Gavin Newsom’s Claim of Record-High California Tourism Spending Undermined by Inflation Adjustment
California governor Gavin Newsom speaks at a press conference in Beijing, China, October 25, 2023.
California governor Gavin Newsom’s (D) claim of record-high tourism spending in the Golden State does not hold up after being adjusted for inflation.
Newsom triumphantly announced from San Francisco’s Golden Gate bridge on Sunday California’s tourism spending reached $150.4 billion last year, a new all-time record according to a newly released report by Dean Runyan and associates.
“From our world-renowned coastline, to the world’s tallest trees, to our iconic cities and theme parks, California is the nation’s coming attraction. Visitors from all over the world are coming here to experience the wonder of the Golden State, boosting our economy and creating good-paying jobs for years to come,” Newsom declared.
He was joined by Visit California CEO Caroline Beteta to celebrate California’s supposed record levels of tourism. Visit California’s “economic impact” page cites the same Dean Runyan Associates study and touts the $150.4 billion top-line figure.
However, the study itself explains how California’s inflation-adjusted direct travel spending is down 14 percent from its 2019 peak.
“Adjusted for inflation, travel spending in 2023 was down 14 percent from the peak (in 2019). However, another indicator to measure relative recovery is travel-generated employment,” reads a disclaimer on page 13 of the report.
The discrepancy was first reported by the Center Square on Monday. National Review has reached out to Newsom’s office for comment.
“People can try to undermine California’s success all they want, but the fact is tourists keep visiting the fifth largest economy on planet Earth because of all our state has to offer and the data supports that,” a spokesman for Newsom told the outlet.
Travel-generated employment is 98 percent of what it was in 2019, the report notes. Without adjusting for inflation, California experienced a 3 percent increase in travel-related tax revenues and a 13.1 percent increase in earnings for the travel industry. Since 2019, California has seen inflation levels of approximately 19 percent. Last year, California’s population declined by over 75,000 people as residents continued to seek greener pastures elsewhere due to the state’s high costs of living.
California’s tourism sector suffered major economic woes during the state’s prolonged coronavirus-induced lockdowns. Newsom infamously defied his state’s stringent coronavirus mitigation guidelines in November 2020 when he and a group of lobbyists dined at an upscale Napa Valley restaurant.
The health of California’s economy will likely be a major talking point for Newsom moving forward as his national profile continues to grow and speculation mounts about his future presidential ambitions.
Last year, Newsom debated Florida governor and then-GOP presidential primary candidate Ron DeSantis over their respective policy prescriptions and which state was performing better. California first lady Jennifer Siebel Newsom reportedly ended the debate after her husband struggled to get the better of DeSantis.
For now, Newsom is a prominent surrogate for President Joe Biden’s reelection campaign against former president Donald Trump.
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