Kansas City Museum – The Kansas City Museum - A STUDY OF … · 2019-07-08 · EXECUTIVE SUMMARY...

A STUDY OF THE BASELINE AND FUTURE ECONOMIC

IMPACTS OF THE KANSAS CITY MUSEUM ON KANSAS CITY

AND MISSOURI

KANSAS CITY, MISSOURI

OCTOBER 25, 2018

PREPARED FOR

CITY OF KANSAS CITY

October 25, 2018 Ms. Anna Marie Tutera Executive Director Kansas City Museum 3218 Gladstone Boulevard Kansas City, Missouri 64123 Re: Study of the Baseline and Future Economic Impacts of the Kansas City Museum on Kansas City and

Missouri Dear Ms. Tutera:

Development Strategies is very pleased to submit this study of the economic impacts that the Kansas City Museum (KCM) and its visitors have on the state of Missouri, city of Kansas City, and Kansas City metropol-itan statistical area (MSA). KCM is an invaluable cultural institution in Kansas City and its current Restora-tion and Renovation Master Plan, including $22.0 million for Stage I, Corinthian Hall (FY 2016-FY 2021) reno-vations, will help position it to expand operations and programming and increase attendance. These invest-ments will result in a net positive incremental increase of its economic and fiscal impacts on the city, metro area, and state.

From FY 2012 to FY 2016, KCM spent just under $1.3 million annually, in 2017 dollars, for maintenance of its facilities, programming and operations, and to pay its staff. The museum attracted around 19,000 visitors, some of whom brought “new money” into the city, metro area, and/or state that could be attributed to their trips to the museum. However, as you are well aware, the facilities in their pre-renovated state offer limited opportunities for expanded programming and special exhibitions, thus limiting the museum’s annual patron-age, draw from non-local visitors, and positioning as a regional destination.

The $22.0 million Stage I renovations will generate an average of $12.0 million in total economic output, $3.0 million in household earnings, and support 65 direct and indirect full-time jobs in the state annually. From FY 2021 to FY 2025, increased operational spending and patronage will result in a net positive incremental in-crease in economic impacts over the baseline scenario for Missouri, including $3.6 million in total economic output, $1.4 million in household earnings, and 28 direct and indirect jobs annually. This increased spending activity will also generate $89,000 in incremental tax revenues for the state over the baseline scenario.

This report also quantifies the historic and projected economic impacts of KCM and its patrons and Stage I renovations on the city of Kansas City and Kansas City MSA.

Please let us know if we can provide further clarification.

Respectfully submitted and approved on behalf of

DEVELOPMENT STRATEGIES, INC.

Larry Marks, AICP Brian Licari

Principal Associate

Kansas City Museum Economic Impact Study

DEVELOPMENT STRATEGIES

TABLE OF CONTENTS

EXECUTIVE SUMMARY ....................................................................................................................................... 1

INTRODUCTION & BACKGROUND ....................................................................................................................... 6

PURPOSE OF THIS STUDY ...................................................................................................................................... 7 GENERAL METHODOLOGY ...................................................................................................................................... 8 GEOGRAPHIC STUDY AREAS ................................................................................................................................... 8 PHASES OF ANALYSIS ............................................................................................................................................ 9

ECONOMIC IMPACT ANALYSIS ........................................................................................................................... 10

OVERVIEW ........................................................................................................................................................ 10 MULTIPLIERS .................................................................................................................................................... 12

BASELINE ECONOMIC IMPACTS FROM OPERATIONS .......................................................................................... 14

HISTORIC OPERATIONAL EXPENDITURES ............................................................................................................... 14 BASELINE ECONOMIC IMPACTS OF MUSEUM OPERATIONS ...................................................................................... 15 FISCAL IMPACTS OF MUSEUM OPERATIONS ........................................................................................................... 18

BASELINE IMPACTS FROM PATRONAGE ............................................................................................................. 21

VISITOR SPENDING ............................................................................................................................................ 21 ECONOMIC IMPACTS OF VISITOR SPENDING .......................................................................................................... 31 FISCAL IMPACTS OF VISITOR SPENDING ................................................................................................................ 34

SUMMARY OF BASELINE IMPACTS OF KANSAS CITY MUSEUM ........................................................................... 36

ECONOMIC IMPACTS OF PHASE I OF CONSTRUCTION ........................................................................................ 37

SCOPE OF WORK ............................................................................................................................................... 37 MODELING INPUTS ............................................................................................................................................ 37 ECONOMIC IMPACTS .......................................................................................................................................... 38 FISCAL IMPACTS ................................................................................................................................................ 41

FUTURE ECONOMIC IMPACTS OF KANSAS CITY MUSEUM .................................................................................. 42

FUTURE OPERATIONAL EXPENDITURES ................................................................................................................. 42 PROJECTED ECONOMIC IMPACTS ......................................................................................................................... 43 PROJECTED FISCAL IMPACTS ............................................................................................................................... 46 FUTURE PATRONAGE AND VISITOR SPENDING ....................................................................................................... 47 ECONOMIC IMPACTS .......................................................................................................................................... 49 FISCAL IMPACTS ................................................................................................................................................ 52

SUMMARY OF INCREMENTAL ECONOMIC IMPACTS OF KANSAS CITY MUSEUM ................................................. 53

APPENDIX

A. Multipliers

B. Future Patron Spending by Sector

C. Wages and Direct Jobs Supported from Future Patron Spending

D. Weighted Tourism Multipliers from Future Patron Spending


DEVELOPMENT STRATEGIES 1

EXECUTIVE SUMMARY

The Kansas City Museum is embarking on a major capital campaign through its Restoration and Reno-

vation Master Plan, which will allow for expanded programming, special exhibitions, and enhanced visi-

tor experience. These upgrades will undoubtedly help position the institution as a premiere regional cul-

tural destination.

The $22.0 million Stage I renovations for Corinthian Hall will generate substantial impacts during the

years of planning and construction, but when Stage I is completed, increased operational spending and

patronage will generate a long-term net positive incremental increase in economic impacts of $3.6 million

in total economic output, $1.4 million in household earnings, and 28 direct and indirect jobs annually in

the state of Missouri. This increased spending activity will also generate $89,000 in incremental tax reve-

nues for the state of Missouri annually.

The Kansas City Museum (KCM) is located in the Historic Northeast neighborhood in the city of Kansas City,

about four miles northeast of Downtown. KCM was founded in 1940 as an organization to promote regional cul-

ture and history and occupies the former private estate of Robert A. Long. The 35,000 square foot mansion, Co-

rinthian Hall, was originally built in 1910 and is now the museum’s primary space for programming, exhibitions,

and events. KCM is owned and operated by the city of Kansas City, which took over management functions in

2014 through the city’s Parks and Recreation Department. Ongoing repairs and renovations since the early 2000s

has limited KCM’s ability to sustain routine operations, expand programming or offer special exhibitions. These

shortcomings have limited annual attendance with an average of fewer than 20,000 visitors and very few visiting

for general admission. The multi-phased Restoration and Renovation Mater Plan (FY 2017-FY 2024) will help

position the museum as a premiere regional destination, which is anticipated to increase annual operational spend-

ing and bolster attendance to 50,000 when Stage I is completed in FY 2021 (anticipated spring or fall of 2020).

The focus of this study is the economic activity generated in the state of Missouri, city of Kansas City (Missouri)

and the Kansas City metropolitan region as a result of KCM’s spending to support its own programming and op-

erations and by patrons bringing “new money” from outside of these three geographic areas when they spend at

hotels, restaurants, retail outlets, and related destinations. The study establishes three phases of analysis: 1) eco-

nomic impacts of baseline conditions based on historic operational expenditures and visitation patterns, 2) eco-

nomic impacts from the $22.0 million Stage I of museum renovations, and 3) the net positive incremental impacts

of future operations from expanded programming and operations and increased attendance.

This study relied upon multipliers from the U.S. Department of Commerce to quantify this economic activity in

terms of 1) total economic output, 2) household earning generated, and 3) jobs supported. This study also relied

upon annual tax revenue data from the state of Missouri and City of Kansas City to estimate the tax revenues gen-

erated from this activity. This study does not, however, quantify the impacts that KCM most certainly has on the

quality of life, education, culture, and collective identity of the Kansas City region.



1. BASELINE ECONOMIC CONDITIONS

Museum Operations

To operate the museum and support its programming, from FY 2012 to FY 2016, KCM directly employed an

annual average of six full-time equivalent employees (FTE)1 and spent an average of $1.3 million annually, in 2017

dollars, to support operations, maintain facilities, pay its staff.

Patron Spending

From FY 2015 to FY 2017, KCM attracted an average of 19,000 visitors annually.2 Data was not available to

determine origin of visitor, but anecdotally, the vast majority of these visitors were from the region. On average,

these patrons spent about $2.00 dollars on site. Average annual off-site patron spending that could be attributed

to their trip to KCM was estimated at $176,000 for those living outside of the city of Kansas City, $118,000 for

those living outside of Missouri, and $124,000 for those living outside of the Kansas City MSA.

2. STAGE I CAPITAL EXPENDITURES

From FY 2016 to FY 2021, KCM will have spent $22.0 million, in 2017 dollars, for all expenditures related to

Stage I renovations.3 This equates to an average annual spend of $4.4 million. It is estimated that $918,000 will be

direct wages supporting 18 direct workers (average wage of $52,000).4 Of these workers, it is estimated that seven

will be city of Kansas City residents and 10 will be residents of the state of Missouri. The remaining $3.5 million in

average annual expenditures are assumed to be non-labor costs (or contractors).

3. FUTURE ECONOMIC CONDITIONS

Museum Operations

From FY 2021 to FY 2025, the completion of Stage I will allow KCM to expand programming and allow for more

specific exhibitions and events, which in turn will increase average annual spending. Based on projections from

KCM, average annual spending will increase to $2.2 million with a staff of 16 full-time positions.

Patron Spending

From FY 2021 to FY 2025, attendance is projected to increase to an annual average of 61,000 visitors. As a better-

positioned cultural destination, it is assumed that a greater proportion of visitors will come from outside of the

1 All employment numbers presented in this report are based on full-time equivalent (FTE) jobs maintained over a full year. For

example, two part-time positions working 20 hours per week for a full year would equate to one FTE.

2 The majority of these visitors were for special events with only around 4,100 annually for general admission given the limited

operational capacity of the museum. It is assumed that any non-local visitors would still bring “new money” into each geographic study area.

3 These costs include Architectural Master Planning for the entire property (all buildings and grounds plus anticipated new

construction), architectural design for Stage I construction, and construction and exhibitions costs from FY16 to FY21.

4 These estimates are not necessarily reflective of proposed construction staffing patters, but reflect an estimate of full-time annual

direct workers supported by this spending. Additional jobs supported by sub-contractor spending or for parts and supplies are captured by the multiplier impacts.



region and given expanded concessions opportunities and special exhibition admissions, average on-site spending

will increase to $10.00 per person. Average annual off-site patron spending that could be attributed to their trip to

KCM was estimated at $663,000 for those living outside of the city of Kansas City, $602,000 for those living

outside of Missouri, and $760,000 for those living outside of the Kansas City MSA.

ECONOMIC AND FISCAL IMPACTS ON CITY OF KANSAS CITY

Based on the inputs presented above, the net incremental impacts from increased KCM operational spending and

patronage is projected to be the following over the baseline scenario, in 2017 dollars. Average annual direct and

indirect:

Economic output will increase by $2.0 million;

Household earnings for city residents will increase by $1.0 million;

Jobs supported for city residents will increase by 18 jobs; and,

Fiscal impacts will increase by $27,000.

Additionally, during Stage I of construction, the $22.0 million in total capital expenditures is projected to generate

average annual impacts of:

$6.1 million in total direct and indirect economic output;

$1.0 in total direct and indirect household earnings;

Support 23 direct and indirect full-time equivalent jobs for city residents; and,

$56,000 in city tax revenues.



ECONOMIC AND FISCAL IMPACTS ON STATE OF MISSOURI



indirect:


Household earnings for city residents will increase by $1.4 million;

Jobs supported for state residents will increase by 28 jobs; and,

Fiscal impacts will increase by $89,000.




$3.0 million in total direct and indirect household earnings;

Support 65 direct and indirect full-time equivalent jobs for state residents, and;

$214,000 in state tax revenues annually.



ECONOMIC AND FISCAL IMPACTS ON KANSAS CITY MSA



indirect:


Household earnings for MSA residents will increase by $1.6 million; and,

Jobs supported for Kansas City MSA residents will increase by 32 jobs.

Since the Kansas City MSA is in itself not a taxing jurisdiction, fiscal impacts were not calculated.




$3.7 million in total direct and indirect household earnings; and,

Support 84 direct and indirect full-time equivalent jobs for residents in the region.

Since the Kansas City MSA is in itself not a taxing jurisdiction, fiscal impacts were not calculated



INTRODUCTION & BACKGROUND

The Kansas City Museum (KCM) is located in the

Historic Northeast neighborhood in the City of

Kansas City, about four miles northeast of Down-

town. KCM was founded in 1940 as an organization

to promote regional history and culture and occupies

the former private estate of Robert A. Long. The

35,000 square foot mansion, Corinthian Hall, was

originally built in 1910 and is now the museum’s

primary space for programming, exhibitions, and

events. KCM is owned and operated by the city of

Kansas City, which took over management functions

in 2014 through the Parks and Recreation Depart-

ment. Ongoing repairs and renovations since the

early 2000s have limited KCM’s ability to sustain

routine operations, expand programming or offer

special exhibitions. The improvements and

grounds have had several phases of renovation

over the last few decades, which has impacted the

continuity of programming and operations.

