Tourism in Los Angeles has seen a downturn for the first time since the pandemic, even as most other counties in California have shown gains.
A recent report from Visit California reveals that in 2025, the state enjoyed strong tourism performance with travelers spending $158.9 billion, marking an increase of more than 1.7% compared to the previous year.
Across California, tourism contributed $13.6 billion in tax revenue, reflecting a 3.6% rise from the year before. The travel sector also saw job growth, with the industry now employing 1.2 million people statewide, an improvement from the previous year, according to the report.
The report offers a detailed look at county-level impacts, showing that out of 58 counties, 55 experienced a rise in travel demand.
However, Los Angeles stands out with a decline in tourism for the first time since the COVID-19 pandemic. Direct travel spending in the city fell by 0.1% from the prior year, a notable shift for an area that typically enjoyed nearly 3% annual growth over the past decade.
Direct travel spending in LA was down by .1% from the previous year, when the area has typically experienced a growth of nearly 3% every year over the last decade.
The report noted that there was also a drop of 8% in spending by visitors who travel by air and that it contributed to the LA’s tourism decline. That slump was equal to $188 million that the county didn’t get.
“Los Angeles is California’s primary global gateway,” Visit California Chief Executive Caroline Beteta told the LA Times. “No other region relies as heavily on international visitation, so when global travel softens, L.A. feels it first and most acutely.”
Between August and November 2025, international air arrivals dropped in the county by 30%, as the state overall saw an increase of 3%, the Times noted.
According to a recent LA city report, “The sharp decline in international travel seen in early 2025 that has reduced hotel tax receipts for two fiscal years is projected to recover in 2026 with the upcoming World Cup.”
“Although, this recovery may be temporary as transatlantic bookings from Europe for the summer season have declined a second year due to continuing tourism boycotts.”
Beteta told the Times, that with LA hosting the upcoming World Cup and 2028 Olympics, “the next three years change the equation entirely.”
“California is also seeing encouraging signs in the months ahead. Tourism Economics projects California visitation will reach 276.6 million in 2026, a 1.8% increase over last year, with travel spending expected to rise 3.5% to $164.8 billion,” Beteta added in a release about the report.
The report noted that already the year was looking better than the previous one for the state, with the first few months showing growth and outpacing the rest of the US.
“That momentum comes at an important time. California is entering a period of extraordinary global visibility, with major international events set to take place in our state with billions of potential travelers around the world watching,” Beteta said.
“Few destinations are better positioned to turn that attention into lasting demand.”
Earlier this year, Beteta announced she would be leaving Visit California after three decades at the helm of the organization.
The California Post reached out to Visit California and the LA Tourism organization for further comment.
