Venues and Facilities

Objective: Take a central role in advocating for new, expanded, and upgraded visitor-facing venues, amenities, and facilities in Albuquerque.

See Venues and Facilities Strategies and Recommendations

Funding

In New Mexico, there is a provision stating that for a Class A city like Albuquerque at least 50% of the lodgers’ tax revenue generated from lodging accommodations must be used for marketing and advertising of the destination, with the remainder of the revenue having the possibility to be used for debt obligations, administrative costs, and other purposes that the City deems appropriate. This provision offers an opportunity to strategically utilize the funds for tourism development, infrastructure improvements and hotel development in the city.

To maximize the impact of this revenue, it is recommended to explore avenues for attracting additional investments and/or avenues for debt retirement from the state government and advocate for increased funding specifically dedicated to urban areas like Albuquerque. This funding could be directed toward tourism development, infrastructure enhancements and paying off existing debts related to tourism-related projects. Emphasizing the need for investment in areas such as infrastructure and hotel development would align with the intent of the lodgers’ tax revenue and contribute to the long-term growth and success of Albuquerque's tourism industry. Prioritizing investments in infrastructure, hotel development and other tangible projects would create a lasting impact on the tourism landscape of Albuquerque. The strategy of attracting state funding and aligning it with the lodgers’ tax revenue can provide the necessary resources to support the city's tourism objectives, bolster the local economy and enhance the overall visitor experience in Albuquerque.

The DMP recommends that the industry constantly consider new and different means of expanding funding. Trends across the U.S. demonstrate that destinations are seeking new and creative ways to diversify funding to support the industry. Additionally, across the industry, funds are being raised to impact tourism on areas beyond marketing, such as sustainable management of tourism, industry advocacy, capital and catalyst projects, workforce development and integrating innovation.

While Visit Albuquerque does not have a capital budget, this is something that the industry should encourage with the relevant departments to ensure resource reinvestment is being made to support the industry, including venues, Downtown redevelopment, new tourism products and attractions, among others.

The DMP also recommends developing an industry-wide communication plan to speak about the importance of tourism to the overall economy. Such organizations like Destinations International have in-depth research or lexicons indicating current terms which relate to today’s decision makers. Connecting the industry’s importance and relevancy is key to continue to maintain and grow funding.

Examples of additional funding mechanisms that can be utilized by Visit Albuquerque and the City of Albuquerque to support upcoming tourism, Downtown and infrastructure development projects include:

