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The New Mexico tourism industry is facing unprecedented hardship due to the continued impact of the COVID-19 pandemic - but recovery is on the horizon. With a substantial and targeted investment in tourism, we can expedite recovery and get our economy back on track.
Despite this strong foundation, the COVID-19 pandemic has severely damaged the tourism industry in New Mexico, resulting in an average loss of visitor spending of $366 million each month, according to Tourism Economics. The cumulative loss of visitor spending is estimated to be $3.5 billion and has resulted in an estimated loss of $163 million in state and local taxes.
As a result of this visitor spending decrease, numerous tourism businesses had to lay off staff temporarily or permanently. As of November, there are 30,000 unemployed workers from the accommodations and food services sector, costing a cumulative total of $271 million in unemployment benefits.
All told, the total 2020 projected cost to the state in visitor spending, taxes and unemployment benefits is $4.3 billion. Restarting the tourism economic engine at the appropriate time requires an increased investment in marketing.
Although tourism promotion is still not feasible at this stage of the pandemic, people around the world are dreaming of their next vacation. Tourism is a competitive industry. While several other states have invested heavily in tourism marketing through the CARES Act, the New Mexico Tourism Department has not received any federal stimulus money. New Mexico needs a substantial investment in tourism marketing to have a strong "share of voice" when we can re-enter the market.
Tourism is an elastic industry, and history has proved time and time again that the industry is resilient and bounces back.
Through a $25 million special appropriation for tourism recovery included in the FY22 Executive Budget Recommendation, NMTD will be able to reignite commerce and expedite the tourism industry’s timeline for recovery. Through a substantial and targeted investment of $25 million in tourism recovery, the Tourism Department will be able to:
NMTD will not require any additional FTEs to enact the $25 million special appropriation for marketing and promotion.
In addition, the $45 million special appropriation for the New Mexico Tourism Department included in HB 267 will allow the agency to stimulate tourism business development, support the hard-hit events sector, and develop hospitality job retention and creation programs. HB 267 will specifically provide:
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If you would like to add the name of your business or organization to this list of endorsements, please reach out to lancing.adams@state.nm.us.
Travel and Tour World: New Mexico could see big boost in tourism recovery
Guest column: Invest in tourism promotion
KRQE: House bill aimed to help tourism passes committee vote
KRQE: NM tourism hardest-hit industry in 2020
ABQ Journal: NM tourism officials make case for $25 million funding boost
Alamogordo Daily News: Speedy economic recovery predicted for Otero County as tourism boosts revenue
Santa Fe New Mexican: Tourism Injury Index measures pandemic's effect on New Mexico's 33 counties
Silver City Daily Press: Grant County tourism far from recovery amid pandemic
KOAT: state proposing $25 million to helps struggling tourism industry
ABQ Journal: state wants NM to be in your vacation dreams
KRQE: State rolls out index map tracking pandemic impact on tourism
KOB: Grants available for businesses forced to close during pandemic
KRQE: $25M proposed to help restore tourism industry
KOB: State planning investments to help struggling tourism industry
Los Alamos Daily Post: NMTD partnership helps save 830 tourism jobs in 2020
Santa Fe New Mexican: Lujan Grisham's $7.3 billion proposed budget has more virus aid
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