Santa Monica's hotel-funded tourism budget is shifting toward domestic and luxury travelers as international visitation declines, part of a $16.3 million spending plan the City Council will vote on Tuesday, July 14.
The two budget items on the agenda — $6.87 million for the Tourism Marketing District and $9.45 million for Downtown Santa Monica Inc. — reflect a city grappling with falling overseas travel and persistent vacancies along the Third Street Promenade.
Tourism dollars shift to domestic market
The Tourism Marketing District, established in 2012 and funded entirely by hotel assessments rather than the general fund, would spend $1.42 million on marketing, $1.15 million on travel industry sales, $340,000 on public relations, and $330,000 on meetings and conventions under the proposed fiscal year 2026-27 plan. Salaries and benefits account for roughly $2.64 million.
Santa Monica Travel & Tourism described the strategy as a move "from recovery to resilience," according to a city staff report. International visitors historically made up about half of Santa Monica's tourism. But overseas visitation to the United States fell 6.5% year-over-year in May 2026, according to the National Travel and Tourism Office, and is down 4.8% for the year through May.
The work plan also positions Santa Monica for a string of major events: the 2026 FIFA World Cup, the Route 66 Centennial, the 2027 Super Bowl, and the 2028 Olympic and Paralympic Games.
Downtown budget focuses on security and maintenance
Nearly 79% of DTSM's proposed $9.45 million budget goes to operations and public space management, including private security, maintenance crews, and the Downtown Ambassador Program. Another $1.24 million covers branding, marketing, and community events.
City staff recommended approval, noting the work remains essential as downtown continues to recover from elevated retail and office vacancies and reduced international tourism, according to a Santa Monica Mirror report on the agenda items.
DTSM's plan includes expanded programming tied to upcoming sporting events, such as World Cup watch parties and seasonal activations aimed at boosting foot traffic on the Promenade. The council will also vote on a separate agreement allowing DTSM to continue hosting events at a city-owned parking lot.
Who votes and how to weigh in
All seven council members — Mayor Caroline Torosis, Mayor Pro Tem Jesse Zwick, Lana Negrete, Dan Hall, Ellis Raskin, Barry Snell, and Natalya Zernitskaya — are scheduled to vote. No council member has publicly stated a position on either budget item ahead of the meeting.
The meeting begins at 5:30 p.m. Tuesday, July 14, in the Council Chambers at City Hall, 1685 Main St., Room 250. The full agenda packet is available on the city clerk's website. Residents can submit public comments in person or review the staff reports before the vote.
