The Greater Palm Springs Tourism Business Improvement District (TBID) has played a pivotal role in strategic economic growth through tourism, especially during 2023. According to a detailed analysis by Tourism Economics, the TBID’s efforts in 2023, as orchestrated by Visit Greater Palm Springs (VGPS), have generated substantial economic benefits, primarily through increased lodging revenues, which serve as a key indicator of its success.
Economic Impact: A Closer Look at the Numbers
“Visit Greater Palm Springs has once again proven its effectiveness in driving significant economic benefits to our region,” remarked Scott White, President and CEO of VGPS. “In 2023, our focused marketing strategies and robust group sales initiatives generated an unprecedented $539 million in lodging revenues.”
VGPS has successfully capitalized on the area’s appeal to both leisure and business travelers. Their group sales efforts, primarily targeting larger hotels and resorts, accounted for $157 million in lodging revenue. This focus is strategic and aimed at facilities that can host large-scale conventions and events, which are a significant draw for the area.
Leisure marketing, a dynamic component of VGPS’s strategy, contributed a remarkable $382 million to lodging revenues. This sector not only supports the larger hotels but has also spurred growth in the short-term vacation rental market, reflecting the diverse accommodation preferences of visitors to the region.
Visit Greater Palm Springs (VGPS) generated measurable economic value, in addition to the citations above, to the Greater Palm Springs area in 2023, including:
- Overall, VGPS created $539 million in lodging revenues between its group sales and leisure marketing efforts.
- Larger hotels and resorts benefitted most from VGPS activities, with 60% of leisure marketing benefits, 100% of group sales benefits, and 72% of overall benefits.
- Short-term vacation rental properties increased their share of generated benefits to 35% of leisure marketing and 25% overall.
- The benefits accrued to TBID properties versus non-TBID properties increased to 87% overall in 2023.
Strategic Benefits to TBID Properties
The TBID’s strategy is uniquely designed to ensure that those who invest in the district see direct benefits. Tourism Economics estimates that 87% of the lodging revenues generated in 2023 accrued to TBID properties. This focused allocation of economic benefits underscores the TBID’s role in fostering targeted growth within its member properties.
Visitor Engagement and Economic Multiplier Effects
Greater Palm Springs welcomed over 1.5 million additional visitors in 2023 due to VGPS’s initiatives. These visitors not only contribute to lodging revenues but also significantly impact other sectors of the local economy. “Every visitor to our region adds vibrancy to our community, spending on everything from dining and shopping to entertainment and recreation, which in turn supports local businesses and creates jobs,” White added.
The report further breaks down the visitor impact, showing that a large percentage of visitors stay in hotels and resorts, with a growing number opting for short-term rentals. This diversity in visitor accommodations reflects tourists’ evolving preferences and highlights the inclusivity of the TBID’s marketing efforts.
Looking to the Future
The success of the TBID’s strategies offers a blueprint for future growth. With a focus on sustaining and expanding its tourism base, VGPS plans to continue its dual approach of attracting both convention attendees and leisure travelers. “As we look ahead, our goal is to not only maintain our current growth trajectory but also to innovate our offerings to attract an even broader audience,” White stated, emphasizing the importance of evolving with the tourism industry’s dynamic trends.
By strategically driving visitor traffic and channeling economic benefits to TBID properties, VGPS has not only enhanced the tourism profile of Greater Palm Springs but also contributed to its broader economic resilience. This comprehensive approach, backed by solid data and strategic planning, positions the Greater Palm Springs area not just as a premier destination but as a model for tourism-driven economic development.
