What Is The Impact Of Tourism On The Economy Of New Mexico?

New Mexico’s tourism industry has seen an all-time record spending, with nearly half of the record $8 billion spent in rural communities. In 2019, visitors to New Mexico spent $7.4 billion, generating $10.4 billion in total business sales, including indirect and induced impacts. In 2021, 39.2 million visitors spent $7.2 billion across the New Mexico economy, spending directly on accommodations, food and beverage, recreation, retail shopping, and local businesses.

New Mexico’s tourism economy surged in 2014, with visitor spending increasing by 4.5. The state’s tourism industry surpassed $6 billion, an all-time high. A state-commissioned study by Headwaters Economics reported 10.1% growth in direct tourism spending before COVID-19 arrived in the state.

In 2022, the New Mexico Tourism Department revealed an unprecedented $8.3 billion in direct visitor spending, marking a substantial increase of $1.1 billion compared to 2021. Overall, New Mexico realized $11.2 billion in total economic impact due to tourism in 2022. This includes indirect and induced impacts, such as household consumption, the supply chain, and business-to-business goods and services.

Tourism is an integral part of the New Mexico economy, driving business sales, employment, and tax revenue. The state recorded an unprecedented $8.3 billion in direct visitor spending in 2022, marking a substantial increase of $1.1 billion compared to 2021. The travel sector generates significant economic benefits to households, businesses, and government.

The state government has an elaborate system to support tourism, which has seen 10.1 growth in direct tourism employment since 2011.

How did tourism impact New Mexico?

The tourism boom in New Mexico in 2022 generated $782 million in visitor spending, a 10% increase from 2021, which offsets the tax burden on households by an average of $981 per household. The total economic impact from tourism was $11. 2 billion, including direct visitor spending, indirect and induced impacts, household consumption, supply chain, and business-to-business transactions. Key sectors benefiting from this boom include:

What does tourism in New Mexico help our economy?

Tourism plays a pivotal role in the New Mexico economy, sustaining approximately 8. 6% (or 1 in 12) of all jobs, contributing to business sales, employment, and tax revenue.

How important is tourism to Mexico’s economy?

The Mexican tourism sector contributes approximately 8%. The tourism sector accounts for 7% of the country’s GDP, providing employment for 2. 3 million individuals (representing 5. 9% of the country’s full-time paid workforce) and generating over 79 billion dollars in revenue. It accounts for 9% of services exports, with a total of approximately 10 million jobs.

What drives New Mexico’s economy?

New Mexico’s economy is primarily driven by three key sectors: oil and gas production, tourism, and federal government spending. The state government offers tax credits and technical assistance with the objective of stimulating job growth and encouraging investment in new technologies. In 2017, the gross domestic product was valued at $94. 2 billion, while the per capita personal income was $39, 811.

Why is tourism important for the economy?

Tourism offers a plethora of advantages to nascent economies and developing nations, including the generation of employment opportunities, the reinforcement of economic stability, the advancement of infrastructure, the promotion of environmental stewardship, the safeguarding of cultural heritage, the alleviation of poverty, and the reduction of inequality.

How much does tourism contribute to the US economy?

The World Travel and Tourism Council predicts that the travel and tourism sector will contribute nearly a 10th of the US economy’s GDP, increasing from $2. 36 trillion in 2023 to $2. 5 trillion in 2024. By 2034, this could reach $3. 10 trillion, representing almost a 10th of the country’s total GDP. This growth is expected to continue over the next decade, with an infographic illustrating the direct, indirect, and induced contributions of travel and tourism to the US economy from 2019 to 2023.

What is New Mexico’s biggest economic booster?

New Mexico’s largest revenue-generating industries are Oil Drilling and Gas Extraction, Hospitals, and Health and Medical Insurance, which generated $27. 4b, $9. 6b, and $8. 5b in 2024 respectively. IBISWorld State Industry Reports provide accurate and unbiased local industry information, helping businesses understand local trends, identify threats and opportunities, and inform their strategies and planning. The reports also provide sector statistics, employment trends, and population statistics.

Why is Mexico famous for tourism?

Mexico is renowned for its rich culture, ancient ruins, stunning beaches, and delicious cuisine. Visitors can explore Mayan temple ruins, enjoy live music, and relax on tropical beaches. The underwater world offers vibrant corals and marine life. Mexico offers a variety of thrilling experiences, including culinary experiences and outdoor activities. With its diverse beaches and coastline, there’s something for everyone.

How has tourism helped the economy?

Tourism presents a significant opportunity for sustainable development, creating jobs, strengthening local economies, contributing to infrastructure development, conserving natural environments and cultural assets, and reducing poverty and inequality. However, the industry is vulnerable to crises, with decisions on travel largely influenced by personal perceptions of the destination. Security is a key factor, with tourists relying on travel warnings from foreign ministries.

The COVID-19 pandemic significantly impacted global tourism, putting up to 100 million jobs at risk. Despite this, tourism generally recovers more quickly than other industries. The Federal Ministry for Economic Cooperation and Development (BMZ) supports partner countries in developing the tourism sector to become resilient to crises and provide income and employment opportunities. The private sector is an essential partner in transitioning to economically and environmentally sustainable tourism.

What was the main economic activity in New Mexico?

New Mexico, a state with a historical focus on mining and ranching, is home to a diverse range of major industries, including energy, aerospace, defense, logistics, transportation, tourism, and food.

What is important to Mexico’s economy?

Mexico’s economy is characterized by a high level of diversification and resilience, with the oil sector, remittances, exports, agriculture, mining, tourism, and industrial activity representing key contributors to economic growth. Nevertheless, the country is confronted with a number of challenges, including corruption, a considerable informal economy, the activities of drug cartels, and income inequality. These issues must be addressed for the country to achieve sustainable growth.