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Category: economics

10/16/05 02:57 - ID#28202

Sabres economic inpact article

[size=m]Last night I watched the sabres game. It was a lot of fun. I fell asleep for a few minutes when the game was tied. But then I saw them lose with a late goal. I was hoping for OT then maybe they had a chance, I wanted to See a shot out that would have been cool. I think there next game is thursday. I read an interesting article in today's buffalo News about there economic impact that I found interesting, I wish it went into A little more depth but it is still a good article.[/size]

Return of Sabres puts money into many local pockets




Concessions workers, downtown restaurants, governments all benefit

By DAVID ROBINSON
News Business Reporter
10/16/2005

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Mark Mullville/Buffalo News
It's not just fans of the Buffalo Sabres who are happy to see the National Hockey League team playing again.

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Ronald J. Colleran/Buffalo News
Mary Beth Billittier of Chef's Restaurant says her business can get a 20 percent boost on nights the Sabres play. Here she greets customers Ronald P. Keellner, left, and Lawrence J. Speiser.

Mary Beth Billittier is thrilled to see the Buffalo Sabres playing again - and not just because she's a hockey fan.
Billittier also is happy because the return of the National Hockey League is bringing back the swarm of fans who eat at Chef's restaurant before games, which can bump up her business by as much as 20 percent.

"It's definitely increased our business on those days. We do get that hockey rush," she said. "Plus, the Sabres come in for lunch before every home game and people come in to see them. We get a double hit from them."

Billittier's not alone. While the return of the Sabres after missing the 2004-05 season due to a lockout isn't causing an economic boom felt throughout the region, it is having a noticeable impact on the area around HSBC Arena.

"We'll see a spike in certain types of business," said Richard Geiger, the president of the Buffalo Niagara Convention and Visitors Bureau.

For starters, the return of hockey is putting about $2 million in extra income into the pockets of the 700 to 900 concessions workers, ushers and other game-night employees, said Sabres spokesman Michael Gilbert.

Those earnings, which average about $50 per game, often are used as a secondary source of income to pay for everything from private school tuition to family vacations. But for workers whose primary job pays in the $20,000 range, that extra $2,000 in earnings during the season can be an important part of their overall income.

The return of the Sabres also means extra business for the downtown restaurants and bars that cater to the fans heading to the arena. Cobblestone, a restaurant located in the shadow of the HSBC Arena at South Park Avenue and Mississippi Street, opens only on nights when there is an event at the arena or for Thursday in the Square concerts.

Cobblestone was open for only about 40 dates last season, but with the return of the Sabres and more than 40 home games, Cobblestone now expects to be serving customers twice as often this season.

"There are 40 more nights of something going on at the arena," Gilbert said.

The return of the Sabres also means extra demand for hotel rooms for the visiting teams, as well as fans from out-of-town attending a game. "We'll see it in hotel occupancy," Geiger said. "When the visiting teams come in, they'll take 20 to 25 rooms. And the even bigger impact will be on the restaurants."

Even the Sabres staff, which had been cut by more than a third during the lockout, has returned to its old level of about 125 people, Gilbert said.

The return of the NHL also is a boon for state and local governments, which will reap significantly larger tax payments from the extra income generated by the salaries earned by the Sabres players and arena workers, along with sales taxes on parking and items associated with the team.

In all, local governments will pick up an extra $1 million in sales taxes, while the state government will see more than $3 million in sales and income taxes that disappeared because of the lockout, according to Sabres figures.

"It's a positive," said George Palumbo, a Canisius College economics professor who closely follows the Buffalo Niagara economy.

The impact of the Sabres also depends on where its fans come from. Fans from outside the region pack the biggest economic punch because they bring new money to the area that flows to hotels, restaurants, the team and whatever other attractions they take in while they're here, he said.

But because local residents tend to have a limited amount of money for recreational activities, from concerts and movies to Buffalo Bills and Sabres games, a spike in interest at one type of event often takes money away from others.

"Unless you're bringing people into the region or getting people to spend money they otherwise wouldn't have spent, it's just taking the money from one set of recreational activity and moving it into another," Palumbo said.

With the Sabres idle, Shea's Performing Arts Center had a strong season last year, with shows like the Rockettes and the Lion King, boosting attendance to around 450,000. Crowds at the University at Buffalo men's basketball team's games last season were 38 percent bigger as the Bulls made a run at an NCAA tournament bid.

"You have a certain amount of discretionary dollars in the marketplace," Geiger said. "Hopefully, we'll see more people coming in from Rochester and on a regional basis. And I think we'll see people continue to come from southern Ontario, mainly because they can't get tickets in Toronto."

The return of the professional hockey also was a welcome boost for Delaware North Cos. Sportservice, the Buffalo-based business that handles concessions for seven NHL arenas, including HSBC Arena and arenas in Boston, Nashville, Columbus, Tampa, Dallas and Edmonton.


e-mail: drobinson@buffnews.com

two pictures from the article one is of Chefs and the other is the HSBC arena


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