SDTMD invests $50M+ in FY2026 Marketing Grants to Encourage Year-Round Travel Activity

In an uncertain economic environment, SDTMD makes a significant investment to drive an estimated 6.8 million hotel room nights.

SAN DIEGO (July 7, 2025) — The San Diego Tourism Marketing District (SDTMD) has allocated $50.47 million in funding for tourism marketing in its 2026 fiscal year, which began July 1. The funds are distributed through grants awarded in a competitive process to applicants supporting programs and events expected to drive 6.8 million stays at SDTMD hotels in the City of San Diego.

“SDTMD is looking at FY2026 with a sense of ambition. In the face of potential industry headwinds, we’re ensuring ongoing and consistent investments in the health of our TMD hotels,” said SDTMD Board Chair Richard Bartell. “The City of San Diego will once again host a vibrant lineup of beloved returning events, as well as new experiences, to welcome visitors and provide more opportunities to explore our rich culture and unmatched hospitality.”

The SDTMD is self-funded through an assessment on room nights paid by visitors in City of San Diego hotels with 70 rooms or more. The proceeds are designated for tourism marketing to help increase overnight hotel stays. As a result of this investment, overnight visitors generate transient occupancy tax, or TOT, which helps fund city services, and tourism supports thousands of direct jobs while attracting billions in visitor spending to the city.

SDTMD tourism marketing grants for the fiscal year that just ended June 30 totaled $50.9 million. In recent years, every SDTMD dollar invested in tourism marketing has generated a return of $31 to $34 in hotel room night revenue and helped maintain San Diego’s position as a top travel destination secure.

The 2026 financial year grants include:

  • San Diego Tourism Authority – As SDTMD’s primary funding recipient, San Diego’s destination marketing organization will receive more than $47.9 million to support myriad strategic marketing programs throughout the year.
  • Sports San Diego – Sports San Diego markets the city to two key drivers of travel – athletic tournaments and competitions. The nonprofit organization will receive $1.76 million to amplify such popular events as the San Diego Holiday Bowl, California State Games and the Rady Children’s Invitational Tournament to overnight visitors and to market the city to attract future major athletic events.
  • Other Events – Nearly $1.6 million has also been earmarked to support several established and previously funded tourism generating events and programs that continue to yield strong returns. Returning grant recipients include: Mission Bayfest, Gator By the Bay, San Diego Crew Classic, U.S. Police and Fire Championships, San Diego Food and Wine Festival, San Diego Open, San Diego Bayfair and more. New for FY2026: Major League Pickleball, WWE Survivor Series War Games 2025 and the I Love Myself Expo and Conference.

SDTMD supports tourism opportunities during traditionally slower travel periods with its grant funding. This practice helps to sustain steady year-round tourism. A full list of FY2026 grant recipients can be found at www.sdtmd.org/sdtmd-grant-recipients/.

Collectively, SDTMD’s grants are projected to drive more than 6.8 million room nights (up from a projected 5.9 million last year) to generate more than $1.47 billion in room night revenue, in addition to more than $155 million in TOT for the city. For more information, visit www.sdtmd.org.

Event organizers around the City of San Diego are encouraged to prepare and submit grant requests in November 2025 when the SDTMD issues its next call for applications for FY2027. Learn more at www.sdtmd.org/applications.

About San Diego Tourism Marketing District
The San Diego Tourism Marketing District (SDTMD) is a nonprofit, mutual-benefit corporation dedicated to improving lodging room night consumption in the City of San Diego. SDTMD provides a private, nonprofit funding vehicle to stimulate City of San Diego lodging room demand through tourism promotion, marketing and advertising programs. The judicious allocation of these resources creates a positive economic, fiscal and employment impact on lodging businesses in the City of San Diego. For more information, please visit: www.sdtmd.org.

How San Diego is Winning Big with Sports Tourism 

From the sun-soaked beaches to the roar of excited crowds, San Diego has made a name for itself in the rapidly growing world of sports tourism. As the echoes of the 2024 Paris Olympics fade, our City is stepping up to the plate, serving aces and scoring goals right in its own backyard.   

Let’s dive into the thrilling world of sports tourism to discover how it’s not just changing the game for San Diego, but revolutionizing our entire tourism landscape.  

Why Sports Help San Diego Tourism 

SDTMD has funded sporting events throughout San Diego since its inception. Why it’s important:  

  1. Economic Impact: Sporting events bring in thousands of visitors, filling hotel rooms, restaurants and local businesses. This influx of tourism dollars ripples through our economy, supporting jobs and boosting local revenue.  
  2. Brand Exposure: When San Diego hosts major events, it’s like having a spotlight on our beautiful city. National broadcasts of events showcase our stunning landscapes and vibrant culture to millions of potential visitors.  
  3. Community Pride: Nothing unites a city quite like sports. These events foster a sense of community pride and excitement that’s contagious, making San Diego an even more attractive destination for tourists.  
  4. Year-round Appeal: With our perfect climate, San Diego can host sporting events throughout the year, helping to smooth out seasonal fluctuations in tourism.  
  5. Infrastructure Development: Hosting major sporting events often leads to improvements in local facilities and infrastructure, benefiting residents long after the final whistle blows. 

