By Jorge Casuso

June 16, 2025 -- Santa Monica's tourism industry, a key driver of the local economy, was dealt a setback for the second straight year in 2024 due to a steep drop in domestic visitors.

The fall in both the number of total visitors and the amount they spent, however, was buffered by a strong rebound in international travelers, according to a report released by Santa Monica Travel and Tourism (SMTT) Thursday.

An estimated 4.2 million visitors traveled to Santa Monica last year, a 9 percent decrease from the 4.6 million visitors in 2023, according to the economic impact report released at SMTT's 16th annual Tourism Summit.

Meanwhile, visitor spending dipped only 2 percent from $938 million in 2023 to $916.6 million last year, as daily per capita spending spiked from $138 to $156 thanks in large part to international visitors.

"In 2024, Santa Monica’s vital tourism industry saw strong recovery of international demand, which helped grow spending and tax receipts," according to the report.

The number of international visitors spiked last year, rising from 1.117 million in 2023 to 1.87 million last year, a 67 percent increase.

And the money they spent rose by more than $100 million -- from
$366.6 million to $470.9 million last year, a 29 percent jump, as their daily per capita spending rose from $169 to $174.

Meanwhile, the number of domestic visitors fell by 33 percent, from 3.52 million in 2023 to 2.36 million last year, and the amount they spent dropped from $571.5 million to $445.6 million, despite a rise in per capita spending.

“We are so inspired by our tourism partners’ resilience through challenges and passion to serve both visitors and our neighbors,” said SMTT President/CEO Misti Kerns.

“As our industry faces continued hurdles, I am encouraged by our community’s strength to adapt and confident in our longstanding and brand-new tourism offerings that continue to draw travelers from around the world to our beloved beach city."

The annual report tracks the economic impact of tourism, including visitor spending, job creation and tax revenue generated by Santa Monica’s tourism industry in the past year, SMTT officials said.

In 2024, visitor-generated taxes rose slightly from $62.6 million in 2023 to $62.7 million, a .3 percent increase due to a .7 percent rise in the city's Transient Occupancy Tax (TOT), or "bed tax."

"Entirely generated by Santa Monica’s overnight hotel guests, TOT funds are crucial to supporting city services such as our emergency departments, schools, homeless services and continued care for our parks and beaches," the report notes.

In addition, last year saw a 1.5 percent increase in revenues generated by the local retail sales tax -- from $4.17 million to $4.22 million.

Tourism supported 6,487 local jobs last year, "demonstrating our industry’s vital role in employment creation and maintaining a thriving local workforce."

The number of jobs supported by tourism represents a 10 percent decrease from the 7,182 jobs supported by visitor activity and spending in 2023, a 10 percent drop.

The tourism job market will get a boost this year with "the debut of several new tourism businesses" that include the new Regent Santa Monica Beach hotel and "exciting retail and dining offerings," according to the report.

Visit California President & CEO Caroline Beteta called Santa Monica "an iconic on-in-California experience that draws visitors from around the globe.”

“Despite an incredibly challenging year for the greater Los Angeles region, and global pressures affecting the travel landscape, Visit California remains optimistic about the state’s long-term global brand strength and is focused on supporting the businesses and communities that will drive our industry forward,” said Beteta, the keynote speaker at the summit.

Kerns said the travel industry and "the people behind it" are a "cornerstone of our national, state and local economies."

"It is more critical than ever to educate powerful decision-makers and uplift our industry that supports more than 15 million American jobs and generates $1.3 trillion in visitor spending across the country,” Kerns said.