California's tourism industry is one of the most exposed in the nation to the economic impacts of the coronavirus pandemic. A new report from Wallet Hub ranked the exposure of state tourism industries to the economic shutdown that has accompanied the pandemic. California ranked 10^th on the list, which had Hawaii in the first position and New York in the ninth spot.

"The entertainment and recreation industry in California is the most prominent and it's taking a severe hit, especially considering the statewide mandatory quarantine. However, the share of businesses operating in travel and tourism related industries such as accommodation, auto transportation and retail are actually among the lowest in the country," Jill Gonzalez of Wallet Hub, tells GlobeSt.com. "That kept California from ranking higher. People tend to think of L.A. and San Francisco when talking about California, but forget about Silicon Valley or the agriculture down south that also heavily contribute to its statewide GDP."

The abrupt halt to the tourism industry could impact 5.9 million jobs nationally, according to the report. In California, the industry accounts for 25% of total jobs. "It's difficult to estimate how long companies can hold on to their employees, especially since we don't know exactly how long the health crisis will last," says Gonzalez. "However, the average annual federal small business funding in the state is one of the highest in the country, and that is an indication that businesses could last longer than in most other states."

As a result, the industry alone could have a major impact on the state economy. "The state's economy will definitely be impacted as the tourism industry is halted, because highly impacted industries make up about a third of California's GDP," says Gonzalez. "In addition, travel expenditures, which are very high in California, have been dropping close to zero."

The recovery to the market will also most likely be slow, particularly until people feel safe moving freely and traveling. "It will most likely be slow," says Gonzalez. "People will not immediately start traveling once the ban is lifted, both within and outside of the state. Los Angeles' mayor has also mentioned holding off on concerts and sporting events until 2021, both of which are large draws for even local travel. Before deciding to travel, tourists will first have to ensure they have a job, and are able to afford basics such as rent, utilities and groceries."