This is a HUGE event for all of New Mexico! I happened to go to ABQ for work a couple years back, without even knowing it was during the Balloon Fiesta. The plane was way oversold (absolutely no chance of an upgrade on an A319 as a gold), car rental places were slammed, as were hotels (the hotel I usually stay at was booked 9+ months out).

I do remember driving out one morning from town up to Santa Fe, and it was amazing seeing so many balloons.

You have to remember that Albuquerque really isn't that big of a city; I'd guess similar to Tucson. So any influx of visitors will have a huge impact (similar to the Gem Show in Tucson, which I've also had the pleasure of experiencing).