A new study estimates the annual economic impact of the Chesapeake Bay Maritime Museum in St. Michaels, Md. at $6.29 million for the state of Maryland, and $7.58 million for Talbot County, Md., where CBMM is located.
“Since the study was based on our FY14 financials and guest survey, we expect CBMM’s economic impact to be even greater now,” said CBMM President Kristen Greenaway.
The study was conducted by the Business Economic and Community Outreach Network of the Franklin P. Perdue School of Business at Salisbury University, which provides decision makers with business, economic, workforce, and community development research and consulting services.
BEACON reports that CBMM’s impact within the state of Maryland is significant as the surrounding Maryland counties capture some of the economic activity that spans outside of Talbot County. The study states, “In Maryland, CBMM’s total annual estimated economic impact is approximately $6.29 million and a total of almost 104 jobs are supported.” The fiscal impact generated at the state level is just over $1 million, with $759K contributed in federal taxes and $249K in state and local taxes.
The report indicates that the total annual impact CBMM has on Talbot County is even more significant, estimated at $7.58 million, with a total of 82 jobs supported. CBMM attracts nearly 66,000 visitors each year, 37% who travel to the area specifically to visit CBMM. Of the $7.58 million, tourism generated by CBMM in Talbot County creates approximately $4.13 million in economic activity annually, supporting an additional 48 local jobs. The fiscal impact generated at the county level is $314K contributed in federal taxes and $139K in state and local taxes.
The study states, “If the museum did not exist, Talbot County would need to attract a factory that employs around 100 workers at an average of $16 per hour, with annual sales of over $6 million to reach a similar local impact.”
BEACON’s report also cites CBMM as “both a valuable asset to the local economy and a significant contributor to the quality-of-life of county residents. As an art and cultural institution, CBMM plays a significant role in increasing the desirability of residential properties in St. Michaels. “Arts and cultural assets, such as museums, are an important part of the make-up of a locality… The economic and quality-of-life benefits that arts and culture organizations bring to an area work to make the community a more attractive place to live. Prospective residents have an increased willingness-to-pay for housing in a community that is seen as more attractive. This increased willingness-to-pay, over time, helps to increase the property values in a given community. In St. Michaels, CBMM plays a role in increasing the desirability of residential properties in the area.
“When entities make a place more attractive to residents and businesses it also serves to increase property values and, therefore, the property taxes that help to fund important county services,” continues the report.
“CBMM also provides St. Michaels, Talbot County, and the larger region with significant marketing value as its branded advertising increases awareness of not just the organization but also the general region as a destination.”
“BEACON’s report shows just how great of an impact the Chesapeake Bay Maritime Museum has on the local economy,” said CBMM President Kristen Greenaway. “The report also shows what a notable impact CBMM has on the state of Maryland in relation to our surrounding counties. CBMM is undoubtedly an economic driver locally and state-wide.”
“Our indirect education benefits provided by CBMM to Maryland schools are also significant,” said CBMM President Kristen Greenaway, “Currently, the museum serves 3,500 K-12 school children each year, which will expand to 7,000 over the next few years. We offer opportunities for school students to gain skills in mathematics, engineering, team building, and project management through our various programs like wooden boatbuilding with our shipwrights, or our Rising Tide after-school program.”
For the economic impact study, all estimates were based on CBMM’s actual FY14 data and visitor profile data from the summer and fall of 2015. The study estimated CBMM’s economic impact using IMPLAN (Impact Analysis for PLANing), an econometric modeling system developed at the University of Minnesota and U.S. Forest Service and based on a theory for which Wassily Leontief was awarded the Nobel Prize in Economics in 1973. BEACON’s full economic impact report can be found online on CBMM’s website at bit.ly/CBMMEconomicImpact.
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