California tourism hits $158.9B

California officials said this week that travel spending in the state reached a record $158.9 billion in 2025, even as new consumer surveys point to a more cautious U.S. summer travel season shaped by higher costs. Governor Gavin Newsom cited the figures on May 12, calling California the nation’s top travel destination, while Visit California said the numbers came from a report prepared by Dean Runyan Associates. The state tourism office said spending rose 1.7% from $156.2 billion in 2024. Visit California also said the industry supported 1.17 million jobs and generated $13.6 billion in state and local tax revenue in 2025. ### Where did the $158.9 billion figure come from? Visit California said the number comes from its 2025 Economic Impact of Travel report, which it published on its industry research site. The report said visitor spending in California rose to $158.9 billion in 2025 from $156.2 billion in 2024. Dean Runyan Associates prepared the report, according to Visit California and the governor’s office. (gov.ca.gov) Newsom’s office said the data showed California’s tourism economy continued its recovery and growth in 2025. ### How broad was tourism’s footprint in California last year? (industry.visitcalifornia.com) Visit California said travel-supported employment reached about 1.2 million jobs in 2025, up by roughly 4,350 jobs from the prior year. The agency’s press material separately put the statewide total at 1.17 million jobs. The same materials said travel generated $13.6 billion in state and local tax revenue. (gov.ca.gov) Those tax receipts help fund public services, Visit California said in its release. ### Why does this stand out against the summer travel mood nationally? A Talker Research survey published this week said 37% of Americans do not plan to travel this summer. (industry.visitcalifornia.com) Among those staying home, 52% cited being unable to afford the cost of a trip, while others said they were saving money or paying off debt. (media.visitcalifornia.com) U.S. News reported separately that 65% of Americans had altered summer travel plans because of rising prices, and 37% said they changed plans because of the economy. That points to a national backdrop in which households are still traveling, but often with tighter budgets and shorter itineraries. ### Are travelers changing how they take trips? (talkerresearch.com) Hertz said on May 12 that 64% of Americans plan to take a road trip this summer, based on its latest survey. The company said travelers were choosing driving for flexibility, control and easier access to scenic routes and live events. (money.usnews.com) The Hertz survey also suggests road travel is gaining ground as some households pull back on airfare. An MSN summary of the findings said more than 60% of lower- and middle-income households were choosing road trips over flights, while more than 60% of high-income travelers still planned to fly. (newsroom.hertz.com) ### What could keep California insulated from some of that pullback? California’s tourism mix includes beaches, national parks, wine regions, major cities and drive-to leisure markets that can benefit when travelers stay closer to home. Visit California said the state remained the No. 1 travel destination in the United States in 2025 despite softer national travel demand and broader economic uncertainty. (msn.com) Northern California and other in-state destinations can also fit the shorter, car-based trips described in current surveys. Hertz said summer travelers are favoring experience-led itineraries built around highways, scenic drives and regional stops. (media.visitcalifornia.com) ### What comes next in the state’s tourism data? Visit California said district-level economic impact reports for the state Senate and Assembly will be released in May 2026. Those reports are expected to break down travel spending and related employment by legislative district. (industry.visitcalifornia.com) (newsroom.hertz.com)