For local businesses, Balloon Fiesta is a boost — if visitors open their wallets

For many, the Albuquerque International Balloon Fiesta is an item on a bucket list. For Kenneth DeWees, owner of souvenir store Chile Traditions, the event has been “a blessing.”

“Balloon Fiesta is a very beneficial thing to (my) store and to a lot of small businesses in New Mexico,” said DeWees, who opened his New Mexico-centric chile and gift shop in 1990 and is going on 24 years as a vendor at the event.

Traffic to the store gets a bump right before, during and after Balloon Fiesta, DeWees said, adding the impact is felt “not just here in Albuquerque, but in surrounding cities.”

George Gundrey, the owner of Tomasita’s, agreed. The event actually sparks more business for the Santa Fe location than the Albuquerque one, which he said still gets a boost. The Santa Fe restaurant is situated downtown, which is often included on Fiesta visitors’ must-see list for the trip, he said.

This year — the event’s 53rd — could turn out slightly different.

Tourism officials and Fiesta organizers hope this year’s Balloon Fiesta will attract visitors looking to spend, but economic uncertainty and a decline in travel, both nationwide and internationally, have vendors and local businesses preparing for the unknown.

The United States is seeing a downturn in foreign tourism since the beginning of the year, according to the U.S. Travel Association, which reported international visits to the U.S. in March were 14% lower than during the same period last year.

Business owners say foreign trade and immigration policies enacted by the Trump administration have fueled rising costs and created an environment in which international visitors don’t feel welcome.

“Business is down in Albuquerque this year, and I’ve heard it from other restaurant owners also,” Gundrey said.

Businesses outside the restaurant industry have felt it as well. ABQ Trolley Co. owner Mike Silva told the Journal in August that his popular tourist business is having its slowest summer in recent memory. The business’ international traffic has also been “nonexistent,” he said.

Setting the stage

Despite the decrease in international travel to the U.S., Balloon Fiesta spokesperson Tom Garrity said festival organizers weren’t concerned about a drop in the number of international visitors. International guests made up just 1% of Balloon Fiesta visitors last year, according to a 2024 report.

“We’re going to set the stage for international visitors and national visitors, and we’re just hopeful and feel rather confident that we’ll have a consistent level of international guests this year,” Garrity said.

Balloon Fiesta typically hosts pilots from around the world, and in October, the event will include 543 pilots from 12 different countries, Garrity said.

This year, one international pilot was not able to secure a visa to attend the Fiesta, though Garrity declined to share which country the pilot was from, or if the travel issues were related to the Trump administration’s most recent travel ban.

Some Americans are opting to travel domestically this year, choosing road trips over flights for their flexibility and cost-effectiveness, and officials hope this trend could bring in more Fiesta visitors from nearby states.

Last year, nearly two-thirds of Balloon Fiesta guests came from outside of New Mexico, with a third coming from neighboring states like Texas, Colorado, Arizona and California, according to the Fiesta report.

“We’ll probably see a fair amount of folks from those nearby states that can engage in road trips to New Mexico for Balloon Fiesta,” said New Mexico Tourism Department spokesperson Cody Johnson.

The Albuquerque International Sunport added flights to six more cities to accommodate Balloon Fiesta travel this year, according to Daniel Jiron, the airport’s business development manager.

Airlines are offering 6% fewer seats on flights to and from Albuquerque on the days surrounding Balloon Fiesta compared to last year, though Jiron said the decrease is due mainly to airlines lowering their overall capacity and not to Fiesta-related factors.

Larry Kaibetoney, a site director with the Fiesta, acknowledged increasing costs across the board as a potential challenge for this year’s event but said the Fiesta’s pre-event performance has been a positive indicator. Balloon Fiesta Park’s RV reservations sold out within the first 20 minutes, and the Fiesta’s VIP Gondola Club tickets sold out within an hour.

Bookings at the four Albuquerque hotels owned by hospitality firm Heritage Cos. are “as strong as they have been historically” for the Balloon Fiesta period, said CEO Jim Long.

“Albuquerque typically achieves an annual 60% occupancy rate. During Balloon Fiesta, the occupancy increases to nearly 90%,” Long said.

Patty Lewis, owner of Discover Balloons — a hot air balloon-themed gift shop selling souvenirs at the Balloon Fiesta for 35 years — said she’s far less concerned with how many visitors the 2025 event will bring in and more with how tightly they’ll be gripping their wallets.

“I think the crowd will be fine. It’s just whether they’ll spend,” Lewis said.

A McKinsey & Co. survey from August shows consumer optimism has been steadily declining since November, and that Americans are planning to slow their discretionary spending as the holiday season approaches.

However, data from the Bureau of Economic Analysis shows Americans are continuing to open their wallets despite inflation, with personal spending across the U.S. rising 0.4% in August after adjusting for price changes.

Last year’s event yielded more than $216 million in economic impact from visitor spending on hotels, restaurants, souvenirs, transportation and parking. The bulk of Fiesta visitors’ spending goes to lodging, food and drinks, according to the Fiesta report.

Visitor spending from last year’s event paid $68.89 million in wages to New Mexicans and supported 1,337 full-time jobs in the Albuquerque area, organizers said.

Though it only lasts a little more than a week, the Balloon Fiesta can provide significant revenue for local businesses, said Tania Armenta, president and CEO of Visit Albuquerque.

“I know for so many small businesses and industry partners, this nine days is really critical to their overall success,” Armenta said.

‘Hoping for the best’

Such is the case for Aric Burton, who helps run Fryin’ Brian’s, a food stand selling burritos and Navajo tacos. The Fiesta provides Burton and his business partner, Brian Seeber, with crucial business, they said.

“We don’t have a restaurant or anything,” Burton said. “So in that week, we make a decent year’s salary.”

Though Burton says business at last year’s Fiesta was slightly worse than usual, he and Seeber remain optimistic, despite the economic climate.

“Interest rates are up, the stock market’s down. Everything’s expensive. I mean, to get your family in, it’s way over $100 just to get in the door,” he said. “We’re just kind of hoping for the best.”

Lewis and husband Doug Grimes said the month of October is typically great for business, but they share Burton’s cautious optimism.

“Last year was down, but usually in an election year, you expect that,” Lewis said. “We’re hoping to recover. Worst case scenario, it’s the same.”

Rain or shine — literally — DeWees said he is looking forward to the event and to doing his annual green chile roast on the field. The vendors likely won’t feel the impact of this year’s event until after, he said.

“It’ll probably be a little less people. But the thing with Balloon Fiesta, though, for us vendors, it’s hard for us to notice that,” DeWees said. “There’s still so many people, we won’t really realize it ourselves. Our numbers at the end of the Balloon Fiesta might realize it, but you don’t realize it in the moment.”

For businesses like DeWees’ and Gundrey’s, an off year can be weathered, they said.

“Balloon Fiesta isn’t something that makes or breaks us in any way. It’s definitely good, but it’s just one of many things that affect our success,” Gundrey said. “It’s not a do-or-die deal for us, but obviously we prefer to be busy.”

For businesses like Lewis’, the stakes are a bit higher.

“If I have another off year, I’m going to have to really consider (participating in the future), because it’s very expensive to have a booth space here,” she said.

Without October and the Balloon Fiesta, Lewis’ store “probably shouldn’t be there,” she said, adding she has taken on a month-to-month lease versus an annual one “just to see how things go.”

While outlooks vary, one hope is consistent across all vendors and local businesses heading into this year’s Balloon Fiesta: wishing for good weather.

“If we have good weather, we will do great,” said Darren Pfeffer, owner of Fiesta vendor Toadland Pewter.