KCM is now embarking on a major, multi-phased

Restoration and Renovation Master Plan with the

goal to position the museum as a premiere cultural

destination in the Kansas City region. The $22.0

million first stage of the renovation (Stage I) will

include the restoration and renovation of Corinthi-

an Hall and expansion of exhibition space to allow

greater flexibility for special programming and

events, which in turn, will help increase attend-

ance. The museum is temporarily closed during

this stage and will reopen when construction is

completed in FY 2021. The museum will remain

open during subsequent stages of construction

(Stage II and Stage III), which based on current



projections, will be completed in FY 2025. From FY 2015 through FY 2017, the annual attendance at the

museum was around 19,000 visitors, but the renovation and targeted marketing will help boost attendance to

50,000 when Stage I is completed in FY 2021. The following tables shows the proposed phasing of the reno-

vation.

The City of Kansas City hired Development Strategies (DS) to analyze the economic impacts of KCM’s base-

line operations and patronage patterns in the state of Missouri, city of Kansas City, and Kansas City metro-

politan area (MSA) and the impacts of Stage I of construction and incremental impacts post-renovation from

increased operational spending and patronage starting in FY 2021. This study is intended to demonstrate the

economic scale of the KCM as an asset for the city, state, and region.

PURPOSE OF THIS STUDY

This present study focuses on the city, state, and regional economies by quantifying the impacts of KCM

through its capital, operational, and patronage spending. The report documents the direct and indirect (or

multiplier) impacts that are triggered by the KCM and its visitors both in a baseline scenario based on historic

spending activity (FY 2012 to FY 2016) and projected impacts after Stage I of the proposed renovations (FY

2021 to FY 2025). It also estimates major taxes that likely accrue to state and local governments as a result of

these impacts. This report also quantifies average annual economic impacts during Stage I of the museum’s

renovation (FY 2016 to FY 2021). This report is not intended to address the other significant quality of life,

social, environmental, civic, governmental, and aesthetic impacts that this museum certainly has in Kansas

City.

Kansas City Museum Restoration and Renovation Master Plan, FY 2018 to FY 2025

Calendar 2017 2018 2019 2020 2021 2022 2023 2024

Fiscal 2018 2019 2020 2021 2022 2023 2024 2025

Renovation of Corinthian Hall

Renovation of Carriage House and

Gatekeeper's House

Renovation of Carpenter's Shed,

Conservatory, and Grounds

Source: Kansas City Museum

Scope of Work

Stage

Stage I

Stage II

Stage III



GENERAL METHODOLOGY

Details on sources of information and research are referenced throughout this report, but the general ap-

proach was as follows:

1. Staff of DS met with the Executive Director for the Kansas City Museum.

2. KCM provided data on historic operational costs and revenues over a five-year period as well as projec-

tions after the completion of the renovations. The museum also provided historic and projected annual

attendance. All projections were based on the Kansas City Museum 2017-2024 Business Plan, although based

on the current renovation schedule, all expenditures were shifted forward one year to reflect 2018

through 2025.

3. DS obtained multiplier coefficients for the state of Missouri and Kansas City metropolitan area from the

U.S. Department of Commerce, Bureau of Economic Analysis (BEA). Based on the Kansas City metro

area multipliers, DS derived multipliers for the city of Kansas City based on published economic and de-

mographic data.

4. DS obtained tax base information from the state and local government in order to conduct the fiscal im-

pact analysis.

5. DS also obtained visitor spending data from the Kansas City Convention and Visitors Association.

GEOGRAPHIC STUDY AREAS

This report quantifies the baseline and future

economic impacts of KCM operations, off-site

visitor spending, and construction related to Stage I

of the Master Plan. Since economic impact studies

capture economic activity within a targeted graphic

study area, this study focuses of the impacts on 1)

the state of Missouri, 2) city of Kansas City, and 3)

Kansas City metropolitan statistical area (MSA).

For the purposes of this report, the terms Kansas

City metro area and Kansas City region both refer

to the 15-county MSA region.



PHASES OF ANALYSIS

The purpose of this analysis is to determine the historic economic and fiscal impacts of KCM operations and

patron spending, but also the impacts during Stage I of construction and the net incremental impacts of future operations

post-renovation, since programming and exhibition scheduling will be expanded, which in turn, will attract more

visitors annually.

Baseline Impacts

The baseline impacts of KCM were triggered by its historic operational spending from FY 2012 to FY 2016, in

2017 dollars. Additionally, off-site patron spending was estimated using annual attendance from FY 2015 to FY

2017, which was estimated at 19,000 visitors, and visitor spending data from the Kansas City Conventions and

Visitors Association (KC CVA).

Construction Impacts

The total projected spending for Stage I is $22.0 million over five years, or an average annual construction

expenditure of $4.4 million, in 2017 dollars. Using publicly available economic data, the distribution of this

spending for direct labor and non-labor costs was estimated as well as direct jobs supported. These inputs were

used to quantify annual average multiplier impacts.

Projected Impacts

Based on projected operational expenditures and visitation patterns from FY 2021 to FY 2025, the projected

average annual incremental impacts over the baseline were quantified.



ECONOMIC IMPACT ANALYSIS

OVERVIEW

Economic impacts manifest themselves in a number of ways. They are triggered by initial spending by the

KCM (see diagram) to support its operations and programing as well as from its patrons who spend money

off-site in the local and regional economy that can be attributed to their visit. In turn, this spending becomes

income for other businesses and employees who use that money a “second time” to pay for goods and ser-

vices which, in turn, continues a multiplier effect as that money continues to be re-spent through the econo-

my.

Direct economic impacts are represented in this study by the reported dollars spent (a) by KCM in its facili-

ties, and (b) by visitors for hotels, dining, retail goods, and so on while not at the museum but attributable to

their trips to the museum. This “attributable visitor spending” is a direct economic impact for the city of Kansas

City, Kansas City metro area, and Missouri. Direct economic impacts are also generated from spending in

support of the renovation of the museum.

Direct fiscal impacts are the state and local tax benefits generated by the KCM’s operational spending and

visitor spending in the state. Though KCM is a tax-exempt organization, its employees are still subject to

individual income taxes, which are paid to Missouri as well as to the city of Kansas City. Visitor spending



also directly generates income taxes from employees at hotels, shops, and entertainment destinations, as well

as sales taxes at restaurants and retail outlets. And more fiscal benefits are generated as these workers spend

their income in their communities.

Indirect economic impacts measure the “multiplier effects” of the spending that supports the KCM’s op-

erations. The direct spending ripples through the various economies, supporting other businesses and jobs;

employees spend a large proportion of their income near their homes at local businesses such as retail stores,

restaurants, dry cleaners, and others, and also require housing in the area. Thus, every dollar and each job

related to KCM will contribute to additional job support across many economic sectors.

To calculate these indirect impacts, multiplier coefficients are applied to the direct impact dollars. These multipli-

ers take into account an amount of “leakage” from the selected geographic area because some wages and expendi-

tures will be spent outside of that area. Eventually, all of the initial direct spending leaks out of the area after sev-

eral spending cycles, but each subsequent round of spending creates added multiplier effects, though in diminish-

ing degrees.

Multiplier coefficients are obtained from the U.S. Department of Commerce’s Regional Input-Output Multiplier

System (RIMS-II). RIMS-II creates multiplier coefficients from the vast array of economic information rou-

tinely provided to state and federal governments by businesses, individuals, and government agencies. The

multipliers are determined for any selected geographic area that is comprised of one or more counties because

counties comprise the primary geographic reporting geography of the federal and state governments due to

their essentially fixed boundaries. Multiplier coefficients for smaller geographies are not available. For this

report, DS obtained the multipliers for the state of Missouri and Kansas City metropolitan area (RIMS-II

provides individual multipliers for all of the major metropolitan areas in the U.S.). Since multipliers for

smaller and non-county geographies are unavailable, DS derived the multipliers for the City of Kansas City

based on published economic data.5

Economic impacts are demonstrated through multiplier effects in three primary ways:

Output is a measure of the impact on specific geographic areas (in this case, Kansas City metropolitan area,

state of Missouri, and City of Kansas City) economic activity generated from the spending and re-spending

triggered by business and household spending. The output dollars summarize total new or added economic activity

at all points of the production process rather than just the effects on, say, gross state product (which is a measure of

value to the ultimate purchaser). Output is a more robust and larger indicator of economic activity than Gross

State Product (GSP).

5 The City of Kansas City is located in parts of four Missouri counties, but is not a county unto itself, so there are no multipliers that

are readily available for the City. It is possible to estimate such multipliers, however, by comparing various economic and demograph-ic information about the City to the counties of which it is a part.



Housing Earnings is a measure of how much of the total output is attributable to new income generated

for households living in the targeted geographic area including direct compensation paid to staff of KCM as

well as the multiplier effects.

Jobs that are supported in the state of Missouri, city of Kansas City or Kansas City metropolitan area

economies as a result of the multiplier effects, in addition to employees of KCM.

MULTIPLIERS

Multipliers are determined not only for geographic areas but also for a wide array of economic sectors within

those geographic areas (RIMS-II has multipliers for some 62 different sectors). It is important, therefore, to

determine the most relevant economic sectors within which KCM and visitor direct spending take place. The

sectors that apply to the economic activity that occurs as a result of operations and renovation of the Kan-

sas City Museum were chosen based on the North American Industry Classification System (NAICS).

These sectors are:

Performing arts, spectator sports, museums, and related activities, because that is the economic classification of mu-

seums operations and facility maintenance;

Administrative and support services, because that is the economic classification for “routine” administrative

support for organizations and companies;

Construction, which is the best category for capital investment spending;

Households, because employees spend their money differently than museums or construction companies.

This includes salaries, benefits, and any other labor costs.

Thus, the reported expenditure data provided by KCM for this study was segmented to best fit the above sectors.

Spending by the KCM patrons for the parts of the trips into the city, metro, or state that can be attributed to the

museum itself (more on this later) is allocated into six NAICS sectors. There is no “visitor” or “tourism” sector

within RIMS-II, so the sectors that apply to the economic activity that occurs as a result of visitor spending by

museum patrons, are:

Accommodations

Food service and drinking places

Other transportation and support activities

Amusements, gambling and recreation

Retail trade

Air transportation

The economic impact modeling described later creates an overall weighted “visitor” multiplier based on the

proportions of spending by visitors in the above sectors.

These represent the sectors supported by

tourism. An overall “tourism multiplier”

is a weighted average of these six RIMS-

II sectors with weights based on data

from the Kansas City Convention and

Visitors Association on how visitors

spend their money while in Kansas City.



The multipliers used for the state of Missouri are in Table 1 below. Refer to Appendix I for multipliers used

for Kansas City (city and metro).

The output multipliers listed represent the per dollar impact of direct spending in the Missouri economy (Kansas

City economy using the Kansas City multipliers). For instance, $1,000,000 in expenditures in the Museums and

related activities industry6 generates an additional $2,050,000 of economic activity in the state’s economy, including

$756,000 in wages (earnings multiplier).

The employment multiplier measures how many jobs are supported per million dollars in expenditures. Thus, for the

Museums and related activities sector, $1,000,000 in expenditures supports 24 jobs in the state (23.926 to be exact,

[($1,000,000 x 23.926) ÷ 1,000,000].7

Since RIMS-II multipliers are unavailable for the city of Kansas City, DS derived the city multipliers using the

Kansas City metro multipliers and published economic and demographic data. By using population, labor

force, employment, payroll, and income data as well as the number of business establishments in the city

versus metro area, DS determined that the “share” of the city of Kansas City is 28.1 percent of the metro and

the multipliers were weighted accordingly (see Appendix I).

6 Note that the full title for this sector according to the RIMS-II dataset is Performing arts, spectator sports, museums, and related activities.

7 The RIMS-II multipliers from the U.S. Department of Commerce are based on 2016 economic activity and data. Therefore, the

model used in this report for Missouri inflates the million dollars to 2017 dollars, or jobs per $1,040,600, using the Consumer Price Index as of July 1, 2018.

Category Output Earnings Employment

Museum Operations

Museums and related activities 2.050 0.756 23.926

Construction 2.117 0.646 14.872

Households 1.243 0.349 9.906

Visitor Spending

Accommodations 1.894 0.514 17.564

Local Transport 2.094 0.704 26.363

Food Services and Drinking Places 2.125 0.604 25.384

Retail Trade 1.978 0.586 20.889

Amusements, Gambling, and Recreation 1.930 0.469 17.814

Air Transportation 1.643 0.361 7.655

Table 1. Missouri RIMS-II Multipliers

Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2016



BASELINE ECONOMIC IMPACTS FROM OPERATIONS

HISTORIC OPERATIONAL EXPENDITURES

Introduction

Key to any multiplier analysis are the inputs to which the multipliers are applied. KCM provided historic operating

expenses for capital expenses, payroll, and operations and maintenance. DS calculated the average annual expense

for five years of actual operations (FY 2012 to FY 2016) and adjusted the number to 2017 dollars using the Con-

sumer Price Index (CPI).8 Calculating an annual average is particularly important in this case because the expendi-

tures can fluctuate from year-to-year and, thus, the operational inputs for this economic impact analysis should

represent a “typical” year. The households multipliers are only applied to the payroll of workers who live a particular

geographic study area. In the case of KCM, since it is owned and operated by the City of Kansas City with a resi-

dency requirement for all city employees, all labor expenditures can be attributed to all three geographic study are-

as.

