Contribution of tourism to California's socioeconomic development and growth in the United States | 2022

Contribution of tourism to California's socioeconomic development and growth in the United States

Overview

Accommodations, transportation, rental car agencies, eateries, shops, tourist attractions, gas stations, and other businesses that cater to tourists make up California's travel and tourism sector. Spending by tourists supports businesses in the tourism sector across all industry sectors and throughout all of California's regions.

The state's 927.1 thousand jobs were supported by travel-related spending in 2021. While indirect impacts come from the earnings of businesses that provide goods and services to the tourism sector, direct impacts are the earnings attributed to travel expenditures made directly by tourists at establishments across the state.

The Golden State's tourist sector has produced consistent economic growth every year for the past ten years since the Great Recession of 2008 ended. The sector experienced new highs in 2019, when travel expenditures from tourism accounted for over $144 billion, tax income came in at $12.2 billion, and over 1.2 million employment were supported.

California's decade of travel-related growth came to a stop in 2020 due to the coronavirus epidemic, but the sector is moving forward well in its recovery.

Even though travel spending increased in 2021, it still lagged well below the record-breaking levels of 2019, particularly in the state's major centers. It also generated more tax money and supported more jobs.

Along with generating income for travel-related enterprises and destinations, the travel sector also contributes significantly to local, state, and federal tax collections that support vital public services.

All Californians gain from these services, which encompass local libraries, infrastructure, development, and public safety. Each California homeowner would have had to pay an additional $920 in taxes in 2019 without the money brought in by visitor spending.
Prior to the epidemic, over $1 of every $5 spent by visitors in the state was made outside of the country. International visitors made a record $28.3 billion in purchases in the Golden State in 2019, far surpassing comparable industries. Historically, California's top export was tourism.