California Tourism Showed Steady Growth in 2025

On Behalf of Visit California.

May is California Tourism Month, and the most recent economic data tells a story of resilience. Despite wildfires, global economic headwinds and softening international travel, California’s tourism industry held its ground and extended its lead as the nation’s No. 1 travel destination. 

According to Visit California’s 2025 Economic Impact Report, travel-related spending grew 1.7% to $158.9 billion last year. The industry supported 1.2 million jobs and generated $13.6 billion in state and local tax revenue – up 3.6% over 2024 – directly reducing the tax burden on California households.  

Another clear indicator of the performance of California’s travel industry is room demand — the number of hotel rooms booked in the state in 2025. Hotel room demand increased by 1.2 million room nights, or an increase of 0.8% over 2024, while national hotel room demand fell 0.5%.  

“Tourism remains an incredibly resilient pillar of California’s economy thanks to the strong foundation built over decades by the state’s travel industry,” said Caroline Beteta, president and CEO of Visit California. “Despite global challenges, the state’s brand continues to shine, drawing visitors to California’s diverse destinations and experiences and boosting local economies.” 

The outlook for 2026 is even brighter, headlined by marquee megaevents. Super Bowl 60 boosted hotel revenue metrics in the San Francisco Bay Area earlier this year. The FIFA World Cup arrives in June, sharing a postcard of California with 6 billion viewers worldwide.  

California’s 40 million residents play a vital role too. This Tourism Month, Visit California encourages everyone to explore the Ultimate Playground in their own backyard – supporting local jobs, businesses and communities across the state. 

Learn more about the economic impact of tourism in California here.