• A 2025 fire in Pacific Palisades, California, destroyed over 23,000 acres and caused significant economic damage.
• Twenty months later, the community is rebuilding, marked by the reopening of the Palisades Village shopping center.
• Officials and residents state that tourism is critical for recovery, as visitor spending supports local businesses and jobs.

“Coming Back” is a USA TODAY series spotlighting destinations that are ready to welcome visitors in the aftermath of hardship.

Set between the mountains and coastline of Southern California, the community of Pacific Palisades is at a turning point.

It’s been just over a year and a half since powerful Santa Ana winds and a drought fueled the biggest fire in Los Angeles history. Burning for 24 days from Jan. 7 until Jan. 31, 2025, the fire forced the evacuation of around 30,000 residents, destroyed over 23,000 acres, and contributed to the death of 12 people. In March 2025, researchers at the University of California, Los Angeles estimated the fires’ economic impact a wage loss of $297 million for local businesses and workers.

Many Los Angeles travelers found in Palisades — a picturesque neighborhood located between Malibu and Santa Monica — a respite from the hustle and bustle of the city. Travelers were drawn to the Getty Villa Museum, scenic hiking trails and beaches, or one of the many unique boutiques and restaurants.

“The Palisades was definitely a destination for tourism,” said Amy Russo, a resident of 15 years who lost her jewelry business in the fire. “People would come to drive through it and be like, this town is so cute and different, even though they weren’t staying there … It wasn’t really like, ‘oh, I’m going to the Palisades.’ They would find it as a destination to come to dinner, to walk around, to spend the day.”

There’s still evidence of the fires throughout Palisades, of burned-down structures and empty dirt lots. However, its residents have been finding their own ways to heal and define recovery. Now 20 months later, the time has come to reopen doors and start writing a new chapter.

On Aug. 15, the town celebrated a major milestone for recovery: the reopening of Palisades Village, the shopping center in the heart of town. Since 2018, the Village has been home to farmers’ markets and restaurants, serving as a space for community members. “We believe Palisades Village reopening can serve as a catalyst for the broader recovery of the city – a signal to other businesses, retailers, and families that this community is coming back,” said Palisades Village CEO Corinne Verdery in a statement.

It’s been a difficult journey for the Palisades community, but their deep love for their home has them committed to forging ahead. Travelers play a critical role in the town’s recovery when they support the small businesses that give the Palisades its distinctive charm.

“While important work remains, the Palisades has made significant progress in the months since the fires, thanks to the efforts of residents, small businesses, and local leaders working tirelessly to move the community forward,” Adam Burke, president and CEO of LA Tourism, said in a statement. “Visitors continue to play an important role in that recovery by supporting local businesses, helping sustain jobs, and contributing to economic activity across Los Angeles.” 

The impact of the fire

The fires are still surreal to Michelle Murphy, who was born in the San Fernando Valley but moved to the Palisades 15 years ago. Murphy and her family lost their home and all their belongings in the fire. Starting over felt overwhelming.

“Unless you’ve lived it, you cannot even imagine what it does to yourself to lose,” she said. “It’s not the possessions … It’s like years of building a life and knowing that this is where my kids go to school, and this is where I go to get my groceries, and just the basics of your life that you’ve created without even consciously creating these habits and patterns, of all of a sudden, like, boom, that doesn’t exist anymore.” She remembers going to the store and not knowing where to even begin buying the basic necessities that her family needed.

In the immediate aftermath of the fires, Murphy said the community came together to donate supplies to those in need. Her family called their hallway closet “CVS” for the rows of basics like dental floss.

To this day, she’ll be reminded of her loss when she looks for something and realizes it’s not there because of the fires.

After months of bouncing around in rentals, the family purchased a house in Cheviot Hills, about 25 minutes from Palisades, and renovated it to look nearly identical to the home that burned down. But it’s still not home, and they’re putting it up for sale – even planning to take a loss – in order to return to Palisades.

Murphy isn’t the only resident who feels this way. In a January 2026 report by the nonprofit Department of Angels, 88% of Palisades fire victims said they want to rebuild their home. But insurance claims have been sluggish, with nearly eight in 10 of insurance policyholders having “serious challenges” with their insurers.

