California travel industry edges closer to a full recovery

California’s journey trade is gaining on a record-setting 2019, in keeping with a new report from Go to California, projected this yr to surpass a pre-pandemic milestone because the trade heads towards a full restoration.

The nonprofit group, which promotes and tracks tourism in California, mentioned travel-related spending within the Golden State grew to $134.4 billion in 2022. That’s a 31.7% improve from the earlier yr however down 7.2% from the $144.9 billion peak seen in 2019.

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ANAHEIM, CALIFORNIA - APRIL 24: A sign advertises Downtown Disney near Disneyland on April 24, 2023 in Anaheim, California. Disney will lay off several thousand workers this week amid an overall push by the media giant to cut 7,000 total jobs in an effort to save $5.5 billion in costs. (Photo by Mario Tama/Getty Images)
ANAHEIM, CALIFORNIA – APRIL 24: An indication advertises Downtown Disney close to Disneyland on April 24, 2023 in Anaheim, California. Disney will lay off a number of thousand employees this week amid an general push by the media large to chop 7,000 complete jobs in an effort to avoid wasting $5.5 billion in prices. (Photograph by Mario Tama/Getty Photos) 

The report additionally breaks out 2022 travel-related spending by county:

  • Los Angeles County: $28.5 billion, up from $21 billion in 2021
  • Orange County: $14.8 billion, up from $10.8 billion in 2021
  • San Bernardino County: $5.5 billion, up from $4.4 billion in 2021
  • Riverside County: $8.8 billion, up from $6.8 billion

Employment has additionally made vital good points. California’s journey trade added 157,000 jobs final yr, pushing the overall employment base to 1.1 million jobs. That was up 16.8% from 2021 however down 7.3% from 2019.

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State and native tax income from journey has additionally gained traction. It elevated 21.6% to $11.9 billion in 2022, in keeping with Go to California. That fell 3% wanting the income seen in 2019.

Go to California President and CEO Caroline Beteta mentioned the trade is on a agency upward trajectory.

“California tourism in 2022 has positively bounced again from the human and financial toll of the pandemic,” she mentioned. “We’re poised to set new data for customer spending, employment and tax era this yr.”

Projections from Tourism Economics present the state is on monitor this yr to surpass the document $144.9 billion in customer spending achieved in 2019, a yr before initially estimated.

Go to California numbers present California accounted for 11.6% of the nation’s complete journey spending in 2022.

Spending on inns, Airbnb and different lodging led the best way with $31.7 billion in spending, adopted by meals service ($29.9 billion), native transportation and gasoline ($17.6 billion), retail gross sales ($15.7 billion), arts, leisure and recreation ($14.4 billion), customer air transportation ($6 billion) and meals shops ($4.6 billion).

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Lodging and meals service accounted for essentially the most travel-related jobs at 627,190, adopted by arts, leisure and recreation (264,698), retail (86,057), different journey (50,205), floor transportation (38,777) and customer air journey (23,428).

In a companion shopper sentiment report, Go to California lists seashores, climbing trails, malls, mountains and theme parks among the many state’s high sights.

Los Angeles World Airports CEO Justin Erbacci said 66 million travelers passed through LAX last year, adding that 70 million are expected for 2023. (Photo by Axel Koester, Contributing Photographer)
Los Angeles World Airports CEO Justin Erbacci mentioned 66 million vacationers handed via LAX final yr, including that 70 million are anticipated for 2023. (Photograph by Axel Koester, Contributing Photographer) 

Beatrice Hsu, president of the Los Angeles Board of Airport Commissioners — famous that Los Angeles Worldwide Airport is the “No. 1 origin and vacation spot airport on the earth.”

“We've been investing billions of dollars to construct the airport of the long run right here at LAX with the most recent infrastructure, transportation and expertise to make the passenger journey extra seamless,” Hsu mentioned at a current California Tourism Month occasion.

Los Angeles World Airports CEO Justin Erbacci mentioned 66 million vacationers handed via LAX final yr, including that 70 million are anticipated for 2023.

“We’re seeing a rise within the quantity of vacationers, particularly the worldwide space the place the rise is way more profound,” he mentioned. “We hope as geopolitical points get resolved we are able to have extra flights from China and Asia that may get much more passengers right here.”

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