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.
