DESTINATION Development Plan MAY 2016 9 RESORT CITIES. ONE BEAUTIFUL OASIS. | VISIT GREATERPALMSPRINGS.COM palm springs | desert hot springs | cathedral city | rancho mirage | palm desert | indian wells | la quinta | indio | coachella 1 CONTENTS DESTINATION DEVELOPMENT PLAN CONTENTS President/CEO’s Letter 3 Executive Summary 5 1.0 Introduction 12 1.1 10-Year Visitor Destination Goal 14 1.2 The Role of the Community 15 2.0 Where is Greater Palm Springs Today? 16 2.1 Existing Destination Assets 16 2.2 Existing Destination Challenges 22 3.0 The Greater Palm Springs Visitor Defined 25 3.1 Existing Destination Visitor Statistics 26 3.2 Key Research and Findings 27 4.0 Recommendations for Future Industry Development and Growth 41 4.1 Transportation 41 4.2 Supporting Education 44 4.3 Outdoor Adventure 45 4.4 The Intersection of Arts, Culture, and the Visitor Industry 55 4.5 Health and Wellness 61 4.6 Destination Wayfinding and Entry Conditions 66 4.7 Eco Sustainability 68 4.8 Social Media 71 4.9 Sales and Marketing 74 4.10 Boutique/Small Hotels 87 4.11 Vacation Rentals 89 Summary 92 5.0 Appendix 93 DESTINATION DEVELOPMENT PLAN 2 3 PRESIDENT/CEO’S LETTER DESTINATION DEVELOPMENT PLAN Dear CVB Partners, As leaders of the region’s tourism industry, the However, no matter how well constructed, Greater Palm Springs CVB must always be looking implementing a master plan for nine distinct ahead—not just for the year—but for the destination’s cities depends on more than research and long-term future. By identifying challenges, as well recommendations. To be entirely successful, this as opportunities, we stay on the straightforward path plan depends on building on our successful to growing visitation and resultant jobs for all travel collaboration with our city Partners, the CVB Board segments—from leisure to meetings. of Directors and the Joint Powers Authority. As you read the recommendations in this plan, you The Goal is to grow annual visitation from 12 million will discover the many, important ways that your people to over 16 million people by 2026. community or business can become a crucial part of To meet this goal, the CVB Board of Directors the plan’s success. Working together, we will be able held a strategic planning session to discuss the to meet the challenges ahead in our ever-evolving climate and trends of tourism and hospitality in industry—tourism. Greater Palm Springs. Six main goals were adopted: The Executive Summary will give you highlights from grow midweek business; grow summer and fall this ambitious Destination Development Plan. The visitation; improve existing attractions and events; plan, in its entirety, is available upon request in both coordinate nine-city efforts; grow international printed and digital formats. business; and grow air service. Creating a Destination Development Plan for future success depends on careful, in-depth research. As Scott White a result, the CVB contracted with leading strategic President & CEO, Greater Palm Springs CVB agencies, Minding Your Business (MYB) and Convention, Sports & Leisure (CSL) to formulate a Destination Development Plan, for both short- and long-range planning that relates to both the leisure and group markets. Scott White President & CEO Greater Palm Springs CVB DESTINATION DEVELOPMENT PLAN 4 5 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Minding Your Business (MYB) and Convention, Sports & Leisure (CSL), were tasked with formulating and recommending strategies to gain market share of tourism, increase hotel bookings and drive exposure to new markets for both the leisure and group markets. Based on a combination of in-depth research, both primary and secondary, a foundation was built to create a blueprint that set forth Destination Goals for the next five years and longer. The Destination Development Plan (DDP) is the blueprint to reach those goals, which are largely reliant on the role of the community to reach fruition. This study was conducted in each of the nine cities that make up Greater Palm Springs. The research ranged from mayors and city managers to meeting professionals, travel writers and the concierge community, as well as interviews with 10,000 visitors enjoying the destination. This evidence-based, deep-dive approach played an essential role in defining a common vision for growth. It provides a plan for success that will not only grow tourism, but contribute significantly to Greater Palm Springs’ economic and social development. The Destination Development Plan’s primary goal is to attract over 16 million visitors to the valley by 2026. This aggressive goal will require collaboration among all cities, business leaders and tourism partners. The recommendations in the DDP are designed to inspire and generate ideas that all of us can support. A