Feasibility Study
The following document is a synopsis of the
Feasibility Study conducted by CERTEC, Inc., Lexington, KY. CERTEC is a
professional, well respected Marketing firm.
The Feasibility Study was a project
initiated by the Mountain Parkway Trails Corridor (Estill, Lee,
Magoffin, Owsley, Powell and Wolfe Counties of Kentucky) and paid for by
Southern and Eastern Kentucky Tourism Development Association (SEKTDA),
a division of the Center for Rural Development, Somerset, KY.
The numbers generated by the report are truly staggering- in the good way. From an economic development point of
view, the Eastern Kentucky Heritage Monument is a spectacularly good
idea and an amazingly sound investment. And, as Tom says, "It's an
economic development project that is not moving to Mexico in a couple of
years."
The problem with a synopsis, as Brother Glenn points out, is, "What
is left out?" Fair enough. The only thing of importance omitted was the caveat
in the proposal that assumed we were going to receive the $6 million
that was submitted by SEKTDA as a Special Congressional Request. And who
knows? We may indeed get it. But the caveat was in relation to the time
frame in which the Monument could be built- not to the numbers, both
money and jobs, that the finished Monument would generate.
Synopsis of
Eastern Kentucky Heritage Monument
Economic Impact Feasibility Study
2004
Prepared for:
Southern and Eastern Kentucky
Tourism Development Association (SEKTDA)
Somerset, Kentucky
1-877-TOURSEKY
By:
Certec, Inc.
111 West Short Street
Lexington, KY 40507
(859) 225-5919
This document of highlights is compiled from the original Certec, Inc. report by David Musser, Project Director, Eastern Kentucky Heritage Monument. Complete Study on file at SEKTDA Office.
Executive Summary
The proposed project is economically feasible.
This is based on the overall analysis, which assumes the primary
grant will be received in a timely manner and the project management
succeeds in carrying out the detailed recommendations presented in
the report.
The Heritage Monument would be a major landmark (Magnet
Attraction) for Eastern Kentucky. Its size and quality as a work
of art along with its links to Eastern Kentucky music, arts, and
crafts will have a very positive impact on the image of Eastern
Kentucky.
The Heritage Monument will have a major impact on
the economy of the area. By the third year of operation it could
generate over $63.2 million for the Kentucky economy.
The Heritage Monument will be a jobs generator.
A total of 1,335 would be created in Kentucky. Wolfe County
would receive 380 jobs from visitor spending alone. The
contiguous counties will benefit from the addition of 356 jobs.
Direct spending outside the immediate area will add 211 jobs
in other Kentucky counties.
The Heritage Monument will be a tax generator.
The $63.2 million in spending would include $6.5 million in state
tax revenues and nearly $1 million in local taxes.
The Heritage Monument facility financial forecast for
the first three years of operation concluded that the facility could
operate in the black during the second year provided that the grant,
admission fee, marketing, and other key assumptions are achieved.
The Monument is projected to draw 282,500 visitors
the first year; 529,700 the second year and 706,300 the third full
year of operation.
The recommended site is approximately 30 acres located between the divergence of the Bert T.
Combs Mountain Parkway and KY 15. This point is the true
“Gateway to
Eastern Kentucky.”
Points of Interest
The development of an attraction of this magnitude could change the tourism landscape of Eastern Kentucky.
The structure alone could generate substantial visitation to the region.
The Heritage Monument in tandem with the interpretive center/museum,
which will link it with the historically significant music and art of
Eastern Kentucky, could increase visitation to the site as well as the
larger geographic region surrounding it several fold. It could become
the Magnet Attraction the region has long needed to make it a more
viable tourism destination.
The focal point of the project is of course the creation of the Wind Harp (Aeolian Harp)- three sculptures up
to seventy feet tall representing traditional Appalachian musical
instruments (guitar, fiddle banjo) made of stainless steel. Once
developed the sculpture will be the largest Wind Harp in the world.
Not only will it be renowned as an international piece of sculpture it
will bring world attention to the culture and heritage of Appalachian
Kentucky.
The Eastern Kentucky Heritage
Monument has overwhelming support from all of the educational,
cultural and, most importantly, the political entities of the area.
The foremost challenge to the further development of local tourism is to educate potential travelers
of the uniqueness of Eastern Kentucky through properly positioned and
targeted tourism promotion. The Heritage Monument would be an important
asset in this effort since it would aid the region in overcoming the
weakness of not having enough sightseeing options. As such, it would
contribute to the improvement of Eastern Kentucky’s image among
potential travelers to the region. It is important to note that on
three of the top five Travel Motivators- exciting, family atmosphere,
and scenery- Eastern Kentucky is highly rated by its tourists. This
gives the area an advantage over competitor destinations.
It is recommended that the project be managed by a combination of two entities, one the non-profit
Appalachian Heritage Alliance and one a public agency- Wolfe County
Economic Development Office.
The Heritage Monument and its Center would be strategically
located in the center of this (Eastern
Kentucky) network of artisan/craft shopping outlets. (It would
serve to link and advertise all other regional markets.)
Economic Impact of Proposed
Eastern Kentucky Heritage Monument
(from Table 1, pg. 14 of the report)
Monument generated:
Total Expenditures in Kentucky: $63,221,280
Direct Expenditures: $38,691,114
Indirect Expenditures: $24,530,166
|
Where Expenditures Occur |
$38,691,114 |
| Wolfe County |
$15,542,221 |
| Breathitt County |
$ 2,052,177 |
| Lee County |
$ 2,142,714 |
| Magoffin County |
$ 1,901,281 |
| Menifee County |
$ 1,358,058 |
| Morgan County |
$ 1,327,879 |
| Powell County |
$ 5,854,739 |
| Other KY Counties |
$ 8,512,045 |
Total Number of Jobs Created: 1,335
(from) Direct Expenditures: 947
(from) Indirect Expenditures: 388
|
Where Jobs Occur |
947 |
| Wolfe County | 380 |
| Breathitt County | 50 |
| Lee County | 52 |
| Magoffin County | 46 |
| Menifee County | 33 |
| Morgan County | 32 |
| Powell County | 143 |
| Other KY Counties | 211 |
Revenue
Total State and Local Taxes: $6,546,737
State Taxes: $5,551,369
Local Taxes: $995,368