Yosemite National Park Sierra Sun Times file photo
What you need to know: It is no surprise that everyone wants to come visit the Golden State. From the majestic redwood trees in the north to the Hollywood studios in the south, and from the pristine coastline in the west to the towering Sierra Nevada mountains in the east, California remains the top travel destination across the nation – bringing an economic boon to communities across the state.
May 12, 2026 - SACRAMENTO – Governor Gavin Newsom today highlighted recent data showing California’s tourism economy continues its strong recovery and growth, with statewide travel spending reaching a record high $158.9 billion in 2025, reinforcing the Golden State’s position as the #1 travel destination in the nation.
California’s economy is built on resilience, innovation, and global appeal – our tourism industry is a powerful example of that strength. We continue to attract visitors from around the world, supporting jobs, small businesses, and communities across our state.
Governor Gavin Newsom
More jobs!
Tourism, as a key California Jobs First industry sector, continues to be a major economic engine across every region of the state:
- California added 4,350 travel-related jobs in 2025, bringing total tourism employment to approximately 1.2 million jobs statewide.
- Increased hotel demand and bookings outpaced national trends, with 1.2 million additional room nights booked across the state.
San Francisco leads in tourism
The home of the Golden Gate Bridge remains a key driver of the state’s tourism economy, with visitor spending reaching $14.2 billion in 2025, surpassing pre-pandemic highs.
Both San Francisco and the state of California as a whole are benefiting from increased visitation tied to major global events, including the Super Bowl and upcoming FIFA World Cup matches, which are boosting local businesses, restaurants, and hotels.
Economic slump because of Trump administration
Last year, economists predicted that international tourism declined as a result of federal economic policies, and California felt that impact. With the Trump administration’s shifting policies, international visitor spending declined by $1 billion to $25 billion.
While international tourism is down, domestic travel and major events helped offset those losses, driving continued economic momentum statewide.
Looking ahead
With the 2026 FIFA World Cup right around the corner, a new estimate from the Los Angeles Sports and Entertainment Commission projects nearly $892 million in economic impact for the region, an increase of roughly 50% from a 2024-2025 estimate. When combined with projected long-term tourism gains from global media exposure, estimated at over $230 million, total short- and long-term benefits to Los Angeles County could exceed $1.1 billion.
The World Cup, along with the 2028 Olympic and Paralympic Games and continued investment in tourism infrastructure and promotion, ensure that the Golden State remains well-positioned for sustained growth in 2026 and beyond – despite headwinds due to Trump’s failed policies.
Source: Office of the Government