Flying high: Albuquerque’s International Balloon Fiesta uplifts visitors and helps small businesses soar

Balloon Fiesta draws hundreds of thousands of attendees — this year, there were an estimated 902,000 guest visits for the entire festival — and about 85% of visitors were from out of town. Those tourists eat, drink, sleep and shop at metro Albuquerque businesses, and in 2024, they injected more than $127 million into the local economy, according to the Fiesta’s most recent economic impact report. That doesn’t include Fiesta tickets, parking or the nearly $27 per person spent on average within the park.

At his Vara winery, Murray says, sales soar by 250% to 300% during Fiesta, thanks in large part to its popular Balloon Fiesta Tasting Room. The company, which produces its wines — sparkling bruts and Spanish-style whites and reds — and handcrafted spirits in the nearby village of Los Ranchos, distributes in 13 states, but in this casual venue, on a bluff overlooking the festival grounds, they’re available by the glass or bottle. Its west-facing patio offers the perfect perch for viewing evening “balloon glows,” where some 200 balloons, tethered to the ground for the night with their propane burners firing, turn the park into an expanse of flickering light.

The city is a ballooning mecca thanks in part to an atmospheric phenomenon known as the Albuquerque Box. For a few hours in the morning, currents in the Rio Grande Valley flow in different directions at different heights, allowing skilled balloon pilots to fly an out-and-back route through a series of altitude changes. The winds aren’t 100% predictable, so every balloon has a chase vehicle that follows along on the ground, ready to scoop up gear and passengers wherever the craft lands — whether that’s an empty field or someone’s backyard.

“It’s not like you’re always flying a perfect box, but it does give you an opportunity to try, which is super fun,” says Andrea McEvoy, a three-time Balloon Fiesta pilot from McMinnville, Oregon. “Our ultimate goal is to land exactly where we took off from.” She hasn’t managed to do that just yet, but at this year’s Fiesta she nailed another bucket-list item for festival balloonists — the so-called splash-and-dash maneuver: McEvoy flew her balloon, christened Chroma Chameleon, low enough for its basket to briefly touch the waters of the Rio Grande before shooting back into the sky.

The Albuquerque Box explains why festival events start so early. It dissipates around 9 a.m., as the sun-warmed air becomes too windy and turbulent for flying, so balloon teams pack up their gear. Tourists may stick around to wander the Balloon Museum or continue shopping for souvenirs, including collectible pins and regional specialties like piñon-flavored coffee, chile powder and small-batch salsas. In the artisan tent, handmade jewelry, pottery and Native American crafts are on offer. But for the most part, guests leave the park to explore the city, at least until evening events, like balloon glows and fireworks, begin. 

Beyond the festival grounds, top tourist destinations include Old Town Albuquerque, a quaint historic area with independently owned shops and restaurants, and the Sandia Peak Tramway, which carries riders to a 10,378-foot mountain crest. The Breaking Bad Store ABQ remains a hit, too, 13 years after the series ended, with memorabilia ranging from bobbleheads and “Cooking with Heisenberg” aprons to series-themed Balloon Fiesta pins. But the festival boosts enterprises of all kinds throughout the city.

Brenna Moore, director of communications and public relations at the Visit Albuquerque tourism bureau, calls Balloon Fiesta the city’s busiest time of year. “It’s felt by every sector of our tourism and hospitality industry, and that’s lodgings, transportation companies, restaurants and, of course, small businesses and individual artists,” she says. “It’s something that everyone looks forward to, because it really is an infusion of activity for the city.”

One of Visit Albuquerque’s goals is to help locals maximize their exposure once visitors arrive. In September, Moore led a marketing workshop for restaurants and small businesses, offering tips for engaging local media and attracting tourists through social media posts, balloon-themed contests, special menu items and the like.

The Original Cocina Azul, a family-run restaurant known for its traditional New Mexico cuisine, enjoys a loyal neighborhood clientele, but general manager Daniel Sosa says Balloon Fiesta is an important part of its business year. “Those additional customers matter to a local restaurant,” he says. “Fiesta gives us an opportunity to introduce new people to our food and hospitality.”

Getting ready for the nine-day rush means stocking up on staple ingredients and preparing extra chiles rellenos, pork tamales and brisket enchiladas for the bestselling Frank Sr.’s Combination Plate, named for restaurant founder Frank Barela Sr. The chefs even make a tourist-friendly version of their famously hot green chile stew. “People who come in from places like New York and Chicago can’t eat chile like the New Mexicans do,” Sosa says. “We have to lower the heat a little bit, so it’s enjoyable for them.”

It’s a balancing act for many small businesses as they adjust their staff and goods every year according to crowd sizes. Vara’s Murray says they tried opening the Balloon Fiesta Tasting Room at 4:30 a.m. during the 2025 festival. While that’s too early for alcohol sales, they offered burritos for customers on their way to Balloon Fiesta Park. What he learned is that early-morning visitors are eager to get through the gates as soon as possible. Sales weren’t high enough to justify asking staff to battle the pre-dawn traffic and work extra hours at an already busy time. This year they’ve returned to opening in early afternoon, just a couple hours earlier than during non-Fiesta season, a formula they know works for their customers.

“I think what the tourists really want is to feel the authentic New Mexico, and they don’t want to feel like what we’re putting on for them is just a face,” he says. “The more authentic we’ve been able to be, that’s what has worked best for us.” 

Nearby cities see their share of the action too, with nearly 40% of Balloon Fiesta visitors making the hour-long drive to stay in Santa Fe and 10% heading farther north, to the town of Taos. Vara’s Santa Fe tasting room, Vara Vinoteca, gets busier during Fiesta weekends, and while hotel occupancy rates in Albuquerque hit nearly 90% the first weekend of this year’s Fiesta, Santa Fe saw rates just as high. Tourism Santa Fe organizes round-trip daily shuttle service from the city’s hotels to balloon events, an effort that promotes Fiesta participation while also encouraging tourists to spend more time (and money) in the state capital.

Festival-bound guests book up to a year in advance at Las Palomas, a 55-room historic hotel in downtown Santa Fe, says general manager Tenzin Samchok. The Inn of the Governors, another downtown hotel, also fills its 100 rooms in advance, welcoming tour groups from as far away as the East Coast and Canada.