Published on February 21, 2026
By: Tuhin Sarkar
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California’s tourism sector is experiencing a gold rush of its own. Monterey, along with Orange, Napa, Tuolumne, San Bernardino, Kern, and several other counties, is raking in massive earnings from the booming tourism industry. This surge is transforming the Golden State, driving job creation, and generating unprecedented tax revenue. As visitor spending continues to soar, these counties are seeing a revitalization of their economies, with new tourism-driven investments reshaping local landscapes. The explosive growth is not just about the numbers—it’s about the seismic shift in how these counties are positioning themselves as year-round travel destinations.
Domestic travel trends are evolving faster than ever, and California’s tourism recovery has become a vital piece of this larger puzzle. The focus on lodging tax is not just about the revenue—it’s about the strategic reformation happening within the sector. With millions pouring into California’s tourism economy, counties like Monterey, Orange, Napa, and others are pushing boundaries, fueling job growth, and contributing billions in taxes. This is no longer a mere recovery—it’s a revolution. Keep reading to discover how these counties are leading the charge and why the Golden State’s tourism future is brighter than ever.
The tourism industry in California experienced a dramatic rebound in 2023 and 2024, making the state a top destination once again for both domestic and international travelers. According to the latest data, California’s tourism spending skyrocketed to US$150.4 billion in 2023, with a 3% gain reaching US$157.3 billion in 2024. This surge is attributed to growing domestic travel and rising hotel rates, all fueling job creation and generating significant tax revenues. However, the recovery story is not uniform—some counties have outperformed pre-pandemic figures, while others continue to struggle.
This article delves into the government-sourced California tourism data, breaking down county-level travel spending, employment numbers, and tax revenues. By examining both the Economic Impact of Travel in California 2023 report and the 2024 California State Controller’s Office Transient Occupancy Tax (TOT) dataset, we can pinpoint which counties are thriving in this tourism renaissance—and which are lagging behind.
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Los Angeles: The State’s Uncontested Tourism King
Los Angeles continues to reign supreme in California’s tourism economy, with 2023 figures showing a staggering $34.1 billion in total travel spending. This figure more than doubles the amount spent in the next closest county. Of that, $24.8 billion was directly attributed to visitors, excluding commuting and local travel. The city’s tourism industry supports 223,690 jobs and generates $16.7 billion in earnings for its workers. In terms of tax revenue, Los Angeles brings in $1.74 billion in local taxes and $1.26 billion in state taxes, contributing over $3 billion in total travel-generated taxes.
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In 2024, the Transient Occupancy Tax figures also reflect strong demand for lodging, with unincorporated Los Angeles County collecting $25 million at a 12% lodging tax rate. This figure suggests around $208 million in taxable lodging sales, further proving that the demand for hotel accommodations in LA remains robust.
Southern California’s tourism engine is powered not just by Los Angeles, but also by San Diego, Orange, and Riverside counties. San Diego raked in $16.1 billion in travel spending in 2023, with $13.8 billion coming from visitor spending alone. This county also generated 100,690 jobs from the tourism sector. Orange County wasn’t far behind, posting $15.8 billion in travel spending, of which $14.2 billion came from visitors. With 132,710 tourism jobs, Orange County is a major player in California’s tourism economy.
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Riverside County, encompassing areas like Coachella Valley and Temecula’s wine region, saw $9.2 billion in total travel spending and $8.6 billion in visitor spending, sustaining 95,230 jobs. The county’s lodging tax figures also underscore its growth, with unincorporated Riverside County collecting $13.3 million in TOT revenue in 2024 at a 10% tax rate, which translates to around $133 million in taxable lodging sales.
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San Francisco: A Leader in Visitor Spending
San Francisco remains a unique tourism market. In 2023, the city generated $13.8 billion in total travel spending, with $10.4 billion coming from visitors. Despite still trailing pre-pandemic levels, San Francisco’s recovery accelerated due to a surge in international travel and business conferences. The city’s tourism sector supports 55,090 jobs and produces nearly $1 billion in tax revenue. San Francisco’s position as a global tourism hub is underscored by its high visitor spending per square mile.
Wine Country: Sonoma and Napa Counties Cash In
Sonoma and Napa counties continue to draw high-spending visitors to California’s famous wine country. Sonoma saw $2.4 billion in travel spending in 2023, with $2.1 billion coming from visitor spending. The county also generated $1.1 billion in earnings and sustained 16,320 tourism jobs. Napa County reported similarly strong numbers, with $2.2 billion in travel spending and $2.1 billion in visitor spending, supporting 14,660 jobs. Napa’s high-end tourism market ensures strong earnings year-round.
Both counties’ Transient Occupancy Tax figures indicate a healthy demand for accommodations. Napa’s unincorporated areas collected $13.2 million in TOT at a 13% tax rate in 2024, while Sonoma brought in $31.5 million at a 12% rate, reflecting robust tourism activity in the region.
Monterey: A Year-Round Tourism Hub
Monterey County remains a major draw for both domestic and international visitors. In 2023, Monterey saw $5.8 billion in total travel spending and $5.4 billion in visitor spending. The county’s strong tourism economy supports 22,740 jobs. Lodging taxes further highlight the demand for accommodations in the region, with unincorporated Monterey collecting $38.6 million in TOT revenue at a 10.5% tax rate in 2024. This implies nearly $367 million in taxable lodging sales, underscoring Monterey’s appeal as a year-round destination.
San Luis Obispo County, renowned for its coastal towns and wine country, generated $2.3 billion in travel spending and $2.2 billion in visitor spending in 2023. With 24,740 tourism jobs, the region’s tourism industry remains a crucial driver of local employment. Santa Barbara, famous for its beaches and wineries, recorded $2.1 billion in travel spending and $1.9 billion in visitor spending. Both counties benefit from their unique coastal landscapes and local wineries, offering visitors a laid-back yet vibrant experience.
