Tourism Boom in California: Visitor Spending Hits Now at Record High as State Draws Global Travelers

Published on November 22, 2025

2025 marks another record-breaking year for California tourism as visitors to the Golden State spent $157.3 billion. That reflected an increase of $3 billion over the $154.3 billion spent the previous year. California tourism is still going strong. The latest annual report shows that visitor spending grew in every sector of California’s tourism economy. The report shows that visitor spending grew in every sector of California’s tourism economy, with 50 of California’s 58 counties experiencing visitor spending growth. While Los Angeles, San Francisco, and San Diego were the most popular visitor destinations, growth in visitor spending benefited less-visited towns across the entire state.

California tourism supported approximately 1.17 million jobs and produced $12.6 billion in state and local tax revenue. The importance of tourism to California’s economy is evident. The California tourism economy is still growing, improving the economic well-being of all California communities.

The Expansion of California Tourism

The growth of tourism in California continues to be driven by higher visitor spending and its increased tourism attractions. Visitors to the state spend money on its famous and world-recognised attractions in its urban centres such as Los Angeles and its Hollywood district and its Golden Gate Bridge. The state’s multi-faceted and varying natural beauties, beaches and culturally rich sites draw an ever increasing and diverse clientele to the state. National parks such as Yosemite, Sequoia and Joshua Tree offer to park visitors and outdoor adventurers diverse landscapes. California’s wine regions, coupled with Napa Valley and Sonoma, also draw visitors seeking gourmet wine and meal pairings.

A growing diversity of tourist attractions and destinations is one of the most notable and significant diversification trends. Coastal towns and beach gateway cities, like Santa Monica, Carmel-by-the-Sea, and Laguna Beach, are still popular. However, there is increasing tourist interest in smaller towns, less-priced regions, and rural and inland destinations. The Sierra Nevada, Mendocino, and Shasta counties are growing tourist hotspots for their natural scenic beauty, tranquil environments, and enhanced and developed tourism infrastructure.

The spending patterns of visitors reflect the shift towards wanting authentic experiences away from the usual, often overly crowded, tourist attractions. People now consider more alternative locations that host a variety of outdoor activities, local cultural engagement, and singular attractions. This is where the state of California excels.

The Creation of New Jobs

The role of California’s tourism industry is paramount in the state’s economy, where it sustains in the region of 1.17 million jobs. These jobs are in a wide array of industries such as the hospitality, transport, retail, and restaurant industries. This broad range of employment opportunities ensures that the economic impact of the tourism industry resonates quite widely. Beyond these direct position opportunities, the tourism industry further stimulates demand for resource industries such as construction, real estate, and farming alongside a growing tourist population in California.a

Increased spending at the community level in the state in tourism-dependent businesses such as restaurants and hotels, and also tour attractions, has fueled the positive impact of increased economic tourism. Diverse communities across the state have benefited from the increased economic development and enhanced revenue opportunities in businesses that are dependent on tourism in the development of their activities.

Additionally, the tourism-related taxes of almost $12.6 million offer support to the state and local governments, enabling them to provide selected amenities and services. Transportation improvements and public security are examples of offerings funded by this revenue that helps serve the local communities and the tourists.

Events and Festivals Contribution to Increased Tourism in California

One of the largest contributors to the state’s tourism expansion is the number of events and festivals that are scheduled across the state of California. By and large, the events that are hosted in California attracts tourists from all over the world including the Coachella Valley Music and Arts Festival, the San Francisco International Film Festival, and the Los Angeles Fashion Week, all of which contribute immensely to the tourism economy of the state.

The growing business tourism of the state is also a contributor to the increased spending. In the civic centres of San Francisco, Los Angeles, and Anaheim, the state has become a more desired location for business travellers due to the large conventions, trade shows, and professional conferences that have numerous attendees, which also increases the demand for accommodation, meeting rooms, and transportation.

California Tourism Sustainably

With the expansion of tourism within the state comes the ability to utilize the growing interest in tourism within the state to implement sustainable and eco-tourism practices within the state. Providing visitors the experiences they seek while promoting eco-sustainable practices, responsible tourism, waste diversion, and conservation in national parks. All sustainable initiatives promote the preservation of the state’s natural beauty and allow future generations to enjoy and experience the beauty of the state.

With the growing awareness of responsible travel, California is actively promoting the practices of green and eco-sustainable tourism. California aims to create and construct tourism practices that promote the preservation of the environment, enrich, and uplift the local community. California’s green tourism initiatives have and will continue to have a positive impact on sustainable and eco-responsible travellers.

Conclusion

California is currently experiencing record tourism and spending. There is interest in every destination and in every experience around the state. From the busy, urban, and very touristic Los Angeles and San Francisco to the very tranquil, natural, and beautiful Sierra Nevada. California offers a very diverse and rich experience to every traveller. $157.3 billion in visitor spending is a testament to the impact and importance the tourism sector has gained.

California continues to invest in the necessary infrastructure and eco-sustainable innovation to maintain its status as one of the world’s most popular travel destinations in Adventure, Culture, Relaxation, and so much more. As/California continues to prioritise its eco-sustainable practices, the state has positioned itself for growth in the global tourism market, ensuring its natural resources, local communities, and economic sectors prosper as the industry continues to expand.