ECONOMIC IMPACT

Business is Booming

Thunder's Explosive Economic Impact

Yes, business is booming. You see signs of it everywhere. People are milling about and there is a sense of excited anticipation in the air.

The parking lots are full. Vendors are hawking everything from shirts to hats, corndogs to cotton candy. The hotels are booked. There is the bustle of workers all around.

This is just another normal day in Downtown Louisville and Southern Indiana right? When it comes to the Derby Festival's Opening Ceremonies: Thunder Over Louisville, nothing is "normal."

Thunder Over Louisville explodes across the night sky and the economic landscape. It is the largest annual pyrotechnic show in North America. Not only is the show massive, its economic impact is a stunning $31 million for one day. That's a huge return on a roughly a $ 1 million investment.

The real story, however, is what it means to individual people and local companies. Needless to say, it is a good day.

As the show's hub of activity, space in the Galt House Hotel is in high demand. Tom O'Hearn, Galt House General Manager says that both of his hotels are totally booked for the next ten years.

Galt House Bell Captain Bernard Sanford says that while Thunder is a very busy day, it is also very lucrative. "With so many parties, and such a festive atmosphere, it definitely enhances tips. Instead of the $1-$2 we get per cart load, we are getting around $10. Thunder is easily one of the top five days we have."

Across the river, the Ramada also sells out its rooms each year. Hotel managers have told the Derby Festival it is their single, best weekend, grossing more than $1 million.

It's also a great day for pizza sales. Keith Conner, supervisor at Papa John's Witherspoon store starts preparing three months in advance. "It is the best day of the year by far. We will sell as much for Thunder as we normally sell in one week," says Conner. Conner's busiest Friday night requires 12 workers. For Thunder, he has 30 people and has to bring in a semi trailer truck to store supplies.

Before the first fireworks shell is even shot, the Derby Festival and sponsors will spend nearly $400,000 with local companies and workers. This includes the rental of 750 portable restrooms, 150 radios, 100 golf carts, three miles of portable fence and security devices, and enough portable generators to power a small city. Identifying nearly 700 volunteers and workers with T-shirts and security credentials is a major expenditure with area vendors.

Cox Concessions and the food vendors in the show area purchase nearly $300,000 in supplies from distributors in Louisville and Southern Indiana. To help reduce costs for the government agencies involved, the sponsors of Thunder feed more than 1200 public safety officers while they are on duty.

This Derby Festival event also generates significant part time employment. More than 100 people are hired during the weekend to assist with the show set-up, tear-down and clean up.

The economic benefits extend to many charitable and non-profit organizations. Waterfront Development auctions off boat slips for viewing garnering thousands of dollars per slip. Both the Kentucky Center for the Arts and Actors Theatre raise in excess of $25,000. The Belle of Louisville generates more than $35,000 towards its operating budget. Other fundraising parties include: The Louisville Ballet, The Louisville Science Center and the Louisville Slugger Museum.

Derby Festival President Mike Berry sums it up best. "One gauge of success is seeing happy people who have seen a great show as they head to their cars. But when the last shell has been shot and the music fades, the impact is still there. It is in the people's pockets who help serve food, clean up, and help make Thunder an explosive event."