These San Diego events are driving hotel tourism in the city

• People who stay at hotels also pay a tax that helps fund city services.

Driving the news: The tourism marketing district recently announced it's giving about $50 million to more than a dozen local organizations and events through its annual grant program funded by hotel fees.

• The recipients are projected to drive 6.8 million stays at hotels in the city over the next year, generating more than $1.47 billion in room night revenue.

How it works: About 200 San Diego hotels charge a 2% fee that goes to the district for marketing efforts, including the grants.

• The vast majority of that money is allocated to the San Diego Tourism Authority.
• The district awards the remaining funds to organizations that prove they can bring in significant hotel revenue, particularly in the off season.

Zoom in: For FY2026, Sports San Diego received about $1.76 million for the Sports Commission, California State Games, college football Holiday Bowl and Rady Children's Invitational basketball tournament.

• About $1.6 million will be spent to promote events including Mission Bayfest music festival, San Diego Food and Wine Festival, Gator by the Bay and the San Diego Open.

Between the lines: The marketing district has been the subject of multiple lawsuits arguing the 2% fee is actually a tax and was never approved by San Diego voters, but it prevailed in court.