competitive spirit is healthy locally, but can be detrimental regionally and globally. As a destination, we are competing with world-class cities and regions and our brand must be unified with one voice and one goal. Together, we can grow our economy and be recognized as a destination that is modern, relevant and admired. DESTINATION DEVELOPMENT PLAN RECOMMENDATIONS FOR FUTURE without a minimum revenue guarantee or cooperative TOURISM DEVELOPMENT AND GROWTH marketing agreement. Consistent year-round air After identifying destination challenges and goals service will be beneficial to attracting new companies based on more than a year of extensive research, and diversifying the economy. We are recommending recommendations have been formulated focused on the establishment of a nine-city Blue Ribbon Committee the following priorities: increasing air service to the to review and evaluate the options to create a revenue destination; growing business midweek; supporting source to cover summer and fall subsidies. The plan higher education locally to ensure the future of also recommends the establishment of immigration and the hospitality labor pool; leveraging the natural customs facilities at the airport for international charter assets of Greater Palm Springs to be recognized flights, expansion from Canada, new markets such as as an outdoor destination; focusing on the art and Mexico and long-term Asia. cultural assets of the destination; leveraging our We must continue to support shared ride services existing health and wellness offerings; addressing which are an important component for Greater wayfinding challenges; strategizing shared Palm Springs and its modern and Millennial visitor. marketing resources; building on our presence as The lack of mass public transit for the visitor is a an eco-sustainable destination; supporting and weakness. It is important the modern traveler has encouraging events that fill our need periods; and a positive experience, and Greater Palm Springs working with the growing tourism sectors of boutique should be supportive of services such as Uber and hotels and vacation homes. Lyft. The CVB, working with CVAG and other nine- Within these areas, recommendations are in some city organizations, should identify opportunities to cases very specific. In other cases, they are more maximize and protect the service in the market. general in nature to provide decision-makers with a Access from Southern California will continue to framework for future initiatives. The recommendations be an issue and adding daily Amtrak service would intersect with the destination goals, and, to some enhance the accessibility of the destination to extent, each of the recommendations will grow in-state and international travelers tremendously. tourism, create more jobs and revenue for the cities This is considered a long-term initiative that will not and increase the desirability to attract companies to likely develop until 2020 or beyond, however steps relocate to Greater Palm Springs. should be taken to plan and possibly expedite the development process by establishing a specialized TRANSPORTATION project team that might include representatives from For Greater Palm Springs to be a year-round each participating organization to partner with the destination, it requires year-round air service. Although RCTC and the Southwest Rail Passenger Association. the CVB’s efforts to subsidize airlines have been successful, the reality of continuing and expanding Ontario International Airport has the potential to be subsidy will require much greater support. Airlines will an asset and compliment Palm Springs International not risk year-round service into Greater Palm Springs Airport. Having shuttle service or an express train between Ontario and Greater Palm Springs will significantly impact tourism, real estate and economic growth. We believe some form of public subsidy would be required. The CVB, CVAG and other destination representatives should create a task force to investigate the concept of a larger- scale, visitor- oriented transportation hub system, potentially with various locations throughout the valley, as well as a public shuttle subsidy plan. OUTDOOR ADVENTURE One of Greater Palm Springs’ most unique assets is its variety of geographic terrain and natural beauty. The outdoor adventure tourism industry is growing DESTINATION DEVELOPMENT PLAN 6 7 EXECUTIVE SUMMARY Hotels and resorts in Greater Palm Springs should invest in chillers for their pools; perhaps the cities can assist the hotels with such a conversion. Summer is the largest opportunity for the cities to generate additional revenue and job creation. Water activities are critical to attracting families during the summer. Investment in lazy rivers, water slides and