Hwy 1 closure at Regent's Slide will cost Big Sur economy more than $520M by the time it reopens in March 2026
New projections show the total economic damage from the Big Sur highway closure will exceed $520 million, as the region faces a third year of lost tourist revenue.
The total economic toll of the multi-year Highway 1 closure at the Regent's Slide is now projected to exceed $520 million.
This projection is based on two key updates: an economic study from last month detailing the $13 to $14 million in monthly visitor spending the region is losing, and a new Caltrans announcement from last week confirming the full reopening date for March 2026.
A Half-Billion Dollar Price Tag
A new economic impact study from Beacon Economics calculated that the closure had already cost the regional economy $438 million in lost visitor spending. The report also found the region continues to "bleed" $13 to $14 million for every month the highway remains impassable.
With the new Caltrans reopening target of March 2026, the total projected losses for the 38-month ordeal will climb past $520 million, making it one of the most costly and protracted highway disasters in state history.
Local Communities Hit Hardest
For the small communities clustered along the coastal route, the economic pain is acute. The Beacon Economics report, commissioned by Visit California, found that local and county governments lost over $27 million in vital tax revenue in 2023 and 2024 alone. This loss of transient occupancy and sales taxes directly impacts funding for essential services.
The report's data shows San Simeon has been hit hardest, with a 42% drop in visitor spending, while Big Sur has seen a 20% decline.
'The Third Shock'
This 2023-2026 closure is the third major shock to the region in less than a decade, following the 2017 Mud Creek Slide and the COVID-19 pandemic shutdowns. Local business owners, who have weathered repeated disasters, are now facing the challenge of surviving one final winter season.
A Monumental Engineering Challenge
Caltrans' October 22nd newsletter details the immense engineering challenge at the Regent's Slide, which is the primary cause of the current closure. Crews are currently installing over 4,400 "shear dowels"—long steel rods—to anchor the unstable hillside. Specialized "spider" excavators are being used to remove debris from the steep slopes, and a new "drapery system" is being staged to help control future rockfalls.
While the March 2026 date provides a long-awaited light at the end of the tunnel, it confirms the road will have been closed for over three full years, leaving an indelible mark on one of California's most treasured regions.
Sources and Resources:
