Page 25
Desert Hot Springs’ retail and service industries saw a spike in employment in the 90s and early naughts, growing by 75.6 percent from 1991 to 2003. Hotel and amusement groups benefited from this expansion and continue to propel Desert Hot Springs’ economy. As a result of the expanding entertainment industry, the construction industry also saw some growth through 2003. Today, the retail sector has the highest number of firms of any industry in Desert Hot Springs at 19.8 percent, the construction industry has the second highest with 13.6 percent and services hold 14.2 percent. Palm Desert Palm Desert’s General Fund projects a 2 percent increase in tax revenues from FY 10-11 to FY 11-12, amounting to $896,000 in additional proceeds. The biggest increases in Palm Desert’s tax revenues are from the sales tax and transient occupancy tax (TOT), as the retail, hotel, and amusement industries are expected to rally. The graph shows Palm Desert’s Projected and Actual sales tax and TOT revenues from 2006 through 2012. As collections lagged projections starting in 2006 (sales tax) and 2007 (TOT), the city was forced to scale back its projected revenues. Now, as actual collections are edging back up, the city projections are also following suit. Already, between February 2011 and February 2012, Palm Desert resorts have seen figures reflecting the expected bounce back from the drop in occupancy and use of leisure services. The revenue per available room, or RevPAR, reflects a 14 percent increase. The RevPAR in 2012 for the fiscal year to date as compared to that of a year ago also shows a 14 percent increase, indicating that the trend is not a month-to-month anomaly but a long-term trend of rising consumption of leisure. $16,000,000 $14,000,000 $12,000,000 $10,000,000
Projected Sales Tax Revenue
$8,000,000
Projected TOT Revenue
$6,000,000 Actual Sales Tax Revenue
$4,000,000
Actual TOT Revenue
$2,000,000 $0 FY 06 - 07
FY 07 -08
FY 08 - 09
FY 09 - 10
FY 10 - 11
FY 11 - 12
However, City Manager John Wolmouth says that plans for development and growth will look beyond the next few years and plan conservatively, as Palm Desert has always done. Focus for the present include attracting new visitors. Conventions and conferences, a popular source of business for hotels in Palm Desert, are at a standstill since those planning the conventions for 2012 would have been doing so in the midst of the economic downturn.
INLANDEMPIREOUTLOOK.COM | 25