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2025 Economic Impact of Travel

Dean Runyan Associates, Inc

April 14, 2026

Overview

 

This report evaluates the economic impact of travel to the state of California in 2025, its 12 tourism regions and all 58 counties.

Travel remains a vital sector of California's economy. This report outlines the economic activity generated by travel statewide, highlighting key trends within the industry. Spending, employment, earnings and tax revenue are the primary indicators used to measure travel’s economic contribution. 

As is customary, the report presents revised travel impact figures for the prior year (2024) based on data available after the report was published. With this year’s report there were additional re-statements related to changes in the methodology for estimating the “Other Travel” spending category. Estimates for “Other Travel” were revised for 2022, 2023 and 2024. Please refer to the methodology section of the report for an explanation of the changes. 

Note: Some destinations in California use different visitor definitions and data collection methods, which may result in variations between reported figures.

The 2025 economic impact reports by Senate and Assembly districts will be available in May 2026.

Takeaways

  • In 2025, travel spending in California reached $158.9 billion, a 1.7% increase from $156.2 billion in 2024.
  • Travel-generated employment grew by approximately 4,350 jobs in 2025, bringing the total number of travel-supported jobs in California to around 1.2 million — a 0.4% increase from the previous year.
  • Travel-generated state and local tax revenue grew to $13.6 billion in 2025, up from $13.2 billion in 2024 — a 3.6% increase.
  • Spending on accommodations grew to $35.2 billion in 2025, an increase of 2.2%. Spending on food service generated $38.5 billion, an increase of 4.6%. 
  • Visitors who stayed in a hotel, motel, or short-term vacation rental (STVR) spent a combined $83.0 billion in 2025, an increase of 2.7% compared to 2024. 

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    Source: Dean Runyan Associates, Inc.
    Source: Dean Runyan Associates, Inc.
    Source: Dean Runyan Associates, Inc.

    California's travel and tourism industry is represented by accommodations, transportation and rental cars, restaurants, retail stores, attractions, gasoline service stations, and other businesses that serve travelers. Traveler spending benefits tourism providers across all industry segments and across all of California's regions.

    Employment

    In 2025, travel spending supported 1.2 million jobs statewide. This includes full and part-time roles directly tied to travel. Earnings from travel spending fund salaries and benefits, with total employment calculated based on average wages in travel-related industries.

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    Source: Dean Runyan Associates, Inc.
    Source: Dean Runyan Associates, Inc.