Northwest Arkansas Business Journal - NWABusinessJournal.com

Art Feeds Local Economy

by Rob Keys

Beauty, it’s said, is in the eye of the beholder.

So, too, might be the economic impact created thus far in Benton County by Crystal Bridges Museum of American Art.

The Bentonville Convention and Visitors Bureau has touted year-over-year increases in hotel and restaurant tax collections for both November and December, purportedly a result of people visiting the museum. Hotel tax collections are up in Rogers, too, and positive ripple effects have been felt as far away as Eureka Springs.

Determining just how much of the increased activity is directly due to the opening of Crystal Bridges, however, is an inexact science. Hoteliers, restaurateurs and city officials alike agree on that much.

Some of the increases in tax collections are eye-popping, though, and Bentonville CVB president and CEO Kalene Griffith said at least one number is inarguable. Most projections for first-year visitors to Crystal Bridges ranged from 150,000 to 300,000, and as of Feb. 13 — essentially three months since its grand opening — the museum had hosted 144,296, according to director of communications Laura Jacobs.

“What I can say is, based on that number, we’ve well surpassed our expected numbers of visitors so far,” Griffith said. “We’re ecstatic with the number of people coming into the area.”

And when that many people come into an area, all parties agreed, they bring disposable income with them.

“It’s definitely been a big plus,” said Nancy Morgan, director of sales at Bentonville’s Hilton Garden Inn.

Food for Thought

The Bentonville Advertising & Promotion Commission’s restaurant tax collection, in particular, showed dramatic year-over-year jumps during the last two months of 2011. The bureau collects a 1 percent tax from city restaurants and other sellers of prepared food, but for the purposes of this article, the Northwest Arkansas Business Journal excluded some entities.

Those intentionally omitted included Wal-Mart Stores Inc. company cafeterias and in-store delis, other grocery store delis, catering companies, convenience stores where identifiable, and the Northwest Arkansas Community College food court. The idea was to get a reflection of revenue generated by restaurants where Crystal Bridges visitors might eat.

Using that method, Bentonville restaurants produced revenue of about $6.56 million in November 2011, an increase of more than 17 percent over the $5.57 million made in November 2010. In December 2011, Bentonville restaurants had revenue of about $6.93 million, a year-over-year jump of more than 16 percent.

Few, if any, restaurants showed a bigger spike than River Grille Steakhouse. According to the A&P collections, River Grille had November 2010 revenue of $54,400 and December 2010 revenue of $82,700. Totals for the same months in 2011 were $76,000 and $91,000, respectively.

Managing partner Brenda Swango said December always is a good month for the restaurant due to holiday parties, but the November spike undoubtedly was a result of Crystal Bridges. She based that idea not on any form of organized polling, but feedback from customers.

“You’d be amazed at how many people will offer it up and tell you they’re here for Crystal Bridges,” Swango said with a laugh, “because they’re so excited.

“They might want to know if you’ve been there, or they’re excited because they just came from there or are planning to go the next day or whatever. It’s been fun.”

Like many of her counterparts, Swango has made efforts to cultivate a relationship with Crystal Bridges similar to the one she has with many area hotels. River Grille’s proximity to Courtyard by Marriott and Simmons Suites has been beneficial in attracting museum visitors to the restaurant, she said, as all three are within a mile of the museum.

Now Swango hopes to strengthen her relationships with hotels beyond Bentonville’s borders while also providing museumgoers the same food and service that’s made River Grille popular among business travelers.

“This is all new for us as far as this being a destination and people coming here as tourists,” Swango said. “It’s definitely different for us to have that kind of traveler.”

Expanded Menu

Established restaurants like River Grille aren’t the only ones trying to cash in on the presence of Crystal Bridges. Numerous new restaurants popped up on and around the downtown square in anticipation of the museum’s opening.

Tavola Trattoria, Tusk & Trotter and The Pressroom are just a few examples. All three opened in 2011, thus adding new tax streams to the A&P well.