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Visit California warns international arrivals slipping; cites visa wait times, rhetoric and economics
Summary
At an informational hearing of the California State Assembly Committee on Arts, Entertainment, Sports and Tourism, Visit California said 2025 will mark the first year of visitation decline since the pandemic, driven chiefly by a projected 9.2% drop in international arrivals and weakening global sentiment.
Caroline Betteta, chief executive officer of Visit California, told the Assembly Committee on Arts, Entertainment, Sports and Tourism on Aug. 20 that California is facing its first year-over-year decline in total visitation since the COVID-19 pandemic.
Betteta said the decline is driven primarily by a forecasted 9.2% drop in international visitors for 2025 and by economic pressure in source markets. "This decline is driven by economic pressures, shift in sentiment abroad, and concern about the ease of travel into the U.S.," Betteta said. She cited news coverage of border detainments, lengthy visa wait times and a strong U.S. dollar as contributors.
The agency reported that 2024 visitors spent $157,000,000,000 in California, generating $12,600,000,000 in state and local tax revenue and supporting about 1,200,000 jobs. Adjusted for inflation, total spending remains 10.5% below 2019 levels, Betteta said.
Why it matters: international visitors account for higher per-trip spending and off‑season travel that helps gateway cities and rural destinations alike. Betteta noted international travelers were 6% of California's visitor volume in 2024 but represented 17% of spending.
Visit California is shifting resources toward domestic marketing: the board-approved FY 2025–26 plan increases domestic marketing to 87% of annual funding, up from 79% the previous year, Betteta said. The organization also plans a $55,000,000 global media plan projected to deliver 2,800,000,000 impressions, including three layered brand campaigns—"Let's Play," a family campaign and a road-trip campaign—deployed across priority U.S. and international markets.
Betteta warned that proposals at the federal level to add new travel fees could raise the cost of family travel significantly. "If implemented," she said, referring to legislative language discussed earlier in the year, "it could make the United States the most expensive nation to travel to for some families and send a negative message about our welcome." Betteta urged attention to visa processing delays, the strong dollar and international sentiment shifts.
Committee members asked about the impact on tax revenues and jobs; Betteta said her research team is calibrating the precise jobs impact per dollar of spending and offered to provide detailed figures to the committee record.
Ending: Betteta closed by stressing California's continued competitive advantages—brand strength, a diversified set of tourism regions and upcoming mega‑events including World Cup matches and the LA 2028 Olympic Games—and said Visit California will work with Brand USA, local partners and the legislature to protect market share.