Inputs

Table 2 shows that, for fiscal years 2012 through 2016, KCM spent an average of just under $1.3 million annually,

in 2017 dollars, to support its operations and programming, maintain its grounds and facilities, and pay its

employees.

Programming and Facilities – From FY 2012 to 2016, the museum spent an average of $529,000 annually,

in 2017 dollars, for maintenance of its facilities (not including the proposed renovations), programming, mar-

keting, and other typical operations for a museum.

Administrative Support – The museum spent an average of $200,000 annually, in 2017 dollars, for all non-

labor expenditures for development and administration. These expenditures include purchases for equipment,

facility and grounds maintenance, professional service contractors, utilities, insurance, and licenses and fees.

Labor Expenditures – The museum spent an average of $515,000 annually, in 2017 dollars, for wages and all

other labor costs, such as health insurance and other benefits, for full- and part-time employees. During this

time period, the museum employed 6.2 full-time equivalent (FTE) workers.9 Given the city of Kansas City

employee residency requirement, all labor costs can be attributed to the city, state, and region.

8 When bringing annual operational dollars to 2017 dollars, it was assumed that each year corresponded to calendar year rates of

inflation.

9 Full-time equivalent (FTE) is based on the total hours to support a full-time worker annually. For example, if two part-time

employees work 20 hours per week throughout the year, this equates to one FTE.



BASELINE ECONOMIC IMPACTS OF MUSEUM OPERATIONS

City of Kansas City

From FY 2012 to FY 2017, KCM spent an annual average of just under $1.3 million, in 2017 dollars, in the city of

Kansas City to support its operations.

The multipliers vary for different types of major expenditures shown at the top of the table. The “blended”

economic activity multiplier is 0.53, indicating that museum’s indirect economic impact is just over half of its actual

spending within the City.

• The estimated total output (economic activity) triggered by KCM operations ($1.3 million) and the added

multiplier effects ($664,000) was $1.9 million for the city of Kansas City.

Expense Category

Average Annual

Spending

Programming and Facilities 539,000$

Administrative support 200,000$

Labor Expenditures 515,000$

Total 1,254,000$

Table 2. Average Annual Operational Expenditures

of Kansas City Museum, FY 2012 to FY 2016, in

2017 dollars

Programming and

Facilities

Administrative

Support

Employee

Compensation Total

Direct Spending 539,000$ 200,000$ 515,000$ 1,254,000$

Direct Jobs Supported in Kansas City 6

Multipliers (see explanatory notes below)

Output 0.63 0.62 0.39 0.530

Earnings 0.26 0.23 0.12 0.196

Employment 8.80 7.16 3.39 6.072

Added Economic Impact on Kansas City (City)

Output 339,000$ 124,000$ 201,000$ 664,000$

Earnings 139,000$ 47,000$ 60,000$ 246,000$

Indirect Jobs Held by Kansas City Residents 5 1 2 8

Total Economic Impact on Kansas City (City)

Output 1,918,000$

Earnings 761,000$

Total Direct and Indirect Jobs in Kansas City 14

Table 3. Average Annual Baseline Economic Impacts of Kansas City Museum Operations on the City of Kanas City, in

2017 dollars

Output - Total dollar change in the city's economy due to expenditures for KCM operations

Earnings - Total dollar change in earnings of households in the city due to expenditures for KCM operations

Employment - Total change in the number of jobs held by city residents per $1 million of direct spending for KCM operations (adjusted to 2017

dollars)



• Of that amount, KCM operations triggered $761,000 in household earnings for workers in the city of Kansas

City, including $515,000 in direct compensation to employees and $246,000 in added household earnings from

the multiplier effects.

• In total, KCM operations supported 14 full-time equivalent (FTE) jobs for city residents, including an average

of six direct jobs at the museum and eight jobs added through the multiplier effects.

Kansas City Metro Area

From FY 2012 to FY 2017, KCM spent an annual average of just under $1.3 million, in 2017 dollars, in the Kansas

City metro area to support its operations.


economic activity multiplier is 1.9, indicating that museum’s indirect economic impact is nearly two times its actual

spending within the region.


multiplier effects ($2.4 million) was $3.6 million for the Kansas City metro area (numbers do not total due to

rounding).

• Of that amount, KCM operations triggered $1.4 million in household earnings for workers in the Kansas City

metro area, including $515,000 in direct compensation to employees living in the region and $873,000 in added

household earnings from the multiplier effects.

Programming and

Facilities

Administrative

Support

Employee

Compensation Total

Direct Spending 539,000$ 200,000$ 515,000$ 1,254,000$

Direct Jobs Supported in KC Metro 6


Output 2.24 2.21 1.39 1.885

Earnings 0.91 0.83 0.42 0.696

Employment 31.34 25.49 12.07 21.617

Added Economic Impact on Kansas City (Metro)

Output 1,206,000$ 443,000$ 715,000$ 2,364,000$

Earnings 493,000$ 166,000$ 214,000$ 873,000$

Indirect Jobs Held by KC Metro Residents 16 5 6 27

Total Economic Impact on Kansas City (Metro)

Output 3,618,000$

Earnings 1,388,000$

Total Direct and Indirect Jobs 33

Employment - Total change in the number of jobs held by regional residents per $1 million of direct spending for KCM operations (adjusted to

2017 dollars)

Table 4. Average Annual Baselie Economic Impacts of Kansas City Museum Operations on the Kanas City MSA, in

2017 dollars

Output - Total dollar change in the region's economy due to expenditures for KCM operations

Earnings - Total dollar change in earnings of households in the region due to expenditures for KCM operations



• In total, KCM operations supported 33 full-time equivalent (FTE) jobs in the region, including an average of

six direct jobs at the museum and 27 jobs added through the multiplier effects.

State of Missouri

From FY 2012 to FY 2017, KCM spent an annual average of just under $1.3 million, in 2017 dollars, in the state of

Missouri to support its operations.


economic activity multiplier is 1.7, indicating that museum’s indirect economic impact is nearly two times its actual

spending within the state.


multiplier effects ($2.2 million) was $3.4 million for Missouri (numbers do not total due to rounding).

• Of that amount, KCM operations triggered $1.2 million in household earnings for workers in Missouri,

including $515,000 in direct compensation to employees living in the state and $731,000 in added household

earnings from the multiplier effects.

• In total, the KCM operations supported 28 full-time equivalent (FTE) jobs in the state, including an average

of six direct jobs at the museum and 22 jobs added through the multiplier effects.

Programming and

Facilities

Administrative

Support

Employee

Compensation Total

Direct Spending 539,000$ 200,000$ 515,000$ 1,254,000$

Direct Jobs Supported in Missouri 6


Output 2.05 2.05 1.24 1.719

Earnings 0.76 0.71 0.35 0.583

Employment 23.93 22.28 9.91 17.208

Added Economic Impact on Missouri

Output 1,105,000$ 410,000$ 640,000$ 2,155,000$

Earnings 408,000$ 143,000$ 180,000$ 731,000$

Indirect Jobs Held by Missouri Residents 12 4 5 22

Total Economic Impact on Missouri

Output 3,409,000$

Earnings 1,246,000$


Table 5. Average Annual Baseline Economic Impacts of Kansas City Museum Operations on the State of Missouri, in

2017 dollars

Output - Total dollar change in the state's economy due to expenditures for KCM operations

Earnings - Total dollar change in earnings of households in the state due to expenditures for KCM operations

Employment - Total change in the number of jobs held by state residents per $1 million of direct spending for KCM operations (adjusted to

2017 dollars)



FISCAL IMPACTS OF MUSEUM OPERATIONS

The direct fiscal benefits resulting from the operations of the KCM are quantified in using simple assumptions

based on actual tax revenues collected by city and state government.10 Four primary tax and revenue determina-

tions are made.11

Individual income taxes are generated by the wages of KCM employees and by the earnings from multiplier

effects. In essence, any dollars that become wages or earnings are subject to the state’s individual income tax

and, if earned in the city of Kansas City, are subject to the city’s earnings tax. The modeling for fiscal benefits

triggered by KCM applies the ratio of actual income taxes collected by the state in a typical year to total per-

sonal income in the state12 to these locally triggered wages and earnings. Individual income taxes for the state

treasury comprise about 45 percent of all revenues collected by the Missouri Department of Revenue. Indi-

vidual income tax collections in Missouri in FY 2017 were the equivalent of 3.64 percent of all personal earn-

ings in the state of Missouri, as shown on Table 6. The city of Kansas City collects one percent of all wages

and salaries for those individuals who live or work in Kansas City.

Corporate income tax collections are closely correlated to income taxes. In FY 2017, Missouri’s corporate

income taxes generated revenues equivalent to 5.94 percent of individual income taxes. The city of Kansas

City does not collect corporate income tax, but does collect one percent of all corporate revenues for compa-

nies based in Kansas City. The KCM is operated by a city government agency (Kansas City Parks and Recrea-

tion), and thus, does not directly owe corporate taxes, but it is assumed that these are paid as a result of the

multiplier effects. For statewide fiscal impacts, we have estimated that corporate income taxes are 9.53 of

multiplier earnings. The percentage of corporate earnings tax (aka Business Profits) to individual income tax

in the city of Kansas City is 22 percent and we have applied this ratio to individual income taxes.13

Sales and use taxes are generated by visitor spending at Missouri restaurants, hotels, and shopping outlets as

well as spending from museum operations and employees. Sales taxes collected by the state for state

government itself (the state also collects sales taxes for local governments) are also statistically correlated with

income taxes, and were the equivalent of 53.31 percent of income tax collections in 2017. The proportion of

local taxes collected to state taxes collected in 20117 was 60 percent; therefore, DS estimates that city sales

taxes are 60 percent of state sales taxes.

10 The fiscal impacts on the Kansas City metropolitan area were not calculated since it, in itself, is not a taxing jurisdiction.

11 See the Financial and Statistical Report of the Missouri Department of Revenue for Fiscal Year 2017.

12 From the U.S. Bureau of Economic Analysis, Regional Economic Information System, Local Area Personal Income for 2017. See

www.bea.gov.

13 See the Kansas City Comprehensive Annual Financial Report (CAFR) as of April 2017.

http://www.bea.gov/



Other taxes, the fourth major state government revenue line item on Table 6 is really a catch-all for a very

wide range of various taxes and fees. In total, these revenues were the equivalent of 14.15 percent of the sum

of the three other tax line items. These taxes are only paid to the state.

To determine likely tax benefits for state and local government from the direct and multiplier economic impacts of

KCM, the percentages shown on Table 6 are applied to the wages and earnings triggered by museum operations.

State of Missouri

KCM directly spent an average of $515,000 annually in payroll for its employees, which resulted in an average

annual indirect impact of $731,000 in multiplier earnings for state residents. When applying the proportions of

taxes to personal income above, KCM had a direct fiscal impact of $32,000 and an indirect impact of $48,000 in

the state of Missouri totaling $80,000, in 2017 dollars.

Individual Income Tax 7,331,004,000$ 3.64% of personal income in MO

Corporate Income Tax 435,101,000 5.94% of individual income taxes

Sales and Use Taxes (State) 3,659,746,000 49.92% of individual income taxes

Other Taxes* 1,616,664,000 14.15% of three taxes above

Sales and Use Taxes (Local) 3,312,498,000 45.18% of individual income taxes

Total Collections 16,355,013,000$

State Personal Income 266,921,000$

Table 6. Missouri State Taxes Collected, Fiscal Year 2017

Sources: Missouri Department of Revenue; U.S. Bureau of Economic Analysis.

*Cigarette, Financial Institutions, Fuel, Insurance, and Other taxes.

From Direct Earnings for

Missouri Workers

From Indirect Earnings

for Missouri Workers Totals

Direct/Indirect Earnings1

515,000$ 731,000$ 1,246,000$

Individual Income Taxes2

19,000$ 27,000$ 46,000$

Corporate Income Taxes3

-$ 2,000$ 2,000$

Sales and Use Taxes4

9,000$ 13,000$ 22,000$

Other Taxes and Fees5

4,000$ 6,000$ 10,000$

TOTAL 32,000$ 48,000$ 80,000$

5 Other taxes and fees estimate based on ratio of other taxes to the sum of income, corporate, and sales taxes (14.15%).

Source of tax information is the Missouri Department of Revenue's Annual Report for 2017. Source of total personal income for

Missouri is the U.S. Department of Commerce for 2017.

4 Sales and use tax estimate based on ratio of state sales and use tax to individual income tax in Missouri (49.92%),

Table 7. Average Annual Fiscal Impact from Wages and Operations of Kansas City Museum

Operations on Missouri

Estimated Taxes based on Direct/Multiplier Earnings

1 Represents the estimate of direct and indirect impacts from the spending of individual wages.

2 Individual Income Tax estimate based on the ratio of statewide individual income tax collections and total personal income,

which was 3.64% in 2017; therefore, the individual income tax line-item is 3.64% of direct and indirect earnings line-items.

