A statue stands at the Cabrillo National Monument across the bay from downtown San Diego on Mar. 20, 2008.
San Diego, California – In a significant investment in the region’s tourism economy, the San Diego Tourism Marketing District (SDTMD) announced Tuesday that it will allocate more than $50 million to support some of the city’s largest events and marketing initiatives in the upcoming fiscal year. The move is expected to generate an estimated 6.8 million hotel room stays—up from 5.9 million the previous year—and contribute over $1.47 billion in revenue for San Diego hotels.
The largest share of the funding, more than $47 million, will go to the San Diego Tourism Authority to support ongoing marketing campaigns promoting the city as a year-round destination. Other key recipients include Sports San Diego’s Sports Commission, the San Diego Padres (for November’s WWE Survivor Series WarGames), and a host of beloved events such as the Holiday Bowl, Mission Bayfest, and the Rady Children’s Invitational basketball tournament.
“This is an ambitious year,” said SDTMD Board Chair Richard Bartell. “In the face of potential industry headwinds, we’re ensuring ongoing and consistent investments in the health of our TMD hotels.”
The SDTMD operates as a self-funded nonprofit, established in 2008 to enhance San Diego’s tourism economy through a 2% assessment on overnight stays at lodging businesses with 70 or more rooms. These funds are funneled into marketing and promotional efforts designed to drive overnight visitors and, in turn, support city services funded by the Transient Occupancy Tax—San Diego’s third-largest source of revenue.
According to SDTMD Executive Director Colleen Anderson, the organization’s funding model is built on the principle of return on investment. For every dollar invested in tourism marketing, officials estimate a return of $31 to $34 in hotel revenue.
The grants support not just established events but also help launch new attractions and experiences aimed at bringing first-time visitors to the city. Event organizers must demonstrate a clear connection to overnight hotel stays and present a strong marketing strategy to qualify for funding.
While this year’s $50.47 million allocation is slightly below the $52.5 million disbursed in 2024, the projected increase in room night stays signals a strong recovery and renewed momentum for the local tourism sector.
“This funding ensures that San Diego will once again host a vibrant lineup of returning events and exciting new experiences,” Bartell said. “We are proud to help tell the story of our city’s culture, community, and unmatched hospitality.”
Grant requests for the next fiscal year will open in November, as San Diego continues to invest in its identity as a premier destination for both leisure and large-scale events.
