Ahead of projected “Trump Slump,” Governor Newsom announces record-high tourism — again

The announcement comes with the release of Visit California’s 2024 Economic Impact Report and revised 2025 forecast released today. According to Visit California’s report, in 2024:

• Visitors spent $157.3 billion at businesses across the state.
• Tourism spending supported 1.2 million jobs and created 24,000 new jobs.
• $12.6 billion in state and local tax revenues was generated from tourism.

Economic progress at risk of Trump Slump

However, the forecast also anticipates a 1% dip in overall visitation and a 9.2% decline in international visitation in 2025, in direct response to federal economic policy and an impending “Trump Slump.” Looking ahead, 2025 is projected to be more challenging, particularly due to global economic pressures and a slowdown in international tourism, the direct result of declining global sentiment about travel to the United States. California is already seeing the impact, with a sharp year-over-year decline in March of this year.

In anticipation of the slump caused by the Trump administration, Governor Newsom and Visit California are encouraging Californians to continue to travel within the state to help support the booming tourism industry. The Governor has also launched a new campaign encouraging Canadian consumers to continue to travel to the Golden State.

More people moving to California 

In addition to record-breaking tourism, California is welcoming more new residents. Governor Newsom recently announced California’s population increased for the second year in a row. The announcement also noted that previous reports that California’s population had declined by hundreds of thousands of people in 2021 and 2023 were found inaccurate, and since 2021, California’s population has increased by nearly 275,000 people. 

California’s economic leadership

With a nation-leading GDP and more Fortune 500 companies than any other state, California’s economy remains a global powerhouse driven by diversity, creativity, and opportunity.

• 4th largest economy in the world: California’s $4.1 trillion GDP recently surpassed Japan.
• #1 in the nation: Leads the U.S. in Fortune 500 companies, new business starts, venture capital access, manufacturing output, high-tech industries and agriculture.
• Major trade powerhouse: Over $675 billion in two-way trade, making California the largest importer among U.S. states and a key driver of job creation.
• Manufacturing hub: Home to 36,000+ manufacturing firms, employing over 1.1 million workers, with strengths in aerospace, electronics, and zero-emission vehicles.
• AI & innovation leader: California hosts 32 of the world’s top 50 AI companies and produces 25% of global AI patents and conference papers.