Record year at PSP brings billions in Coachella Valley economy
PALM SPRINGS, Calif. (KESQ)—Palm Springs International Airport generated $2.55 billion in total economic activity in 2025, according to a new economic impact study released by the airport.
The findings highlight how PSP’s role in the Coachella Valley extends beyond air travel, with airport-related activity supporting more than 16,000 jobs and generating millions of dollars in state and local tax revenue.
Visitors spend more than $1.1 billion
Visitor spending was a major contributor to the airport’s economic impact. Travelers using PSP spent more than $1.1 billion across the region last year, according to the airport. That spending reached hotels, restaurants, stores, attractions, transportation businesses and other parts of the local tourism industry.
Jake Ingrassia, a spokesperson for Palm Springs International Airport, said the airport serves as an entry point for visitors who then spend money throughout the Coachella Valley.
“When we bring those travelers to our destination, they are here to spend money,” Ingrassia said. “They’re booking hotels, they’re eating in our restaurants, shopping in our stores.”
The airport reported a record year in 2025, serving more than 3.3 million passengers.
More than 16,000 jobs supported
The study found economic activity connected to PSP supported more than 16,000 jobs across the region. Those jobs are not limited to employees working inside the airport. The impact extends into aviation, hospitality, transportation, retail, construction and other industries throughout the community.
Tourism plays a particularly large role in the Valley’s workforce.
“We know that 1 in 4 jobs in the Coachella Valley are supported by tourism, and we are the gateway that provides the tourists to support those jobs,” Ingrassia said.
$175 million in state and local tax revenue
The study also found PSP-supported economic activity generated $175 million in state and local tax revenue.
Airport officials say that revenue helps support infrastructure and public services throughout the region.
“The more that our airport grows and expands our passenger count, the more that we are able to support this community,” Ingrassia said. “That’s more jobs in our community, more tax revenue for our cities, supporting infrastructure and crucial public services that we all as residents here depend on.”
Most of the impact stays in the Coachella Valley
Despite PSP connecting the region with destinations across the United States and Canada, airport officials say most of its economic impact remains local.
Nearly 97% of the airport’s $2.55 billion economic impact stayed within the Coachella Valley, according to the study. More than half was concentrated within the city of Palm Springs.
Ingrassia said that local return was one of the significant findings in the report.
“97% of that economic impact stays locally,” Ingrassia said. “The lion’s share of it here in the Coachella Valley, over 50% in the city of Palm Springs.”
Airport preparing for continued growth
PSP is also moving forward with projects aimed at keeping up with passenger growth. Those plans include a new baggage handling system, planning for a new concourse and international arrival facilities, along with new rental car facilities.
Airport officials say continued growth could mean more visitors spending money in the region, additional demand for local businesses and more jobs tied to the airport and tourism industries.
The full economic impact study and additional information can be found through Palm Springs International Airport.
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