ROSWELL NEW MEXICO
COMMITTEE AGENDA ITEM ABSTRACT
COMMITTEE AGENDA ITEM ABSTRACT
1.
Finance Committee
- Meeting Date:
- 05/01/2025
COMMITTEE:
Finance
CONTACT:
Elizabeth Nulf
CHAIR:
Robert B. Corn
ACTION REQUESTED:
Consider the recommendation of the National Championship Air Races Lodgers' Tax Funding Request to the City Council in the amount of $300,000 for marketing as outlined in their Memorandum of Understanding. (Conyers)
- Funding Source Account 26224081-672828
BACKGROUND:
Initiated by: TJ Conyers
Per their application: The National Championship Air Races (NCAR) regularly attracted a substantial tourist trade in Reno, which we expect to continue in Roswell. We expect the September 2025 event in Roswell to correspond to the economic impact statistics of 2019 (see Historical Performance below). Based on those statistics, Roswell can expect an estimated $1.1 million in Lodgers Tax receipts to the region (based on 56,000 out-of-town visitors staying an average of 2.64 room nights per). In 2019, the event had a unique attendance of approximately 82,000, with 65% being non-local visitors. 73.7% of non-local attendees stayed in a hotel. The average total spending per attendee was $2,224.43. The overall estimated economic impact was $91.7 million. (Source: Special Event Report: 2019 National Championship Air Races Economic Impacts on Washoe County, NV and Attendee Statistics, prepared by the University of Nevada, Reno, Economic Development Center and Center for Regional Studies) In 2023, the event had a unique attendance of approximately 113,236 with 71% being non-local visitors. 72.3% of non-local attendees stayed in a hotel. The average total spending per attendee per day was $951.65. The overall estimated economic impact was $158.6 million. (Source: Special Event Report: 2023 National Championship Air Races Economic Impacts on Washoe County, NV and Attendee Statistics prepared by Center for Regional Studies Nevada Small Business Development Center, College of Business, University of Nevada, Reno) We expect the September 2025 event in Roswell to correspond to the economic impact statistics of 2019 (see Historical Performance above). Based on those statistics, Roswell can expect an estimated $13 million in GRT receipts (based on a $2,200 average spending per visitor using the Roswell GRT rate of 7.8958%). The National Championship Air Races is a one-of-a-kind event with almost six decades of continuous history to its credit. It is the world's only multi-class, closed-course pylon racing event, and it boasts over 150 racers in seven race classes. The racers compete head to head around a closed course, 50 feet off the ground, wingtip to wingtip at speeds approaching 500 mph in the fastest classes. The event evokes an atmosphere of supercharged energy from its incredible speeds, intense competition, international flair, and storied pageantry. For one week, the Roswell area will become home to hundreds of aircraft, their pilots and crews, and tens of thousands of dedicated fans who come each year to cheer them to victory.
FINANCIAL CONSIDERATION:
$300,000 from Lodgers' Tax Funding to support the marketing campaign for this event.
LEGAL REVIEW:
No Legal review needed at this time.
BOARD AND COMMITTEE ACTION:
The Occupancy Tax Board recommended (5-0) to fund this event, in the amount of $300,000, for marketing at their August 20, 2024, meeting.
STAFF RECOMMENDATION:
Proceed as presented.