Frontier Area — Heritage Area Economic Benefits
March 2005
THREE TYPES OF ECONOMIC BENEFITS
Direct Federal budget — Each heritage area comes with its own funding as a line item in the federal budget. In FY-2003 there were 24 heritage areas, 23 of them with budgets in the range between $209,000 and $993,000. The average budget was $590,000. In recent proposed legislation for new heritage areas, a budget of $1 million per year is commonly provided. A reasonable estimate for a new area in Nye County would therefore be about $750,000.
Other grants and investments — Each heritage area has credibility with investors and donors as a result of its official status. This means that the areas can more easily raise additional funds from matching donations, grants, state money, or other federal programs. In 2003 the heritage areas raised $60 million this way — five times their basic federal budget. Over the long term the areas have maintained an even higher ratio of 1:8. See www.nationalheritageareas.com/ecodev.htm. A reasonable middle estimate is therefore that a Nye County heritage area could raise about six additional dollars for each dollar of its federal budget.
Increase in visitation and tourist expenditures — Having a heritage area designation also tends to increase visitation to the region. This comes about for two reasons: the greater visibility of the area as a result of its designation, and the tangible improvements in the attractions that can be made using the heritage area budget. While it is hard to prove an exact cause-and-effect, many local business people estimate that designation has increased their visitor revenues by about 20 percent. Figures in this range are reported by a number of sources:
1. Yuma Crossing NHA (Arizona) — (a) Ken Rosevear (Director, Yuma Chamber of Commerce) (928-782-2567) (increase of about 10-15 percent); (b) Roger Beetle (Director, Yuma Visitors’ Bureau) (928-376-0100) (10-15 percent) (having HA “was a great idea”).
2. Quinebaug & Shetucket Rivers NHA (Connecticut) — (a) Charlene Cutler (Executive Director, Heritage Area) (860-963-7226) (increase may be 30 percent); (b) Bob Chartier (Director, Chamber of Commerce serving the area) (508-347-2761) (initial increase only about 5 percent; but they hope for 15-25 percent increase after ten years development) (establishing HA “absolutely” was beneficial).
3. Some other people didn’t feel able to estimate a specific percentage increase, but said that having a heritage area has made a clear, substantial, unquestionally beneficial difference to them. For example: (a) Nick Pollacia (Director, Chamber of Commerce serving the rural Cane River NHA) (Louisiana) (318-352-6894) (having an HA has moved the town up one whole level in the “dignity” of its visitor experience); (b) Bob Billington (President, Tourism Council serving area of the Blackstone Valley NHA) (Rhode Island) (401-724-2200) (the HA is “a very, very good thing” for the region).