Calif. focusing on domestic travelers as foreigners pass on U.S.

Tourism bureaus and businesses are following the state’s lead of putting a more concerted effort into attracting domestic visitors.

At its June 3 meeting, Visit California’s board of directors agreed to have 91 percent of its media budget allocated to domestic travelers for fiscal year 2025-26. The spend was 72 percent for 2024-25.

Renting a scooter is popular with tourists. (Image: Kathryn Reed)

“With international visitation softening this year, we’ll shift even more focus to the United States, and especially those prospective travelers nearby who can book last-minute trips to explore California’s abundance of world-class experiences that can be had with a much shorter flight,” Caroline Beteta, president and CEO of Visit California, said.

With economic uncertainty swirling, including the devaluation of the U.S. dollar, as well as the international scene a bit frenzied, some travelers are opting for what’s being called “no passport travel”—where they stay in the States.

Combine that trend with the growing percentage of international travelers skipping the United States, marketing gurus are all about attracting those who live in the Lower 48.

“There’s been a noticeable broader shift toward slower, more intentional travel. More travelers are craving a break from constant connectivity, and California offers just that,” Beteta said. “Whether it’s a wellness retreat in Sonoma County, a quiet escape in Mendocino or an off-the-grid stay in Joshua Tree, people are searching for places to unplug, reset and be present.”

For 2025, Visit California forecasts travel spending in the state increasing 0.5 percent, with domestic spending rising 1.4 percent and international expenditures dropping 4.3 percent.

This equates to a projected overall 0.7 percent decline in visitors, with international travelers decreasing by 9.2 percent.

“No matter the global environment, domestic visitation is critical to California’s travel and tourism industry, accounting for more than 80% of all travel spending in the state. The majority of Visit California’s marketing investment is targeted at U.S. consumers, reflecting their importance to our state’s tourism economy,” Beteta said.

Arizona and Nevada residents account for the bulk of domestic travelers coming to California, whether they drive or fly. Those states along with Colorado, Oregon, Utah and Washington spent $33 billion in California in 2024, according to Visit California.

Of course Californians also spend a good amount of time and cash in their home state. Last year Californians took 118.3 million trips in this state, which equated to $29 billion in travel spending. That represents 18.4% of the state’s total $157.3 billion in travel spending in 2024.

Note: A version of this story first appeared in the North Bay Business Journal.