Visit California revealed that its economic impact research study showed that the California tourism industry grew 32 percent in 2022 and that state is poised to pass pre-pandemic records for visitor spending, employment and tax generation.
Caroline Beteta, president and CEO of Visit California, the state’s tourism marketing organization said in a statement “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. She added “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 – 94% of the way back to 2019 levels. Visitor-generated tax revenue for state and local government increased by 21.6%.
– The jagged tourism recovery seen last year 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 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.
The study also confirmed that Californians value the benefits of the tourism economy. Sixty percent said tourism is important, while 56% admit the benefits of tourism in California outweigh the problems.
“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.”
Betata also praised the marketing stimulus dollars the California 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.
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