3 Corporate income tax estimate based on ratio of corporate income taxes to individual income tax in Missouri (5.94%). The

Kansas City Museum does not pay corporate income taxes.



City of Kansas City

KCM directly spent an average of $515,000 annually in payroll for its employees, which resulted in an average

annual indirect impact of $246,000 in multiplier earnings for city residents. When applying the proportions of

taxes to personal income above, KCM had a direct fiscal impact of $10,000 and an indirect impact of $12,000 in

the city of Kansas City totaling $22,000.

From Direct Earnings

for Missouri Workers



Direct/Indirect Earnings 515,000$ 246,000$ 761,000$

Individual and Corporate Income Taxes1

5,000$ 4,000$ 9,000$

Sales Taxes2

5,000$ 8,000$ 13,000$

TOTAL 10,000$ 12,000$ 22,000$

2 According to Missouri state records, the percentage of local sales tax collections to state sales tax collections

was 60 percent in 2017. Therefore, to estimate the local sales taxes in Kansas City, the state sales tax

calculation in Table 8 was multiplied by 60 percent.

Table 8. Annual Direct and Indirect Fiscal Impact of Kansas City Museum's

Operations on City of Kansas City


1 Individual and Corporate Income Taxes for direct Kansas City Museum earnings are based on a one percent

income tax on all earnings for city workers. Not-for-profit organizations do not pay the one percent corporate

income tax. For the indirect earnings from multiplier effects, this is based on a 1.5 percent tax to account for

the one percent income tax and 0.5 percent for the corporate tax. Since a portion of the multiplier earnings will

also be at other not-for-profit organizations, schools, or other entities that do not pay corporate income taxes,

DS determined that 0.5 percent is a reasonable estimate.



BASELINE IMPACTS FROM PATRONAGE

VISITOR SPENDING

Introduction

Direct impacts on the state economy are triggered also by the amount of money that Kansas City visitors

spend while in the city of Kansas City, Kansas City metro area, and/or Missouri. Quantifying the inputs and

multiplier effects of visitor spending is a bit more complex than for museum operations. No single source of

necessary information exists. Instead, data from a variety of sources was analyzed to estimate:

How much money visitors spend when in the Kansas City MSA and what they spend it on (in this case,

Kansas City Metro visitor spending was obtained from the Kansas City Convention and Visitors Associa-

tion and used as a proxy for such visitors’ spending while in the city of Kansas City, Kansas City metro

area, and Missouri);

How long visitors stay in the region (again, Kansas City CVA data were utilized);

How many visitors directly experience the KCM (data from KCM);

How much money visitors spend while at the Kansas City Museum (data from KCM); and,

Where visitors originate from (assumptions from DS and KCM).

Not all patrons of the museum have impacts on the city, metro area, and/or state of Missouri; the impacts

depend on the origin of the visitor. Because patrons who are residents of the city of Kansas City are not

bringing “new money” to the city, metro area, or state, these visitors create no net impact and are not consid-

ered. However, patrons who live on the Kansas side of the metro area do have an impact on the city of Kan-

sas City and the state of Missouri when they visit the museum. Essentially, there are four different categories

of patronage with varying impacts to the city, metro area, and state. The following diagram shows this flow

of “new money” as a result of museum patronage.



Visitor A. lives outside of the metro area and outside the state of Missouri; therefore, this visitor impacts the

city, metro area, and state of Missouri when he/she visits the museum. It is assumed that this visitor is more

likely to be an overnight visitor.

Visitor B. lives in the metro area and outside the state of Missouri; therefore, this visitor impacts the city and

state of Missouri when he/she visits the museum. This visitor is more likely to only visit for the day (“day-

tripper visitor”).

Visitor C. lives in the metro area and in the state of Missouri; therefore, his/her impact will only be on the

city of Kansas City. Similar to Visitor B., this visitor will likely be a daytripper.

Finally, Visitor D. lives outside of the metro area and in the state of Missouri; therefore, this visitor’s impacts

are on the metro area and city. It is assumed that this visitor is also more likely to be an overnight visitor.

Patron Spending by Geographic Area

Table 9 summarizes a basic traveler profile for tourists visiting the Kansas City region. On average, 47.6 per-

cent of all visitors stay overnight in the Kansas City metro area and spend an average of $193 per day over

2.30 days ($444 per trip). On average, 52.4 percent of all visitors to the region come for the day and spend an

average of $67. Though the specific breakdown of spending in the city of Kansas City is unavailable, based

on the amount of visitor spending by county, we assume that approximately 60 percent of regional visitor

spending is in the city of Kansas City and 72 percent is in the state of Missouri.

Flow of “New Money” in

Geographic Study Areas



Given ongoing renovations, KCM has had a limited operational capacity since the early 2000s which has lim-

ited attendance (and attendance potential). From FY 2015 to FY 2017, KCM averaged about 19,000 visitors

annually, which is assumed to be the baseline attendance prior to renovation. The museum did not charge

for general admission and on-site revenue generation was from program and events fees and sales from the

gift shop. Average annual sales from the gift shop were around $2.0 per person, so we have adjusted off-site

average spending downwards to account for this spending. KCM did not track visitor origin during this time

period, but since the vast majority of the 19,000 average annual visitors attended special events and programs,

it is assumed that a higher proportion of visitors were regional and KCM had less of an out-of-region draw

than other major cultural institutions.14 15 The distribution of visitors was determined using anecdotal infor-

mation and reasonable and conservative assumptions as presented in Table 10. It is assumed that 75 percent

of visitors live outside the city of Kansas City, 40 percent live outside of Missouri, and 20 percent live outside

of the region.

14 During this time period, general admissions only averaged around 4,000 annually given the limited operational and programming

capacity of the museum. It is assumed that regardless of purpose of visit, any non-local visitor to the museum during this time period still spent money off-site that could be attributed to their trip.

15 KCM does have the capabilities to track zip codes of visitors, although the data was unavailable for this study. It is highly

encouraged that the museum standardizes zip code tracking as part of its annual performance monitoring. This data could be used to inform future economic impact studies and marketing campaigns.

Description

Overnight Visitors

Proportion of all visitors 47.6%

Average Length of Stay in Kansas City 2.3 days

Average Daily Per Capita Spending, in 2017 dollars $192.51

Daytrip Visitors

Proportion of all visitors 52.4%

Average Length of Stay in Kansas City 1.00 day

Average Daily Per Capita Spending, in 2017 dollars $66.60

Visitor Spending by County

Wyandott, KS 6.0%

Clay, MO 9.4%

Johnson, KS 22.5%

Platte, MO 14.9%

Jackson, MO 47.2%

Source: Kansas City Convention and Visitors Association (2016)

Table 9. Kansas City Metro Area Visitor Profile (2017

dollars)



Since daytrip and overnight visitors have different spending patterns, it is important to parse out these visitors

accordingly. It is assumed that all visitors living in the Kansas City metro were daytrip visitors and 50 percent

of non-Kansas City metro residences were daytrip visitors. Therefore, it is assumed that 1,900 visitors were

overnight visitors. Since a portion of non-KC metro resident patrons come from other parts of Missouri, it is

assumed that roughly a third (33 percent) of overnight visitors also live in Missouri.

According to the KC CVA visitor spending data by county presented in Table 9, it is assumed that 100 per-

cent of visitor spending occurs within the Kansas City metro area, 60 percent of visitor spending occurs in

the city of Kansas City, and 72 percent in the state of Missouri. Based on average daily spending data pre-

sented in Table 9, the 1,900 overnight visitors to the museum spent a total of $837,000 on their trip to the

Kansas City metro area [$442.78 spending per trip - $2.0 spent at KCM * 1,900 overnight visitors], of which,

$502,000 (60 percent) was spent in the city of Kansas City and $603,000 was spent in Missouri. Table 11

shows the estimated total daytrip and overnight spending by patron by origin.

Description Annual Average

Total Annual Visitors 19,000

Attendance Patterns

Non-Kansas City Residents (75%) 14,250

Non-Missouri Residents (50%) 9,500

Non-Kansas City MSA Residents (20%) 3,800

Table 10. Historic Attendance at Kansas City Museum and

Origin of Visitor Assumptions, FY 2015-2017



Patron Spending Attributable to Kansas City Museum by Geographic Area

The next step in formulating the appropriate economic impact of Kansas City Museum patrons on the Kan-

sas City area economy is to determine the portion of these “tourist” dollars that can be attributed to their visit

to the Kansas City metro area. Visitors come to the Kansas City metro area for a variety of reasons; the Kan-

sas City Museum is just one of the many attractions in the area. Visitors might come to Kansas City for a

weekend to see a Royals game or a show at the Sprint Center and include the Kansas City Museum as part of

their trip. Or, a portion of patrons may come to Kansas City for the sole purpose of visiting the Kansas City

Museum, then spend additional dollars in the Kansas City area at restaurants, shops, or other attractions.

Without data describing the specific motivations of area visitors, we cannot quantify the number of tourist

dollars spent in the Kansas City area as a direct result of the Kansas City Museum. We can, however, attrib-

ute the portion of a patron’s spending in the Kansas City area based on the proportion of time spent at the muse-

um.

It is assumed that a daytrip visitor spends 8 hours in the Kansas City area. Since the average visit at KCM is

two hours, the proportion of time and spending of this daytrip visitor attributable to KMC is 25.0 percent.

According to KC CVA, an overnight visitor in the Kansas City area spends an average of 2.3 nights, which

Description Overnight Daytripper Total

Average Stay 2.3 1.0

Per capita spending per trip, exlcuding on-site

spending, in 2017 dollars1

$440.78 $64.60

Non-Metro Residents (generating impacts on Kansas City metro area)

Proportion of Visitors 50% 50% 100%

Total Visitors 1,900 1,900 3,800

Total Spending Per Trip in KC Metro (100%) 837,000$ 123,000$ 960,000$

Non-Kansas City Residents (generating impacts on city of Kansas City)


Total Visitors 1,900 12,350 14,250

Total Spending Per Trip in KC Metro (100%) 837,000$ 798,000$ 1,635,000$

Percent Spent in City of Kanas City (60%) 502,000$ 479,000$ 981,000$

Non-Missouri Residents (generating impacts on Missouri)


Total Visitors 1,250 6,350 7,600

Total Spending Per Trip in KC Metro (100%) 551,000$ 410,000$ 961,000$

Percent Spent in Missouri (72%) 397,000$ 295,000$ 692,000$

1 Assumes average annual on-site spending of $2.0 per visitor

Table 11. Estimated Off-Site Spending in Kansas City Metro Area by Kansas City Museum

Patrons



equates to approximately 18 tourist hours [2.3 nights x 8 tourist hours per day].16 Therefore, the proportion

of time and spending of an overnight visitor attributable to KCM is 11.1 percent [2 KCM hours ÷ 18 total

tourist hours].

Table 12 shows the estimates of tourist spending attributable to KCM in the Kansas City metro area, city of

Kansas City, and state of Missouri.

Wages and Jobs Created by Industry Sector by Geographic Area

This visitor spending affects multiple “tourist related” industries in the Kansas City metro area. The KC

CVA breaks these down into seven industry categories: accommodations, local transit, food services and drinking places,

gasoline, retail trade, amusements, gambling, and recreation, and air transportation. The breakdown of spending varies

for overnight versus daytrip visitors. For example, an overnight visitor spends a higher proportion on ac-

commodation (37.0 percent) and air transportation (10.0 percent) than a daytrip visitor. However, a daytrip

visitor spends a higher proportion on gasoline (19.3 percent). Using the KC CVA’s breakdown for overnight

and daytrip visitors, DS estimated spending by industry category using the total estimated visitor spending

derived above.17 For example, accommodations for overnight visitors account for an average of 37.0 percent

16 Of course overnight visitors spend money outside of a typical 8-hour day. Some may get an early start and spend money on an early breakfast or some may have a late night and spend money at bars and restaurants, but these early risers or night owls also do not spend every waking hour at bars, restaurants, shops, and attractions; therefore, we assume that on average, these visitors spend 8 hours a day engaged in what we can call “tourist activities”.

17 The spending by industry data provided by the KC CVA only represents spending in the entire Kansas City metro area; therefore, it is assumed that this is a for spending in the city of Kansas City and state of Missouri.

Overnight Daytrip

Average Length of Stay at KC Museum 2 hours 2 hours

Average Length of Stay in KC Metro (Tourist Hours) 18 hours 8 hours

Proportion of Visitor Spending Attributable KC Museum 11.1% 25.0%

Overnight Daytrip Total

Visitor Spending from Non-Missouri Residents

Total Spending in Missouri 397,000$ 295,000$ 692,000$

Spending Attributable to KC Museum 44,000$ 74,000$ 118,000$

Visitor Spending from Non-KC City Residents

Total Spending in Kansas City 502,000$ 479,000$ 981,000$


Visitor Spending from Non-KC MSA Residents

Total Spending in Kansas City MSA 837,000$ 123,000$ 960,000$


Table 12. Tourism Spending Attributable to Kansas City Museum Patrons

Visitor Spending



of the total cost of the visit to the Kansas City metro area; therefore, in the case of patrons to KCM, this ac-

counts for an annual average of $20,700 [$56,000 total spending in the KC metro area attributable to KCM

for overnight visitors x 37.0 percent for accommodations]. The following tables provide the breakdown by

industry for overnight and daytrip visitors in the city of Kansas City, Kansas City metro area, and state of

Missouri.

