Pandemic's ravages expected to cost Valley Zoo $1.2 million in lost revenue
The Edmonton Valley Zoo is facing an estimated loss of $1.2 million in revenue due to the COVID-19 pandemic, contributing to a forecasted $400,000 shortfall by the end of the year.
In mid-march, the city closed all municipally operated facilities, including the zoo, to minimize the spread of the virus. The zoo didn't reopen again until June, which resulted in a financial hit of about $700,000. Last year, the facility made $2.5 million but is only expected to bring in $1.3 million by the end of December.
Expenses are estimated to be around $6.7 million this year, a decrease of roughly $800,000 from 2019.
Zoo director Gary Dewar said the city took steps to reduce expenses including cutting services and laying off 45 staff members. He said the zoo never makes money and is subsidized by the city.
“It's funny, a lot of people think the zoo is an attraction so it must make a lot of money for the city,” he said. “That subsidy costs about $4.9 million after you take away the revenue associated with it. The city's budget ... is managed across the entire corporation so it's conceivable that one area could be favourable and another unfavourable and they might sort of help offset each other.”
The zoo operates with a fixed cost of $3 million whether it is open or not. This covers expenses such as caring for the animals. Another $265,000 was needed to cover reopening expenses including new COVID-19 signage, extra cleaning and returning staff.
Dewar, who took on the role as the zoo's director a few months ago, said he wasn't entirely sure how many staff were rehired back.
EXCEEDING VISITOR EXPECTATIONS
Nearly 400,000 people visit the zoo every year, with about 30 per cent of those being tourists, according to documents obtained through a freedom of information request. Nearly 300,000 of the visits happen between June and December. However, in a May 15 briefing note, the city estimated that number to be closer to 72,500 if the zoo reopened at 25 per cent capacity.
Dewar said the zoo has far exceeded those early expectations for visitation after reopening.
“The projections we set out for ourselves were a little conservative,” he said. “We've actually enjoyed just shy of 125,000 people (who) have visited us since we reopened, which is significant. (Attendance) certainly slowed over the last few weeks because of course, it's not necessarily our busiest time when it's winter.”
The Valley Zoo houses more than 350 individual animals from more than 100 different species, including 14 that are classified as endangered.
Tickets for the zoo are available online only and there is a daily capacity limit of 50 per cent or 1,500 people. Face masks are mandatory while on the grounds, with the exception of children under the age of two years old.