Host Residents' Perceived Social Costs and Benefits Toward a Staged Tourist Attraction

Abstract

The purpose of this study was to determine residents' perceived social costs and benefits toward an international tourist event, and their willingness to financially support the development of a permanent event facility. A telephone survey using a random sample (n = 600) of Albuquerque residents was conducted two weeks after the 1993 Kodak Albuquerque International Balloon Fiesta (AIBF). The 23rd Annual AIBF was the largest hot-air balloon event in the world, with over 900 pilots competing in various races and contests. The nine-day event attracted over 1.6 million spectators to a 70-acre site leased to organizers by city government. Few social costs were experienced by residents, while a majority of residents experienced multiple social benefits from the event. Although residents' attitudes toward the event were mostly positive, few residents were likely to finance a stadium development proposal through property tax increases. Before taxpayer approval for permanent event facility construction is sought, tourist event officials should assess residents' social benefits and costs, and their willingness to pay. Failure to do so may increase risk of bond referendum failure or bond default.