Travelers spent nearly $97.6 billion in California last year, up 0.8 percent compared with 2007. But tourists are set to cut back their trips by 3 percent this year.

In Palm Springs, tourism officials hope to buck the trend with freebies and deals to attract staycationers, locals, and out-of-state and international tourists. The Palm Springs Bureau of Tourism launched a summer campaign targeting staycationers, travelers who stay within a few hours of their homes for vacations rather than flying out of the state or country.

The bureau launched a staycation Web site, www.ComePlayInPalmSprings.com, where offers for free room nights, discounts on food and attractions, and freebies at some retail stores are posted.

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Photo By Dan Reed

State tourism is expected to decline 7.7 percent this year, so Palm Springs is aggressively pursuing "staycationers."

"We came from Sacramento and decided to come to Palm Springs; we've never been here before," said Shannon Marlin, a tourist staying at the 144-room Le Parker Meridien in Palm Springs. "We were going to go to Yellowstone, but they were all booked and because of the economy, we used all our bonus points and saved $350 to $600."

California's travel and tourism industry is directly supported by 50 percent in-state, 33 percent out-of-state and 17 percent international travelers. Travel dollars supported 924,000 jobs in California with earnings tallied at $30.6 billion in 2008.

In Riverside County, travelers spent nearly $6 billion and supported 68,990 jobs in 2007. In San Bernardino County, travelers spent about $3.7 billion and directly supported 44,420 jobs, according to the most recent Dean Runyan Associates report released by the California Travel and Tourism Commission.

But the forecast for 2009 is bleak, with an expected 7.7 percent decrease in total travel expenditures. However, the commission predicts the industry will recover in 2010 with an increase of 5.3 percent in total travel expenditures. That's where staycationers come into play, or so the Palm Springs Bureau of Tourism hopes.

A staycation doesn't mean people are just entertaining themselves at home anymore; traveler habits have changed, according to the Washington, D.C.-based Travel Industry Association.

"Many (staycationers) are participating in travel-related activities that generate significant revenues for restaurants, attractions, theme parks, as well as hotels and resorts," said Roger Dow, TIA president .

Glen Bowers, a former dentist, fixed up his 2,000-square-foot Grill-a-Burger eatery in Palm Springs earlier this year. He changed the décor and improved the appearance to help attract customers; so far it's helped.

"The last two weekends have been good and I've been seeing more people from LA and OC. It seems like they are staying closer by, they're not going out as far; air travel has become such a hassle and it's expensive," Bowers said. "But things still seem slow; I think it's a combination of the economy and the need for the revitalization of downtown to get going."

Travelers are searching for the best deals and packages to save money, and they won't have to look hard; the costs of lodging and airfares were down by 6.8 percent and 4.1 percent, respectively, in the first quarter of 2009, compared with the same period in 2008.

Meanwhile, hotel occupancy in Riverside County slipped 5.6 percent to 57.5 percent in 2008. San Bernardino County hotel occupancy dropped 5.5 percent to 65.3 percent last year.

Many hotels are offering free nights and deals to attract business. At the Le Parker, guests who book a room at $199 a night receive $200 in spa credit or they can opt for $200 in dining credit.

"We have definitely seen an increase in families coming and staying with us," said Thomas A. Meding, general manager of the Le Parker. "All the deals we have been offering have been extremely popular with locals and out-of-towners and while our occupancy is holding, it always could be better."

Marlin, the visitor from Sacramento, says now is the time to travel and cash in on rewards programs and deals. "Customer service is 500 times better than in years past," she said, "because they are trying to bring business back."