Sports San Diego  
  
Sports San Diego’s purpose is to drive visitor demand to economically benefit San Diego though recruiting, supporting and hosting world-class sports events.   

It also serves as the region’s sports commission, the primary organization responsible for marketing San Diego as a sports destination and working with venues, hotels and event organizers to bring new sporting events to San Diego. It’s projected to drive an ROI of 15.8:1 based on hotel room night stays.   

Sports San Diego operates  four annual tourism-driving sporting events:  

  • California State Summer Games (July 24)  
  • Rady Children’s Invitational (Nov 24)  
  • DIRECTV Holiday Bowl (Dec 24)  
  • California State Winter Games (Feb 25)  

Sports San Diego also works with event promoters and National/International Governing Bodies to bring in new events each year to the destination to drive economic impact and hotel room nights. Some of the events in FY2025 included: 

  • New Zealand All Blacks vs. Fiji rugby match (July)  
  • Manchester United vs. Real Betis (July)  
  • Leagues Cup – Club America vs Atlas (August) 
  • USA Flag Fest(Sept.)  
  • ECNL Showcase (Oct.)   
  • USA Ultimate Club Nationals (Oct.)  
  • ECNL Playoffs (June 2025)  

Additional Renowned Sporting Events:   

The SDTMD also funds many other sporting events throughout the year that help diversify the tourist demographic and bring people from around the world to our beautiful city. These include:  

  • USTA Adult National Championship  
  • USTA Billie Jean King Girls Junior National Championship  
  • Cymbiotika WTA 500 San Diego Open  
  • San Diego Crew Classic  
  • San Diego Bayfair  

Check out the full list of grant recipients HERE. 

The Future of Sports Tourism in San Diego:   

As we look ahead, the future of sports tourism in San Diego is bright. With continued support from organizations like the San Diego Tourism Marketing District (SDTMD) and Sports San Diego, we’re poised to attract even more world-class events. From the possibility of hosting Olympic trials to expanding our repertoire of international matches, San Diego is setting its sights on becoming a premier global sports destination.  

How to Get Your Event Funded in San Diego

One way to get event funding in San Diego is with a tourism marketing grant from the San Diego Tourism Marketing District.

Every year, the SDTMD collects an assessment on each hotel room night at its member hotels creating a pool of funds for marketing events or supporting programs throughout the year that bring more overnight visitors to stay in district hotels.  

Events and programs that the SDTMD has funded in the current fiscal year include sporting events like the national amateur tennis championships or the San Diego Crew Classic as well as cultural events like the San Diego Bay Food + Wine Festival. Yours could be next!

In this article, you’ll find great tips to help you secure event funding in San Diego:

  1. Checklist on how to get event funding
  2. Steps to submitting a funding application
  3. Application tips and workshop details
  4. Why should you get event funding in San Diego?

Let’s dive in:

How to Get Event Funding in San Diego: Checklist

Think your event might be a suitable candidate? Great! Here’s a checklist for securing event funding in San Diego with a SDTMD grant:

  1. Is your event in the City of San Diego?
    The district’s boundaries are the City of San Diego. So, only events that drive visitors to the City of San Diego and the district’s member hotels, which are those with 70 rooms or more, will be considered.
  2. Will a marketing grant increase the number of overnight visitors in the District’s hotels?
    Be creative. Could you add a second or third night to an event to give attendees or participants a reason to spend the night? Would your event potentially be larger and attract more overnight guests if you had some assistance with the marketing budget and the ability to get the word out?
  3. Is your promising event new and needs some assistance to get it launched?
    Assuming it’s intended to be an annual event, it may be suitable for a grant application from the SDTMD. In the past, the SDTMD has helped incubate ambitious events that have evolved to become signature events for San Diego from Kaboo to Wonderfront and the Holiday Bowl to Breeder’s Cup.
  4. Are you confident that an investment in your event marketing or marketing program could drive major room night bookings?
    The SDTMD measures the return on investment from each grant measuring incremental room night revenue from each event funded. Check out our past annual reports to learn about our ROI measures and performance.

Next Step: Submit an Application to Get Event Funding   

The SDTMD awards grant funding each year to applicants who can demonstrate the ability to generate incremental room night stays at TMD assessed hotels and a measurable return on investment (ROI) on TMD dollars. The typical time like looks like this:

  1. October — General Application Available
  2. October — Application Workshops (all applicants encouraged to attend)
  3. November — Applications Due
  4. January — Applicant presentations at SDTMD Board Meeting
  5. March — Funding decisions made at SDTMD Board Meeting
  6. April/May — TMD presents budget for City Council approval
  7. June — TMD issues contracts

The San Diego Tourism Marketing District will begin accepting applications for Fiscal Year 2025 funding beginning October 6, 2024 via our online submission system.

Applications are due by 5 p.m. on Friday, November 15, 2024. Applications received after the deadline will not be accepted for annual funding requests.

Click here to learn more and start your application.

