June 1, 2026
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High gas prices not likely to derail Central Coast tourism in 2026

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Stearn’s Wharf Pier in Santa Barbara, one of the region’s historical landmarks. (courtesy photo)

2025 was a strong year for tourism in the tri-county region, with direct travel spending and other economic indicators up from 2024, according to the latest tourism impact report from Visit California.

Central Coast travel marketers are optimistic that visitations will remain strong in 2026, including the peak summer season, despite soaring gasoline prices due to the U.S./Israel/Iran war, which began in late February.

“We have not seen evidence that higher gasoline prices are reducing visitation to the Santa Barbara South Coast,” Kathy Janega-Dykes, president/CEO of Visit Santa Barbara, told the Business Times.

“Higher gas prices and broader economic uncertainty may influence some travel decisions, particularly for more cost-conscious travelers,” she said.

But Santa Barbara benefits from being a highly desirable coastal destination within easy driving distance of Los Angeles and other major California markets, Janega-Dykes said.

Direct travel spending in the tri-county region was up in 2025 compared to 2024, according to Visit California’s economic impact of travel report.

In San Luis Obispo County, the spending increased by 3.8%, from $2.28 billion to $2.37 billion.

Direct travel industry earnings were up 5.3%, from $962.3 million to $1.01 billion.

Direct employment increased 1.7%, from 24,150 to 24,580.

Direct tax revenues increased 5.1%, from $205 million to $215.5 million.

Cathy Cartier, president/CEO of Visit SLO CAL, said she is pleased with the 2025 numbers for San Luis Obispo County.

“What you look at is all the categories are up,” she said.

“Visitations are up, spending is up, though when you take inflation into account, spending is not necessarily up,” Cartier said. “But we’re happy.”

In Santa Barbara County, direct travel spending increased by 3.2%, from $2.23 billion to $2.3 billion.

Direct travel industry earnings were up 6.9%, from $931 million to $996 million.

Direct employment increased 1.3%, from 20,190 to 20,460.

Direct tax revenues increased 4.9%, from $211 million to $221 million.

In Ventura County, direct travel spending increased by 1.9%, from $1.91 billion to $1.95 billion.

Direct travel industry earnings were up 2.1%, from $738.3 million to $753.6 million.

Direct employment decreased 0.2%, from 16,830 to 16,790.

Direct tax revenues increased 2.7%, from $167.9 million to $172.4 million.

“Tourism plays a vital role in Ventura County’s economy, supporting thousands of local jobs and generating critical tax revenue that helps fund essential community services, including public safety, infrastructure, and parks, reinforcing the industry’s importance to the region’s overall quality of life,” said Brian Tucker, president/CEO of the Ventura County Lodging Association, which has rebranded itself as Ventura Central Coast. 

The group promotes tourism in four of Ventura County’s 10 cities: Camarillo, Oxnard, Port Hueneme, and Ventura.

Some tourism marketers in Florida, the country’s top travel destination, are concerned that the higher gas prices will lessen visitors to the Sunshine State in the peak summer season, especially those on tight budgets.

Indeed, a recent study by Miles Partnership, a travel industry marketer, found that because of the increased gas prices, American travelers are staying closer to home.

Roughly 41% are choosing nearby destinations, and 36% are taking fewer trips overall, the study found.

The gas prices have shot up primarily because the Iran war has essentially shut down the Strait of Hormuz, through which about 20% of the world’s crude oil passes daily.

As of May 26, the national average price for a gallon of regular gasoline in the U.S. was $4.51, while in California it was $6.11, the highest in the country, according to AAA.

The average price for a gallon of regular gasoline in Ventura on May 26 was $6.05, up from $4.86 a year earlier.

In the Santa Barbara-Santa Maria-Lompoc region, it was $6.05, an increase from $4.71 a year earlier.

In the San Luis Obispo-Atascadero-Paso Robles area, it was $6.26, compared to $5.08 the previous May 26.

Tri-county travel marketers don’t have the same worries as their Florida counterparts.

They say the high gas prices might actually boost travel to their counties.

“I’m an eternal optimist,” Tucker said.

With the higher prices of gasoline, as well as jet fuel, Tucker believes, as the Miles Partnership study found, that travelers are reconsidering taking longer destination trips, looking closer to home instead.

“So, I think it’s an opportunity for Ventura County based on our proximity to Los Angeles, which is our biggest feeder market,” he said.

Brittney Hendricks, president/CEO of Visit Oxnard, isn’t overly concerned either.

“As an affordable Southern California coastal destination within reach of major population centers, Oxnard may be relatively well positioned compared to destinations more dependent on long-haul or international visitation,” she said.

Cartier also hasn’t seen a drop in visitors to San Luis Obispo County due to the higher gas prices.

“What we’re hearing from research is that some people are driving instead of flying,” she said.

“And they’re taking some shorter trips,” Cartier said.

San Luis Obispo County fits the bill, getting a lot of travelers from Los Angeles, San Francisco and the Central Valley, she noted.

“So, they’re still coming,” Cartier said.

Janega-Dykes said that anecdotally, some visitors are traveling to the South Coast on a new LOSSAN Rail Corridor Agency 12-month pilot program that adds an additional round-trip line between Los Angeles and San Luis Obispo with stops that include Santa Barbara.

“It presents an affordable way to travel along the coast to Santa Barbara for those people who are concerned about gas prices,” she said.

“Overall, we are expecting a strong summer season ahead of us,” Janega-Dykes said.

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