Establish a Tax Increment Financing (TIF) district: Support and advocate for the City administration’s proposal to create a designated TIF district in downtown Albuquerque to capture a portion of the tax revenue generated from increased property values within the district. A TIF is a public financing tool that aims to stimulate economic development and redevelopment within a designated area. In the context of tourism, a TIF can be utilized to support and fund projects that promote tourism growth. This can include the development of new tourism attractions, the improvement of existing infrastructure or the enhancement of tourism-related services. With the significance of Downtown redevelopment for Albuquerque, these funds can be primarily focused on redevelopment projects, infrastructure improvements, and tourism initiatives in the Downtown area. While the TIF will be property-tax based, a new state law will also allow up to 75% of the increment of growth of city, county and state gross receipts tax to be reinvested in the area over that period. This could produce roughly $200 million. The TIF method is also commonly used to improve downtowns in other cities, including Colorado Springs, Tucson and Denver, which all spend upwards of $60 million a year through tax increment financing.
Support the development of a Business Improvement District (BID) in Downtown: Create a Downtown BID to levy an additional assessment or fee on commercial properties within the district. Allocate the generated funds toward enhancing Downtown cleanliness, safety, marketing and infrastructure improvements to boost tourism appeal. As there is an ordinance in Albuquerque that allows for this to take place, and business owners and property owners can petition the city to do a study and create a Business Improvement District, and then assess a fee across those property owners that that group of property owners then can use in their own interest to promote their businesses. As of September 2024, city and business leaders in Albuquerque have proposed a Downtown BID to boost commercial efforts.
Debt Retirement Approach: Work with the New Mexico Finance Authority to explore potential debt relief options for Albuquerque's Lodgers' Tax debt to free up resources for investment in catalytic projects. Position Albuquerque as the most important metropolitan area in New Mexico, with Albuquerque’s Downtown being New Mexico’s Downtown, and Albuquerque’s Convention Center being New Mexico’s Convention Center.
Issue municipal bonds: Utilize bond financing to raise funds for critical infrastructure projects, such as streetscape improvements, outdoor shading for Civic Plaza, a headquarter hotel, public transportation enhancements, and parking facilities in downtown Albuquerque. The current allocation of 50% of lodgers’ tax toward bonds can attract state investment for infrastructure and hotel development in the tourism sector.
Seek Local Economic Development Act (LEDA) funding: To support Downtown revitalization efforts, attract new businesses and stimulate tourism-related developments, it is recommended that businesses apply for funding through the LEDA program offered by the State of New Mexico Economic Development Department. LEDA is a program administered by the New Mexico Economic Development Department to support economic development initiatives and job creation in the state.
NM State Capital Outlay funds: New Mexico State Capital Outlay funds are allocated by the state government to finance public infrastructure projects and major purchases. These funds support the construction, renovation and improvement of facilities, as well as the acquisition of equipment and technology. Proposed projects undergo evaluation and prioritization before being approved and funded through the state's budgeting and appropriations process. Once allocated, the funds are disbursed to responsible entities for project implementation. State Capital Outlay funds are instrumental in investing in public infrastructure, promoting economic development and addressing critical needs throughout the state.
Encourage Public-Private Partnerships (PPP) for development projects: Foster collaborations between the public sector and private investors/developers to jointly finance and execute revitalization projects in downtown Albuquerque. This can include mixed-use developments, hotel construction, cultural or entertainment venues, and public spaces. The PPP approach has historically been successful in upgrading assets and attractions in downtown districts across the U.S., with Tucson, Arizona, serving as a prime example of utilizing these partnerships to revitalize its downtown.
Promote utilization of tax credits: Raise awareness and provide support to property owners and developers seeking to utilize available federal and state historic preservation tax credits for renovating historic buildings and repurposing them for tourism-related purposes, such as boutique hotels, art galleries or museums.
Offer tourism-related tax incentives: Explore the possibility of introducing tax incentives or exemptions specifically targeting tourism-focused businesses, such as hotels, restaurants, entertainment venues, and tourism service providers. These incentives can help attract new investments and stimulate growth in Downtown Albuquerque.
Identify and apply for grants: Research and pursue grants offered by federal, state and local entities that support Downtown revitalization, historic preservation and tourism-related projects. These grants could provide financial assistance for various initiatives, including streetscape enhancements, cultural programming or small business support.

In collaboration with private and public entities, such as the Metropolitan Redevelopment Agency (MRA), the abovementioned funding mechanisms can be pursued to support various areas identified in the master plan for managing and sustainably increasing tourism over the next 10 years:

Development of a headquarter hotel with 500+ rooms.
Development of multiuse venue and complex for entertainment and sports. • Development of iconic attractions.
Infrastructure upgrades such as increasing street lighting in the city in areas such as the Downtown area, upgrading and aligning the signage across the city, and working on maintaining the roads and streets in prime condition.
Facility and venue upgrades and regular maintenance.
Downtown vitalization and beautification projects, utilizing string lights, murals and public arts projects.
Development of tailored incentives for retail and restaurant development in the Downtown area.
Development and maintenance of bike trails.
Improved connectivity throughout Albuquerque’s neighborhoods.

Measurement and Reporting

In addition to positioning its departments, allocating resources and planning for future funding, Visit Albuquerque’s success in achieving the objectives outlined in the Destination Master Plan will depend on effective measurement and reporting for stakeholders. While traditional industry reporting focuses on macro-economic figures such as total visitors and overall economic impact, for the DMP, it is crucial to tie success more closely to the actions taken as a result of Visit Albuquerque’s own activities as a lead organization and as a partner in implementation. To facilitate this, it is recommended that Visit Albuquerque incorporate the following areas into its business plan and reporting processes:

Venues and Facilities - Measurement and Reporting Chart

Effective reporting for Visit Albuquerque should be categorized into three key areas. First, monitoring industry performance metrics will provide insight into the overall health and trends within the tourism sector. This can include tracking data on total visitors, economic impact and other macro-level indicators that highlight the region's tourism landscape.

Second, Visit Albuquerque should focus on tracking how its programming and initiatives influence outcomes, specifically measuring the impact of its activities. This can involve assessing key performance indicators (KPIs) directly tied to Visit Albuquerque’s efforts, such as target audience engagement, or website traffic . By monitoring these metrics, Visit Albuquerque can gain insights into the success and effectiveness of its specific initiatives.

