California tourism leaders warn of international decline, urge statewide coordination ahead of mega events

Assembly Committee on Arts, Entertainment, Sports and Tourism Chairman Ward convened an informational hearing Aug. 20 to review the state of California’s travel industry as Visit California and local destination marketing organizations reported a downturn in international visitors and spending in 2025.

Caroline Beteta, chief executive officer of Visit California, told the committee, “This is a very important topic given some of the times that we’re in right now,” and outlined Visit California’s current strategy and forecast. She said domestic visitation was essentially flat while international arrivals were projected to drop 9.2% for 2025 in the organization’s May forecast, tipping the overall outlook into negative territory.

The decline is being driven by several factors, speakers said: economic pressure and travel cost; a strong U.S. dollar; longer visa wait times and proposed new federal fees; and a negative press and political rhetoric that, panelists said, has lowered international travel sentiment. Beteta also emphasized the stakes around upcoming mega events, saying California needs clarity for businesses as cities prepare for the FIFA World Cup and the 2028 Los Angeles Olympics.

Why it matters

Visit California provided statewide figures for 2024 to show the scale of the industry: $157 billion in visitor spending, $12.6 billion in state and local tax revenue and support for roughly 1.2 million jobs. Beteta said Visit California will execute a $55 million global media plan in the current fiscal year and that international travelers account for a minority of trips but a disproportionate share of spending.

Local leaders who testified described how…