Promoting Inclusive, Welcoming Local Attitudes Could Moderate Reactions to Federal Actions
Americans reading about the flurry of activity out of Washington, D.C., around imposing tariffs on traditional trading and travel partners may be seeing only part of the picture. Visit California brought representatives from around the world to Los Angeles for Outlook Forum last week to hear what the prospects for travel to the Golden State are from all corners of the globe. Smart Meetings was there and brought back this report.
Canada
All eyes were on the $4.3 billion Canada market as headlines announced that Canadians are cancelling trips to the United States, selling their snowbird investments in Florida and Palm Springs and actively rejecting American-made products. The “reputation tarnish” happening north of the boarder was all the buzz from destinations who have enjoyed friendly relationships with group looking for sunny meeting destinations in recent years. Visit California Global Managing Director in Canada Julie Goergas, said, “Canadians feel home in California and that’s going to continue to be true even if there is going to be short-term pain.”
She called the weak Canadian dollar the biggest barrier to traveling to the United States, but rising tensions and threats of becoming the 51st state are making Canadians feel very patriotic. “Canadians are acting very un-Canadian,” she said.
On the bright side, no state is better positioned to build a bridge between Canada and the U.S. than California, a notoriously inclusive place, she observed. “Travel is active diplomacy.”
“Canadians are acting very un-Canadian.”
Germany
As a powerhouse in international travel to California, Germans average two out-of-country trips per-person annually. To overcome shifts in attitude caused by the new administration, positioning California as an accessible and compelling destination will be crucial. German travelers deeply value travel as a cultural and lifestyle necessity, even in uncertain times. While economic and political pressures may influence decision making, German resilience and strategic planning stand out. Many have already booked all their 2025 trips and California’s blend of nature, culture and adventure offers multi-generational appeal. But competition is fierce. Destinations worldwide are fighting for this audience. Unique road trip experiences could fulfill German yearning for freedom and connection.
The Nordic Countries (including Greenland)
The recovery of visitation to California is slower compared to other markets but the opportunity to align values such as sustainability and mindful living has never been stronger. As airlift continues to strengthen and expand, there are more opportunities to promote rural and lesser-known destinations. Nordic people are already the top international consumers of California wine but travel is facing headwinds. Currently, Thailand and parts of Asia have overtaken the U.S. as the top long-haul destination for Nordic travelers as inflation and high exchange rates make the U.S. less affordable.
The United Kingdom and Ireland
The UK is one of the most multicultural countries on earth and at heart it is a nation of explorers with Heathrow Airport (LHR) being the most globally connected airport. Every country is a viable holiday destination but the U.S. holds a special place with more than 4 million traveling across the pond each year. California has always represented the promise of freedom of expression, the open road, bold cultural experiences and experiments set against epic scenery. Now that the luxury market is booming, experiential travel is doing particularly well. There is palpable excitement for World Cup soccer with Brits planning long stays. Since two FIFA host cities are in California next year, it is a golden opportunity to score with UK travelers. New challenges in the form of rising costs and concerns about politics are contributing to a growing USA coolness gap, especially among younger travelers, who are either being priced out or increasingly opting for other parts of the world. But California’s reputation as an open, welcoming, culturally diverse destination can help combat those issues.
“New challenges in the form of rising costs and concerns about politics are contributing to a growing USA coolness gap.”
Italy
As the home of rich culture, beautiful landscapes and travelers who are seeking discovery, relaxation and authenticity, Italian long-haul travel to California grew by 28% in 2024 with almost 200,000 Italians spending half a billion dollars all over the state. Stunning beaches, coastal roads, scenic drives and wellness retreats are highly attractive. “Slow tourism” is also trending as Italians look for authentic, community-based experiences like vineyard tours, cultural emersions in cities or treks in national parks. Fly-and-drive is an evergreen attraction while cycling tourism grew by 35%. There is room to grow average stays in California as they lag the rest of the country.
France
The situation in France is a paradox. Last year, the country was led by four prime ministers in one year. The economy is expecting 1% growth this year. Families and young people are concerned about budgets. But there is reason for optimism because French people are prioritizing travel over other expenses. It’s an essential part of life. 70% of French people said their resolution is to travel more to have fun and experience authentic, unique lifestyles and foods. A compelling message is that California is a year-round destination as many French want to travel off-season.
