Trump Slump looms over California's top tourism position, according to Newsom's warning
Rewritten Article:
California's Tourism Squeeze: Trump's Tariffs Take a Bite
California's sun-kissed shores and bustling metropolises attracted a record-breaking 157.3 billion dollars in tourism spending in 2024, venue for the iconic Coachella festival and the Smithsonian of the West in Balboa Park. But the Golden State may be in for a rough patch, thanks to President Trump's trade policies.
The numbers are impressive, with tourism generating 24,000 new jobs and significantly contributing to California's fourth-largest global economy. However, theFuture of tourism in the state looks bleak, according to Governor Gavin Newsom, who anticipates a 1% decrease in domestic visitation and a staggering 9.2% drop in international tourism.
Local businesses, fed by the spring break travel rush, have reported a slump in foot traffic due to the uncertainty surrounding tariffs and the stock market. The concern isn't merely local. Canada, a significant market for California's tourism industry, has seen a surge in cancellations for events like Coachella, as Trump's 25% tariff on Canadian goods discourages travel. Newsom, in response, announced a marketing campaign to woo Canadians back to California, after February's figures showed a 12% drop compared to the same period in 2024.
Los Angeles, with over half a million employees in the tourism and hospitality sector and over a thousand local businesses supported by this industry, stands to feel the pinch. Nationwide, Tourism Economics forecasts a potential 5% decrease in international travel to the US this year, with a 15% decrease in travel from Canada.
In places like San Diego, famed for Comic-Con, stunning beaches, and Balboa Park, one in eight locals rely on tourism for employment, bringing in $14.8 billion in earnings in 2024. With nearly 32.5 million visitors in the previous year, it ranks among the top travel destinations in the country.
Kerri Kapich, Chief Operating Officer at the San Diego Tourism Authority, voices concern over the unpredictability caused by ongoing changes, which make it challenging to plan ahead for the tourism industry. A slowdown or stagnation in tourism could have a ripple effect on the local economy, affecting jobs and overall revenue.
👉 Canadian Snowbirds Fleeing Palm Springs
California's tourist hotspot, Palm Springs, faces an economic downturn, as Canadian snowbirds abandon their vacations and property sales in response to Trump's tariffs. The anticipated state budget revision, due next week from Sacramento, may be affected by this uncertainty. Newsom has taken legal action against the Trump administration, arguing that the president lacks the authority to levy international tariffs without congressional approval.
👉 News to Chew On
- Fewer Canadian Visits: Visitor numbers from Canada may decrease as a result of Trump's belligerent rhetoric and increased border arrests.
- California's Economic Rise: California's economic dominance has surpassed Japan to establish itself as the world's fourth-largest economy, but Trump's tariffs pose a significant threat.
- Troubles for Southern California's Trade: Southern California's $300 billion trade industry faces trouble due to Trump's tariffs, according to a report.
- Trump's tariffs have led to a decline in Canadian snowbirds visiting Palm Springs, California, resulting in an economic downturn for the tourist hotspot.
- The anticipated state budget revision in Sacramento may be affected by the decrease in Canadian visits due to Trump's tariffs and uncertainty around travel.
- Governor Newsom has taken legal action against the Trump administration, arguing that the president lacks the authority to levy international tariffs without congressional approval.
- The future of the California economy is uncertain, with a decrease in domestic visitation and a significant drop in international tourism anticipated by Governor Newsom.
- The stock market and business community in Los Angeles, with thousands of local businesses dependent on tourism, are concerned about the slump in foot traffic caused by the uncertainty surrounding tariffs and the stock market.
- California's economic dominance, currently the world's fourth-largest economy, is under threat due to Trump's tariffs, as tourism, trade, and other sectors may experience declines.
- In policy-and-legislation and general-news discussions, the impact of Trump's tariffs on California's tourism industry, economy, and businesses is a pressing issue, with concerns about job losses and overall revenue reduction.
