Highway 1 is the kind of road that makes people plan vacations around a single line on a map. The portion of the coastal route between Monterey and San Luis Obispo is built into the landscape, a narrow strip of asphalt clinging to cliffs and winding past beaches, where the ocean is always in the driver’s periphery.
That drive was interrupted for nearly three years.
On Jan. 14, Caltrans reopened the 6.8 mile stretch of highway closed at Regent’s Slide, restoring uninterrupted travel along the Big Sur coast. The reopening arrived nearly 90 days earlier than the March 30 date projected by officials, ending a closure that cut off the region’s iconic coastal corridor and left local communities isolated.
Gov. Gavin Newsom and Caltrans officials describe the reopening as the restoration of a “vital economic lifeline” for communities that were cut off from the full Big Sur route.
In a Jan. 14 press release, the governor’s office said the project faced “extraordinary geological challenges” and required extensive engineering work to stabilize the slope and rebuild the roadway.
Caltrans said crews installed more than 4,600 steel dowels drilled into the hillside and conducted daily drone flights and subsurface monitoring to track slope movement. The contractor, Papich Construction, estimated that $82.6 million was spent on the project.
“This reopening is the result of extraordinary teamwork and a shared commitment, led by Gov. Newsom, to safely restore Highway 1 at Regent’s Slide,” California Transportation Secretary Toks Omishakin said in a press release. “Delivering this complex project ahead of schedule while protecting workers’ safety on one of the state’s most challenging slopes is a testament to the skill and dedication of everyone involved. We are thankful for the patience of the community and businesses as we tackled this major reopening effort.”
The closure took an economic toll, particularly on tourism in the region. A report from Visit California estimated that the closure resulted in approximately $312 million in lost visitor spending during 2023 and 2024, with an additional $126 million in losses recorded through September 2025. The report also estimated monthly losses of $13 million to $14 million during the closure and said city and county governments lost more than $27 million in tax revenue during 2023 and 2024.
The report found that San Simeon and Big Sur experienced the most severe declines, with San Simeon down 42 percent relative to baseline expectations and Big Sur losing $33 million in visitor spending over 2023 and 2024.
San Simeon Chamber of Commerce spokesperson Stacie Jacob said the closure reduced overnight stays and discouraged international travelers who were uncertain about access to the full coastal route.
“People weren’t sure if the highway was open,” she said. “That’s a key reason they come to do that iconic road trip.”
She added that the reopening has already created momentum, with hotels offering discounts to attract visitors.
“The Morgan Hotel right now has a pretty amazing special going on,” she said, describing a 30 percent discount to welcome travelers back.
In Cambria, the impact was mixed. Longtime business owner and Cambria Chamber of Commerce board President Renee Linn said her family’s restaurant and retail businesses actually grew during the closure. She said the town felt like it became a destination as travelers who could no longer continue on to Big Sur stayed in Cambria instead.
“Cambria has become a destination because tourists could come this far, and they wanted to get a little taste of the Big Sur coast,” Linn said. “They could actually go a little bit further, but they came, and they stayed and they ate at all of our wonderful restaurants.”
Linn said other businesses, particularly retail stores, were more negatively affected.
“People always have to eat, and they always have to stay in places. They don’t always have to buy gifts,” she said. “So some of those stores have had a hard time.”
Linn also explained that the local business community in Cambria has faced multiple challenges in recent years.
“In the last, six years, we’ve survived COVID, and now we’ve survived this,” she said.
She added that rising labor costs and health insurance requirements have increased operating expenses.
“It makes our prices keep going up,” she said. “We can’t help it; it just escalates everything.”
Visit SLO CAL, the county’s tourism marketing organization, said it maintained messaging throughout the closure to reassure travelers that Highway 1 remained open and accessible within San Luis Obispo County. The organization emphasized that visitors could still access the Big Sur experience from south of Ragged Point.
“We put out messaging and advertising that showed that the Big Sur experience was still accessible from SLO CAL,” said Lisa Marie Belsanti, a communications representative for Visit SLO CAL. “We just reminded people that they can still have that experience even if they couldn’t connect from San Luis Obispo County through to Monterey and beyond.”
With the highway reopened, Visit SLO CAL said local businesses are already seeing increased activity.
“We are hearing from people, just anecdotally, that the parking at the elephant seal viewing area has been like packed,” Belsanti said.
She also noted that local restaurants are reporting strong demand. “Their reservations are full for the whole weekend, this weekend too,” she said, referring to Brydge in Cambria.
Belsanti said the highway reopening has generated excitement among residents and visitors.
“It’s just such a reminder that we have this epic road trip, just right at our doorstep,” she said.
Still, Belsanti cautioned that future disruptions are always possible.
“We are at the mercy sometimes of Mother Nature,” she said. “We may see disruptions in the future,” but she emphasized that the region still offers a significant coastal experience even with if road access is limited. ∆
Reach Staff Writer Chloë Hodge at chodge@newtimesslo.com.
This article appears in Jan 29 – Feb 5, 2026.