Worcester Business Journal

8 Worcester Business Journal | April 13, 2020 | wbjournal.com BY BRAD KANE Worcester Business Journal Editor W ith events canceled across the state and most hospitality businesses considered non-essential, the Central Massachusetts tourism industry is anticipating major losses due to efforts to stem the coronavirus pandemic. "Our convention center has lost an incredible amount of business, the hotels that are deemed essential are running at low occupancy rates, while others are shut down; last week our room reve- nue in Worcester County was down an astonishing 75% compared to the same week last year," said Stephanie Ramey, outgoing executive director of tourism agency Discover Central Mass. Typically, visitors to Central Mass. spend $669 million annually at business- es in the region, supporting more than 4,000 jobs and generating $50 million in state and local taxes, said Ramey, citing statistics from the Massachusetts Office of Travel and Tourism, U.S. Department of Commerce and the United States Travel Association. Due to the coronavirus, British ana- lytics firm Oxford Economics expects a worldwide decline of 31% in tourism spending during fiscal 2020. Ramey, using this formula, estimates Central Mass. tourism will lose 1,200 jobs, more than $200 million in visitor spending, and nearly $15 million in taxes. "Our cultural attractions and muse- ums are sitting closed, and the many restaurants and small businesses that call Central Mass. home are literally praying that they can hang on," Ramey said. Hanover Theatre looking at $900K losses e Hanover eatre in Worcester canceled all its events in the second half of March, all of them in April and May, and some in June, said Troy Siebels, president and CEO of the theater. e loss of those shows translated to $4 million in lost revenues, Siebels said, although due to the typical cost of put- ting on shows, the theater is only taking a $1.2 million loss in net revenues. "It is really stressful. I'm losing a lot of sleep to be sure," Siebels said. "I'm not alone in that. ere are a lot of people in the same position as me." To deal with the losses, Hanover eatre has cut $300,000 in expenses, including furloughing all its events staff. at still leaves $900,000 in losses, and Siebels hopes to recover about one-third of that by applying for funding through the $2-trillion Coronavirus Aid, Relief, and Economic Security Act. Hanover eatre hasn't had to lay off any of its salaried staff. If the shutdown ends around mid-June, Siebels said he won't have to consider any staff cuts. Beyond June, the theater is looking at about $100,000 in monthly losses due to staff expenses. "I'm just trying to prioritize the people," Siebels said. "ere are already enough people on the unemployment rolls. I'm just trying to keep my people from having to do that." EcoTarium looking at $1.6M losses e best-case scenario for the Eco- Tarium science museum in Worcester is a $1.6-million loss, if it is only closed through May, said Lucy Hale, president and CEO of the EcoTarium. "Eight weeks is optimistic," Hale said in an email. "We think this will go through the end of August based on the info we have from our national association." e EcoTarium plans on applying for the Economic Injury Disaster Loan through the U.S. Small Business Admin- istration, in order to try to mitigate its losses, Hale said in an email. Across the country, museums are los- ing $33 million per day, said Hale, citing the information from the American Alliance of Museums. "We are also lucky that we have been able to keep our staff on payroll. Many museums have not been that lucky," Hale said. "is is going to have a major economic impact on our country and on our region." Tower Hill postponing $12M construction project e coronavirus impact at Tower Hill Botanic Garden in Boylston is some- what less compared to other cultural institutions, although it still relies on earned revenue like those from visitors, membership dues and weddings for about 50% of its $5.5-million operating budget, said CEO Grace Elton. None of that money is coming in right now. Central Mass. tourism industry expecting $200M in coronavirus losses, 1,200+ job losses Troy Siebels, Hanover Theatre president and CEO, said if the shutdown lasts into the summer, the theater won't hurt as badly because it doesn't have as many scheduled shows. Tower Hill CEO Grace Elton is considering layoffs and furloughs. Leadership at the EcoTarium in Worcester believes the shutdown may last through August. PHOTOS/WBJ FILE

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