Lesser discusses economic impact of pandemic, $49 million lossDate: 5/6/2020 WESTERN MASS. – While COVID-19 has obvious health-related impacts, state Sen. Eric Lesser, along with other local officials, explained that the pandemic has taken approximately $49 million off the table for Western Mass.
On May 1, Lesser hosted a livestream conference with President of Greater Springfield Convention and Visitors Bureau Mary Kay Wydra and CEO of the Naismith Memorial Basketball Hall of Fame John Doleva on the impacts on tourism and business in Western Massachusetts that the COVID-19 outbreak has caused.
Lesser began the livestream by sharing that “tourism, arts and culture is actually the third-largest sector of the economy in Massachusetts statewide in terms of total employment, and in Western Massachusetts in particular it is an essential part of our economy.” He noted that while the legislature has been working to promote the tourism sector statewide, their conversation would be focused on Western Mass.
Wydra shared that she has regularly met with Lesser via phone conference after the pandemic hit the area to discuss tourism and the economic impact.
“Unfortunately, I have the task of reporting on business that is being lost because of the pandemic,” she said.
“We have our big attractions and our small businesses who all adhere to the mandatory closures so clearly jobs have been impacted, tax revenue coming in,” Wydra said.
“It’s been grim,” Wydra said to Lesser and Doleva. “We’re an industry that was really hard hit when tourism measures were put in place in the beginning at a national level...it just kept spiraling downward until it got to our local economy.”
She said that they had been tracking lost group business, “conventions and meetings at the MassMutual Center, the Eastern States Exposition, some of our downtown Springfield hotels that have a lot of meeting space,” she explained, since the pandemic began, “One hundred eighteen pieces of business have been lost,” with an economic impact of a loss of $49 million to the local economy.
“We’re hopeful that with the flattening of the curve, certainly out here in Western Mass., that hopefully the numbers [of events cancelled] won’t keep climbing,” Wydra said. She noted that the cancellations go into the month of August.
“After that, we’re not certain. We’re hopeful we can get back on our feet as soon as that stay at home order is lifted and people feel comfortable for their safety and their health that they’d want to travel,” Wydra said.
Doleva interjected, noting that it was worth mentioning “how healthy the industry was” prior to 2020. He mentioned last year was a record–breaking Big E year, the Basketball Hall of Fame had remodeled their museum and was looking forward to the Class of 2020, as well as the second full year of MGM. Doleva stated if the pandemic hadn’t occurred, tourism in Western Mass. “really was on a nice uptick.”
Wydra agreed, noting the MassMutual Center was recording a record year. “We were really on a nice trajectory upward...we were trending upward from the previous year – then we just plummeted downward and took a 40 percent occupancy loss in the month of April, we typically are about 60 percent and are now down to 20 percent occupancy at this point,” Wydra said.
She added that there are seven hotels in the region that have completely shut their doors for the time being, and thinks that “most” will come back when restrictions are loosened.
Turning to Doleva, he shared that the Basketball Hall of Fame recently underwent a $22 million “investment experience” which they originally planned to open to the public in March, however now, the organization is hoping it will be open in June.
“Summertime tourism is where it’s at for organizations,” like the Hall of Fame, Six Flags and others in the area, Doleva explained.
He stated that the Hall of Fame is planning to make a major investment in communications to judge how people feel about leaving their homes to do different things when restrictions are listed. Doleva also said that the Basketball Hall of Fame already has specific protocols in place in regard to cleaning and more.
Noting that a lot of tourism in Western Mass. is seasonal, Lesser asked Doleva what this time of year would “normally be looking like for your organization” and what “we are missing out this year in terms of economic revenue.”
Doleva explained that 60 percent of the Basketball Hall of Fame’s visitation is between Memorial Day and Labor Day. He noted further that they have five restaurants and a hotel on site – highlighting that there has been a “very significant effect” on the Hall of Fame being closed.
“We’re so anxious to be able to open perhaps by July 4,” he said, adding that enshrinement is scheduled to occur at the end of August, but a call must be made by June 15. There is a backup date in October, however it may need to be postponed to 2021.
The Naismith Memorial Basketball Hall of Fame is in a “pretty decent” place financially “right now,” Doleva resolved.
