Wilkes-Barre, PA -
The F.M. Kirby Center for the Performing Arts generates nearly $9.8 million in annual economic impact in Luzerne County alone from its activities and spending by visitors and crews.
An economic impact study by The Institute for Public Policy & Economic Development at Wilkes University was shared with the Kirby Center's board of directors at a meeting Tuesday.
According to the report, the Kirby supports 376 jobs in a variety of sectors. The Kirby hosted 86,545 visitors in the 2016-17 fiscal year at 144 performances and/or events. Performances include concerts, shows and films. The Kirby also hosts a number of private events that include graduations, dinners and private business or individual functions.
“Our community is the reason our doors are still open, so to hear that we are having a positive impact in return means a great deal to us,” said Will Beekman, the Kirby's executive director. “I love it when the Kirby Center is packed, but I also love to walk down the street before and after the show to see that the shops and restaurants are busy as well.”
Teri Ooms, executive director of the Institute for Public Policy & Economic Development at Wilkes, was extremely impressed with the results of the study that was requested by the Kirby.
“I was equally impressed by what I learned about the Kirby Center as we did the study,” Ooms said. “How can you not be impressed when you look at the numbers - 86,545 visitors over a 12-month period, 144 performances in the year, not including the private events for private businesses and individuals.”
Ooms said she was amazed at the amount of traffic the Kirby brings into downtown Wilkes-Barre. She said the overall impact for a small-sized, nonprofit venue - 376 jobs and $9.8 million in economic activity - is amazing.
“And I truly believe that those are conservative estimates in my opinion,” she said. “They are actually under-representative of the Kirby's true value.”
Ooms said the study should show people the Kirby is a huge asset to the community.
Impactful several ways
The report completely evaluated the impact of Kirby operations in Luzerne County:
• More than $1.9 million in labor income.
• Nearly $3.4 million in value added.
• Nearly $6.3 million in total economic output.
The report details direct effects, which are the economic impacts of the Kirby's own employment of full- and part-time staff and events and performances; its indirect effects, which quantify the impacts of the Kirby's supply chains; and its induced effects, which account for the larger economic ripple effect that is the result of the direct and indirect effects.
An example of indirect impact are the jobs created and economic value resulting from the Kirby Center purchasing goods or services from local vendors. An example of induced impact is the economic activities that result from a Kirby staffer spending their income at other businesses.
The Institute reports that several sectors are positively impacted the most by the Kirby, including transit companies and full-service restaurants.
In addition, its federal tax impact is listed at $515,670, and its state and local tax impact is $835,638.
Visitor spending
The report states during the 2016-17 fiscal year, nearly 86,545 people passed through the Kirby's doors.
“While some of the events include food, most do not, so some visitors are likely to eat prior to or after the shows and many of the attendees are from out of town and a portion of them stay in hotels and eat other meals in the community,” the report states.
The most conservative, reasonable estimates of the number of out-of-town attendees were used to create the model for spending on Luzerne County hotel rooms, gasoline and food and the same holds true for the percentage of local and regional attendees spending additional money on food.
“Despite this, visitor spending is estimated at creating over $3.4 million in additional economic impact and supports nearly 42 Luzerne County jobs in a variety of sectors,” the report states.
In addition to those 42 jobs, this incidental spending of Kirby visitors generates a total impact of $1.25 million in labor income, $1.9 million in economic value added, and more than $3.4 million in total economic output.
The report shows visitor spending has a direct impact on employment and revenue in food services, retail operations, and hotels and motels, including casino hotels.
Visitor spending also generates tax impact - a total of $267,454 in federal taxes, and $256,999 in state and local levies.
Performer/crew spending
The economic impacts of performer and crew spending were also calculated. Several of the performances at the Kirby were multi-day events with advance set-up requirements, meaning crews had to stay in town one or two nights.
This applies to performers as well - they may stay in local hotels and eat in local establishments. Overall crew spending creates total economic output of over $22,000.
Like visitor spending, their spending generates federal taxes. During the 2016-17 season, crew spending generated over $3,650 in federal, state and local levies.
Methodology
The key to quantifying economic impact is understanding the concept and application of the “multiplier effect.” Within the field of economics, the multiplier effect is used to determine the impact of spending or investing in a defined economy.
These are the indirect effects of business operations, which make the economic impact larger than just the direct effects (actual revenue and expenses of the business). It is based on the ripple effect - how dollars flow through the economy.
This results in increased revenue, production and job creation in other sectors.
By Bill O'Boyle - boboyle@timesleader.com | December 19th, 2017
http://www.timesleader.com/news/local/686008/its-a-hit-kirby-centers-annual-impact-on-region-near-10-million