Lastly, measuring the direct results of Visit Albuquerque’s work is paramount. This involves gauging the specific actions and outcomes that are driven as a result of the organization's efforts. This can include assessing the number, room nights booked by Visit Albuquerque, conversion rates, the effectiveness of marketing campaigns or any other tangible outcomes attributed to Visit Albuquerque’s active involvement.

The benefit of this approach is it does not create the implication that Visit Albuquerque is solely responsible for the larger destination trends. It opens up a consistent opportunity to report on specific Visit Albuquerque campaigns and how they have performed.

Samples of these metrics in each category are below:

Monitor

Visitation statistics – frequency: annual
Visitor impact – frequency: annual
Lodging tax and ATMD assessment revenue – frequency: annual
Lodging performance – frequency: monthly

Program & Influence

Website traffic – frequency: monthly
Social media engagement – frequency: monthly
Travel media mentions/coverage – frequency: quarterly

Drive

Return on marketing investment
- Proportion of target audience exposed to the marketing and influenced to visit the destination
Meetings, Conventions & Sports room nights booked by Visit Albuquerque
Meetings, Conventions & Sports sales conversion rates
- Percentage of leads converted to bookings

Visit Albuquerque is adopting a new reporting approach that emphasizes the direct impact of its activities while positioning itself as the primary source for industry-level market data. This enhanced reporting strategy aims to offer more transparent insights to stakeholders, aligning with Visit Albuquerque's evolving role in the community as it implements the Destination Master Plan. By organizing metrics into distinct categories - Monitor, Program & Influence, and Drives - the reporting becomes more accessible to stakeholders while effectively demonstrating Visit Albuquerque's impact and connection to overall market performance. This approach allows Visit Albuquerque to showcase its specific contributions and outcomes, rather than implying sole responsibility for broader destination trends.

Venues and Facilities Recommendations and Strategies

Albuquerque Convention Center

As part of the ongoing strategic plan for the Albuquerque Convention Center (ACC), it is recommended to continue evaluating the Center's performance using the optimization tool utilized during this process. This tool should be used to measure and report performance on an annual basis. By doing so, stakeholders can track progress toward the established goals, including increased occupancy rates, improved booking of high-priority events (P1 and P2) and overall economic impact.

Implement Annual Evaluations Using the Established Optimization Tool, Continually Adjust Strategies Based on Results and Maintain Facility Updates Aligned with Industry Preferences

Visit Albuquerque's Role: Lead

Convention Center – Headquarter Hotel

Based on comprehensive analysis of Albuquerque's lodging and convention landscape, this strategic plan reaffirms a critical opportunity to enhance the city's position in the competitive convention market. While similar recommendations have been made in the past, findings from the Destination Master Plan study present a compelling case to revisit and potentially implement previously proposed recommendations. Incorporating the latest data and market trends, we strongly urge the City of Albuquerque to initiate a thorough feasibility study and site selection process for a new headquarter hotel. A headquarter hotel for a convention center is a large, full-service hotel that is typically located adjacent to or very near a convention center. It serves as the primary accommodation and event space for major conferences, trade shows and other large gatherings.

Initiate a Comprehensive Feasibility Study and Site Selection Process for a New 500+ Room Headquarter Hotel, Which Would Increase the City's Capacity for Larger Events and Drive Economic Growth, While Ensuring Thorough Economic Impact Assessments and Community Engagement Throughout the Process.

Visit Albuquerque's Role: Lead, Support

Sports and Multiuse Venue Development

Albuquerque has experienced overall success in the sports market, attracting various tournaments and events. However, there is untapped potential to further enhance sports tourism in the city. This can be achieved by upgrading the current facilities and developing new facilities that cater to the diverse needs of hosting a wider range of tournaments.

To fully realize the potential of the sports market, it is crucial to have a number of different Indoor and outdoor sports venues. These facilities will enable Albuquerque to accommodate a broader spectrum of events, attracting more tournaments and maximizing the benefits of sports tourism.

Conduct a Feasibility, Market Demand and Site Selection Study for Development of a Multiuse Complex

Visit Albuquerque's Role: Lead, Support

Other Venue Recommendations and Strategies

Visit Albuquerque's Role: Lead, Support