California remains the nation’s top travel destination, tourism spending climbs to a record high $158.9 billion

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.