Sector Percent Total Percent Total

Accommodations 37.0% 20,700$ 0.0% -$ 11.8% 20,700$

Local Transport 3.4% 1,900$ 5.6% 6,700$ 4.9% 8,600$

Food Services and Drinking Places 19.3% 10,800$ 30.3% 36,400$ 26.8% 47,200$

Gasoline 14.5% 8,100$ 33.5% 40,200$ 27.5% 48,300$

Retail Trade 5.6% 3,100$ 9.3% 11,200$ 8.1% 14,300$

Amusements, Gambling, and Recreation 10.2% 5,700$ 21.3% 25,500$ 17.7% 31,200$

Air Transportation 10.1% 5,600$ 0.0% -$ 3.2% 5,600$

Total 100% 56,000$ 100% 120,000$ 100.0% 175,900$

Table 13. Kansas City Museum Direct Visitor Spending by Sector for City of Kansas City

Overnight Visitors Daytrip Visitors Overall

Breakdown

Total Visitor

Spending

Sources: Kansas City Convention and Visitors Association, Development Strategies


Accommodations 37.0% 34,400$ 0.0% -$ 27.7% 34,400$

Local Transport 3.4% 3,200$ 5.6% 1,700$ 4.0% 4,900$


Gasoline 14.5% 13,500$ 33.5% 10,400$ 19.3% 23,900$

Retail Trade 5.6% 5,200$ 9.3% 2,900$ 6.5% 8,100$



Total 100% 93,000$ 100% 31,000$ 100.1% 124,000$


Table 14. Kansas City Museum Direct Visitor Spending by Sector for Kansas City Metro Area


Breakdown

Total Visitor

Spending


Accommodations 37.0% 16,300$ 0.0% -$ 13.8% 16,300$

Local Transport 3.4% 1,500$ 5.6% 4,100$ 4.7% 5,600$


Gasoline 14.5% 6,400$ 33.5% 24,800$ 26.4% 31,200$

Retail Trade 5.6% 2,500$ 9.3% 6,900$ 8.0% 9,400$



Total 100% 44,000$ 100% 74,000$ 100.1% 118,000$

Sources: Kansas City Convention and Visitors Association, World War I Museum, Development Strategies

Table 15. Kansas City Museum Direct Visitor Spending by Sector for Missouri


Breakdown

Total Visitor

Spending



Tables 16 through 18 further this analysis by estimating the wages created in each of these sectors. This ena-

bles the modeling to estimate the direct impacts that should be applied to the households multiplier and the

number of direct jobs supported by off-site visitor spending. Using aggregate payroll and employment data

from the U.S. Census Bureau for each sector for the state of Missouri and Kansas City MSA, the proportion

of wages to total spending and average wage per employee was determined.18 For example, in the Kansas

City MSA, payroll represents 21 percent of all costs in the accommodations sector with an average wage of

$27,000. When considering total KCM spending in the Kansas City metro area for accommodations, we es-

timate that $7,200 are wages [$34,400 x 21 percent] with a total of 0.3 direct jobs supported in this sector

[$7,200 total wages ÷ $27,000 average wage].

The following tables show the estimated wages and direct jobs supported by visitor spending by KCM spend-

ing offsite in the city of Kansas City, Kansas City metro area, and state of Missouri. Note that fractions of jobs were

used in this case to avoid rounding errors.

18 Data from the U.S. Bureau of the Census, 2012 Economic Census for the Kansas City metro area and state of Missouri. The

Economic Census is conducted every five years ending in “2” or “7.” At the time of this report, the 2017 data was not yet available; therefore, 2012 is the latest available information. Data for some industry sectors was unavailable for the Kansas City metro area (local transport and air transportation), so state of Missouri data was used in these cases.

Sector

Spending by KC

Museum Patrons % Payroll1 Total Wages

Average

Wage2

Total

Direct Jobs

Accommodations 16,300$ 21.5% 3,500$ 23,900$ 0.1

Local Transport 5,600$ 42.4% 2,400$ 21,400$ 0.1

Food Services and Drinking Places 30,900$ 29.6% 9,100$ 15,900$ 0.6

Gasoline 31,200$ 2.7% 900$ 19,000$ 0.0

Retail Trade 9,400$ 8.0% 800$ 27,100$ 0.0

Amusements, Gambling, and Recreation 20,300$ 27.0% 5,500$ 20,100$ 0.3

Air Transportation 4,400$ 18.7% 800$ 62,200$ 0.0

Total 118,100$ 20.2% 23,000$ 21,100$ 1.2

1 U.S. Bureau of the Census, 2012 Economic Census; Payroll listed as a percent of employer sales, shipments, receipts, revenue, or

business done by industry sector. Represents state-level data.

2 Average wage data from Missouri Economic Research and Information Center for Missouri

Table 16. Wages Created by Kansas City Museum Patron Spending in Missouri



Derivation of “Tourism” Multipliers by Geographic Area

After all of the above calculations, estimates and assumptions, the following tables show the determination of

a weighted “tourism” multiplier to apply to the spending by KCM patrons when not at the museum by geo-

graphic area.

Sector

Spending by KC

Museum Patrons % Payroll1

Total Wages

Average

Wage2

Total

Direct Jobs

Accommodations 20,700$ 21.0% 4,300$ 27,000$ 0.2

Local Transport3

8,600$ 45.3% 3,900$ 22,900$ 0.2


Gasoline 48,300$ 2.5% 1,200$ 22,200$ 0.1

Retail Trade 14,300$ 8.6% 1,200$ 28,400$ 0.0


Air Transportation3

5,600$ 13.0% 700$ 57,900$ 0.0

Total 175,900$ 19.6% 34,400$ 20,680$ 1.7


business done by industry sector.

2 Average wage data from Missouri Economic Research and Information Center for Jackson County

Table 17. Wages Created by Kansas City Museum Patron Spending in City of Kansas City

3 Data at MSA level unavailable; therefore, percent payroll and average wages based on data for the state of Missouri

Sector

Spending by KC


Total Wages

Average

Wage2

Total

Direct Jobs

Accommodations 34,400$ 21.0% 7,200$ 27,000$ 0.3

Local Transport3

4,900$ 45.3% 2,200$ 22,900$ 0.1


Gasoline 23,900$ 2.5% 600$ 22,200$ 0.0

Retail Trade 8,100$ 8.6% 700$ 28,400$ 0.0


Air Transportation3

9,400$ 13.0% 1,200$ 57,900$ 0.0

Total 124,100$ 20.5% 24,700$ 23,200$ 1.1

Table 18. Wages Created by Kansas City Museum Patron Spending in Kansas City Metro Area


business done by industry sector.2

Average wage data from Missouri Economic Research and Information Center for Jackson County




Sector Percent Output Input Jobs

Accommodations 12% 0.564 0.163 5.529

Local Transport 5% 0.640 0.225 8.416

Food Services and Drinking Places 27% 0.614 0.188 7.707

Retail Trade (Gasoline) 27% 0.599 0.185 6.555

Retail Trade (Shopping) 8% 0.599 0.185 6.555

Amusements, Gambling, and Recreation 18% 0.586 0.152 5.584

Air Transportation 3% 0.500 0.118 2.604

Weighted Visitor Spending Multipliers 100% 0.582 0.171 6.055


Accommodations 28% 2.008 0.582 19.685

Local Transport 4% 2.278 0.800 29.964








Accommodations 14% 1.894 0.514 17.564

Local Transport 5% 2.094 0.704 26.363







Table 19. Weighted Tourism Multiplier for City of Kansas City

Table 20. Weighted Tourism Multiplier for Kansas City Metro Area

Table 21. Weighted Tourism Multiplier for Missouri



ECONOMIC IMPACTS OF VISITOR SPENDING

Using the inputs derived above, the following tables present the economic impacts of spending by museum

patrons outside the museum by geographic area.

City of Kansas City

The top of the table shows the estimated average annual direct expenditures by KCM patrons in the city of Kansas

City that can be attributed to KCM. Of the $175,900 spent in the city of Kansas City, approximately $34,400 was

direct wages for city residents. Additional results are discussed in the following paragraphs:

• The $175,900 in direct spending by KCM patrons triggered an additional $95,000 in value-added economic

activity in the city of Kansas City, of which $28,000 was household earnings that supported 0.9 job in the city.

The multipliers vary for tourism spending (derived in previous section) and household earnings (“wages supported”).

The “blended” economic activity multiplier is .54, indicating that patron spending in the city of Kansas City

was about half of its actual spending within the city.

• The estimated total output (economic activity) triggered by patron spending ($175,900) and the added

multiplier effects ($95,000) was $270,900 for the city of Kansas City.

Estimated

Operational Support

Estimated Direct

Wages

Total Patron

Spending

Direct Spending 141,500$ 34,400$ 175,900$

Direct Jobs Supported in Kansas City 1.7


Output 0.58 0.39 0.540

Earnings 0.17 0.12 0.159

Employment 6.05 3.39 5.246


Output 82,000$ 13,000$ 95,000$

Earnings 24,000$ 4,000$ 28,000$

Indirect Jobs Held by Kansas City Residents 0.8 0.1 0.9


Output 270,900$

Earnings 62,400$

Total Direct and Indirect Jobs in Kansas City 2.6

Table 22. Average Annual Baseline Economic Impacts of Kansas City Museum Patron Spending on

the City of Kanas City, in 2017 dollars

Output - Total dollar change in the city's economy due to off-site spending by KCM patrons

Earnings - Total dollar change in earnings of households in the city due to off-site spending by KCM patrons

Employment - Total change in the number of jobs held by city residents per $1 million of off-site spending by KCM

patrons (adjusted to 2017 dollars)



• Of that amount, patron spending triggered $62,400 in household earnings for workers in the city of Kansas

City, including $34,400 in direct compensation to employees in tourist-related sectors and $28,000 in added

household earnings from the multiplier effects.

• In total, patron spending supported just under three full-time jobs for city residents, including an estimated 1.7

direct jobs in tourist related sectors and 0.9 jobs added through the multiplier effects. Note that fractions of jobs

were used in this case to avoid rounding errors.

Kansas City Metro Area

The top of the table shows the estimated average annual direct expenditures by KCM patrons in the Kansas City

metro area that can be attributed to KCM. Of the $124,100 spent in the Kansas City metro area, approximately

$24,700 was direct wages for area residents. Additional results are discussed in the following paragraphs:


activity in the Kansas City metro area, $71,000 of which was household earnings that supported 2.4 jobs in the

metro area. The multipliers vary for tourism spending (derived in previous section) and household earnings (“wages

supported”). The “blended” economic activity multiplier is 1.94, indicating that patron spending in the

Kansas City metro area was almost two times its actual spending within the metro area.

Estimated

Operational Support

Estimated Direct

Wages

Total Patron

Spending

Direct Spending 99,400$ 24,700$ 124,100$

Direct Jobs Supported in KC Metro 1.1


Output 2.08 1.39 1.942

Earnings 0.61 0.42 0.572

Employment 21.99 12.07 18.978


Output 207,000$ 34,000$ 241,000$

Earnings 61,000$ 10,000$ 71,000$

Indirect Jobs Held by KC Metro Residents 2.1 0.3 2.4


Output 365,100$

Earnings 95,700$

Total Direct and Indirect Jobs 3.5

Employment - Total change in the number of jobs held by regional residents per $1 million of off-site spending by KCM



the Kanas City MSA, in 2017 dollars

Output - Total dollar change in the region's economy due to off-site spending by KCM patrons

Earnings - Total dollar change in earnings of households in the region due to off-site spending by KCM patrons




multiplier effects ($241,000) was $365,100 for the Kansas City metro area.

• Of that amount, patron spending triggered $95,700 in household earnings for workers in the Kansas City

metro area, including $24,700 in direct compensation to employees in tourist related sectors and $71,000 in

added household earnings from the multiplier effects.

• In total, patron spending supported nearly four full-time jobs for Kansas City metro residents, including an

estimated 1.1 direct jobs in tourist related sectors and 2.4 jobs added through the multiplier effects. Note that

fractions of jobs were used in this case to avoid rounding errors.

State of Missouri

The top of the table shows the estimated average annual direct expenditures by KCM patrons in the state of

Missouri that can be attributed to KCM. Of the $118,100 spent in Missouri, approximately $23,000 was direct

wages for state residents. Additional results are discussed in the following paragraphs:


activity in the state of Missouri, of which $61,000 was household earnings that supported 2.1 jobs in the state.

The multipliers vary for tourism spending (derived in previous section) and household earnings (“wages supported”).

Estimated

Operational Support

Estimated Direct

Wages

Total Patron

Spending

Direct Spending 95,100$ 23,000$ 118,100$

Direct Jobs Supported in Missouri 1.2


Output 1.99 1.24 1.846

Earnings 0.56 0.35 0.517

Employment 20.86 9.91 17.755


Output 189,000$ 29,000$ 218,000$

Earnings 53,000$ 8,000$ 61,000$

Indirect Jobs Held by Missouri Residents 1.9 0.2 2.1


Output 336,100$

Earnings 84,000$



the State of Missouri, in 2017 dollars

Output - Total dollar change in the state's economy due to off-site spending by KCM patrons

Earnings - Total dollar change in earnings of households in the state due to off-site spending by KCM patrons

Employment - Total change in the number of jobs held by state residents per $1 million of off-site spending by KCM




The “blended” economic activity multiplier is 1.85, indicating that patron spending in Missouri was almost two

times its actual spending within the state.


multiplier effects ($218,000) was just over $336,000 or the state of Missouri.

