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

SPONSOR Sanchez, M.

ORIGINAL DATE

LAST UPDATED

1/29/08

HB

SHORT TITLE Market NM Golf Tourism

SB 393

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$250.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department

SUMMARY

Synopsis of Bill

Senate Bill 393 appropriates $250 thousand from the general fund to the Tourism Department to

contract with a statewide nonprofit golf tourism marketing association to market New Mexico’s

golf tourism offerings to out-of-state audiences.

FISCAL IMPLICATIONS

The appropriation of $250 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall

revert to the general fund.

SIGNIFICANT ISSUES

New Mexico's golf and hospitality industries have joined forces to promote New Mexico as a

national golf-tourism destination.

The Tourism Department (TD) is supportive of activities and events that result in increasing the

number of tourists to New Mexico. Golf continues to be a key attraction that draws out-of-state

visitors to New Mexico.

Senate Bill 393 – Page

2

A 2006 New Mexico State University economic study found that New Mexico’s ‘green

industries – including golf, golf tourism, and parks – had $1 billion economic impact to the

state's economy in the 2004-2005 fiscal year. The study noted that the direct impact on the New

Mexico economy from golf and golf tourism was $312 million.

According to the Tourism Department (TD), the agency has initiated and/or supported a number

of successful events in recent years designed to encourage golf tourism to New Mexico,

including the Tight Lies Tour in 2006, the Adams (Golf) Tour in 2007, and the New Mexico

Shootout in Elephant Butte in 2007, featuring popular players from the Ladies Professional Golf

Tour Association.

The tourism department spent about $123 thousand to market golf in FY06 and $155 thousand in

FY07. These figures include cooperative advertising grants to golfing organizations in the state.

ADMINISTRATIVE IMPLICATIONS

None identified. The Tourism Department would contract for services specified.

BE/mt