New Mexico Governor Proposes Stimulus Package for Tourism Industry

New Mexico Governor Michelle Lujan Grisham announced today that she has proposed a $25 million special appropriation as an economic stimulus package for the New Mexico tourism industry in response to the COVID-19 pandemic.

The COVID-19 pandemic created widespread disruption of the tourism industry, which has led to immediate and severe economic injury. The proposed FY22 $25 million economic stimulus package will help reignite commerce through expanded marketing efforts and will shorten the estimated recovery timeline for the tourism industry.

Tourism serves as one of the governor’s pillars for economic development, and this proposed $25 million economic stimulus package for the tourism industry demonstrates the governor’s commitment to a strong recovery for New Mexico’s 2nd-largest industry.

“In both rural and urban communities, tourism offers entrepreneurs a path to create opportunity for their families and offers communities of all sizes a reliable building block for their own economic recovery strategy,” Gov. Lujan Grisham said. “This economic stimulus package for the tourism industry will expedite our state’s efforts to diversify our economy and get back on track. I couldn’t be prouder of the resilience of this industry during this incredibly difficult year. We will build back better than ever before, and I will be with you, in your corner, the entire way.”

Based on estimations from the U.S. Travel Association and Tourism Economics, it may take five years for the national tourism industry to recover to pre-COVID levels of travel spending. Additional factors in New Mexico, such as the relative size of New Mexico’s tourism industry compared to other sectors, suggest New Mexico may be looking at a recovery period that could take up to seven years to complete without a substantial investment in recovery.

Accounting for lost visitor spending, lost state and local taxes, and paid-out unemployment benefits, the 2020 total projected cost to the state is an estimated $4.3 billion. These estimates do not include long term economic losses from business closures, tourism infrastructure losses, and workforce migration–all of which are predicted to be substantial without intervention. 

This investment will provide the necessary funding to generate economic activity by bringing visitors to New Mexico post-pandemic, where they will contribute directly to local economies by bringing in outside money to spend on accommodations, restaurants, events, retail, transportation, arts and entertainment, outdoor recreation and more.

Overall, an annual investment of $25 million in tourism recovery over the next three fiscal years could save the state an estimated $2 billion per year.

The $25 million stimulus package for the tourism industry is being proposed as a special appropriation for the Tourism Department and is to be considered during the 2021 Legislative Session.