San Bernardino and Kern: Underestimated Yet Profitable
While often overshadowed by coastal counties, San Bernardino and Kern counties prove that inland areas can thrive as tourist destinations. San Bernardino County recorded $5.3 billion in travel spending and $4.8 billion in visitor spending in 2023, supporting 47,290 jobs. The county’s lodging revenue also demonstrates its significance, with unincorporated San Bernardino collecting $14.9 million in TOT at a 7% tax rate in 2024, implying $213 million in taxable lodging sales.
Kern County, home to Bakersfield and the gateway to the Sierra, recorded more modest tourism figures but still managed to generate $3.7 million in TOT at a 6% rate in 2024. This highlights how even smaller inland counties benefit from business travel and outdoor recreation.
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How Travel Spending Translates into Jobs and Taxes
Visitor spending plays a crucial role in fueling local economies across California. The 2023 Economic Impact of Travel report highlights how travel spending creates jobs and generates tax revenue for communities. Los Angeles, for instance, converted $34 billion in travel spending into over 223,000 jobs and $16.7 billion in earnings for its workers. San Diego’s $16 billion in spending supported 100,690 jobs. Even smaller counties like Sonoma were able to employ thousands through tourism. These earnings matter because tourism jobs often support hospitality workers and small-business owners. As visitors spend more, wages rise, and communities see tangible economic benefits.
Tax revenues paint a similar picture. In 2023, statewide travel spending generated billions in state and local taxes, significantly easing the tax burden for California residents. At the county level, Los Angeles alone raised $1.74 billion in local taxes, while San Diego and Orange counties collected substantial amounts as well. Smaller counties also benefit from lodging taxes to fund essential services—Mariposa, for example, relies on its transient occupancy tax (TOT) revenue to support infrastructure and emergency operations.
Winners, Laggards, and the Road Ahead
Counties That Surpassed Pre-Pandemic Levels
In 2023, 34 of California’s 58 counties exceeded their 2019 travel-spending records. Major destinations like Los Angeles, San Diego, and Orange counties exceeded their pre-pandemic benchmarks, driven by pent-up demand and strong domestic travel. Rural counties surrounding national parks also saw significant benefits—counties like Mariposa and Tuolumne experienced an influx of visitors, leading to record lodging tax revenues.
Counties Still Catching Up
Despite the overall recovery, some areas still lag behind. San Francisco, for example, was at 97% of its 2019 travel-spending level in 2023. Factors such as slow recovery in business travel and a delayed return of international visitors have hindered full recovery. Inland counties such as Imperial, Kings, and Modoc reported minimal TOT revenues, reflecting limited tourism infrastructure. These areas may require targeted marketing efforts or investment in infrastructure to compete more effectively.
The Impact of Tax Rates
Different counties apply varying TOT rates, which directly impact both revenue generation and visitor behavior. Rates range from as low as 4% in Modoc County to as high as 14% in Marin County. Higher rates generally yield more revenue per dollar of lodging sales, but they may discourage budget travelers. On the other hand, lower rates may attract more visitors at the cost of local revenue. For instance, San Bernardino’s 7% tax rate generated lodging revenue comparable to Los Angeles, despite collecting less tax.
Limits of the Data
While this analysis draws from authoritative government-sourced data, there are limitations to consider. The travel-spending data is from calendar year 2023, while the TOT data covers fiscal year 2024. These mismatched timelines prevent a perfect comparison. Additionally, the TOT dataset focuses only on unincorporated areas of counties, meaning it does not capture taxes levied by cities like Los Angeles or San Francisco. The dataset also lacks direct counts of overnight stays, relying on implied lodging revenue as a proxy for hotel performance.
What It Means for Policymakers and Businesses
Understanding county-level tourism performance is vital for both public and private sector decision-makers. Counties with high travel spending and strong TOT receipts, like Los Angeles, Monterey, and Sonoma, can justify continued investments in marketing, transportation, and visitor infrastructure. On the flip side, counties with lower TOT revenues may need to diversify their economies or rethink their tourism strategies.
Tourism revenue plays a critical role in funding public services. The revenue generated by lodging taxes supports essential services like fire protection in rural areas, beach maintenance, and destination marketing. Without tourism, local residents would face higher taxes or reduced services.
For businesses, the data provides a useful tool for gauging market opportunities. Hotel developers, for example, may be drawn to counties with high implied lodging revenue like Monterey or Placer. Restaurants and wineries can tailor their investments to capitalize on growing visitor spending trends.
Tourism’s Comeback Has Winners and Losers
California’s tourism recovery is real, but not evenly distributed. While counties like Los Angeles, San Diego, and Orange dominate visitor spending, wine country areas and outdoor recreation hubs also collect significant lodging tax revenue relative to their size. On the other hand, rural areas and some inland counties continue to struggle, relying on modest lodging tax revenues. Moving forward, policymakers will need to focus on sustaining growth in high-performing regions while helping lagging areas harness their unique natural and cultural assets. As travel spending continues to rise, the Golden State’s tourism gold rush is far from over. The future success of these regions will depend on how they invest in tourism infrastructure and marketing to meet growing demand.
California’s tourism industry is a patchwork of success stories and continued challenges. While Los Angeles and other Southern California counties continue to dominate the visitor spending landscape, smaller and inland counties such as Mariposa, Kern, and San Bernardino are proving that even less-expected regions can generate impressive tourism revenue. The key to future success lies in diversifying the state’s tourism offerings—ensuring both major metropolitan areas and quieter, rural destinations can thrive. As tourism dollars continue to flow, the economic impact on local jobs and tax revenues remains a crucial contributor to California’s post-pandemic recovery.
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