CW Annual Report a Reflection of the Down Economy

By Matt Poms Saturday, June 26, 2010

The Colonial Williamsburg Foundation released its annual report Friday, recognizing a popular new program and the first major reconstruction project on Duke of Gloucester street in 50 years. However, sharp decreases in revenue and visitation also characterized a 2009 that saw Colonial Williamsburg struggle with the effects of a wounded economy.

“It was a difficult year, as it was in the national economy,” Foundation President Colin Campbell said. “Our revenues across the board were affected by a significant decline in tourism. But as we look at ourselves in comparison to other areas of the tourist economy, and particularly in relation to other museums and the like, we feel that our performance is reasonably strong.”

Total revenue decreased by $18 million under 2008 levels to $192 million, leading to an operating loss of $24 million. However, that number improved by $15 million from the year prior due to a $33 million reduction in operating expenses. Ticket sales dropped seven percent to 660,000, while the total number of visitors was estimated at 1.7 million.

“We don’t like [those numbers],” Campbell said. “But the economy is what it is. It was not a good year from that perspective, although it was better than we anticipated. When you have a high level of unemployment that exists in our principle market, that’s going to be reflected in our visitation. And it was.”

However, the Foundation’s endowment performed well despite the circumstances, increasing by $90 million to $702 million and functioning in the top three percent of similar endowments nationwide. Campbell said that Colonial Williamsburg actually did better in tickets and lodging than previously forecast, which were encouraging signs for the health of the organization.

The report also highlighted two new areas of the Foundation’s historical program: a renewed focus on historic reconstruction, as well as the debut of the “So far from Scioto” program, examining the impact of Native Americans on Williamsburg.

“The introduction of a significant Virginia American Indian presence in our programming is something that we’ve felt has been lacking, and that program has been designed to help fill that gap,” Campbell said.

The R. Charlton’s Coffeehouse opened on Duke of Gloucester Street, marking the first major reconstruction effort by Colonial Williamsburg in 50 years. The Foundation also began work on a reconstructed armory and blacksmith complex on the site of the current blacksmith, a complex that is set to open in 2013.

“We haven’t had major reconstruction in the historic area for many years,” Campbell said. “So, the coffeehouse and now the public armory and blacksmith’s shop are very significant changes in the historic area.”

Colonial Williamsburg also saw visits to its website rise by 12 percent to 24.3 million, while completing a new online high-school curriculum to educate about the area.

Further good news might be on the way in 2010, as the historic area has seen an increase in visitors so far this year.

“It’s better now,” Campbell said. “The winter months were very rough because of the weather, so we really had a slow start, but it’s better in June.”

However, a rise in last-minute travelers has made forecasts tricky in the current economic climate.

“Right now, charting what’s in front of us is as difficult as at any time I’ve been here,” Campbell said. “We just can’t be clear, and part of that is that people are not making plans in advance. There’s a lot of last-minute activity, and you just can’t tell what [visitation will be like].”