Board Report

President's Summary

April 2025

Our board meeting will feature two guest speakers. We are fortunate to have Caroline Beteta, President & CEO of Visit California, who will provide an update on Visit CA’s marketing programs, international visitation, and the upcoming marketing renewal. It is critical that our industry votes “yes” for the renewal. Their efforts and team are very supportive of our region and play an important role in our strategies. Visit California recently noted that international visitors are important to the health and vitality of California’s travel industry, with the state remaining the No. 1 travel destination in the United States for foreign visitors. While global sentiment toward U.S. travel is softening, California remains more favorable than the rest of the nation.

Craig Compagnone is the President of MMGY Global Americas, which is a $100 million marketing communications and technology company with over 600 colleagues across global offices. As the world’s leading integrated marketing company specializing in the travel, tourism, and hospitality industries advertising and public relations, MMGY is our domestic PR agency of record. Craig will be presenting at our meeting on the topic of “Adapting to Change.”

The VGPS sales team is currently 21% ahead of pace for 2025, with 238,208 room nights on the books to a target of 196,953. Our focus for 2025 continues to be the fourth quarter for both group and leisure segments. Leads and conversions are slowing due to a combination of uncertainty, economic outlook, and tariffs. Our CRM data shows a loss of 4,399 room nights that can be attributed to the impact of Canadian tariffs and ongoing political rhetoric. According to VGPS Short-Term Vacation Rental (STVR) data, Canadian reservations have dropped by 21% compared to last year. This decline is coupled with an 11% revenue reduction, reflecting decreased travel spend.

Locally, PSP set new monthly passenger records in January and February, and the latest report from Tourism Economics notes that hotel revenue for Greater Palm Springs grew significantly in February — rising 7.1% year-over-year to $88.7M — driven primarily by increased demand (+4.0% YOY). ADR also showed positive growth, up 2.9% YOY to $255.76, contributing further to revenue strength. Weekend performance notably surpassed weekdays, with occupancy peaking at 85% during mid-month weekends.

Regional indicators are remaining favorable, highlighted by a 12.1% YOY increase in National Park recreation visits (481K visits). This strong performance indicates continued robust leisure travel demand, providing positive momentum for Greater Palm Springs heading into the spring months.

We are continuing to monitor consumer sentiment and its impact on travel. Recent consumer sentiment research by Longwoods International in March indicates most respondents (83%) expect travel costs to either become less affordable or remain the same in the next year. Travelers may be showing more caution around discretionary spending, leading to shorter booking windows and more selective travel decisions. Additionally, since September 2024, the percentage of travelers who say Politics will Greatly impact their travel choices has jumped from 24% to 42%.

We kicked off the year by spotlighting two of our most prestigious signature events—the Palm Springs International Film Festival and the BNP Paribas Open—through exclusive client-hosted experiences.

PSIFF FAM: During the Film Festival, we welcomed 24 clients and guests to the new Thompson Palm Springs, including meeting planners, journalists, and travel trade representatives from across the U.S., Mexico, and Belgium. A special thank you to the Thompson Hotel for their generous hospitality in hosting this memorable event.
BNP Paribas Open FAM: In March, in partnership with the Kimpton Rowan Palm Springs Hotel, we hosted 10 meeting planners from Prestige Global Meetings during the BNP Paribas Open. Attendees experienced site visits at eight hotels and explored six local attractions, offering a well-rounded and immersive look at the destination. Many thanks to the Kimpton Rowan team for their incredible partnership and warm welcome.

The marketing team has been busy preparing for summer. Our annual summer television co-op production took place over the last week of February and early March, with six partners receiving new spots – Westin Rancho Mirage Golf Resort & Spa, Renaissance Esmeralda Resort & Spa, Grand Hyatt Resort & Villas, Visit Palm Springs, BMW Performance Center West, and Fantasy Springs Resort Casino. Continuing co-op partners utilizing existing spots include Agua Caliente Casinos, Agua Caliente Cultural Plaza, City of Desert Hot Springs, City of Indian Wells, JW Marriott Desert Springs Resort & Spa, Omni Rancho Las Palmas Resort & Spa, The Ritz-Carlton, Rancho Mirage, and Palm Springs Preferred Small Hotels. We look forward to launching these spots in May as part of our summer campaign efforts to continue to drive off-peak visitation with engaging messaging that resonates with both new and returning travelers. We will be evolving our summer campaign with refreshed messaging that builds on the success of our Check In. Chill Out. summer campaign. This next iteration will include updated seasonal creative, a refreshed television spot, and new digital and social assets. A dedicated summer social media campaign is also in development, with production scheduled for April.

We are excited to share that Visit Greater Palm Springs, in collaboration with many of our incredible partners, has been honored with 19 Desert Addy Awards for our 2024 summer co-ops! The Desert American Advertising Awards (Addys) celebrate creative excellence in advertising, and this recognition is a true testament to the innovation, storytelling, and collaboration that bring Greater Palm Springs to life as a premier travel destination.

A special congratulations goes out to our following partners who earned Gold and Silver awards for their 2024 summer television campaigns:

Agua Caliente Cultural Plaza
Agua Caliente Casinos
Desert Hot Springs
Indian Wells
JW Marriott Desert Springs
Omni Rancho Las Palmas
Palm Springs Preferred Small Hotels
The Ritz-Carlton, Rancho Mirage
Tommy Bahama Miramonte
The Living Desert Zoo and Gardens (also awarded the prestigious Mosaic Award recognizing diversity, equity, and inclusion in advertising)

Other awards from the evening included:

Best Integrated Advertising Campaign – Escape Your Ordinary Brand Campaign
Best Webisode Series – Art & Sol Season 2
Best Social Media – Vacation with Your Bestie in GPS

Greater Palm Springs Economic Development department continues to make significant strides in economic development across multiple focus areas. From strategic planning efforts and brand development to workforce engagement and industry outreach, initiatives are progressing in alignment with regional growth goals. Highlights include ongoing work on the Riverside County Economic Development Strategic Plan, the final stages of North Star’s brand and marketing deliverables, and a renewed focus on developing an indoor amateur sports facility. Staff also participated in key conferences and trade events to gather insights and strengthen partnerships, while deepening connections with local school districts and colleges to support future workforce readiness.

Visit Greater Palm Springs continues to strengthen its commitment to workforce development by collaborating with OneFuture Coachella Valley, local school districts, and regional partners. Recent efforts have focused on aligning academic programs with industry needs and supporting the launch of an essential skills development initiative to better prepare students for future careers. Staff also engaged directly with students and employers at the College of the Desert Career Fest, helping connect the next generation of talent with career and internship opportunities across the region.

The current economic and geo-political climate has created uncertainty and reminds me of our time during the pandemic. As an organization we had to pivot almost daily and ensure that our efforts were impactful and beneficial to our stakeholders. As a region, It is critical that we work together to succeed. We must remain innovative and creative to keep our economy healthy and strong. We look forward to navigating the new global environment with you.

Thank you to Shannon Gilbert and The Ritz-Carlton, Rancho Mirage team for hosting our April Board meeting. Your continued partnership and commitment are greatly appreciated!

Sincerely,

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