Tourism Industry Update

March 12, 2026

IN THIS ISSUE…

• Santa Cruz County Continues Investment in Mexican Market
• Visit California’s CEO Caroline Beteta Bids Farewell at 2026 Outlook Forum
• Global Entry Reopens

Santa Cruz County Continues Investment in Mexican Market

The number of international tourists traveling to the United States has declined, according to the U.S. Travel Association, with one exception: Mexico. Pairing media relations efforts with travel trade opportunities, Visit Santa Cruz County (VSCC) participated in its second mission targeting Mexico, the primary international market for the United States and California. Last offered in 2023, Visit California’s Mexico Mission targeted the eastern side of the country this time in Merida, the capital of the State of Yucatan. Christina Glynn, Director of Communications, and Flavia Oliveira, Director of Sales and Travel Trade, brought news and information about the region to journalists and industry representatives during the three-day mission, held February 17 – 19.  

Some media and trade activities were combined, while other, more curated activities concentrating on journalists’ special areas of interest and travel trade experiences were separate. All sessions throughout the mission fostered meaningful interaction between consumer, travel, and lifestyle outlets and travel media representatives and delegates. 

The California delegation consisted of 31 destinations and attractions statewide. According to Visit California, the Mexican market is projected to spend $8.6 million in 2026, with an estimated 4.1 percent growth in travel to California. In 2024, Mexico generated 7.8 million visits, representing 47.3 percent of all international travel to the state. This level of activity supports steady, year-round demand and reinforces Mexico’s critical role within California’s international tourism landscape.  

Historically, neighboring Canada and Mexico have been the top countries for international visitors to the state.  However, with the political climate shifting, Canada has paused interest in the U.S., while Mexico remains consistently engaged in travel to the U.S., in particular to California. Mexico remains California’s #1 international market, driven by proximity, strong loyalty, and year-round travel demand. 

A variety of engagement and networking opportunities throughout the week enabled Christina and Flavia to share information about Santa Cruz County points of interest, hotels, restaurants, and attractions with key representatives from the Mexican trade industry and media outlets.  

Recent performance further underscores this stability. Mexico recorded the highest year-over-year growth among all priority markets. While total priority markets declined 7.1%, Mexico posted 5.5% growth year to date through November 2025. Looking ahead, Tourism Economics anticipates continued, incremental growth in both visitation and spending through 2029. 

Expanded air connectivity and favorable exchange rates remain key drivers of this momentum. Mexican carriers, including Volaris and Viva Aerobus, have increased routes to California, improving accessibility and competitive pricing. Much of this expanded airlift has been directed to Northern California, supporting Visit California’s long-term strategy to disperse visitation beyond Southern California and strengthen regional travel demand. Favorable exchange rates have further strengthened California’s appeal, improving purchasing power for Mexican travelers and making California and the United States more affordable.

Visit California’s CEO Caroline Beteta Bids Farewell at 2026 Outlook Forum

Visit Santa Cruz County staff represented the local tourism industry at Visit California’s annual Outlook Forum Conference, March 10 – 12, at the new Gaylord Pacific Resort and Convention Center in Chula Vista. While DMOs and major attractions from throughout the state gather annually at this state-of-the-tourism industry meeting, one major aspect of the event this year was the celebration of CEO Caroline Beteta’s retirement. 

Over the course of her three decades with Visit California, Caroline has helped shape California’s position as one of the world’s most desirable destinations. She led the organization through major milestones, including the creation of the nation’s first statewide tourism assessment program, the launch of global marketing campaigns, the expansion of Visit California’s international offices, and industry-wide recovery efforts following wildfires, economic downturns, and the COVID-19 pandemic. Under Caroline’s leadership, California’s tourism industry directly supports 1.2 million jobs for California workers and generates more than $150 billion in annual visitor spending. 

Terence Concannon, CEO of Visit Santa Cruz County, Denise Harris, Director of Operations, Christina Glynn, Director of Communications and Flavia Oliveira, Director of Travel Trade and Sales attended Outlook Forum, participating in presentations addressing strategic accessibility, artificial intelligence, public relations strategies, understanding today’s Canadian traveler, analyzing lodging data, demystifying the Mexico market and storytelling, among other topics. A tour of the Cross-Border Xpress (CBX), the 390-foot pedestrian bridge connecting a transportation terminal south of Chula Vista directly to the Tijuana International Airport (TIJ) in Mexico, was offered, allowing air passengers and pedestrian visitors to avoid congested land border crossings and facilitate visitation to both countries. International reports from Visit California representatives abroad rounded out the conference, with special presentations about the Mexican and French markets. 

Visit California reported that the state saw $159.3 billion in visitor spending in 2025, representing $14 billion in state and local tax revenue.  Tourism figures for the Santa Cruz County local tourism industry for 2025 will be released in May. 

Global Entry Reopens 

With lawmakers on both sides of the aisle bracing for a continued shutdown affecting both the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS) as the travel industry heads into spring break season and as destinations prepare for the FIFA World Cup, the travel industry prepared for growing lines at airports across the U.S. and decreased TSA presence. However, on Wednesday, March 11^th, the U.S. Travel Association (USTA) announced that the Department of Homeland Security reactivated the Global Entry Program, which was suspended along with TSA PreCheck on February 22^nd, following the government shutdown that began on February 14^th.   

Paired with concern over the heightened risk of domestic attacks motivated by the conflict in the Middle East, some public officials were concerned about the impact of a TSA shutdown on daily business.  

The U.S. Travel Association took swift action when these two Trusted Traveler Programs were first suspended, engaging with the White House and gaining traction on major news outlets, stating that “Travel is the gateway to the American economy and Americans should not have their mobility, security or travel experience diminished because elected leaders fail to resolve their differences.” Airlines for America and the American Hotel & Lodging Association have echoed this sentiment. Trusted Traveler Programs are critical ways to enhance security and efficiency. 

While TSA PreCheck was reinstated, Global Entry remained the most impacted program as a result of the shutdown. Global Entry is a U.S. Customs and Border Protection program that allows pre-approved travelers expedited clearance upon arrival to United States, bypassing traditional passport lines. Industry experts estimate that the Global Entry program cuts the amount of time for passengers getting through customs from an average of 30 to 90 mins for regular customs lines to 5 to 10 minutes in Global Entry lines. Those who have Global Entry also receive TSA PreCheck. The DHS said in 2024 that more than 20 million Americans were enrolled in TSA PreCheck, and millions of those Americans have overlapping Global Entry memberships. Global Entry is primarily funded by the $120 fee that members pay. 

Officials at DHS said that the move is intended to ease travel disruptions, but the reopening is unlikely to reduce crowding at Transportation Security Administration checkpoints, while the USTA indicated support of TSA officers who “keep our aviation system functioning,” U.S. Travel Association President and CEO Geoff Freeman said in a news release applauding Global Entry’s reopening. “These essential employees continue to report to work without pay during the partial government shutdown, and they deserve to be compensated without delay.”