In Western Mass. in general, Wydra said, May, August and September are the busiest months in regard to tourism. May is a busier month, she said, due to the high concentration of colleges in the area with commencements. Wydra said these are “huge for hotels and restaurants.”
When the stay at home order was first announced, Wydra said she felt “restaurants ramped up right away,” if they were able to do curbside pickup. She explained that the job of the Greater Springfield Convention and Visitors Bureau during that time was to “tell people about the great restaurants and hotels” they have, noting that they instantly started putting information up on their website.
Shifting gears to looking at the future, Wydra explained that they’re “anticipating pent up demand.”
“When people are given the opportunity, they’ll leave,” she said, explaining that they are approaching their recovery in three phases – inspire, inquire and explore. Inspiring involves keeping the organization’s brand out. “We want them at their computers to be thinking of travel and dreaming to come to Western Mass.,” she said.
In the “inquire” phase, Wydra said she thinks people will start to travel, but closer to home with day trips. Finally, the public will begin to move into the explore stage.
Lesser encouraged residents to make a bucket list of the local attractions they want to visit once it is safe to do so.
Some of those tourism attractions may include Six Flags New England in Agawam, a trip to downtown Springfield to see the Thunderbirds play or the Eastern States Exposition fairgrounds in West Springfield.
While the Springfield Thunderbirds season was put on hold in March, President Nathan Costa, told Reminder Publishing that he did not expect the team would be finishing their season.
“We haven’t formally cancelled [the season] yet, the AHL has postponed games indefinitely,” he said. “From our perspective, we’re trying to operate as we’re not going to finish the remainder [of the season].”
Costa said he was hoping “that this isn’t going to have a long term impact,” but it could have had a more significant impact on the team, had the AHL postponed the season earlier. “It could have been much worse if it had happened earlier on,” he said.
He said not being able to finish the season had brought its challenges, such as not being able to bid farewell to players that had been with them the last four years. Costa explained the team had plans to “thank and send off the Florida Panthers players that have been there for the last four years.”
“It’s been a challenge, not having our last couple of home weekends was a bummer. Not being able to properly send them off was a bummer too,” he said.
While there is “still a lot up in the air,” Costa is hoping the postponing of this year’s season “isn’t going to have a longer impact.” He said the team was still hoping to be able to play next season and celebrate their fifth year in the city.
“Next year we’re entering our fifth year, [we’re] hopeful to still be able to do that,” he said. Costa explained that, regardless, the team planned to “weather the storm” and continue to “be a part of the fabric of the community.”
Six Flags New England in Agawam is facing similar challenges after pushing back the opening day of their season, which typically opens in April. Communications manager for Six Flags New England Jennifer McGrath said the park is now planned to open in mid-May, “or as soon as possible thereafter.”
She said, “The safety of our guests and team members is always our highest priority and we will continue to closely monitor this evolving situation, and follow the most current guidance from federal, state, and local officials.”
Agawam Mayor, William Sapelli, told Reminder Publishing the park was a significant source of tax revenue for the town. “[Six Flags is] in a tough situation. Their sales are impacted which impacts the town,” Sapelli said. He notes that the amusement park is among the “top ten” generators of tax revenue in town.
Sapelli added that he doesn’t think it will be among the first to reopen when the Commonwealth begins that process. “I think it will be similar to concerts and theaters in that it will be a third phase thing,” Sapelli said referring to the phased reopening of businesses proposed by the Trump Administration, in which large venues would be among the last to reopen.
In regard to the Eastern States Exposition, which is the annual host to the Big E, West Springfield Mayor Will Reichelt told Reminder Publishing that while the Big E is over four months away, the city is looking out for everyones best interests.
Reichelt stated, “Closing the Big E would obviously have a negative effect on hotel and meals tax revenue for the Town as well has a severe financial drain on businesses directly involved in sales on the grounds or surrounding areas. Like any business that has weathered the closure over the past seven weeks, a cancellation will be difficult to overcome especially of this magnitude.
“At the same time we need to do what is in the best interests of the health of safety of our residents and the greater population that would visit the Fair. September 18th is still over four months away and a lot can change between now and then but we are all working to do what is in the best interests of our community with guidance provided by the state and federal government,” Reichelt said.
Staff writers Danielle Eaton and Sarah Heinonen contributed to this article.
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