Destination and Product Development

Situational Analysis

The market for leisure visitors is highly competitive in the global tourism industry. Destination marketing and management organizations invest significant time and resources to promote their locations as ideal destinations for short breaks, getaways, or longer vacations. To successfully attract independent leisure travelers, destinations must offer an overall experience that surpasses expectations, ensuring that potential visitors are enticed by the destination itself rather than being solely motivated by specific events or attractions. This challenge is particularly pronounced in a city like Albuquerque, where the bar is set high for captivating leisure travelers.

Based on Albuquerque’s visitor survey data from 300 past visitors and 1,200 potential visitors processed by Future Partners, the average stay for past visitors in Albuquerque was around three nights and 3.5 days in 2023. The survey also demonstrates that historically, the most day and overnight leisure trips have occurred in October surrounding the Ballon Fiesta event. Most who visited Albuquerque did so more than once in 2023, with the average being around two (2) trips. Those who have previously visited Albuquerque represent a unique opportunity, as every 8 in 10 visitors are likely to return to the destination.

As mentioned in the Market Study section of this plan, JLL’s Demand Driver Scorecard was used to analyze 40 individual assets and experiences as sample representatives of all assets in Albuquerque in detail. It identified that Albuquerque 60% of assets that were studied are positioned to drive national and regional demand to Albuquerque, with 5 assets, including Hot Air Balloon Flights and Experiences, Sandia Peak Aerial Tramway, Indian Pueblo Cultural Center, Route 66, and Film Locations specifically driving national demand. While Albuquerque is well known for its ballooning scene, it also offers stunning natural resources, unique culinary experiences, and arts and cultural activities.

A key finding from the stakeholder engagement and Demand Driver Analysis of the 40 analyzed attractions, is that that arts and outdoor recreation assets each comprise approximately 20% of the assets in Albuquerque, with 3 out of 4 assets in these categories currently attracting visitors to the city on a regional and national basis. This highlights the need for further product development and diversification, particularly in the outdoor recreation and arts sectors, to create additional volume of attractions. Without such diversification and development, Albuquerque will continue to offer the same experience, which, although beloved by visitors, is not a sustainable strategy for increasing the demand in Albuquerque as a destination. The criteria in the Scorecard, included in the appendix of this report, is something that Visit Albuquerque can continuously use to demonstrate to partners on how an asset could or should be positioned to drive the desired impact from visitor markets.

In terms of activities, local dining was ranked as the most popular activity among visitors, followed by sightseeing, shopping, and scenic drives, in the Visitor Survey. Regarding cultural tourism and museums, 77% of the respondents rated their experience as excellent or very good, followed closely by 74% expressing satisfaction with the locally unique cuisine. Old Town, with its charming architecture and cultural significance, emerges as the most common attraction for visitors. The visitor survey indicated that 78% of those who visit Old Town have a good experience, yet only 58% of total visitors visited Old Town in their trip, highlighting its potential for further growth. These findings highlight the significance of promoting and marketing these aspects of Albuquerque to further enhance its appeal to travelers seeking enriching cultural and culinary experiences.

Albuquerque's culinary experiences have emerged as a key focus for product elevation and messaging, especially in Visit Albuquerque's 2025 marketing plan. This emphasis is supported by stakeholder feedback and visitor survey results, with "local dining" topping the list as the primary activity for 68% of respondents in Albuquerque. The green chile has repeatedly been mentioned when discussing Albuquerque’s food culture, evident in the seasonal tradition of roasting green chile and its recognition as the state's official aroma.

Building on the strong foundation established through collaborations with the Indian Pueblo Cultural Center (IPCC), there is a unique opportunity to focus on Indigenous experiences. With the global rise in demand for Indigenous experiences, and the sector expected to reach $65 billion USD, with a 4% CAGR, up from $30 billion in 2022, as well as the State of New Mexico’s focus on Indigenous tourism, Albuquerque is well-positioned to cater to this growing market and make long-term investments in Indigenous tourism. The engagement process indicated that many of the 19 Native American Pueblos are likely to be interested in developing tourism-related experiences. However, extensive collaboration and engagement need to occur with IPCC and individual Pueblos to surface their priorities and potential interest in tourism development. This process should be highly collaborative with the local Pueblos and typically takes between 5-10 years to gauge the interest of each Pueblo in creating Indigenous-led experiences. These experiences should authentically represent Native American cultures and aim to drive demand from a broader audience.

Similarly, Albuquerque's Hispanic culture and presence are vibrant and integral components of the city's identity. The Hispanic community, with its deep historical roots, contributes to the rich heritage and cultural tapestry of the region. The city's adobe buildings, picturesque plazas, and unique culinary traditions, blending the flavors of New Mexican, Spanish, and Mexican cuisines, create an unmistakable Southwestern charm that is deeply intertwined with the Hispanic roots.

Albuquerque is also home to a thriving flamenco scene, attracting national and international attention as an art form deeply connected to Spanish culture. The city's national Hispanic center serves as a focal point for promoting and preserving Hispanic heritage through exhibitions, performances, educational initiatives, and community gatherings. The expansion and increased visibility of Albuquerque's Hispanic cultural offerings present valuable opportunities for tourism development and create a captivating destination that invites visitors to immerse themselves in the rich cultural tapestry that defines the city's Hispanic identity.

As for outdoor recreation, Albuquerque has an ideal location as the gateway to New Mexico's outdoor adventures in different seasons. Albuquerque's ideal location provides easy access to a wide range of activities, such as golfing on scenic courses, hitting the slopes for skiing, or snowboarding in the nearby mountains, and exploring the extensive network of trails for mountain biking, making the city a haven for outdoor enthusiasts of all kinds. It is worth noting that Visit Albuquerque has already made significant strides since the last master planning process. Their focus on promoting outdoor adventures has resulted in notable progress with room for further solidifying Albuquerque’s reputation as a premier destination for outdoor activities.

While Albuquerque possesses a distinctive brand, there is still work to be done in developing the visitor experience to its fullest potential. To elevate Albuquerque's tourism products, it is crucial to not only develop new demand generators and experiences, but also creating a favorable environment for private investors to succeed in these destinations.