In a significant move aimed at bolstering tourism, the Palm Springs City Council has approved a 10-year extension of its longstanding agreement with PS Resorts, the promotional body dedicated to attracting visitors and events to the city. The 4-0 vote (Mayor Ron deHarte recusing himself from the discussion and vote because his organization, Palm Springs Pride, receives funding from PS Resorts) came during the council’s July 9 meeting, ensuring the partnership continues from January 1, 2026, through December 31, 2035.
The agreement, originally established in May 2012, allows PS Resorts, a mutual benefit corporation representing Palm Springs hotels, to receive half of the transient occupancy tax (TOT) attributed to resort fees collected by its member hotels. These funds are reinvested directly into tourism-related activities, enhancing events, parades, conventions, and attractions designed to boost visitor numbers and hotel occupancy rates.
“Our partnership with the city has proven incredibly beneficial since our inception,” said Peggy Trott, Chair of the PS Resorts board. “The extended agreement provides a stable financial environment that enables us to plan ahead effectively, ensuring Palm Springs remains a premier destination.”
Trott highlighted major successes attributed to PS Resorts, including their support for prominent events such as Splash House, Desert X, Modernism Week, and Palm Springs Pride. In addition, PS Resorts contributed to important city initiatives, such as funding the downtown parking study and supporting the pedestrian-only status of Museum Way.
Local business owners and community leaders voiced enthusiastic support for the extension during the council meeting. Keith McCormick, owner of McCormick’s Classic Car Auctions, noted the vital role PS Resorts plays in the local economy. “The TOT generated from the events PS Resorts supports is critical for our city’s budget,” McCormick said. “PS Resorts carefully selects events that not only entertain but also attract visitors who significantly contribute to our economy.”
Tim Esser, founder of the Tour de Palm Springs, echoed these sentiments, emphasizing the organization’s role in bolstering local charities. “At the Tour de Palm Springs, we’ve donated approximately $5 million to local causes over 27 years,” Esser stated. “PS Resorts’ support has been instrumental in our ongoing success.”
Michael Braun, CEO of Grit Development, reinforced the economic benefits brought by the partnership. “They have guided us on how to increase our city’s revenue effectively,” Braun said. “Their insight is invaluable for sustained growth.”
Fred Bell, vice chairman of the Palm Springs Air Museum, underscored the strategic value of PS Resorts, especially during uncertain economic conditions. “The revival and strength of the Palm Springs brand owe much to their efforts,” Bell remarked. “With ongoing shifts in tourism, this agreement has never been more critical.”
Hospitality consultant and former PS Resorts Vice Chairman Tim Ellis praised the organization’s innovative approach. “PS Resorts uniquely empowers entrepreneurs to bring fresh ideas and attract new business,” Ellis said, noting the careful financial management overseen by Trott and her team.
Throughout 2023 and 2024, PS Resorts provided substantial grants to events that significantly enhanced local tourism. Major funding recipients included the Palm Springs International Film Festival, Greater Palm Springs Pride, Fall Modernism Week, Desert X, the Tour de Palm Springs and several others. These events collectively reinforce Palm Springs’ cultural vibrancy and economic vitality.
City Manager Scott Stiles, along with Chief Economic Development Officer Wayne Olson, recommended extending the agreement, citing its effectiveness in drawing tourists and promoting local businesses. With approximately $781,000 budgeted annually for PS Resorts, the city will continue to benefit from increased TOT revenues and strengthened economic activity in the hospitality, retail, and dining sectors.
“This extension is about sustaining the momentum we have built over the past decade,” Trott concluded. “Palm Springs thrives when its tourism industry flourishes, and we’re committed to ensuring it continues to do just that.”
