RESEARCH UPDATES
RECENT STUDIES
ECONOMIC IMPACT OF TOURISM
The travel sector remains a vital component of the Greater Palm Springs economy, generating significant benefits for local households, businesses, and government. As a key driver of the region’s prosperity, understanding tourism’s economic contribution is essential to informing future planning, investment, and sustainable growth.
The 2025 Tourism Economic Impact Study, conducted by Tourism Economics, has now been completed, providing a comprehensive assessment of tourism’s contribution to the Greater Palm Springs economy. Findings show that tourism continues to be a major economic engine for the region, generating significant economic benefits for residents and communities throughout the destination.
Visitor spending increased 4.5% in 2025, driven by strong demand and rising prices across most spending categories. Recreation led spending growth (+5.9%), followed by food and beverage (+4.9%), lodging (+4.5%), retail (+4.3%) and transportation (+2.0%).
Total visitor volume increased 3.1%, reaching 15.0 million visitors. Day visitation grew 4.6%, outpacing the 1.3% increase in overnight visitation. International visitation declined, with international arrivals accounting for 3.5% of total visitor volume.
Altogether, visitor activity generated a $9.6 billion total economic impact across Greater Palm Springs in 2025.
Key findings from the 2025 study:
- 15.0M Visitors to Greater Palm Springs
- $7.8B Visitor Spending
- $9.6B Total Economic Impact
- $2.0B Total Personal Income
- 52,352 Total Jobs Supported
- $943M State and Local Taxes
Click here to view the full version of the report.
ECONOMIC IMPACT OF SHORT-TERM VACATION RENTALS
Short-term vacation rentals (STVRs) are an important component of the Greater Palm Springs visitor economy, providing accommodations for a significant share of the region’s visitors. The spending generated by STVR guests supports local businesses, sustains jobs, generates tax revenues, and contributes to the overall economic vitality of the destination.
The 2025 STVR Economic Impact Study, conducted by Tourism Economics, provides a comprehensive assessment of the economic activity generated by STVR visitors throughout the Coachella Valley. Following three consecutive years of declines, STVR visitation grew 0.9% in 2025 to more than 1.23 million visitors. Combined with higher prices, this increased demand contributed to a 2.7% increase in STVR-related visitor spending, reaching $931.4 million.
Accommodations accounted for the majority of STVR visitor spending at $541.8 million, or 58.2% of the total, followed by $141.6 million in food and beverage, $93.6 million in retail, $81.7 million in recreation, and $72.8 million in transportation.
Overall, STVR visitor activity generated a $1.1 billion total economic impact, supported approximately 4,500 jobs, and generated $127 million in personal income. STVR activity also produced $130 million in state and local tax revenues, providing important funding that supports public services and communities throughout the Coachella Valley.
These findings demonstrate the significant role STVRs play in the region’s visitor economy and provide valuable insights to support informed planning and decision-making across Greater Palm Springs.
Click here to view the full version of the report.
DESTINATION STEWARDSHIP PLAN – FLAGSHIP 2026 INITIATIVE
The Greater Palm Springs Destination Stewardship Plan continues to make strong progress, with approximately 80% of stakeholder engagement now complete. These conversations are helping ensure the plan reflects the perspectives, priorities, and opportunities identified by stakeholders and communities across the region.
In October, Hunden Partners will return to Greater Palm Springs for a deeper phase of the stakeholder engagement effort, including in-person meetings, workshops, and discussions with community members and other key stakeholders throughout the destination.
Hunden has also recently launched the Meeting Planner Survey, which will provide valuable insight into planners’ perceptions of Greater Palm Springs, opportunities and gaps within the region’s meetings and events offerings, and factors influencing future bookings.
In parallel, Hunden has completed much of the work associated with the Pillars of Place Destination Product and Gap Analysis, evaluating the destination’s existing tourism assets, experiences, and opportunities for future development. The VGPS team will review preliminary findings from this work in early October.
We look forward to sharing more as the planning process continues and moves into additional areas of focus, including the Tourism Workforce Assessment, Responsible Tourism Strategy, and AI and Technology Innovation Opportunities.
