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Arizona immigration law: California leads call for boycotts

The new Arizona immigration law spurred California officials to call for boycotts of its eastern neighbor, and the effects to image and industry could be both symbolic and substantial.

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California wields a big stick when it threatens Arizona with sanctions such as these, says Hinjosa-Ojeda. “They are trying to do an economic recovery and this will hopefully get them to reconsider this legislation,” he says.

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But the logistics of an official boycott are much tougher than just getting the word out, officials say. “You have to go through a roster of suppliers, which takes time and money, and then analyze if another supplier will actually cost you more money or not,” says Jack Kyser, director of the Los Angeles Economic Development Corporation (LAECD).

He points out that the California Department of General Services, the state's main procurement arm, identified 73 private companies based in Arizona to which it has awarded contracts. Those contracts were worth a combined $10.3 million in the past year, and included computer manufacturers, human resources companies, a fertilizer maker, a publishing house, janitorial suppliers, and others.

“For those who want to do this, it’s going to be very difficult,” he says.

Tourism is more easily affected. Several groups have already canceled conventions, a key source of income to Arizona, says Hinjosa-Ojeda. The cancellations have ripple effects through the local economies, he says, as restaurants, hotels, and rental car companies also lose.

Arizona was already reeling from a decline in tourism because of the recession, and the fallout from the law has taken hotel owners by surprise, according to Debbie Johnson, president of the Arizona Hotel and Lodging Association.

"Obviously our members are concerned," Ms. Johnson told the Los Angeles Times. "I thought there would be political issues. It has become so tourism-focused and that, to me, is the unfortunate side."

Who might benefit from a boycott of Arizona? California, say economists.

“Actually, a boycott might help California since it really competes with Arizona for conventions, “ says Joel Kotkin, director of the Urban Futures Program at Chapman University.

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