California Faces Steep Drop in International Tourism

California's tourism industry, which recorded $157.3 billion in visitor spending and supported over one million jobs in 2024, is projected to see its first decline in visitation since the pandemic, with a nearly 1% drop expected in 2025. The most significant impact is a forecasted 9% decrease in international arrivals, largely attributed to global backlash against U.S. policies under the Trump administration, such as trade actions and high-profile deportations. Major gateways like Los Angeles are experiencing sharp declines in arrivals from Canada and Mexico, leading to noticeable reductions in both flight bookings and available airline seats. While domestic tourism remains steady, the fall in overseas visitors threatens jobs, tax revenues, and businesses reliant on international spending. State officials and tourism leaders are responding with targeted international marketing campaigns but caution that ongoing economic and geopolitical challenges may further erode tourism gains. Despite these hurdles, California remains the top U.S. travel destination, with policymakers emphasizing the importance of supportive federal action.