Progress for many residents has been slow. Over 635 Palisades homes were destroyed in the fires, and as of Aug. 12, there are 123 building permits issued and only one home completely rebuilt, according to the Los Angeles County Recovery Dashboard.

The devastation scared off tourists, despite many other parts of Los Angeles’ West Side remaining open. Located on the border between Palisades and Santa Monica since 1989 is the Channel Road Inn. On the morning of Jan. 7, 2025, all guests and staff were evacuated as the flames approached the hotel property’s northern side. Firefighters stopped the fire from damaging the hotel, but the hotel remained closed for 65 days due to evacuation orders, street closures and water concerns.

As residents dealt with displacement and their own trauma, the inn was quiet. “Being closed for more than nine weeks hit our bottom line hard, but the bigger battle came in the months that followed,” said Tamara Mims, CEO and president of Four Sisters Inns, the parent company to Channel Road Inn. “Once reopened, we still faced an uphill climb, because so many travelers were actively avoiding the entire area, whether or not their destinations had actually been touched by the fire.”

It wasn’t until February – 13 months after the fire – that occupancy numbers reached normal levels. “That gap between perception and reality has been the hardest thing to overcome, because it directly affects the small businesses, restaurants, and inns like ours that depend on visitors coming back,” said Mims.

A ‘rebirth’ for Palisades

Murphy’s move back to Palisades isn’t the only risk she’s taking for the town that holds her heart. Her career background is in advertising — owning her own agency — but she just took the leap to open her very first retail store in July 2026. “I have no experience whatsoever,” she said. “This is completely created and born from the fire, like 100%.”

The idea came to Murphy last December when she began to worry about the fate of Palisades: that it would be rebuilt by big corporations and lose its beloved small-town character unless the residents themselves stepped up.

Rooted in love and pride for Palisades, Murphy’s gift shop Pali Trading Post is stocked with brands that supported fire victims or items made by community members, like hanging artwork made by a Palisades artist who lost her studio in the fires.

Her venture has also given her a new sense of purpose. “It’s the best therapy,” she said. “Like there is no medical therapy that could do for me, like heal me the way having this store has healed me.”

The new retailers devoted to reviving Palisades and the reopened Palisades Village mark new spaces for both tourists and residents to gather – helping to inject life back into the town.

Russo sees this time as a “rebirth.” Her and business partner Michelle Good’s jewelry store, Obsessed, burned in the fire, and insurance didn’t cover the loss of the jewelry inventory. They took their business online for a while, but missed a brick-and-mortar space where they could connect with customers face-to-face. They’re opening a new retail store called Palisades General Store on Sept. 19. It will still have Obsessed jewelry, but also evolve to selling other types of goods.

“I look at things in a different way, like (the fires) brought us so much closer to our community,” Russo said. Although acknowledging that many are still working through the trauma and overcoming insurance challenges to rebuild, she’s focusing on the positive. “I keep reminding them, I’m like, but you’re here, and we’re moving on, and it’s going to be better than ever.”

Tips to visit Palisades responsibly

• Every dollar counts. Spending at local businesses directly supports the owners and employees of Palisades. It can be as simple as grabbing lunch after a hike, or picking up a small souvenir on your way home. “Every meal, every purchase, every visit supports businesses who have spent months fighting to come back,” said Mims. “Their support strengthens local businesses and contributes to the vitality of the entire community.”
• Spread the word. Palisades businesses need as much help as possible right now to stay afloat, and support doesn’t have to be through a transaction. “If you’re not in a position to buy or eat, word of mouth, tell a friend about a cute shop that you saw somewhere, or post about it on your social media and just give a little bit of exposure,” said Murphy. “Any little bit helps. At the end of the day, that’s what keeps all the doors open.”
• Focus on the positive. As you drive around Palisades and see the remnants of the devastation, it’s a reminder that recovery is not over and sensitivity to what happened will go a long way. Many people are still working through their trauma from the tragedy and dealing with insurance payouts. “There are people that I’ve met that have to come back to their homes, and they’re not ready to come back to,” said Russo. Don’t gawk at the loss, and focus on supporting those trying to rebuild their community.

Kathleen Wong is a consumer travel reporter for USA TODAY. She’s the author of “The Conscious Traveller Hawai’i” and is based in Hawaii.