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F I S C A L I M P A C T R E P O R T

SPONSOR Varela

ORIGINAL DATE

LAST UPDATED

2/06/06

HB 692

SHORT TITLE Santa Fe Cultural Tourism Conference

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$65.0 Non-recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department

Department of Cultural Affairs

SUMMARY

Synopsis of Bill

House Bill 692 appropriates $65 thousand from the general fund to the Tourism Department to

plan a United Nations Education, Scientific and Cultural Organization (UNESCO) conference in

Santa Fe.

FISCAL IMPLICATIONS

The appropriation of $65 thousand contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year shall revert

to the general fund.

House Bill 692 – Page

2

SIGNIFICANT ISSUES

Santa Fe was recently selected as a creative city by UNESCO, joining only five other cities

worldwide in this designation. It is the understanding of TD that Santa Fe recently won a bid to

host the 2007 UNESCO International Conference on Cultural Tourism. The event is expected to

draw 850 delegates and others to Santa Fe in the fall of 2007, generating a significant impact for

the tourism industry.

TR reports that conference protocol calls for a planning meeting in the host city one year prior to

the actual conference. Approximately 21 delegates, representing the other five creative cities,

will attend the meeting in fall 2006. The appropriation in HB 692 would fund this planning

meeting.

DCA suggests that the Historic Preservation Division (HPD) be included in the language of this

bill. The activities are consistent with State Historic Preservation Office’s responsibilities de-

scribed in Section 18-6-7 of the Cultural Properties Act (18-6-1 through 23, NMSA 1978). In

addition, the HPD has an ongoing partnership with the National Park Service, Bureau of Land

Management and the National Forest Service, administering federal programs that may be of in-

terest to the conference planners.

PERFORMANCE IMPLICATIONS

TD strongly supports the funding for the conference planning meeting in New Mexico. Cultural

tourism is a very important market for the state and Santa Fe is the logical site for the conference

as it has so many of the state’s cultural attractions. Increasing visitation to New Mexico is a key

performance measure of TD.

ADMINISTRATIVE IMPLICATIONS

The Department of Cultural Affairs and would expect to be involved in providing to the Tourism

Department information, venues and content.

OTHER SUBSTANTIVE ISSUES

DCA reports the United Nations' World Tourism Organization (UNWTO) shows the number of

international tourists recorded worldwide grew by 5.5 percent last year and topped 800 million

for the first time. It appears the United States is losing market share to key rivals in the competi-

tion for international visitors. To be competitive, the tourism industry is connecting the various

aspects of the tourism experience – heritage tourism, ecotourism, geotourism, and other ap-

proaches that position a community's sense of place as the main tourism product.

The Historic Preservation Division works with educational, scientific and cultural organizations

regularly to create greater understanding for the general and traveling public. Providing a means

for a conference guided by an organization connected with the United Nations will greatly

broaden the prominence and importance of relating education, science and culture in the tourism

experience.

House Bill 692 – Page

3

HPD is also an institutional member of the United States Committee of the International Com-

mittee on Monuments and Sites, a UNESCO affiliated organization that encourages cultural ex-

changes.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Money will have to be raised from other sources.

BE/nt