Brand is strong, but California travel industry still feeling impact of challenging times

In a message to industry partners, Caroline Beteta, President & CEO of Visit California, writes: “The global landscape is shifting — and California’s travel industry is beginning to feel the impact.”

Beteta observes that: “While international tourism has long been a cornerstone of California’s economy, new political and economic headwinds are testing that momentum. Travel isn’t tariffed, but our industry is not immune to the ripple effects. For the first time since the height of the pandemic, February arrivals data showed a year-over-year decline in international visitation to California.”

And she makes it clear that among all of California’s international markets, Canada has been particularly affected.

Writes Beteta: “Canada is California’s No. 2 international market in terms of visitor spending, a reflection of our deep cultural and economic ties. Yet today, we’re seeing Canadian travellers hesitate — driven by a combination of political concerns, safety perceptions and economic pressures. Recent diplomatic rhetoric, reports of border detentions, and a weak Canadian dollar are all contributing to a slowdown in travel to the U.S., including California.”

However, Visit California’s President & CEO also makes it clear that: “This isn’t just a Canadian issue. The strength of the U.S. dollar continues to challenge affordability across nearly every international market.”

“Amid this challenging environment,” writes Beteta, “Visit California is taking decisive, strategic action — not only to stem this tide, but to send a clear message: California is open, welcoming, and deeply values its international visitors — especially Canadians.”

Beteta said that Visit California will be “digging deeper into these dynamics” and outlining its strategy moving forward during a live industry town hall webinar on Wed., April 23 at 1:30 p.m. PT

During the session, Visit California will present the latest data, discuss key implications and share how Visit California is responding.

But Beteta makes it clear that: “This is not a question of brand strength. California remains a top global destination. But even the most iconic destinations must adapt to shifting global realities. We’re working closely with all our international offices and national partners to further evaluate how tariffs and broader global economic trends are impacting all our international markets.”

And she concludes, writing: “There’s no playbook for this moment — but there is a path forward. We’ll stay grounded in the data, connected in our response and focused on supporting California’s global competitiveness.”