The Palm Springs City Council has unanimously approved a Resolution of Intention to establish a new Tourism Improvement District, marking another milestone in a national trend reshaping how destinations fund marketing and infrastructure investments.

The TID, driven by the local hospitality industry through PS Resorts and community leaders, will levy a small assessment on lodging stays within the district. Revenue will be directed toward modernizing the Palm Springs Convention Center and strengthening the city’s competitive position in the Southern California meetings and leisure market.

The move follows Chicago’s landmark TID approval in March 2026, where the City Council enacted a 1.5% assessment on hotel stays projected to generate roughly $40 million annually for Choose Chicago’s marketing efforts. Nationally, more than 210 TIDs now raise over $540 million collectively for tourism promotion across the country.

What This Means for DMOs

The Palm Springs and Chicago approvals signal that TIDs are no longer experimental — they are becoming standard funding infrastructure for destination organizations. For DMO leaders still reliant on traditional bed-tax allocations that compete with general municipal funds, the TID model offers a dedicated, industry-controlled revenue stream insulated from political budget cycles.

The hospitality-led nature of Palm Springs’ initiative is worth noting. When hoteliers voluntarily assess themselves to fund destination marketing, it sends a clear message to city councils: the private sector sees enough return in organized destination promotion to put its own dollars behind it. DMOs exploring a TID should study the Palm Springs playbook — building industry consensus before going to council — as a template for securing buy-in.

With sustainable funding models increasingly central to DMO strategy, expect more mid-size destinations to pursue TIDs as a path to financial stability and programmatic independence.

Photo by Alex Kolundzija on Unsplash