Memphis music sings sweet tunes to local economy.(Industry Overview)

Table 4 contains estimates of the total visitor impact generated by using RIMS II multipliers to develop estimates of the total output, earnings, and sales tax revenues generated by Titanic visitors. Over $240 million in spending for goods and services was generated by Wonders Series visitors, and more than $80 million in earnings and nearly 5,000 jobs were supported as a result of visitor spending. Tourist spending generated nearly $11.5 million in state and local sales taxes and $700,000 in bed taxes.

Other expenditures on Wonders Series operations and payroll generated additional spending and jobs in Memphis. Table 5 contains a summary of the total impact of the Titanic Exhibit. Total spending generated was $373 million, with total earnings approaching $85 million. Nearly 5,300 jobs were supported by the exhibit, and more than $15 million in new taxes were generated by the exhibit.

Clearly, the Wonders Series is the premier Memphis tourist attraction when an event like the Titanic is in operation. Graceland is perhaps the only other Memphis attraction that brings as many tourists to the area. When an event like the Titanic Exhibit is successful, it generates tremendous spending, earnings, and tax revenues.

1 For example, see the National Conference of State Legislatures, Economic Impact of the Arts - A Sourcebook, 1987.

Dr. John Gnuschke is Director of the Bureau of Business and Economic Research and the Center for Manpower Studies and Professor of Economics at The University of Memphis. Dr. Gnuschke received his Ph.D. and M.A. degrees from the University of Missouri and his B.S. from Utah State University. His areas of expertise include market assessments, survey research, impact studies, revenue and cost estimates, labor market studies, and competitor analyses. As a widely recognized leader in his profession, he serves on numerous local, state, and national committees and boards.

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