The Economy Project
(2009-12-22)
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But the same can't be said for other zoos across the country. Zoos in New York and Boston have had to cut their budgets because of government spending decreases. In Denver, memberships are at an all time high, and 2009 is expected to rank among the top three for attendance.
A Shift in Leisure Spending
Household recreational dollars don't disappear during hard economic times. They just get streamlined
"I think you're seeing that kind of phenomenon where people are not cutting out vacations," says Ron Rizzuto, professor of finance at the Daniels College of Business at the University of Denver. "What they're doing is spending their money in a more cost- effective way."
Rizzuto says consumer behavior is undergoing a fundamental shift right now. People are gravitating towards cheaper forms of entertainment to save money. It's a trend that's expected to last at least for the next five years.
And that's exactly what the zoo's Executive Director Craig Piper is hoping for.
"When you think about where leisure dollars can be spent, compare a visit to a zoo or museum to a sporting event or a major concert, and we're a much more affordable alternative," he says.
That's why Augustine Ramirez is here. It's his day off, and he came out to photograph the animals.
"That's one of the ways you can spend time without spending money in these economic times," he says. So it's my second time this year."
Expanding During a Recession
Diverse funding streams like charging admission and fees, as well as a cultural sales tax have kept the Denver Zoo financially sound over the last year. Craig Piper says it's one of the reasons why the zoo is moving forward with long-term plans for a $50 million dollar expansion.
It's the largest project in zoo's 113-year history. When completed in 2011, the Asian Tropics exhibit will house rhinos, leopards and bats along with elephants. And a first-of-its-kind gasification system will be installed to convert 90 percent of zoo garbage into energy.
"From the trash that our guests leave behind, paper and other waste on our own operations, as well as the animal poop will go into this system, and it will go into energy onsite," says Piper.
Right now Piper says the zoo has almost all the construction money secured. Half is coming from Denver city and county taxpayers, who approved a 1999 referendum to fund improvements at the zoo. The other 50 percent will come from private donors. Piper says there's another benefit to starting a large-scale project like this during the recession.
"It will provide over 300 construction jobs into the local economy," he says. "So that's one little piece of what we can do to help the metro economy give it a little jump start."
A Risky Bet?
Kicking off a project like this may seem risky, but its one that zoo officials are betting will pay off. And Ron Rizzuto at the Daniels College of Business thinks it will work, too.
"They made a decision," he says. "And the wind is really at their back I would say."
All of the elephants for the Denver Zoo's new exhibit will be donated. But Craig Piper says he's still expecting one large expenditure.
"The cost is really the cost of shipping, and for elephants, that's not insignificant," he says.
Fortunately, Piper says it's something they've already factored into the budget. © Copyright 2012, KUNC