The Middle East
Known for its own palatial luxury, white sand beaches and world-class shopping, Middle Easterners come halfway around the world to California to have fun and experience relaxed luxury. Interaction with locals is an attraction and excellent connectivity through Emirates and Turkish Airlines into SFO and LAX make it accessible. Middle Eastern travelers tend to stay longer and spend more, opting for luxury accommodations. They enjoy theme parks, gourmet experiences, and—this might shock you—but also wineries. DMCs and native California specialists can help provide private, authentic and culturally engaging activities to compete with international and regional tourism boards in the Middle East. Visa complexities do persist, but inroads—especially with Qatar’s recent inclusion in the U.S. visa waiver program—have made this high-value market.
India
As the fastest growing outbound market globally, the U.S. remains the most aspirational destination for Indians and California is the most popular in the country. Exclusive, immersive, authentic and customized luxury experiences beyond hotels, including fine dining, wine tasting, events, sports and visiting California’s large Indian population is a big draw. They are affluent, stay longer and spend more. Road trips are in high demand coupled with outdoor local experiences. Indians travel year round and look to California’s diversity of climate, including winter activities. With 1.4 billion people, including 100 million passport holders, the target audience in India is as much as 20 million people. India’s outbound market is expected to double by 2030 and keep doubling every five years. It is home to a growing affluent class and the largest population of young people in the world.
China
Where there’s a will, Chinese travelers will find a way. Airlift is just 40% recovered, but visitation is already at 73% with $2.3 billion in spending. How did that happen? Thousands of Chinese travelers who can’t get direct flights are taking detours and they’re enduring layovers to get to California. They bring the biggest spend among all overseas markets. But destinations such as Australia, Europe and the Middle East are offering etrying to win over Chinese luxury travelers. Despite the political attention, China is fCalifornia’s number one overseas spender. Keeping this momentum requires a welcome spirit, immersive experience and road-trip-friendly itineraries.
Japan
Japan’s recovery started a bit later than some other countries but it has seen steady growth over the last year. California has become the preferred destination for Japanese travelers coming to the U.S. They come for all the things that we love about California, but most importantly, they come for baseball. They want to see their hero Shohei Ohtani perform in the majors for the Los Angeles Dodgers. But they’re not just staying in the gateway cities. Corporations, student groups and special interest groups are combining baseball with trips across the state. Culinary has always been a key motivator and it will continue to be, but now they also want to see where the food is produced. That’s an opportunity to showcase agricultural regions across the state. Higher prices due to the weak yen have made travel to the U.S. out of reach for many younger travelers. To stay top-of-mind, reach out to Japanese companies and sister cities to develop ties.
Australia and New Zealand
Because Australia and New Zealand are a long way from pretty much everywhere, that distance has shaped the Aussie psyche making travel a non-negotiable priority even during a time of sharply rising cost of living. while Australians still love California, the destination is losing market share to Japan, which increased visits by 57% in one year. Australians are happy to spend big on their holidays, but they still seek value, and with the current exchange rate, we really need to collectively get more creative about demonstrating value through storytelling, creative packages and thoughtful details such as early check-in or access to showers after long flights. To combat a backlash about a lack of transparency in hotel pricing, offer all-inclusive quotes so people aren’t surprised by resort fees.
“To combat a backlash about a lack of transparency in hotel pricing, offer all-inclusive quotes.”
Korea
The Land of Morning Calm is one of the most influential and opportunity-rich travel markets with close to 60% of the Korean population traveling. This is the country that sets travel and global trends from K-pop to K-content to K-beauty. What is trending and popular in Korea today is shaping the world tomorrow. Koreans are not just looking for a place to get away. They are looking for unforgettable, high-value experiences, and that’s where California shines. South Korea’s hyper competitive and intense academic and work culture has created a strong demand for stress relief and personal growth. Travel is about balance, self-discovery and stepping away from the everyday pressures. For young millennials, it’s about connection. It’s not about where they go, but more about what they can share. They are looking for moments that are cinematic, story-driven and Instagrammable. But high costs associated with strong U.S. dollar and capacity limitations mean experiences have to be meaningful.
Mexico
The most reliable and resilient market for California is Mexico, despite tariffs. Increasing direct flights to the states and Northern California from Monterey was a big positive development in 2024.
