Palm Springs has long been a magnet for design lovers, couples getting married, cultural organizations and companies seeking something more than just a ballroom. Historic estates, striking architecture and year-round sunshine have made the Coachella Valley an international destination. But a newly revised ordinance risks unraveling a critical piece of that identity—and the loss of millions of dollars in local economic activity.
The issue lies in a recent revision to the city of Palm Springs’ vacation-rental ordinance, specifically the inclusion of event permits within the 26-contract limit for vacation rentals. On paper, it might sound like a technical change. In practice, it’s a sweeping policy shift that threatens jobs, small businesses and millions in tax revenue.
Estate-based events—from weddings and fundraisers to corporate retreats—contribute millions in transient occupancy tax (TOT) revenues to city coffers each year. Our company’s experience shows that the average estate event generates $150,000 to $200,000 in local spending—not for the estate owner, but for caterers, florists, DJs, shuttle companies, furniture-rental providers, AV teams and photographers. This spending supports more than 800 local jobs in Palm Springs alone.
The new ordinance lumps event permits into the same category as overnight vacation rentals. That means an estate is limited to hosting 26 events, or 26 overnight guests, or some combination, each year.
This is a mistake. Events and vacation rentals are completely different economic drivers. A three-day corporate retreat in June, with daytime meetings and local restaurant reservations, is not the same as a weekend bachelorette party. A nonprofit gala ending at 10 p.m. doesn’t have the same footprint as a poolside rental. By grouping them together, the city risks turning away high-value bookings in favor of less impactful ones.
This change won’t just affect homeowners or event managers; it will hit the vendors and working-class professionals who rely on events for their livelihoods. It will ripple through the supply chain, from the baker to the valet. It will cut revenue from slow-season bookings, hurt charitable partnerships, and erode the city’s ability to draw premium tourism dollars.
Palm Springs already has one of the most robust event-permitting systems in the state. Every event must comply with a checklist of city requirements: neighbor notifications, parking plans, insurance, curfews and onsite personnel. Guests must be out by 10 p.m., and all vendors are off property the same night. These events are compliant, community-conscious and well-managed.
If the concern is noise or behavior, it’s misplaced. These are not impromptu parties; they’re professional productions governed by detailed city regulations.
No one is asking for a free pass. But there’s a smarter way to balance economic development with neighborhood concerns:
- Exclude event permits from the 26-contract cap; count them separately.
- Reduce the application period from 60 days to 30 days during off-peak months to support flexible bookings.
- Streamline permitting by consolidating the process into one city department.
- Include stakeholders in future revisions to create policy that works in practice, not just theory.
Palm Springs’ reputation as a world-class destination was carefully built—by designers, nonprofits, event producers, local businesses and the city itself. Estate events don’t just support the local economy; they amplify our brand, showcase our architecture and fuel our community spirit.
This one clause—counting events among the 26 annual contracts—may seem minor. But if it’s not reversed, it will have major consequences. It will dry up jobs, reduce tax revenue, limit philanthropy and drive event business to other cities with more forward-thinking policies.
We can—and must—do better. Before this ordinance quietly takes effect in January 2026, let’s revise it together. Let’s protect what makes Palm Springs exceptional.
Ron Willison is a veteran event strategist and hospitality executive. He serves as group sales and events manager for Natural Retreats–Palm Springs, leading destination events at iconic estates. He has helped produce major cultural events across the region and has raised millions in charitable support through his roles in events, philanthropy and tourism strategy.
I love how people think their business concerns should take precedence over the concerns of home owners and residents.
We contribute financially to the city by making a major capital outlay and paying purchase sales tax on a home and annually, paying our taxes( and all the extra bond payments) and an extra one percent on sales tax anytime we shop.
Could you imagine living next to a house that had 26 weddings in a year? That’s not enough for you?
26 “events” per year in a single family *residential* zone?
That is absurd and nothing but greed, uncouth, and parasitic. That’s not an private estate but rather a commercial venue open to the public.
One could not pay me (or the city) enough to compensate for that total disruption of my peaceful enjoyment of *my* residential neighborhood.
Money, money, money, corporate, blah, blah, blah…TOT, blah, blah, blah. The residents of Palm Springs are finally abating this scourge.
All so easy to say when you don’t live next door or in the neighborhood of one of these estates
It is dishonest to never mention that these are homes in residential areas. Legal commercial venues are not restricted. These are homes with residents living next door. It is pure greed to want to subject unpaid neighbors to more than 26 events that lower quality of life for the people that live in Palm Springs. Unpaid neighbors should not be subjected to even one professional event next door. Keep professional events on commercial properties.
Exactly this. You nailed it my friend, NEIGHBORhoods are for NEIGHBORS! Not corporate retreats or bachlorette parties.
Is there any data showing how man of these “Estate” venues wrote contracts for more than 26 events in a year?
Is this not a violation of homeowners’ rights? If an event creates a disturbance, call the police. That is the correct and legal recourse. We live in a blue state that claims to value personal freedom, yet we are now pushing policies that tell people how they can and cannot use their private property. That undermines the very principles we claim to uphold.
At the same time, we are moving to eliminate mom-and-pop vacation rentals and estate events. This only benefits large hotel chains that prioritize shareholder profits over local economic health. That is not progress. It is corporate capture disguised as regulation.
Local small businesses are the ones who suffer. Gardeners, pool technicians, florists, grocery store clerks, accountants, real estate agents—all of them depend on the activity generated by these rentals and events. Remove them, and you strip income from people who actually live and work in this community.
What evidence exists that vacation rentals or estate events make neighborhoods unsafe? There is none. If anything, removing these income streams will increase financial pressure on families. That often leads to more theft, homelessness, and instability in the long run. And your taxes will still go up, while your services shrink.
Property values in Palm Springs have been supported by vacation activity. Take that away, and demand drops. Fewer businesses will survive. Fewer jobs will exist. Prices at restaurants and grocery stores will rise to offset lost volume. Quality of life will decline.
Palm Springs was built on tourism. The growth, infrastructure, and lifestyle many residents now enjoy came from people visiting and spending money. Many of us chose to live here after experiencing Palm Springs as a vibrant, vacation-worthy city. That foundation is what made this place livable and economically viable.
This is not about noise. It is not about safety. It is about whether we want to kill off small businesses, raise the cost of living, and hand control over to corporations while claiming we are protecting the community.
We can regulate and enforce without destroying the very ecosystem that sustains this city. That is the path forward.
Great insight. Nice article. Don’t expect the city to change course. In their minds they’d have to admit they made a mistake. Politicians don’t do that. Unfortunately Politicians and road to hell are paved with good intentions. But in reality they end result is never thought through
I’m happy the City is limiting the amount of events and vacation rentals as these properties are mostly owned by people who don’t live in the neighborhood or even in the city, it is solely a business for them to profit as much as they can. Before the City limited the neighborhood saturation, I had vacation rentals on either side of my house with 3 behind me. They definitely reduced the serenity of my neighborhood and the quality of my life
Are the people complaining about the rentals, and events the same ones complaining about eliminating work for undocumented individuals? Does it only matter to you when those losing income and work are undocumented. You purchased a property in an area you knew catered to tourism did you not? …asking for a friend.
It’s not just palm springs that’s impacted, this whole valley is based on tourism. I do small maintenance and housekeeping all over this valley, and if this proceeds I’ll have to find a different job to try and survive. Not that I can’t, but really don’t want to. The last ten years have been excellent and business is good. This is going to destroy my business and probably make me live in my truck.