Pueblog USa
Monday, October 08, 2007
Economic Impact of the Pueblo Convention Center
How much tourist money goes towards high paying jobs and how much actually stays in Pueblo.
Economic Impact of the Pueblo Convention Center
• The data used for the following analysis of the Economic Impact of the Pueblo Convention Center was taken from the “out –of-town tender” flyer distributed by the Greater Pueblo Chamber.
• Average total spending by conventioneer per day is $170 per person
• Average hotel spending by conventioneer per day is $70 per person, 41% of total
• Average retail, restaurant and other spending per day is $100 per person, 59% of total
• Economic impact of the Pueblo Convention Center to Pueblo is $3,432,982 per year
• Revenue from hotel rooms: $3,432,982X.41=$1,407,523
• Revenue from miscellaneous : $3,432,982X.59=$2,025,459
• City revenue from hotel tax: $1,407,523X.078=$109,787
• City revenue from sales tax on miscellaneous: $2,025,459X.035=$70,891
• Total City revenue produced by Pueblo Convention Center: $109,787+$70,891=$180,678
• The annual cost of the Convention Center(operating cost and mortgage) is approximately $1,200,000
To get the true economic impact the Convention Center has on Pueblo it must be determined how much of the money the conventioneers spend in Pueblo stays in Pueblo. Almost all the hotels, restaurants, convenience stores, department stores, etc. are owned by corporations headquartered outside of Pueblo. Therefore a high percentage of their revenue does not stay in Pueblo. An educated guess as to how much stays here is as follows:
• Hotel revenues less tax: $1,407,523-$109,787=$1,297,736
• Hotel revenues which stay in Pueblo: $1,297,736X.40=$519,094
• Sales tax revenues less tax: $2,025,459-$70,891=$1,954,568
• Sales tax revenues which stay in Pueblo: $1,954,568X.25=$488,642
• Total revenues which stay in Pueblo: $519,094+$488,642=$1,007,736
• Reduction of Convention Center cost: $1,200,000-$1,007,736=-$192,264
• To the City coffers: $180,678
The total revenues which stay in Pueblo would support 50 people having an annual income of $20,000 or reduce the Convention Center deficit to $11,586.
From this analysis it is clear that the economic impact of the Convention Center(essentially tourism)is not what Pueblo needs to improve its economic status. The support services such as lodging ,food, retail, etc. that are required to fill the needs of the tourism industry are all basically low paying jobs.
What little money our poor city has should be used to attract industries that offer higher paying jobs.
Ted Freeman
369-4469
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