• Of that amount, patron spending triggered $84,000 in household earnings for workers in Missouri, including

$23,000 in direct compensation to employees in tourist related sectors and $61,000 in added household

earnings from the multiplier effects.

• In total, patron spending supported more than three full-time jobs for state residents, including an estimated

1.2 direct jobs in tourist related sectors and 2.1 jobs added through the multiplier effects. Note that fractions of

jobs were used in this case to avoid rounding errors.

FISCAL IMPACTS OF VISITOR SPENDING

Using the same methodology established previously, the fiscal impacts of visitor spending on the city and state

were determined.

State of Missouri

Spending by out-of-state patrons of KCM generated approximately $23,000 annually in direct wages and $61,000

in indirect earnings for state residents as a result of multiplier effects. Overall, spending by out-of-state patrons of

KCM generated $5,300 annually in tax revenues for the state.


Missouri Workers




23,000$ 61,000$ 84,000$


800$ 2,200$ 3,000$


-$ 100$ 100$


400$ 1,100$ 1,500$


200$ 500$ 700$

TOTAL 1,400$ 3,900$ 5,300$

Table 25. Average Annual Fiscal Impact from Off-Site Visitor Spending on Missouri













City of Kansas City

Spending by patrons of KCM from outside of the city of Kansas City generated approximately $34,400 in direct

wages and $28,000 in indirect wages annually for city residents as a result of multiplier effects. Overall, these

earnings generated $1,800 annually in tax revenues for the city.


for Missouri Workers





300$ 400$ 700$

Sales Taxes2

300$ 800$ 1,100$

TOTAL 600$ 1,200$ 1,800$

2 According to Missouri state records, the percentage of local sales tax collections to state sales tax collections

was 60 percent in 2017. Therefore, to estimate the local sales taxes in Kansas City, the state sales tax

calculation in Table 8 was multiplied by 60 percent.

Table 26. Annual Direct and Indirect Fiscal Impact of Kansas City Museum's

Operations on City of Kansas City




income tax. For the indirect earnings from multiplier effects, this is based on a 1.5 percent tax to account for

the one percent income tax and 0.5 percent for the corporate tax. Since a portion of the multiplier earnings will

also be at other not-for-profit organizations, schools, or other entities that do not pay corporate income taxes,

DS determined that 0.5 percent is a reasonable estimate.



SUMMARY OF BASELINE IMPACTS OF KANSAS CITY MUSEUM



ECONOMIC IMPACTS OF PHASE I OF CONSTRUCTION

SCOPE OF WORK

The Kanas City Museum Restoration and

Renovation Master Plan, includes renovating

existing structures and building a new structure

with underground parking that will include a

restaurant, gift shop, and additional exhibition

space. The focus of this analysis is on Stage I,

which includes the $22.0 million renovation of the

primary museum building, Corinthian Hall. The

museum is currently closed during this phase and

will re-open in FY 2021 when renovations are

completed. The museum will maintain routine operations during Stages II and III of the Master Plan with total

completion of all existing structures (not including new building construction) projected for FY 2025.

MODELING INPUTS

According to KCM, Stage I construction began in

April 2015 (FY 2016) with master planning and

architectural design and followed by pre-

construction and construction, and will continue

until FY 2021 for a total design and construction

period of five years with a total cost of $22.0

million, or $4.4 million annually, in 2017 dollars.

Based on data from the 2012 Economic Census,

in the state of Missouri, 20.9 percent of costs in

the Construction sector were allocated to labor

costs resulting in estimated average annual labor

expenditures of $918,000 and non-labor

expenditures of $3.5 million. Assuming an

average labor cost per worker of $52,200,19 this

results in a total of 18 direct full-time equivalent

19 According to the 2012 Economic Census, the average labor cost per worker was $48,000, which was adjusted to 2017 dollars using

the Consumer Price Index (CPI). This average represents annual average wage for full-time equivalent (FTE) construction (and related) workers.

Total Stage I Cost $22,000,000

Years of Planning/Construction 5

Annual Average Construction Expenditures $4,400,000

% allocated to wages1

20.9%

Estimated Labor Expenditures $918,000

City Residents (37%)2

$340,000

Missouri Residents (58%) $532,000

Estimated Non-Labor Expenditures $3,482,000

Estimated Labor Cost per Worker, in 2017 dollars $52,000

Total Direct Workers 18

City Residents (37%) 7

Missouri Residents (58%) 10

1 Based on proportion of payroll to value of construction work in Missouri

(2012 Economic Census)

2 According to OnTheMap (U.S. Census), 37 percent of workers in the city of

Kansas City also live in the city3 According to the American Community Survey, 58 percent of construction

workers in the Kansas City MSA live on the Missouri side of the region

Table 27. Average Annual Stage I Construction Expenditure

Allocation



(FTE) workers supported annually.20 Based on data from the U.S. Census and American Community Survey, it is

assumed that 37 percent of these workers are city residents and 58 percent are Missouri residents, as presented in

Table 27.

ECONOMIC IMPACTS

City of Kansas City

Using the assumptions from Table 27, the following table presents the average annual impacts from Stage I of

construction on the city of Kansas City.

The average annual direct construction spending of $3.8 million will generate $2.2 million in indirect

output for a total of just under $6.1 million in direct and indirect output in the city annually.

This spending will support nearly $1.0 million in direct and indirect housing earnings for city residents.

This spending will support a total of 23 jobs, of which, seven jobs will be directly supported from

construction spending and an additional 16 supported from multiplier effects.

20 Though staffing patterns at various stages of construction will vary considerably, this FTE number represents the average annual

job count for direct workers working 40 hours per week over the entire year. The jobs supported by sub-contractors and other spending are captured by the multiplier impacts.

Capital

Expenditures

Employee

Compensation Total

Direct Spending 3,482,000$ 340,000$ 3,822,000$



Output 0.60 0.39 0.584

Earnings 0.19 0.12 0.184

Employment 4.48 3.39 4.211


Output 2,099,000$ 133,000$ 2,232,000$

Earnings 665,000$ 40,000$ 705,000$

Indirect Jobs Held by Kansas City Residents 15 1 16


Output 6,054,000$

Earnings 1,045,000$


Table 28. Average Annual Economic Impacts of Stage I Construction on the City of Kanas City, in 2017

Output - Total dollar change in the city's economy due to expenditures for Stage I construction

Earnings - Total dollar change in earnings of households in the city due to expenditures for Stage I construction

Employment - Total change in the number of jobs held by city residents per $1 million of direct spending for Stage I

construction (adjusted to 2017 dollars)



Kansas City MSA


construction on the Kansas City region.

The average annual direct construction spending of $4.4 million will generate nearly $8.7 million in

indirect output for a total of more than $13.1 million in direct and indirect output annually in the region

annually.

This spending will support an average of $3.7 million in direct and indirect housing earnings annually for

MSA residents.

This spending will support a total of 82 jobs in the region, of which, 18 will be directly supported from

construction spending and an additional 64 jobs supported from multiplier effects.

Capital

Expenditures

Employee

Compensation Total

Direct Spending 3,482,000$ 918,000$ 4,400,000$



Output 2.15 1.39 1.988

Earnings 0.68 0.42 0.625

Employment 15.94 12.07 14.546


Output 7,472,000$ 1,274,000$ 8,746,000$

Earnings 2,367,000$ 381,000$ 2,748,000$

Indirect Jobs Held by KC Metro Residents 53 11 64


Output 13,146,000$

Earnings 3,666,000$


Employment - Total change in the number of jobs held by regional residents per $1 million of direct spending for Stage I


Table 29. Average Annual Economic Impacts of Stage I Construction on the Kanas City MSA, in 2017

dollars

Output - Total dollar change in the region's economy due to expenditures for Stage I construction

Earnings - Total dollar change in earnings of households in the region due to expenditures for Stage I construction



State of Missouri


construction on the state of Missouri.

The average annual direct construction spending of $4.0 million will generate $8.0 million in indirect

output for a total of more than $12.0 million in direct and indirect output annually in the state.

This spending will support an average of just under $3.0 million in direct and indirect housing earnings

annually for state residents.

This spending will support a total of 65 jobs for state residents, of which, 10 will be directly supported

from construction spending and an additional 55 supported from multiplier effects.

Capital

Expenditures

Employee

Compensation Total

Direct Spending 3,482,000$ 532,000$ 4,014,000$



Output 2.12 1.24 2.001

Earnings 0.65 0.35 0.607

Employment 14.87 9.91 13.659


Output 7,371,000$ 661,000$ 8,032,000$

Earnings 2,249,000$ 186,000$ 2,435,000$

Indirect Jobs Held by Missouri Residents 50 5 55


Output 12,046,000$

Earnings 2,967,000$


Table 30. Average Annual Economic Impacts of Stage I of Construction on the State of Missouri, in 2017

dollars

Output - Total dollar change in the state's economy due to expenditures for Stage I construction

Earnings - Total dollar change in earnings of households in the state due to expenditures for Stage I construction

Employment - Total change in the number of jobs held by state residents per $1 million of direct spending for Stage I




FISCAL IMPACTS

Using the assumptions presented previously in this report, the following tables show the average annual fiscal

impacts of Stage I construction spending on the state of Missouri ($214,000) and city of Kansas City ($56,000).

State of Missouri

City of Kansas City


Missouri Workers




918,000$ 2,435,000$ 3,353,000$


33,000$ 89,000$ 122,000$


-$ 5,000$ 5,000$


16,000$ 44,000$ 60,000$


7,000$ 20,000$ 27,000$

TOTAL 56,000$ 158,000$ 214,000$

Table 31. Average Annual Fiscal Impact from Stage I Construction on Missouri












for City Workers


for City Workers Totals

Direct/Indirect Earnings 918,000$ 705,000$ 1,623,000$


9,000$ 11,000$ 20,000$

Sales Taxes2

10,000$ 26,000$ 36,000$

TOTAL 19,000$ 37,000$ 56,000$

2 According to Missouri state records, the percentage of local sales tax collections to state sales tax collections was

60 percent in 2017. Therefore, to estimate the local sales taxes in Kansas City, the state sales tax calculation in

Table 8 was multiplied by 60 percent.

Table 32. Annual Direct and Indirect Fiscal Impact from Stage I Construction on City of

Kansas City


1 Individual and Corporate Income Taxes for direct Kansas City Museum earnings are based on a one percent income

tax on all earnings for city workers. Not-for-profit organizations do not pay the one percent corporate income tax. For

the indirect earnings from multiplier effects, this is based on a 1.5 percent tax to account for the one percent income

tax and 0.5 percent for the corporate tax. Since a portion of the multiplier earnings will also be at other not-for-profit

organizations, schools, or other entities that do not pay corporate income taxes, DS determined that 0.5 percent is a

reasonable estimate.



FUTURE ECONOMIC IMPACTS OF KANSAS CITY MUSEUM

FUTURE OPERATIONAL EXPENDITURES

According to budget and programming projections by KCM, total annual operational expenditures will increase

from $1.7 million in FY 2021 to $2.6 million in FY 2025, for an average of just under $2.2 million annually.

During this time period, the museum intends on increasing the number of direct employees from 10.9 FTEs to

20.9 FTEs for an average annual employee count of 16.1 FTEs, as presented in Table 33. Again, since all

employees must comply with city residency requirements, all labor costs can be attributed to the city, state, and

region. This spending does not include the projected capital expenditures for Stage II ($14.9 million) and Stage III

($10.8 million) totaling $25.7 million.

Table 33. Projected Operational Expenditures of Kansas City Museum, FY 2021 to FY 2025

Expense Category FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Annual Average

Actual

Labor 841,000$ 1,238,000$ 1,275,000$ 1,367,000$ 1,703,000$ 1,284,800$

Administrative support 133,000$ 196,000$ 205,000$ 214,000$ 224,000$ 194,400$

Programming and Facilities 732,000$ 654,000$ 673,000$ 693,000$ 714,000$ 693,200$

Total 1,706,000$ 2,088,000$ 2,153,000$ 2,274,000$ 2,641,000$ 2,172,400$

Direct Jobs (FTE) 10.9 15.9 15.9 16.9 20.9 16.1

Source: Kansas City Museum



PROJECTED ECONOMIC IMPACTS

City of Kansas City

From FY 2021 to FY 2025, KCM is projected to spend an average of just under $2.2 million annually, in 2017

dollars, to support operations. Using the same methodology presented previously, Table 34 shows the projected

average annual direct and indirect impacts on the city of Kansas City.

The average annual direct spending of $2.2 million will generate $1.0 million in indirect output for a total

of $3.2 million in direct and indirect output in the city.

This spending will support a total of $1.6 million in direct and indirect housing earnings for city residents.

This spending will support a total of 25 jobs for city residents, of which, 16 will be direct museum

employees and an additional nine supported from multiplier effects.

