California has scored a new tourism record in 2024, Gov. Gavin Newsom announced Monday, but the highs are not expected to continue thanks to President Trump’s tariffs.
Tourism spending last year rose 3% from 2023, creating 24,000 jobs, and 24,000 jobs, according to the 2024 Economic Impact Report from California Visit, the state’s nonprofit marketing agency.
California remains number one in tourism and has the fourth largest economy in the world, but visits are expected to fall by 1% next year and a 9.2% decline in international tourism.
Local LA Tour Groups and Nicknack Shops, which usually boom during this time of year from spring break trips, say tariff uncertainty and the impact of the stock war on stock wars have kept people away from local travel.
But it’s not just the local area. Canadians have cancelled plans to travel to California for events such as Coachella due to Trump’s aggressive 25% tariffs on Canadian goods. Newsom has announced a marketing plan to invite Canadians to California after a 12% drop in February figures compared to the same month in 2024.
In the Los Angeles area alone, the tourism and hospitality industry employs around 510,000 workers and supports more than 1,000 local businesses, according to the Los Angeles Tourism Authority and the Convention Committee.
Last month, Tourism Economics, a Philadelphia-based travel data company, predicted that international travel to the US could fall by 5% this year and travel from Canada could fall by 15%.
In San Diego, home to Comic Con, some of California’s most beautiful beaches and the “Smithsonian of the West” in Balboa Park, tourism employed one in eight residents, bringing in $14.8 billion in revenue in 2024.
“Uncertainty is a new norm,” said Kelly Capich, Chief Operating Officer of the San Diego Tourism Department.
She said constant change makes planning difficult in advance. As travel has been late or stayed since last year, it will affect the local economy. Less hotel stays, fewer restaurant checks, and less money spent across the community could lead to less work.
Uncertainty about international trade policy affects state budgets. Unclear revenue and rising disaster recovery costs will cloud future revisions expected from Sacramento next week. Newsom sued the Trump administration accordingly, claiming that the president had no authority to collect international tariffs without Congress’ approval.
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