Gallup Adds Convention Center Fee, Shift in Lodger's Tax Burden

The Gallup City Council on December 16 approved an ordinance establishing a $2.50 convention center fee for hotel rooms, to be collected in addition to the citys existing 5 percent Lodger's Tax. The council voted unanimously on the measure. The ordinance stipulates that revenue from the fee is reserved by state law for operation and maintenance of the citys two convention centers, Red Rock Park and the George Galanis Multicultural Center annex. The ordinance will take effect 31 days after approval.

City officials project the new fee could generate between $450,000 and $800,000 in the current fiscal year, providing a dedicated revenue stream for the convention center facilities. Marketing and Tourism Director Matt Robinson said the fee would ease pressure on the Lodger's Tax fund, which currently supports Red Rock Park operations and an annual $450,000 payment to McKinley County under a joint powers agreement. By shifting some convention center costs onto the new fee, the Lodger's Tax could better sustain marketing and tourism projects that depend on its 60 to 40 funding model.

Local hotels will be asked to implement the fee, and city staff plan to meet with hotel owners to discuss logistics and timing. For residents, the change means that hotel guests will pay an additional charge per room night, though the council and city staff framed the fee as a targeted investment in facilities that host regional events that bring visitors and spending to Gallup and surrounding communities. City officials said proceeds could allow Gallup to host more in house events, expand advertising and hire additional staff to support conventions and cultural gatherings.

The move follows precedents in other New Mexico municipalities where similar convention center fees are in place, including Roswell and Las Cruces. For McKinley County and the City of Gallup, officials view the measure as a tool to stabilize funding for venue upkeep while preserving Lodger's Tax resources for broader tourism promotion and partnership obligations with the county. Implementation details and outreach to the hospitality sector are expected in the weeks ahead as the fee approaches its effective date.