxes, and businesses dependent on domestic and international visitors.
California Governor Gavin Newsom speaking in Ceres, California, last month.
California Governor Gavin Newsom speaking in Ceres, California, last month.
Noah Berger/AP
What To Know
Tourism spending in California hit $157.3 billion in 2024, up three percent from the previous year, according to a statement from Newsom's office.
That spending supported 1.2 million jobs, created 24,000 new jobs and generated $12.6 billion in state and local taxes.
Despite the strong performance last year, California saw a year-on-year decline in visitors in March this year, raising concerns ahead of the summer travel season.
Visit California's revised forecast shows a one percent drop in overall visitation and a 9.2 percent decrease in international arrivals this year.
The organization attributed the expected drop to federal economic policies and the "Trump Slump" — a downturn in international travel due to the actions of President Donald Trump's administration.
According to Visit California data, air arrivals from Canada decreased 15.5 percent in March compared to the same month last year. Visitors also fell 12 percent year-on-year in February — the steepest decline since the COVID-19 pandemic started.
Despite the drop, Canada remains California's top international source of visitors. In 2024, 1.8 million Canadians visited California, spending an estimated $3.72 billion.
Earlier this month, Newsom unveiled a tourism campaign urging Canadians to visit California, while distancing the state from the Trump administration amid its global trade war.
"The Golden State and Canada have always had so much in common," Newsom said in a video posted on X, formerly Twitter. "Sure, you-know-who is trying to stir things up back in D.C., but don't let that ruin your beach plans."
Palm Springs also placed pro-Canada signs around the city to attract tourists earlier this month.
Meanwhile, concerns over Trump's border policies and tariff program have also affected tourism from Mexico. According to Visit California, arrivals from Mexico were down 24.2 percent in March compared to last year.
What Happens Next
California is expanding its domestic and international tourism campaigns in anticipation of a 2025 downturn. State officials are urging residents to travel locally to help offset expected losses from fewer international visitors.
Visit California now predicts a $6 billion drop in tourism revenue this year, primarily due to a decline in international travel. Overall, international tourists make up six percent of California visitors, but 17 percent of spending.
The state has said it will continue to monitor travel trends and prepare additional measures to protect jobs tied to the tourism sector.