Programming and

Facilities

Administrative

Support

Employee

Compensation Total

Direct Spending 693,000$ 195,000$ 1,285,000$ 2,173,000$



Output 0.60 0.63 0.39 0.480

Earnings 0.19 0.26 0.12 0.153

Employment 4.48 8.80 3.39 4.058


Output 418,000$ 123,000$ 501,000$ 1,042,000$

Earnings 132,000$ 50,000$ 150,000$ 332,000$

Indirect Jobs Held by Kansas City Residents 3 2 4 9


Output 3,215,000$

Earnings 1,617,000$


Table 34. Projected Average Annual Economic Impacts of Kansas City Museum Operations on the City of Kanas City

from FY 2021 to FY 2025, in 2017 dollars

Output - Total dollar change in the city's economy due to expenditures for future KCM operations

Earnings - Total dollar change in earnings of households in the city due to expenditures for future KCM operations

Employment - Total change in the number of jobs held by city residents per $1 million of direct spending for future KCM operations (adjusted to

2017 dollars)



State of Missouri



average annual direct and indirect impacts on the state of Missouri.

The average annual direct spending of $2.2 million will generate $3.5 in indirect output for a total of more

than $5.6 million in direct and indirect output in the state.

This spending will support a total of $2.3 million in direct and indirect housing earnings for city residents.

This spending will support a total of 43 jobs for state residents, of which, 16 will be direct museum

employees and an additional 27 supported from multiplier effects.

Programming and

Facilities

Administrative

Support

Employee

Compensation Total

Direct Spending 693,000$ 195,000$ 1,285,000$ 2,173,000$



Output 2.12 2.05 1.24 1.594

Earnings 0.65 0.76 0.35 0.480

Employment 14.87 23.93 9.91 12.251


Output 1,467,000$ 400,000$ 1,597,000$ 3,464,000$

Earnings 448,000$ 147,000$ 449,000$ 1,044,000$

Indirect Jobs Held by Missouri Residents 10 4 12 27


Output 5,637,000$

Earnings 2,329,000$


Table 35. Projected Average Annual Economic Impacts of Kansas City Museum Operations on the State of Missouri


Output - Total dollar change in the state's economy due to expenditures for future KCM operations

Earnings - Total dollar change in earnings of households in the state due to expenditures for future KCM operations

Employment - Total change in the number of jobs held by state residents per $1 million of direct spending for future KCM operations (adjusted

to 2017 dollars)



Kansas City MSA



average annual direct and indirect impacts on the Kansas City MSA.

The average annual direct spending of $2.2 million will generate $3.7 million in indirect output for a total

of $5.9 million in direct and indirect output in the region.

This spending will support a total of $2.5 million in direct and indirect housing earnings for MSA

residents.

This spending will support a total of 47 jobs for residents in the Kansas City MSA, of which, 16 will be

direct museum employees and an additional 31 supported from multiplier effects.

Programming and

Facilities

Administrative

Support

Employee

Compensation Total

Direct Spending 693,000$ 195,000$ 1,285,000$ 2,173,000$



Output 2.15 2.24 1.39 1.706

Earnings 0.68 0.91 0.42 0.544

Employment 15.94 31.34 12.07 14.449


Output 1,487,000$ 436,000$ 1,784,000$ 3,707,000$

Earnings 471,000$ 178,000$ 534,000$ 1,183,000$

Indirect Jobs Held by KC Metro Residents 11 6 15 31


Output 5,880,000$

Earnings 2,468,000$


Employment - Total change in the number of jobs held by regional residents per $1 million of direct spending for future KCM operations

(adjusted to 2017 dollars)

Table 36. Projected Average Annual Economic Impacts of Kansas City Museum Operations on the Kanas City MSA


Output - Total dollar change in the region's economy due to expenditures for future KCM operations

Earnings - Total dollar change in earnings of households in the region due to expenditures for future KCM operations



PROJECTED FISCAL IMPACTS

State of Missouri

From FY 2021 to FY 2025, KCM is projected to spend $1.3 million in direct wages (all based in Missouri) with

indirect impacts on the state of $1.0 million. Using the methodologies established previously in this report, Table

37 shows the total direct and indirect fiscal impacts of $147,000.

City of Kansas City

The direct wages of $1.3 million and indirect wages supported through multiplier effects of $332,000 will generate

an average of $43,000 in tax revenues for the city annually.


Missouri Workers




1,285,000$ 1,044,000$ 2,329,000$


47,000$ 38,000$ 85,000$


-$ 2,000$ 2,000$


23,000$ 19,000$ 42,000$


10,000$ 8,000$ 18,000$

TOTAL 80,000$ 67,000$ 147,000$




Table 37. Average Annual Fiscal Impact from Wages and Operations of Kansas City Museum

Operations on Missouri









for City Workers



Direct/Indirect Earnings 1,285,000$ 332,000$ 1,617,000$


13,000$ 5,000$ 18,000$

Sales Taxes2

14,000$ 11,000$ 25,000$

TOTAL 27,000$ 16,000$ 43,000$

Table 38. Annual Direct and Indirect Fiscal Impact of Kansas City Museum's Operations

on City of Kansas City




income tax. For the indirect earnings from multiplier effects, this is based on a 1.5 percent tax to account for the

one percent income tax and 0.5 percent for the corporate tax. Since a portion of the multiplier earnings will also be

at other not-for-profit organizations, schools, or other entities that do not pay corporate income taxes, DS

determined that 0.5 percent is a reasonable estimate. 2 According to Missouri state records, the percentage of local sales tax collections to state sales tax collections was

60 percent in 2017. Therefore, to estimate the local sales taxes in Kansas City, the state sales tax calculation in

Table 8 was multiplied by 60 percent.



FUTURE PATRONAGE AND VISITOR SPENDING

After the completion of Stage I, KCM will offer a broader visitor experience that should position the institution as

a major regional destination. The museum is projected to have an annual attendance of 50,000 in FY 2021 and

increase to 73,205 in FY 2025 for an annual average attendance of just over 61,000 during this time period, as

presented in the approved KCM 2017-2024 Business Plan. Visitation patterns will likely align with other major

cultural institutions as more out of town visitors will likely include KCM on their itineraries during their visit to the

Kansas City region and expanded programming and broader spectrum of special exhibitions and events will likely

draw more visitors from around the region. Therefore, it is assumed that 80 percent of visitors will come from

outside of the City of Kansas City, 65 percent from outside of Missouri, and 40 percent from outside of the

Kansas City region. These assumptions are considered reasonable, conservative, and consistent with the visitation

patterns of other regional cultural institutions.

Given expanded concessions including a museum restaurant, enhanced gift shop, and admissions for special

exhibitions, it is assumed that on-site spending will average $10.00 per person. Using the same assumptions and

methodologies presented previously in this report Table 40 and Table 41 show the estimated spending for each

type of visitor and spending attributable to the city, state, and region.

Description

Total Annual Visitors 19,000 61,000

Attendance Patterns

Non-Kansas City Residents 75% 14,250 80% 48,800

Non-Missouri Residents 40% 7,600 65% 39,650

Non-Kansas City MSA Residents 20% 3,800 40% 24,400

Average Annual Attendance

Table 39. Projected Attendance at Kansas City Museum and Origin

of Visitor Assumptions

Historic

FY2015-2017

Projected

FY2021-2025



Description Overnight Daytripper Total

Average Stay 2.3 1.0

Per capita spending per trip, exlcuding on-site

spending, in 2017 dollars1

$432.78 $56.60

Non-Metro Residents (generating impacts on Kansas City metro area)


Total Visitors 12,200 12,200 24,400

Total Spending Per Trip in KC Metro (100%) 5,280,000$ 691,000$ 5,971,000$

Percent Spent in City of Kanas City (60%) 3,168,000$ 415,000$ 3,583,000$

Percent Spent in Missouri (72%) 3,802,000$ 498,000$ 4,300,000$

Non-Kansas City Residents (generating impacts on city of Kansas City)


Total Visitors 12,200 36,600 48,800

Total Spending Per Trip in KC Metro (100%) 5,280,000$ 2,072,000$ 7,352,000$

Percent Spent in City of Kanas City (60%) 3,168,000$ 1,243,000$ 4,411,000$

Percent Spent in Missouri (72%) 3,802,000$ 1,492,000$ 5,294,000$

Non-Missouri Residents (generating impacts on Missouri)


Total Visitors 8,100 31,550 39,650

Total Spending Per Trip in KC Metro (100%) 3,505,000$ 1,786,000$ 5,291,000$

Percent Spent in City of Kanas City (60%) 2,103,000$ 1,072,000$ 3,175,000$

Percent Spent in Missouri (72%) 2,524,000$ 1,286,000$ 3,810,000$

1 Assumes average annual on-site spending of $10.0 per visitor

Table 40. Estimated Off-Site Spending in Kansas City Metro Area by Kansas City Museum

Patrons

Overnight Daytrip

Average Length of Stay at KC Museum 2 hours 2 hours

Average Length of Stay in KC Metro (Tourist Hours) 18 hours 8 hours

Proportion of Visitor Spending Attributable KC Museum 11.1% 25.0%

Overnight Daytrip Total

Visitor Spending from Non-Missouri Residents

Total Spending in Missouri 2,524,000$ 1,286,000$ 3,810,000$


Visitor Spending from Non-KC City Residents

Total Spending in Kansas City 3,168,000$ 1,243,000$ 4,411,000$


Visitor Spending from Non-KC MSA Residents

Total Spending in Kansas City MSA 5,280,000$ 691,000$ 5,971,000$


Table 41 Tourism Spending Attributable to Kansas City Museum Patrons

Visitor Spending



Therefore, based on projected attendance, assumptions on origin of visitor, and spending patterns, it is estimated

that future visitors to KCM will attribute $331,000 of direct spending to the city of Kansas City, $379,000 to the

Kansas City MSA, and $301,000 to the state of Missouri. See Appendix for derivation of wages, direct jobs, and

weighted tourism multipliers.

ECONOMIC IMPACTS

City of Kansas City

From FY 2021 to FY 2025, patrons to KCM will spend an estimated $662,800 in the city of Kansas City that could

be attributed to their visit. Table 42 shows the projected economic impacts of this spending on the city.

The average annual direct spending of $662,800 will generate $360,000 in indirect output for a total of

$1.0 million in direct and indirect output in the city.

This spending will support a total of $237,000 in direct and indirect housing earnings for city residents.

This spending will support a just under 10 full-time jobs for city residents in the Kansas City MSA, of

which, six will be direct museum employees and an additional 3.5 supported from multiplier effects. Note

that fractions of jobs were used in this case to avoid rounding errors.

Estimated

Operational Support

Estimated Direct

Wages

Total Patron

Spending

Direct Spending 531,600$ 131,200$ 662,800$

Direct Jobs Supported in Kansas City 6.1


Output 0.58 0.39 0.543

Earnings 0.17 0.12 0.160

Employment 6.04 3.39 5.228


Output 309,000$ 51,000$ 360,000$

Earnings 91,000$ 15,000$ 106,000$

Indirect Jobs Held by Kansas City Residents 3.0 0.4 3.5


Output 1,022,800$

Earnings 237,200$

Total Direct and Indirect Jobs in Kansas City 9.6

Table 42. Projected Average Annual Economic Impacts of Future Patron Spending on the City of

Kanas City, in 2017 dollars

Output - Total dollar change in the city's economy due to off-site spending by KCM patrons

Earnings - Total dollar change in earnings of households in the city due to off-site spending by KCM patrons

Employment - Total change in the number of jobs held by city residents per $1 million of off-site spending by KCM




Kansas City MSA

From FY 2021 to FY 2025, patrons to KCM will spend an estimated $602,000 in the state of Missouri that could

be attributed to their visit. Table 43 shows the projected economic impacts of this spending on the state.

The average annual direct spending of $602,000 will generate $1.1 million in indirect output for a total of

$1.0 million in direct and indirect output in the state.

This spending will support a total of $427,000 in direct and indirect housing earnings for state residents.

This spending will support a just under 17 full-time jobs for city residents in the state, of which, six will be

direct museum employees and an additional 10.6 supported from multiplier effects. Note that fractions of jobs


Estimated

Operational Support

Estimated Direct

Wages

Total Patron

Spending

Direct Spending 484,000$ 118,000$ 602,000$

Direct Jobs Supported in Missouri 6.0


Output 1.98 1.24 1.839

Earnings 0.55 0.35 0.513

Employment 20.59 9.91 17.535


Output 960,000$ 147,000$ 1,107,000$

Earnings 268,000$ 41,000$ 309,000$

Indirect Jobs Held by Missouri Residents 9.4 1.1 10.6


Output 1,709,000$

Earnings 427,000$


Table 43. Projected Average Annual Economic Impacts of Kansas City Museum Patron Spending

on the State of Missouri, in 2017 dollars

Output - Total dollar change in the state's economy due to off-site spending by KCM patrons

Earnings - Total dollar change in earnings of households in the state due to off-site spending by KCM patrons

Employment - Total change in the number of jobs held by state residents per $1 million of off-site spending by KCM




State of Missouri

From FY 2021 to FY 2025, patrons to KCM will spend an estimated $760,000 in the Kansas City MSA that could

be attributed to their visit. Table 44 shows the projected economic impacts of this spending on the state.

The average annual direct spending of $760,000 will generate $1.5 million in indirect output for a total of

$2.2 million in direct and indirect output in the region.

This spending will support a total of $586,000 in direct and indirect housing earnings for state residents.

