Established in 2008, the San Diego Tourism Marketing District (SDTMD) is a tourism improvement district operating in the City of San Diego. A non-profit, mutual-benefit corporation, SDTMD focuses grants funding to the marketing programs of the San Diego Tourism Authority (SDTA) and a wide variety of events—both of which are proven to increase the number of hotel room nights guests stay at SDTMD hotels.
Note: For the period January 1, 2013 through August 31, 2016, the TMD assessment was levied on all lodging properties. Effective September 1, 2016, the TMD assessment was officially amended to be applicable only to lodging businesses with 70 or more rooms. Modified returns are now available.
San Diego’s position as a top tourist destination isn’t guaranteed. With more than 90 TMDs in California alone and thousands of similar organizations worldwide, our city must actively compete for visitors. SDTMD provides essential funding to attract travelers, keep San Diego on must-visit lists and, in turn, increase hotel occupancy.
SDTMD is funded by hotels with 70 rooms or more within the City of San Diego which charge overnight visitors a 2% assessment per night. Assessment collection is administered by the City of San Diego and funds are distributed to the SDTMD.
As the steward of these funds, SDTMD is directly accountable to City of San Diego oversight and governed by a board of directors comprised of hotel owners and tourism leaders. It is managed by its Executive Director. Each year, the SDTMD produces an annual report that includes a third-party evaluation of the room night revenue generated by its tourism marketing grants.
Lodging businesses in the City of San Diego with 70 rooms or more are assessed a two percent fee on each room night sale. Assessment collection is administered by the City of San Diego and funds are distributed to the SDTMD.
The SDTMD assessment is used to help develop and support San Diego’s economic growth through tourism. The majority of SDTMD’s assessment funds support the San Diego Tourism Authority (SDTA) with additional funding applied to events and programs that can demonstrate an increase in room night stays at assessed hotels and a measurable return on investment.
Incorporated in 1954, San Diego Tourism Authority (SDTA) is a private, nonprofit, mutual benefit corporation governed by a 15-member board of directors. It is composed of approximately 1,000 member organizations, businesses, local governments and individuals seeking a better community through the visitor industry.
As the primary destination management organization (DMO) for the San Diego region, the SDTA’s main objective is to promote and market the San Diego region as a preferred vacation and meeting destination.
In the City of San Diego, Transient Occupancy Tax (TOT) is a tax applied to all lodging properties located in the City that rent to transients. (A transient is any person who occupies or is entitled to occupancy in the lodging structure for less than one month). TOT accounts for the third largest source of revenue to the City of San Diego’s general fund. The general fund supports essential city services such as roads, public safety, libraries, parks, homeless assistance and more.
TOT is a tax on every room night consumed in the City of San Diego and paid for by the visitor. The SDTMD assessment is a fee paid by lodging businesses with 70 rooms or more in the City of San Diego on each room night.
Increased hotel room night stays result in increased TOT revenue back to the City. Through this model, the tourism marketing district creates a true economic engine for the City and the region as a whole.
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.
To put it succinctly, events and tourism attractions that “put heads in the beds” of San Diego lodging businesses are extremely important to generating TMD assessment dollars in the region. (TMD cannot fund fixed assets such as stadiums or infrastructure.)
For TMD assessment funding guidelines & application, visit our Grant Recipients section.