California’s Tourism Industry Faces a Significant Decline
About two months ago, my cousin Guillermo happily ventured from picturesque Cuernavaca, Mexico, to 95-degree Southern California. He took his wife and two young kids to Disneyland, Universal Studios, the zoo, the beach, and a Dodger game over a week span and then gleefully returned home. He spent about $6,000 for what he hoped was a lifetime of stories and memories.
His actions were pretty normal for a tourist, though his timing was not. Tourism to Los Angeles and California, in general, has been down this summer, representing a blow to one of the state’s biggest industries.
What the Numbers Say
International tourist arrivals to the state fell by 8% in the three months through August, according to data released Monday from Visit California. That is more than 170,000 fewer global tourists than last year. This is critical because international tourists spend up to eight times more per visit than domestic tourists.
Of all the state’s international travelers, arrivals from Canada fell the most (32%) in the three summer months.
Empty Landmarks
On Hollywood Boulevard, there are fewer tourists, and the ones who show up are spending less, said Salim Osman, who works for Ride Like A Star, an exotic car company that rents to visitors looking to take a luxury vehicle for a spin and snap the quintessential L.A. selfie.
This summer, he said foot traffic dropped by nearly 50%. Business has been slow around the TCL Chinese Theatre, where visitors place their hands into the concrete hand prints of celebrities like Kristen Stewart and Denzel Washington.
There were fewer people to hop onto sightseeing buses, check out Madame Tussauds wax museum, and snap impromptu photos with patrolling characters such as Spider-Man and Mickey Mouse. Souvenir shop operators nearby say they have also had to increase the prices of many of their memorabilia because of tariffs and a decline in sales.
Theories as to What’s Keeping Tourists Away
The region’s economy and image suffered significant setbacks this year. Shocking images of the destructive Eaton and Palisades fires in January, followed by the immigration crackdown in June, made global news and repelled visitors like friends of Australian tourists Geoffrey and Tennille Mutton, who didn’t accompany the couple to California this summer.
“A lot of people have had a changed view of America,” Geoffrey said as his family enjoyed Ben & Jerry’s ice cream outside of Hollywood’s Dolby Theatre. “They don’t want to come here and support this place.”
Viva Mexico (Tourists)!
Despite the southern border lockdown and the widespread immigration raids, Mexicans were a surprising exception to the tourism slump. Arrivals from our southern neighbor were up about 5% over the last three months from 2024.
I asked my cousin, Guillermo, about his travel motivations. He noted his desire to see family but also to visit many of Southern California’s jewels. He added that planning for this trip started a year earlier too.
Other News and Updates
(Carlin Stiehl/Los Angeles Times)
Going Out and Staying In