This spending will support around 21 full-time jobs for city residents in the state, of which, seven will be

direct museum employees and an additional 14 supported from multiplier effects. Note that fractions of jobs


Estimated

Operational Support

Estimated Direct

Wages

Total Patron

Spending

Direct Spending 608,000$ 152,000$ 760,000$

Direct Jobs Supported in KC Metro 6.8


Output 2.08 1.39 1.943

Earnings 0.61 0.42 0.571

Employment 21.92 12.07 18.911


Output 1,266,000$ 211,000$ 1,477,000$

Earnings 371,000$ 63,000$ 434,000$

Indirect Jobs Held by KC Metro Residents 12.6 1.7 14.4


Output 2,237,000$

Earnings 586,000$


Employment - Total change in the number of jobs held by regional residents per $1 million of off-site spending by KCM


Table 44. Projected Average Annual Economic Impacts of Kansas City Museum Patron Spending

on the Kanas City MSA, in 2017 dollars

Output - Total dollar change in the region's economy due to off-site spending by KCM patrons

Earnings - Total dollar change in earnings of households in the region due to off-site spending by KCM patrons



FISCAL IMPACTS

State of Missouri

The direct and indirect wages generated from off-site patron spending will generate an average of $26,000 in state

tax revenues annually.

City of Kansas City

The direct and indirect wages generated from off-site patron spending will generate an average of $7,000 in city tax

revenues annually.


Missouri Workers




118,000$ 309,000$ 427,000$


4,000$ 11,000$ 15,000$


-$ 1,000$ 1,000$


2,000$ 5,000$ 7,000$


1,000$ 2,000$ 3,000$

TOTAL 7,000$ 19,000$ 26,000$

Table 45. Average Annual Fiscal Impact from Off-Site Visitor Spending on Missouri












for City Workers





1,000$ 2,000$ 3,000$

Sales Taxes2

1,000$ 3,000$ 4,000$

TOTAL 2,000$ 5,000$ 7,000$

2 According to Missouri state records, the percentage of local sales tax collections to state sales tax collections was 60

percent in 2017. Therefore, to estimate the local sales taxes in Kansas City, the state sales tax calculation in Table 46

was multiplied by 60 percent.

Table 46. Average Annual Fiscal Impact from Off-Site Visitor Spending on City of Kansas

City


1 Individual and Corporate Income Taxes for direct Kansas City Museum earnings are based on a one percent income

tax on all earnings for city workers. Not-for-profit organizations do not pay the one percent corporate income tax. For

the indirect earnings from multiplier effects, this is based on a 1.5 percent tax to account for the one percent income

tax and 0.5 percent for the corporate tax. Since a portion of the multiplier earnings will also be at other not-for-profit

organizations, schools, or other entities that do not pay corporate income taxes, DS determined that 0.5 percent is a

reasonable estimate.



SUMMARY OF INCREMENTAL ECONOMIC IMPACTS OF KANSAS CITY MUSEUM

Based on the assumptions and modeling presented in this report, the following tables summarize the baseline and

future impacts of KCM operations and patron spending, in addition to construction stage impacts.

City of Kansas City

State of Missouri

Kansas City MSA

Table 47. Average Annual Incremental Impacts Over Baseline on City of Kansas City, in 2017 dollars

Operations Visitor Spending Total Operations Visitor Spending Total

Direct Impacts

Direct Spending 1,254,000$ 175,900$ 1,429,900$ 2,173,000$ 662,800$ 2,835,800$ 1,405,900$ 3,822,000$

Direct Jobs 6 2 8 16 6 22 14 7

Total Indirect Impacts

Output 664,000$ 95,000$ 759,000$ 1,042,000$ 360,000$ 1,402,000$ 643,000$ 2,232,000$

Earnings 246,000$ 28,000$ 274,000$ 332,000$ 106,000$ 438,000$ 164,000$ 705,000$

Jobs 8 1 9 9 3 12 4 16

Total Direct and Indirect Impacts

Output 1,918,000$ 270,900$ 2,188,900$ 3,215,000$ 1,022,800$ 4,237,800$ 2,048,900$ 6,054,000$

Earnings 761,000$ 62,400$ 823,400$ 1,617,000$ 237,200$ 1,854,200$ 1,030,800$ 1,045,000$

Total Jobs 14 3 16 25 10 35 18 23

Average Annual

Impacts During

Construction

Baseline (FY 2012 to FY 2016) Projected (FY 2021 to FY 2025)

Average Annual

Incremental

Impacts

Table 48. Average Annual Incremental Impacts Over Baseline on State of Missouri, in 2017 dollars

Operations Visitor Total Operations Visitor Total

Direct Impacts

Direct Spending 1,254,000$ 118,100$ 1,372,100$ 2,173,000$ 602,000$ 2,775,000$ 1,402,900$ 4,014,000$

Direct Jobs 6 1 7 16 6 22 15 10


Output 2,155,000$ 218,000$ 2,373,000$ 3,464,000$ 1,107,000$ 4,571,000$ 2,198,000$ 8,032,000$

Earnings 731,000$ 61,000$ 792,000$ 1,044,000$ 309,000$ 1,353,000$ 561,000$ 2,435,000$

Jobs 22 2 24 27 11 37 14 55


Output 3,409,000$ 336,100$ 3,745,100$ 5,637,000$ 1,709,000$ 7,346,000$ 3,600,900$ 12,046,000$

Earnings 1,246,000$ 84,000$ 1,330,000$ 2,329,000$ 427,000$ 2,756,000$ 1,426,000$ 2,967,000$

Total Jobs 28 3 31 43 17 59 28 65


Average Annual

Incremental

Impacts

Additional

Average Annual

Impacts During

Construction

Table 49. Average Annual Incremental Impacts Over Baseline on Kansas City Metro Area, in 2017 dollars

Operations Visitor Total Operations Visitor Total

Direct Impacts

Direct Spending 1,254,000$ 124,100$ 1,378,100$ 2,173,000$ 760,000$ 2,933,000$ 1,554,900$ 4,400,000$

Direct Jobs 6 1 7 16 7 23 16 18


Output 2,364,000$ 241,000$ 2,605,000$ 3,707,000$ 1,477,000$ 5,184,000$ 2,579,000$ 8,746,000$

Earnings 873,000$ 71,000$ 944,000$ 1,183,000$ 434,000$ 1,617,000$ 673,000$ 2,748,000$

Jobs 27 2 29 31 14 46 16 64


Output 3,618,000$ 365,100$ 3,983,100$ 5,880,000$ 2,237,000$ 8,117,000$ 4,133,900$ 13,146,000$

Earnings 1,388,000$ 95,700$ 1,483,700$ 2,468,000$ 586,000$ 3,054,000$ 1,570,300$ 3,666,000$

Total Jobs 33 3 37 47 21 69 32 82

Additional

Average Annual

Impacts During

Construction


Average Annual

Incremental

Impacts


DEVELOPMENT STRATEGIES I

APPENDIX


DEVELOPMENT STRATEGIES II

A. Multipliers


Museum Operations


Construction 2.146 0.680 15.945

Households 1.388 0.415 12.072

Visitor Spending




Retail Trade 2.134 0.659 23.338



Kansas City MSA RIMS-II Multipliers

Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2016


Museum Operations


Construction 0.603 0.191 4.478

Households 0.390 0.117 3.391

Visitor Spending




Retail Trade 0.599 0.185 6.555



City of Kansas City RIMS-II Multipliers

Source: U.S. Department of Commerce, Bureau of Economic Analysis, 2016;

Development Strategies


DEVELOPMENT STRATEGIES III

Derivation of Multiplier Adjustment for City of Kansas City

Comparison Data

Kansas City,

Missouri

Kansas City

Metro Area

KCMO as

Pct of

Metro

Weight for

Multipliers

Adjusted

KCMO Pct.

Population 471,767 2,070,147 22.8% 1.00 22.8%

Households 196,416 806,553 24.4% 1.20 29.2%

Labor Force 253,904 1,096,665 23.2% 1.20 27.8%

Employment 236,326 1,031,481 22.9% 1.40 32.1%

Aggregate Household Income (millions) 12,984 63,643 20.4% 1.40 28.6%

AVERAGE 22.7% 28.1%

Source: American Community Survey 2016


DEVELOPMENT STRATEGIES IV

B. Future Patron Spending by Sector


Accommodations 37.0% 217,200$ 0.0% -$ 28.6% 217,200$

Local Transport 3.4% 19,900$ 5.6% 9,700$ 3.9% 29,600$


Gasoline 14.5% 85,000$ 33.5% 58,000$ 18.8% 143,000$

Retail Trade 5.6% 32,900$ 9.3% 16,100$ 6.4% 49,000$



Total 100% 587,000$ 100% 173,000$ 100.0% 760,000$


Accommodations 37.0% 130,200$ 0.0% -$ 19.6% 130,200$

Local Transport 3.4% 11,900$ 5.6% 17,400$ 4.4% 29,300$


Gasoline 14.5% 51,000$ 33.5% 104,200$ 23.4% 155,200$

Retail Trade 5.6% 19,700$ 9.3% 28,900$ 7.3% 48,600$



Total 100% 352,000$ 100% 311,000$ 100.0% 662,800$


Accommodations 37.0% 103,600$ 0.0% -$ 17.2% 103,600$

Local Transport 3.4% 9,500$ 5.6% 18,100$ 4.6% 27,600$


Gasoline 14.5% 40,600$ 33.5% 107,900$ 24.7% 148,500$

Retail Trade 5.6% 15,700$ 9.3% 29,900$ 7.6% 45,600$



Total 100% 280,000$ 100% 322,000$ 100.0% 602,000$


Kansas City Museum Direct Visitor Spending by Sector for City of Kansas City

Kansas City Museum Direct Visitor Spending by Sector for Kansas City Metro Area


Breakdown

Total Visitor

Spending


Breakdown

Total Visitor

Spending


Sources: Kansas City Convention and Visitors Association, World War I Museum, Development Strategies

Kansas City Museum Direct Visitor Spending by Sector for Missouri


Breakdown

Total Visitor

Spending


DEVELOPMENT STRATEGIES V

C. Wages and Direct Jobs Supported from Future Patron Spending

Sector

Spending by KC


Total Wages

Average

Wage2

Total

Direct Jobs

Accommodations 217,200$ 21.0% 45,500$ 27,000$ 1.7

Local Transport3

29,600$ 45.3% 13,400$ 22,900$ 0.6


Gasoline 143,000$ 2.5% 3,600$ 22,200$ 0.2

Retail Trade 49,000$ 8.6% 4,200$ 28,400$ 0.1


Air Transportation3

59,100$ 13.0% 7,700$ 57,900$ 0.1

Total 760,100$ 20.5% 151,800$ 23,200$ 6.8

Sector

Spending by KC


Total Wages

Average

Wage2

Total

Direct Jobs

Accommodations 130,200$ 21.0% 27,300$ 27,000$ 1.0

Local Transport3

29,300$ 45.3% 13,300$ 22,900$ 0.6


Gasoline 155,200$ 2.5% 3,900$ 22,200$ 0.2

Retail Trade 48,600$ 8.6% 4,200$ 28,400$ 0.1


Air Transportation3

35,400$ 13.0% 4,600$ 57,900$ 0.1

Total 662,800$ 19.8% 131,200$ 21,399$ 6.1

Sector

Spending by KC

Museum Patrons % Payroll1 Total Wages

Average

Wage2

Total

Direct Jobs

Accommodations 103,600$ 21.5% 22,300$ 23,900$ 0.9

Local Transport 27,600$ 42.4% 11,700$ 21,400$ 0.5


Gasoline 148,500$ 2.7% 4,100$ 19,000$ 0.2

Retail Trade 45,600$ 8.0% 3,700$ 27,100$ 0.1


Air Transportation 28,200$ 18.7% 5,300$ 62,200$ 0.1

Total 602,200$ 20.2% 118,200$ 21,100$ 6.0

Wages Created by Kansas City Museum Patron Spending in Kansas City Metro Area


business done by industry sector.

2 Average wage data from Missouri Economic Research and Information Center for Jackson County


business done by industry sector.2

Average wage data from Missouri Economic Research and Information Center for Jackson County


Wages Created by Kansas City Museum Patron Spending in City of Kansas City


business done by industry sector. Represents state-level data.

2 Average wage data from Missouri Economic Research and Information Center for Missouri


Wages Created by Kansas City Museum Patron Spending in Missouri


DEVELOPMENT STRATEGIES VI

D. Weighted Tourism Multipliers from Future Patron Spending


Accommodations 20% 0.564 0.163 5.529

Local Transport 4% 0.640 0.225 8.416








Accommodations 29% 2.008 0.582 19.685

Local Transport 4% 2.278 0.800 29.964








Accommodations 17% 1.894 0.514 17.564

Local Transport 5% 2.094 0.704 26.363







Weighted Tourism Multipliers for City of Kansas City

Weighted Tourism Multipliers for Kansas City Metro Area

Weighted Tourism Multipliers for Missouri

Kansas City Museum – The Kansas City Museum - A STUDY OF … · 2019-07-08 · EXECUTIVE SUMMARY...

Documents

Transcript of Kansas City Museum – The Kansas City Museum - A STUDY OF … · 2019-07-08 · EXECUTIVE SUMMARY...