May 06, 2009

Playland Amusement Park is very good for the economy of Westchester and contributes far beyond what is spent to operate the park each year.

This is the finding of a new study released today by County Executive Andy Spano, which shows that Playland rides, food and beverages, off-site retail and other spending and business-to-business spending add $27.7 million to Westchester’s economy.

“This new study shows us that Playland is an investment in Westchester’s economy,” Spano said. “People come to Playland and spend money and they also purchase gasoline, eat at local restaurants and stop elsewhere as they go to and from the park. In addition, the employees who work at the park spend money, supporting local businesses.”

The conclusions are based on a report prepared by Economics Research Associates of Washington D.C., an international consulting firm. The firm used surveys and computer models to calculate the “multiplier” effect of Playland – the direct and indirect impact Playland has on the economy of Westchester.

Spano said the report supports Playland’s ongoing operation, and the findings explain the economic engine the park creates.

“Playland is an integral part of Westchester’s landscape and history. But this report reinforces another benefit we’ve always known –that Playland Park is also an important contributor to Westchester’s economy,” Spano said.

“And this year the park will no longer be subsidized by the county’s operating budget, making Playland’s continued operation even more of a benefit to taxpayers,” he added.

Information was based on the amusement park’s 2008 budget of $12.9 million. The report does not reflect economic activity generated outside of the county or the effect of any capital expenditures at Playland.

The $27.7 million figure includes:

• $12.8 million spent directly at the park on rides, foods and beverages, games, concessions and other purchases
• $4.7 million spent at off-site retail outlets, restaurants, gas stations and other Westchester businesses and enterprises, as well as on public transportation.
• $10.2 million in indirect (park vendor business operations) and induced (business-to-business) spending by Playland’s employees, vendors and vendors’ employees for consumer goods, housing, taxes and other expenditures within the county.

Spano noted that the park’s new “pay-one-price” admission policy goes into effect on opening day, this Saturday, May 9. Westchester taxpayers will no longer subsidize the amusement park, as admission fees from the new “pay-one-price” policy and other in-park revenue sources will cover all costs, both operational and capital. This will save county property taxpayers about $3 million next year, he said.