Helpful Funding Application Tips: Attend an Application Workshop

SDTMD strongly recommends that all applicants attend one of its workshops prior to completing the application. What you’ll get:

  • An overview of the application process
  • Insight on criteria used to select events for funding
  • An introduction to the online submission system
  • Q&A opportunity with financial and tourism marketing measurement experts

Two virtual workshops will be held on September 25th and October 16th from 2-3:30pm. Register in advance for the Zoom meetings by clicking the links above.

Please contact Executive Director Colleen Anderson with any initial questions.

Why Should You Get Your Event Funded?

Hotels with 70 rooms or more within the City of San Diego are assessed a two percent fee on each room night. SDTMD uses these dollars to support the marketing and promotional efforts of a variety of programs, services and special events that help increase room night sales. How does this help?

It helps the local San Diego economy

Aside from San Diego’s great weather, food, people and culture, having your event in the city helps the local economy.

San Diego’s economy depends on tourism. It helps create thousands of jobs for our residents, billions in economic activity for our businesses, and millions in hotel taxes for the city. Visitor spending supports jobs for residents and results in important tax revenues for the City to support services that make San Diego such a great place to live, work and visit.

It helps improve the City

Having fun and diverse events creates a buzz that brings more out of town visitors to the City.

Moreover, guests who stay multiple nights in San Diego create a ripple effect with their dollars spent, impacting not only lodging businesses, but multiple other commercial entities, including restaurants, entertainment, transportation and shopping retailers.

This also includes public safety, road repair and other City services that are funded through taxes collected by the City on hotel room nights.

RELATED: Why TMDs Work

For more details on application guidelines, types and supplemental funding information, visit our application page.

Learn more about the San Diego Tourism Marketing District here.

 

SDTMD Awards Nearly $51 Million in Annual Grants to Grow the City’s Tourism Economy

The San Diego Tourism Marketing District (SDTMD) has allocated $50.9 million in funding for marketing programs and events for fiscal year 2025, which began July 1, to drive overnight visitors to the City of San Diego and increase local hotel occupancy. This year’s tourism marketing grants are the second largest in the organization’s history, after a record $52.5 million was made available last year.

“As we kick off FY2025, we’re excited to build upon the record investment made in FY2024 as we continue building and nurturing a roster of engaging events that attract more out-of-town visitors who fill more hotel rooms,” said SDTMD Board Chair Richard Bartell. “It’s good to be back on solid ground as we look ahead to another strong year for America’s Finest City.”

This year’s funding is the result of the tourism industry’s steady performance in the City of San Diego over the past year.

The SDTMD is self-funded through an assessment on room nights in City of San Diego hotels with 70 rooms or more. The proceeds are designated for tourism marketing to help increase overnight hotel stays. Overnight visitors generate transient occupancy tax, or TOT, which helps fund city services, and tourism supports thousands of direct jobs while attracting billions in visitor spending to the city.

In its 2023 financial year, SDTMD awarded $40 million in marketing grants that delivered a return on investment of $32.40 in hotel room night revenue from every $1 of grant funding invested.

The 2025 financial year grants include:

  • San Diego Tourism Authority – As SDTMD’s primary funding recipient, San Diego’s destination marketing organization will receive more than $47.6 million to support many strategic marketing programs throughout the year. 
  • Sports San Diego – Sports San Diego markets the city to two key drivers of travel – athletic tournaments and competitions. The nonprofit organization will receive more than $1.8 million to amplify such popular events as the San Diego Holiday Bowl, California State Games and the Rady Children’s Invitational Tournament to overnight visitors and to market the city to attract future major athletic events.
  • Other Events – More than $739,000 has also been earmarked to support several established and previously funded tourism generating events and programs that continue to yield strong returns. These include: San Diego Bayfair, San Diego Bay Wine and Food Festival, La Jolla Concours d’Elegance, U.S. Police & Fire Championships, San Diego Crew Classic, San Diego Open and more. 

SDTMD targets opportunities scheduled for traditionally slower travel periods for its funding. This helps to sustain steady year-round tourism. The organization also looks for programs and events that drive tourism across the city and/or give back to the local community.  

Examples of funded events featuring community programs include the San Diego Bay Food + Wine Festival’s partnership to support hospitality, culinary and enology arts scholarships and the San Diego Crew Classic Freedom Rows event that helps military veterans recovering from injuries, emotional trauma and PTSD. 

Collectively, the SDTMD’s grants are projected to drive more than 5.8 million room nights to generate more than $1.5 billion in room night revenue in addition to $160 million in TOT for the city. For more information, visit www.sdtmd.org. 

Event organizers around the City of San Diego are encouraged to prepare and submit grant requests in November 2024 when the SDTMD issues its next call for applications for FY26. Learn more at www.sdtmd.org/applications. 

About San Diego Tourism Marketing District
The San Diego Tourism Marketing District (SDTMD) is a nonprofit, mutual-benefit corporation dedicated to improving lodging room night consumption in the City of San Diego. SDTMD provides a private, nonprofit funding vehicle to stimulate City of San Diego lodging room demand through tourism promotion, marketing and advertising programs. The judicious allocation of these resources creates a positive economic, fiscal and employment impact on lodging businesses in the City of San Diego. For more information, please visit: www.sdtmd.org