When the autumn heat finally relents and the crowds thin in Rancho Mirage, local resorts brace for their quiet stretch. In September 2024, weekday occupancy dropped to 49.6 percent, and in October, it improved slightly to 56.9 percent, which is still below the 70 to 80 percent levels typically seen during peak winter months. To bridge that gap and keep visitor dollars circulating in the city, Rancho Mirage leaders have developed a novel pilot program: the Shop Local Resort Partnership Program.
City of Rancho Mirage economic development staff quietly began drafting the initiative earlier this year, recognizing both a problem and an opportunity. “There’s a clear dip in demand each fall,” explains Maria Hernandez, the city’s economic development manager. “But the shoulder season offers perfect weather and a quieter guest experience. If we can just nudge visitation by a few percentage points, the returns would more than justify the investment.” With that in mind, at its July 17 meeting, the City Council authorized $65,000 in funding to offer digital gift-card incentives to weekday guests who book resort stays in September and October 2025.
Rather than issuing cash rebates, the program leverages the existing Rancho Mirage Shop Local e-gift card system. Guests checking in during the pilot months would receive a card loaded with an incentive amount, redeemable on-site for spa treatments, dining or retail, and also accepted at more than 60 participating businesses across the city. “By keeping the incentive dollars local, we create a multiplier effect,” says Hernandez. “That’s not just a win for resorts, it benefits every café, boutique and wellness provider in town.”
According to a staff report, resort general managers have welcomed the concept as even a modest uptick in midweek stays helps stabilize staffing and boosts ancillary spending. The participating resort properties contributed data on rates, occupancy trends and projected room-night gains to shape how the $65,000 in funding will be distributed.
Financial projections suggest the city’s outlay could largely pay for itself. With Rancho Mirage’s transient-occupancy tax set at 10 percent of room charges, a 5 percent increase in weekday occupancy during the two months could generate an additional $60,000 to $70,000 in TOT revenue, effectively offsetting the entire incentive budget and potentially yielding a surplus if results exceed expectations. In fiscal year 2022–23, the city collected more than $12.5 million in TOT, underscoring the vital role tourism plays in municipal coffers.
City staff plan to monitor results in real time, adjusting allocations among resorts mid-pilot if certain properties underperform. If the initial run proves successful, the City Council could consider matching funds to deepen incentives or extend the model to spring shoulder-season months. “This is about fostering a genuine partnership between Rancho Mirage and its resorts,” Hernandez explains. “We want to learn what works, then scale it.”
As the Greater Palm Springs tourism season ebbs each fall, Rancho Mirage is betting that a little encouragement and a well-placed gift card can turn slow weeks into a citywide advantage. If the pilot hits its marks, visitors may come for the desert calm but stay for the full suite of local experiences, ensuring the city’s economic engine hums year-round.
