Palm Springs, a desert oasis located just two hours outside of Los Angeles, has become an increasingly popular destination for Canadian tourists. Known for its stunning vacation homes and vibrant gay community, the city has embraced its reputation as a “liberal bubble.” In recent years, it has taken proactive measures to maintain its relationship with Canadian visitors, particularly in light of political tensions stemming from U.S. tariffs and trade policies.
Each year, a quarter of a million Canadians come down to Palm Springs. They are in love with the city’s warm climate and energetic cultural scene. Unlike other visitors, Canadians have the tendency to stay longer and make a greater economic impact on the local economy. Their annual expenditure impact in the Coachella Valley, which includes the city of Palm Springs, is pegged at $300 million. In addition, they represent nearly 2,000 hospitality-oriented jobs, emphasizing their crucial role in the local economy.
A study published in 2021 estimated that Canadians own about 7% of vacation homes in the province. This deep-rooted tie to Canada is evident beyond the real estate market, as Canadian employees can more easily connect with their U.S.-based coworkers in business dealings. Bob Smilands, the owner of Desert Hand Wash, underscored just how important Canadian customers are for business. He explained, “The Canadian business is 30% of my sales in the winter, so it’s really important that we do something big.”
In response to growing concerns that U.S. political policies might deter Canadian tourists, Palm Springs has taken steps to reassure its northern neighbors. Local officials, including Mayor Ron deHarte, have been putting up “Palm Springs Loves Canada” signs all over downtown to help counteract the damage. This initiative aims to send a clear message: the city’s attitude toward Canada remains positive despite political rhetoric from Washington D.C.
Mayor deHarte said the friendly gesture was intended to clue in our Canadian guests. In doing so he wanted to make the point that the perspective at Palm Springs is very different from what you might find in Washington DC. These signs are a third way of thanking and welcoming Canadian visitors, letting them know that the community appreciates and values their approach to the marketplace.
The consequences of U.S. political decisions are very real and very direct. Josh Yates, a spokesperson for WestJet, explained that WestJet has seen a decline in demand for trans-border bookings between Canada and the U.S. He attributed this decline to the toxic political climate. In particular, we’re experiencing a lot more demand to sun destinations, both in Mexico and the Caribbean, as well as to Europe,” he continued.
Sherri Dettman, a Palm Springs realtor, reinforced those feelings. She illustrated the ways heightened political tensions have affected local real estate deals. During the first two weeks of tariff negotiations, I started getting frantic phone calls from sellers. They announced, “We’re done; Trump has permanently destroyed the relationship between Canada and the United States.”
Even with these hurdles, optimism abounds from Mayor deHarte on the future of Canadian tourism to Palm Springs. He said that Canadian visitors are participating in opening galas and community and civic functions. Second, they are deep, active volunteers. You can see Canadians engaging at our core and our functions, engaging in every way imaginable,” he said.
The interconnectedness between Palm Springs and its Canadian visitors extends beyond tourism. It influences various sectors of the local economy. The migratory exodus of Canadian dollars would be felt across the extended business community that has come to depend on this lucrative demographic. As Mayor deHarte said, “It’s huge when a community of visitors is moving out a day early, or when they don’t have plans to come back next year. And I don’t mean just the restaurants and the stores — the theater, the arts; it’s all of our businesses. Whether it’s the maids, the janitors, everybody is affected by the economic impact or the loss of those dollars coming in.”