Industry insiders work to cope as summer tourism dips in Palm Springs

With several more weeks of summer ahead, tourism in Palm Springs is experiencing a dip compared to previous years.

The trend is reflected in the City's most recent Transient Occupancy Tax (TOT) data. Property management is required to provide monthly figures, regardless of whether a property has been rented or not. TOT return must be provided every month whether your property was rented or not.

Current Transient Occupancy Tax rates are 13.5% for Group Meeting hotels and 11.5% for all other hotels, vacation rentals, and agencies. These rates have been in effect since January 1, 2002. The Palm Springs City Council acted to increase rates after authorization was given by Palm Springs' voters in the November 2001 election.

The most recent TOT tax data shows total revenue brought in so far for the 2023-2024 year is $47,546,005. July brought in around $317,000 less compared to the same month last year.

Nearly half of all TOT tax revenue loss can be attributed to vacation rentals.

"Keep in mind the last couple of years have been record years. Coming off of the pandemic there was a lot of that revenge travel, so a lot of the data over the last couple years were really inflated, but there has been a little bit of a dip," according to Scott White, President and CEO of Visit Greater Palm Springs.

White explained that there are a number of factors that may be contributing to this trend, including increased interest in European travel and above normal temperatures in the desert this summer.

Visit Greater Palm Springs has expanded its marketing program over the last year, which White believes has played a role in increased passenger traffic over the last couple years at Palm Springs International Airport.

"I think that we can really become more of a year-round destination. We're seeing that happening, but its going to take time," according to White. Their marketing plan features a multi-pronged approach, which includes a focus on live sports, social media, digital marketing, and partnerships with companies like Expedia and Vrbo.

Watch News Channel 3 at 6:00 p.m. tonight for the full report.