Santa Fe reports 40% economy boost from tourism and community events

The Santa Fe City Council convened on May 1, 2025, for a budget meeting focused on the economic impact of tourism and the funding of local events. The discussions highlighted the significant role tourism plays in the city’s economy, with estimates suggesting that 30-35% of Santa Fe's economy is supported by tourism, potentially rising to 40-50% when considering local spending during events.

Councilor Garcia emphasized the importance of tracking data related to tourism and events, noting that many festivals attract both visitors and residents. He pointed out that events like Dia de los Muertos and Pride contribute not only to the economy but also to the cultural richness of Santa Fe, which residents cherish.

The council discussed the marketing strategies employed to attract visitors, particularly focusing on key markets such as Dallas, Denver, and Phoenix. The use of data analytics tools, including DataFi and Placer AI, was mentioned as a means to enhance targeted advertising efforts. These tools allow the city to analyze attendance and traffic patterns at events, which can inform future marketing initiatives.

Director Randall provided insights into the funding available for local events through the Occupancy Tax Advisory Board (OTAB), which has a budget of $150,000 for grants. These funds are aimed at supporting new or expanding events rather than established ones, ensuring that financial assistance is distributed to foster innovation in the local event landscape.

The meeting also touched on the concept of "earned media," which refers to the value of third-party coverage and editorial content about Santa Fe. This year, the city secured over $23 million in earned media, marking a significant achievement in promoting the destination.

In conclusion, the meeting underscored the critical intersection of tourism, local events, and economic vitality in Santa Fe. The council's commitment to supporting new events and utilizing data-driven marketing strategies reflects a proactive approach to enhancing the city’s appeal and sustaining its economic growth. Further discussions and follow-up actions are anticipated as the council continues to refine its budget and support for local initiatives.