Overview

California's tourism sector has seen a rebound, yet Los Angeles County has experienced a decline in tourist spending for the first time since the pandemic. Factors such as wildfires, ICE raids, and trade tensions have contributed to this downturn, marking a significant shift in the city's appeal as a travel destination.

The economic impact report from Visit California indicates that direct travel spending in Los Angeles County for 2025 was slightly lower than the previous year, contrasting with the state’s overall tourism growth.

Key details

  • Tourist spending in Los Angeles fell for the first time since the pandemic.
  • Wildfires, ICE raids, and trade tensions have discouraged tourism.
  • Direct travel spending in 2025 was slightly below the previous year in Los Angeles County.
  • The county's tourism growth averaged close to 3% annually over the last decade.
  • California as a whole saw an average growth of 2.7% in tourism last year.
  • Los Angeles has faced local crises that deterred visitors.
  • President Trump’s trade policies have negatively impacted the country’s reputation.
  • Foot traffic and international visitors in L.A. have decreased.
  • Local vendors report reduced business compared to last summer.
  • Wildfires earlier in the year significantly affected tourism.
  • ICE raids during the summer created fear among potential visitors.
  • Despite L.A.'s struggles, California remains the top U.S. tourism destination.

Context

While Los Angeles has grappled with unique challenges that have hindered its tourism sector, the broader California region has largely thrived, with most counties experiencing growth in travel demand.

What happens next

As some businesses in Los Angeles begin to rebuild following the disruptions, the long-term impact of these crises on the city's tourism appeal remains to be seen.

What we don't know yet

Details about the specific percentage decline in tourist spending, the exact impact on individual businesses, and the potential for recovery in the coming years are not confirmed.