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California tourism economy grew 32% in 2022, set to pass pre-pandemic peak

As California Tourism Month begins, projections show travel and hospitality sector will surpass 2019 visitor spending levels this year. New data also show Californians value tourism’s economic and social benefits.

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LOS ANGELES (May 4, 2023) – California’s tourism industry grew by 32% in 2022 and is poised to set new records for visitor spending, employment, and tax generation this year, according to economic impact research released by Visit California today.

New community sentiment research also released today by Visit California shows Californians value the benefits of the tourism economy.

Both reports were released today at the start of California Tourism Month, the state designation adopted by the Legislature in 2016 to recognize the contributions of the United States’ top tourism economy to Californians’ financial livelihoods and personal well-being.

“I’m happy to report California tourism has bounced back from the devastating human and economic toll of the pandemic and continues to provide value for all Californians,” said Caroline Beteta, president and CEO of Visit California, the state’s tourism marketing organization. “California’s iconic destinations are again welcoming visitors from around the world, growing tourism’s economic contributions beyond 2019 levels and putting hundreds of thousands back to work.

The annual report measuring the economic impact of tourism, prepared by Dean Runyan Associates, showed strong growth across the state in 2022 in the aftermath of the Covid-19 pandemic:

Travel spending in 2022 increased to $134.4 billion across California, a 31.7% increase over 2021 that brought spending 93% of the way to pre-pandemic levels. California’s travel sector added 157,000 jobs in 2022 to 1.1 million – 94% of the way back to 2019 levels after devastating losses during the pandemic. Visitor-generated tax revenue for state and local government increased by 21.6% to $11.9 billion.
The jagged tourism recovery seen a year ago across California is leveling out. The largest urban destinations – San Francisco, Los Angeles, San Diego and Orange County – made significant gains in 2022. San Francisco, which was only halfway back to pre-pandemic levels a year ago, saw visitor spending grow by 71% in 2022 and was 86% of the way back by year’s end. Tourism spending in 20 of the state’s 58 counties recovered enough in 2022 to exceed pre-pandemic levels.
Projections from Tourism Economics show California this year will surpass the record $144.9 billion in visitor spending achieved in 2019, a year sooner than projected in 2021.
International visitors are returning to California in greater numbers, though the $17 billion they spent in 2022 is still just 60% of the pre-pandemic peak of $28 billion. The 2019 level of international visitor spending is unlikely to return until 2025.

Community sentiment research prepared by Destination Analysts and released today by Visit California marks the most extensive look yet at Californians’ view of tourism benefits and challenges. The team conducted focus groups in all 12 tourism regions and surveyed 3,300 residents.

Sixty percent said tourism is important, while 56% said the benefits of tourism in California outweigh the problems. About half statewide said the regional tourism economy improves their quality of life. Residents said benefits of tourism include more business opportunities and jobs, stronger civic pride, and development of attractions and events that can be enjoyed by visitors and residents alike. They called out traffic, crowds and litter as strains caused by tourism.

“It is especially heartening that California’s most important ambassadors – our neighbors, our fellow Californians – recognize the benefits of this comeback and the value tourism adds to their communities,” Beteta said. “It also is helpful that this research has identified the challenges we face so the tourism industry can work with community leaders to find solutions.”

Visit California has reestablished international offices in 13 markets and has extended initiatives to promote professional meetings and events in California and leisure and business travel to California’s urban hubs. A new family travel television campaign, “Childhood Rules,” launched in domestic United States markets this spring.

Beteta praised the marketing stimulus dollars the Legislature and Gov. Newsom approved in 2021 and 2022 to help jump-start marketing programs as tourism industry assessments dropped during the pandemic. The $95 million in domestic marketing approved by the Legislature returned $36.7 billion in visitor spending.

“The stimulus dollars wisely provided by the Legislature and Governor Newsom was critical to bringing California’s tourism economy back faster than would have otherwise been possible,” Beteta said.

Download the Media Toolkit here, including :

Visit California press release
2022 Visit California Economic Impact Report
Visit California Community Sentiment Study
Los Angeles Tourism press release
Los Angeles Tourism economic impact fact sheet

Media Contact:

Dan Smith (916) 802-6708 [email protected]

ABOUT VISIT CALIFORNIA Visit California is a nonprofit organization with a mission to develop and maintain marketing programs – in partnership with the state’s travel industry – that keep California top-of-mind as a premier travel destination. For more information about Visit California and for a free California Official State Visitor's Guide, go to visitcalifornia.com . For story ideas, media information, downloadable images, video and more, go to media.visitcalifornia.com .

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