California's tourism spending hits record high in 2023

Business
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Brandon Marley - President/CEO | Greater Coachella Valley Chamber website

Travel spending in California reached an unprecedented high in 2023, attracting visitors from across the globe to the Golden State. A new report released by Visit California revealed that the state's tourism economy generated $150.4 billion in travel spending last year, outpacing the previous record of $144.9 billion spent in 2019 before the pandemic brought travel to a standstill. The surge in tourism created 64,900 new jobs in California in 2023, raising total industry employment to 1.15 million, which is 98% of pre-pandemic employment levels.

The revival of travel continues to stimulate local economies throughout California. Travel spending surpassed 2019 levels in 34 out of California’s 58 counties. Three out of four international gateways in California—San Diego, Orange and Los Angeles Counties—exceeded their 2019 travel spending levels, while San Francisco was nearing recovery at over 97 percent.

In addition to boosting visitor spending and job creation, the tourism industry contributed $12.7 billion in tax revenue to support public services at both state and local levels.

International visitors spent $24.3 billion in California in 2023, marking a 38% increase from 2022 but still falling short by 15% from the peak of $28.6 billion recorded in 2018. International travel to California is projected to return to its pre-pandemic level sometime this year.

To sustain responsible growth while steering the industry towards a more resilient and sustainable future, comprehensive regional strategic tourism plans will be released by California later this year. These distinct plans for each of California’s twelve tourism regions will provide an actionable roadmap for responsible tourism development over the next decade.

These regional plans will scrutinize a wide range of tourism issues including workforce development, environmental challenges, infrastructure needs and destination brand perceptions—to inform business decisions and inspire partnerships with local governments and nonprofits aimed at building a more sustainable future for the industry.