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4mo ago

California Tourism Faces Sharp Declines with Signs of Stabilization Emerging

International visitor numbers dropped significantly in early 2025, but state-led marketing efforts and narrowing booking gaps hint at a potential recovery.

People mill about at Pier 39 in San Francisco in 2024. It remains one of the city’s premier tourist attractions.
The Powell/Hyde Cable Car at Hyde Street and Chestnut Street, with Alcatraz seen in the background, runs from downtown to Fisherman’s Wharf in San Francisco and is a common attraction to tourists.
California Governor Gavin Newsom answers questions at a news conference after signing a memorandum of cooperation with Canada's then-Prime Minister Justin Trudeau on climate change at the California Science Center outside the ninth Summit of the Americas, in Los Angeles, on Thursday, June 9, 2022.
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Overview

  • California experienced an 11% drop in total non-resident arrivals in March 2025 compared to the previous year, with steep declines from Canada and Mexico.
  • Canadian air arrivals to California fell 15.5% in March and 12% in February year-over-year, while arrivals from Mexico dropped 24.2% in March.
  • Economic factors like the strong U.S. dollar, political tensions under the Trump administration, and California’s rising travel costs contributed to the downturn.
  • Governor Gavin Newsom and Visit California launched a $5.2 million campaign in April to attract Canadian tourists, including a personal message from Newsom.
  • Corporate booking declines from Canada narrowed from a 10% drop in February to just 1% in March, with slight upward trends observed in April.