City of Desert Hot Springs expands incentives to draw in new hotels and spas to the city

DESERT HOT SPRINGS, Calif. (KESQ) - The City of Desert Hot Springs is hoping to double its tourism revenues by drawing in new businesses.

City leaders just updated a program to give tax breaks to new hotels and spas.

The number of spas has dwindled in the city over the years, so officials are hoping new changes made to the "Hotel and Spa Revitalization Program" will boost Desert Hot Springs' reputation as a wellness destination.

New hotels and spas will have 100 percent of their transient occupancy tax, known as TOT, waived for the first two years and 50 percent for the third and fourth years.

Desert Hot Springs Mayor Pro Tem Gary Gardner says this would support new development and encourage long-term operation.

Gardner adds, "Growing our TOT to the extent it will be an even leg on our revenue stool will be really important to the city, so we can weather whatever downturn. If there's a downturn in tourism, we'll be ok; If there's a downturn in cannabis, we'll be ok, because we won't lose all of our money in one fell swoop."

The city's goal is to double its TOT in the next decade, so city leaders are hoping the program will help do that.

News Channel 3's Peter Daut spoke in depth with Gardner to learn more about why the TOT tax incentives are important to Desert Hot Springs.