Travel Spending Declines in Los Angeles County Amid Local Crises and National Policy Shifts
- Travel spending shrank slightly in Los Angeles County last year as local crises drove away tourists and national policy alienated foreign visitors, according to an economic impact report...
- Direct travel spending in 2025 was slightly below the previous year in Los Angeles County, marking the first decline since the pandemic and a step down from an...
- The decline follows a series of local crises that have kept tourists away, including wildfires that raged for weeks early in the year and dominated national news cycles,...
Travel spending shrank slightly in Los Angeles County last year as local crises drove away tourists and national policy alienated foreign visitors, according to an economic impact report from Visit California released this week.
Direct travel spending in 2025 was slightly below the previous year in Los Angeles County, marking the first decline since the pandemic and a step down from an average of close to 3% annual growth over the last decade.
The decline follows a series of local crises that have kept tourists away, including wildfires that raged for weeks early in the year and dominated national news cycles, essentially shutting down tourism in the area for a time.
Over the summer, Immigration and Customs Enforcement agents descended on the city, forcing people to stay home out of fear and further discouraging visitors.
President Trump’s controversial trade policies have also damaged the country’s reputation and discouraged many international tourists from visiting the United States.
Despite the turmoil in Los Angeles, California remained the most popular destination in the U.S. For tourism, and most counties in the state saw growth in travel spending last year.
The tourism industry is one of the top five employers in Los Angeles County, supporting more than 540,000 Angelenos and generating over $40 billion in local business sales in 2023.
However, Los Angeles experienced a $14.3 million transient occupancy tax budget shortfall in Fiscal Year 2023-2024, which had grown to $13.9 million at midyear FY24-25.
As the city prepares for the 2026 World Cup and the 2028 Olympics, new hotel operational restrictions under consideration by the City Council could further depress the industry and lead to increased tax shortfalls.
Visit California Chief Executive Caroline Beteta said Los Angeles faced something no major American city has ever confronted with the wildfires, underscoring the unprecedented nature of the challenges.