Given Canon lawsuit, city, county and state should try to lift fiesta

It’s the largest ballooning event on earth and one of the most photographed happenings in the world. For the past 48 years, except for COVID-afflicted 2020, hundreds of thousands of people have flocked to the Albuquerque International Balloon Fiesta in early October.

Indeed, the fiesta has become an international “bucket list” item.

That makes presenting sponsor Canon’s decision not to extend its sponsorship from 2020 to 2021 disappointing. Canon has filed a lawsuit seeking a refund for the $250,000 it paid for last year’s fiesta, insisting last year’s event was “canceled.” Balloon Fiesta officials say the event was merely “postponed” a year and have offered to apply the money to this year’s event, which appears ready to go as the widespread vaccine allows us to emerge from COVID restrictions.

The legal question pending in U.S. District Court will be resolved — either in a trial or, preferably, in negotiations. But it does provide an opportunity for the city, county and state to rethink how they could better support this signature event that is so important to New Mexico economically and as part of our cultural identity and quality of life.

First, it should be noted the fiesta isn’t a high-rolling Fortune 500 kind of operation. It is a not-for-profit 501(c) (3) governed by a 24-member, all-volunteer board of directors who donate their time and efforts. The Balloon Fiesta had total expenses of about $10.5 million for the year and gross revenues of about $11.7 million. Net assets were just over $11 million. Executive Director Paul Smith was being paid $174,968 including salary and benefits, according to the required charitable organization report on file with the state Attorney General’s Office for the fiscal year that ended Dec. 31, 2019. Now, let’s look at some much bigger numbers. An economic impact and guest research study prepared by Forward Analytics after the 2019 event estimates guest visits at 866,414 over the nine-day event from Oct. 5-13. Only 19% of those were Albuquerque residents, with 71.4% attributable to people who traveled from outside New Mexico. They tend to have higher levels of household income. And once they got here, they spent money. The study estimates direct Balloon Fiesta guest spending at $109.89 million, with local restaurants and lodging taking in $17.9 million and $41.8 million, respectively. The direct spending produced an additional $58.99 million in New Mexico wages. Total indirect economic impact was estimated at $186.8 million — generating $6.52 million in tax receipts for the state, $4.09 million for the city and $1.44 million for Bernalillo County.

The local visitors bureau and the state Tourism Department, both hard at work promoting New Mexico, get a huge benefit. In 2019, the report says, more than 3.4 billion impressions were generated on digital and traditional media.

What better way to frame the spectacular Sandia sunsets and blue skies than as a backdrop to balloons from around the world?

So yes, this is a gem for Albuquerque, Bernalillo County and New Mexico.

There is support. The city doesn’t charge the fiesta for police and fire services. The fiesta doesn’t pay cash for use of the field but must do $100,000 a year in upgrades to the property. And it pays about $55,000 for use of the pilots pavilion and golf shop building during fiesta, and roughly another $50,000 for trash pickup. For the most part, the fiesta pays its own way with private security, temporary workers and a lot of volunteer hours.

This battle over $250K in sponsorship money shows it is past time the city, county and state gave some thought to how to play a bigger role in helping — not running — this signature event.

It’s not always easy to make the customer happy. But according to the 2019 report, when asked “how would you rate your overall satisfaction of the Balloon Fiesta experience you are having today,” 92.2% said they were satisfied or very satisfied.

And satisfied customers are good business for the Albuquerque metro area and New Mexico.