Travel spending in California hit an all-time high in 2023

California travel spending reached an all-time high of $150.4 billion last year, according to new data from the governor’s office.

“People are really getting out,” said Kirk Sowell, owner of Frankie & Lola’s Front Street Café.

Spending is up across the state. According to Visit California, there’s been a 3.8 percent increase from 2019 and a 5.6 percent increase from 2022.

Sowell's café is located on Front Street in Morro Bay. He says he’s noticing more people making shorter trips.

“People are realizing that instead of making these big huge travel trips and going overseas, they’re finding a bigger bang for their buck in these little day trips and they’re going to small places,” Sowell said.

Visit SLO CAL reports tourism contributed $110 million in local tax revenue for San Luis Obispo County last year.

Sowell says he’s gearing up for the holiday rush and weeks that follow.

“In the weekend leading up to Fourth of July and the weekends after, it’s that big push that people finally realize it's summer and we should be getting out and doing stuff and they pack everything and come out. In the summer weeks previous to that, it’s kind of stragglers,” Sowell said.

He adds that when temperatures are hot in other places, many people come to Morro Bay to escape the heat.

“It’s usually like 65 to 70 degrees here even when it's baking everywhere else and so people come here and hang out,” Sowell said.

With summer crowds on the way, Sowell says he’s placing orders with his suppliers more often.

“Since the rain stopped and summer kind of kicked in, it’s been really busy. Even in the weekdays when normally sales would be light, people have been coming out,” Sowell said.

In San Luis Obispo County, tourism is credited for employing more than 22,000 people and is said to be the second-largest economic driver in the county.

Mary van Zee has owned Treasures Antique Mall in Morro Bay for more than 13 years and says it’s people in the community that keep her shop in business.

“Even in the weird off-times, we’re just busy because the locals support us a lot,” she said.

Sowell says he’s ready for whatever the rest of summer brings.

“It’s still busy but this is the big push. This is the crazy,” Sowell said.

In addition to visiting the state, more people also appear to be moving here. Governor Gavin Newsom recently announced the state’s population is increasing for the first time since the start of the pandemic.