CEO Update: Highlights from tariffs town hall with Gov. Newsom

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Dear Industry Partners,

Thank you to everyone who joined today’s Travel in the Time of Tariffs town hall. We had more than 1,000 participants from across the state, with tourism leaders, partners and stakeholders coming together at a critical moment for our industry. We were especially honored to be joined by Governor Gavin Newsom, who shared an update on the state’s efforts to reach international travelers and reinforced that California remains a destination where visitors feel welcome, safe and inspired to explore.

To help you navigate the conversation, here are key timestamps:

• Situation Analysis – 2:34
• Remarks from Governor Newsom – 9:36
• Canada Response and Strategy – 21:15
• Global Environment and Market Conditions – 30:54
• Q&A Session – 37:45

During the town hall, we addressed key challenges impacting California’s tourism economy, including global economic pressures, shifting traveler sentiment and concerns around safety and security. One of the most pressing issues is the downturn in travel from Canada. The weakened Canadian dollar — coupled with tariffs, political tensions and growing concerns around border crossings — has led to a notable decline in Canadian travel to the U.S. Overall, the 2025 forecast anticipates a drop in international inbound visitation and room nights, with consumers increasingly cautious amid financial uncertainty. Visit California recently released our March non-resident arrival data which shows an even further decline in travelers from key markets.   

Visit California is responding to these challenges with focus and heart. We are closely monitoring performance and remain prepared to stay nimble in our approach. While our hallmark campaigns — The Ultimate Playground, “Playful Journeys” and “Childhood Rules” — continue to generate positive results in most markets, we are seeing some softening, particularly in Canada. As conditions evolve, we may adjust our strategy to ensure we’re deploying resources where they’ll have the greatest impact.

Building on that momentum, we’re launching a new initiative later this month: “California Loves Canada.” This campaign celebrates the deep cultural and creative connections between California and Canada, using powerful storytelling and strategic media placements to remind Canadians of the influence they’ve had on shaping our state. From IMAX and the California Roll to iconic landmarks like the Walt Disney Concert Hall and Hotel del Coronado, the message is clear — California wouldn’t be California without Canada.

To support your efforts, we’re sharing a California Tourism Month Toolkit, which includes messaging, a sample blog post, social media assets and customizable content for your destination or organization. 

Thank you for your continued commitment and collaboration. When times are tough, Visit California steps forward. We were built for moments like this, born out of crisis and dedicated to helping our industry thrive. We will continue to support you as we navigate these headwinds and work together to keep California tourism moving forward.

Sincerely,
Caroline Beteta
President & CEO
Visit California