Academy of Music--Economic Impact 2018CITY OF NORTHAMPTONCity Hall210 Main Street Room 12Northampton, MA 01060-3199(413) 587-1249 Fax: (413) 587-1275
October 12, 2018
To:Academy File
Fr:Terry Masterson
Re:Academy of Music Economic Impacts
Brief History
The Academy of Music is the nation’s first municipally owned theater dating back to 1891 when a Northampton based businessman and philanthropist, Edward H. R. Lyman built the 800 seat
theater and deeded ownership to the City of Northampton. Today, the Academy is an all year venue for live theater, as well as dance, film, music and education.
Summary of Economic Value: $4.1 Million in Consumer Purchases/Ticket Sales
The Academy of Music is Downtown Northampton’s leading visitor destination based on not only total ticket sales but a consistent weekly delivery of patrons visiting downtown Northampton
and its many shops and restaurants. Please note the following economic impacts for 2018:
62,000 patrons with 140 performances and events
$4.1 Million in total annual sales and purchases including
$1.55 Million in ticket revenues
$1.0 Million in downtown meals and beverage purchases
$1.1 Million hotel revenues
$227,000 in total tax revenues to State and City
$73,500in city tax revenues and $153,500in state tax revenues (meals,hotel,sales tax)
$4.1 Million in Annual Consumer Spending
2018
2017
2016
2015
2014
2013
Performances
140
148
148
116
116
103
Ticket Sales
62,000
60,000
55,000
50,228
50,228
49,908
Ticket Revenues
$1,550,000
$1.500,000
$1.400,000
$665,000
$665,000
$527,000
Meals/Beverages
$1,000,000
$975,000
$935,000
$850,000
$850,000
$833,000
HotelRevenues
$1,100,000
$1,100,000
$829,000
$750,000
$750,000
$750,000
Hotel Guest Spending
$450,000
$450,000
$331,000
$450,000
$450,000
$450,000
Food/ Hotel Spending
$2.5 Million
$2.5Million
$2.1 Million
$2.05 Million
$2.05 Million
$2.03 Million
Total Spending
$4.1 Million
$4.0 Million
$3.5 Million
$2.71 Million
$2.71 Million
$2.56 Milllion
2018 and 2017 Food/Hotel Spending: Both years above are rounded off to $2.5 million but the exact figures are $2.525 Million for 2017 and $2.550 for 2018.
$2.27 Million Tax Revenue Generation Over 10 Years
It is fair to assume that over a 10 year period, the Academy will generate over $1.9 million in sales, meals and hotel room tax revenues to the State and City based on conservative estimates
of consumer spending by Academy patrons. See below for 2017 Table of Tax Revenues:
2018 Academy Tax Revenue Generation for State and City of Northampton
Tax
State Rate
City Rate
Amount
Total Tax Revenue
State Portion
City Portion
Meals & Beverage
6.25%
0.75%
$1.0 Million
$70,000
$62,500
$7,500
Hotel Room Revenues
5.75%
6.0%
$1.1 Million
$129,000
$63,000
$66,000
Hotel Guest Spending
6,25%
$450,000
$28,000
$28,000
N/A
Total Revenues:
$2.50 Million
$227,000
$153,500
$73,500
Reference Sources for Economic Impact Estimates
Ticket sales, attendance and performance numbers are from the Academy
Meals tax is 7.25% ( 6.25% state portion – 0.75% city portion) www.mass.gov/dor
Hotel tax is 11.75% (5.75% state portion -6% city portion)
Sales tax is 6.25% (6.25% state portion – 0% city portion)
Meals purchases are estimated at $35 per person which is cited by ArtsUSA.org
After performance drinks/dessert/coffee are estimated at $15.00 per person.
Hotel room rate estimate is $125.00 per night with 1.5 guests per room
Hotel guest estimates are based on Academy patrons 75 miles from Northampton.
Northampton Assumptions
The following assumptions were made for this memo:
40% of Academy patrons had dinner before a show or event.
15% of Academy patrons had drinks after a show
22% of 2017 ticket sales were long distance patrons which is 13,200 tickets. 13,200 patrons x 1.5 hotel guests per room = 8800 hotel room nights. 8800 hotel room nights x $125.000
= $1.1 million in hotel room revenues.
33% of 2018 ticket sales (20,460 patrons)were also beyond a 50 to 75 mile radiusbut to be conservative, it will be assumed that 13,200 attendees, the same as 2017 stayed at least one
hotel night. 13,200 patrons x 1.5 guests per hotel rooms = $1.1 million in hotel room revenues.
The $125.00 per night estimate and 1.5 guests per room are well in line with room occupancy standards and Hampshire County room rates.