They knew this woud hurt the State...but

[Tippy]

Arizona’s enactment of harsh, anti-immigrant legislation—S.B. 1070—sparked an incendiary national debate over the role of states in making and enforcing immigration policy. Some states and localities rushed to copy Arizona’s draconian approach; others adopted resolutions condemning Arizona’s intolerance. But all states would be wise to consider the practical implications of their decisions before following Arizona any further down the proverbial garden path.

Passage of the Arizona legislation triggered a fierce, national public-opinion backlash against the state and led many national organizations and opinion leaders to call for economic boycotts. Arizona’s business community, especially those in the tourism industry, anticipated and feared this type of response to S.B. 1070. And the convention industry felt the effects of this backlash immediately when major groups and associations started canceling events and conventions in the state. Arizona’s Hotel and Lodging Association publicly reported a combined loss of $15 million in lodging revenue due to meeting cancellations just four months after the bill’s passage.

Our extensive research estimates that the actual lost lodging revenue from these cancellations is at least three times that amount: $45 million. That estimate provides a basis for calculating other losses in visitor spending. Analyzing average food and beverage, entertainment, in-town transportation, and retail sales brings the combined loss of estimated conference attendee spending up to a startling $141 million.

http://www.americanprogress.org/issues/2010/11/az_tourism.html