Aviation Museum Operations

2012
Feasibility Study for the 8th Air Force Museum

Researched and Prepared by: Donald Molner Antoine Peter Ingo Willems
Specifically for: Terry Snook, President 8th Air Force Museum Association
8/30/2012
Feasibility Study 8th AFM
Contents
1. Introduction
1.1 1.2 1.3 1.4 1.5 Museum Background Project Framework Methodology Assumptions Acknowledgements 5 7 7 10 11 12 13
14 15 16 17
2. Marketing Analysis
2.1 Abstract and Overview 2.2 Marketing Strategy
2.2.1 2.2.2 2.2.3 2.2.4 Importance of Differentiation and Theoretical Aspects Responding to Audience Needs Adopt a Consumer Focus Market Environment
2.3 Addressable Market

2.3.1 Sanity Check Addressable Market
17
22
2.4 2.5 2.6 2.7 2.8 3.1 3.2 3.3 3.4 4.1 4.2 4.3 4.4
Origin of Visitors Current Activities Other Events Competitive Venues Comparative Venues Introduction and Storyline SWOT Analysis Museum Components Organizational Structure Operations Revenue Features Expenses Capital Requirements
23 25 27 29 32 34 36 43 44 46 46 51 54 55 57 59
3. The Concept for the Museum
4. Financials
5. Economic Impact
5.1 Quantitative Methodology 5.2 Other Methodology
6. Summary and Recommendations
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List of Figures
1.1 Project Logic Map 2.1 Addressable Market Table 2.2 Primary Purpose of Trip 2.3 Day vs. Overnight 2.4 Length of Stay 2.5 Number of Household Members 2.6 Addressable Market Target Number 2.7 Evolution of Visitors 2.8 Median Attendance by Museum Type 2.9 Inquiry Origin Map 2.10 Source of Visitors 2.11 Visitor States Percentage 2.12 Top 5 Visitor Map 2.13 Places and Activities Visited 2.14 Festivals Visited 3.1 SWOT Analysis 3.2 Organizational Alignment and Relationships 3.3 Salary and Expense Table 4.1 Income Table 4.2 Capital Requirements Table 5.1 Economic Impact Input Data 5.2 Economic Impact per $100K of Spending by Org 5.3 Economic Impact MU Spending 5.4 Median Per Person Event Related Audience Spending 5.5 Econ Impact Per $100K of Event Related Spending 5.6 Visitor Spending Impact 5.7 Total Economic Impact 9 12 18 19 19 20 21 22 22 24 24 25 25 26 27 37 44 45 53 54 55 55 56 56 56 57 57
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Attachments
1. 2. 3. 4. 5. 6. Organizational Structure Interview Matrix Survey and Results Museums and Organizations Visited Conceptual Drawings Financial Schedules 60 61 63 68 69 70-76
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1. Introduction
1.1. Museum Background The current 8th Air Force Museum (8 AFM) is situated on Barksdale, Air Force Base and located in Bossier City, (Northwest sector) Louisiana. The museum is classified by the United States Air Force as a Field Museum and serves an integral part of the USAF Heritage Program. The museum was approved by the Secretary of the Air Force and began operating in 1979. The mission of the 8th AFM is:
To tell the story of the American experience the men and women of the U.S. Air
Forces (8th Air Force, 2nd Bomb Wing and Global Strike Command) in war and peace so that all generations will understand the price of freedom and be inspired by what they learn, and to celebrate the American spirit, as it is reflected in the optimism, the courage and the sacrifice of those who serve.
The 2nd Bomb Wing is the host unit on Barksdale, AFB and has an Installation Commander who is responsible for and oversees all activity of the Wing. The 8th AF is the organization/level of command above the Wing, also located at Barksdale AFB. Reference is made to a Major Command; Global Strike Command in this case, which is the organization/level of command above the Numbered Air Force (org structure attachment 1). The museum was started by a single historian/curator who initially operated from an office room which was later converted into a small museum. For 30 years, the museum expanded its collection exponentially, eventually moving to its current 15,513 square foot facility in 1996. The facility itself is now in sub-standard condition and houses conditionally poor interior exhibits; adequate administrative offices; and a well equipped industrial work area. Adjacent to the facility and also on the airbase are 22 acres of property which is used for open air display of 28 historic aircraft and vehicles as well as a nice collection and display of memorials. Additionally, the exterior museum grounds have suitable parking and a paved walking path/jogging trail which transverses the outside display areas. The museum is open free-of-charge with generous hours 362 days per year serving both base members and the general public. The museums on-base location does make public entry somewhat cumbersome and also poses an on-going security threat for base officials. The museum is currently attracting nearly 50K visitors per year without a concerted marketing campaign. Past years have yielded up to 100K visitors per year with very little marketing effort. The overwhelming majority of visitors are civilian/general public guests and the minority is military members. A study conducted in 2008 showed 2/3rds of the museum visitors travelled to the museum from within a range of up to 250 miles. These visitors came from the states of Texas, Mississippi, Arkansas, Oklahoma and Louisiana. The remaining mix had come from the various other 45 states as well as internationally from Asia, Europe and South America. This mix is believed to be very similar today as well. The museum has an incorporated 501 (c) (3) non-profit foundation called the 8th Air Force Museum Association (8 AFMA). This group was conceptualized and chartered as a prime museum support entity; to act as a fundraising arm; to solicit and accept financial donations; and assist with mustering volunteers for the museum. The Association currently manages and 5|Page
operates a gift shop which is also located inside the museum facility as well as an on-line store. The Museum Director and Association leaders have melded educational affiliations with several nearby universities as well as local educational institutions which cater to students in the science, technology, engineering and mathematics (STEM) concentrations. The museum hosts tours throughout the year primarily with school children, civilian and veteran groups. This coming summer the Association is hosting an overnight kids summer camp with the assistance of grant funding. The museum has two permanent full-time government authorized and funded USAF positions. One is a civilian Museum Director and the other is an active duty Aircraft Maintenance Senior Non-Commissioned Officer who also serves as the Administration/Facility Manager. The Association is formed along traditional lines with a President, Vice-President, Treasurer and Secretary. The museum has roughly six part-time volunteers who assist with association duties, aircraft maintenance and collections management tasks. According to the 2010 Annual Report to Congress on Department of Defense Museum Operations, the 8AFM was appropriated $273K for operations and maintenance costs as well as additional employment funds for assigned personnel. The Association garnered $6.1K in 2010 through donations and retail sales to support museum operations. The leaders of the 8AFMand the 8 AFMA are currently at a cross-road. In 2007, the museum attempted an accreditation inspection from the National Museum of the United States Air Force. The museum failed to gain accreditation and instead received a highly critical report with unsatisfactory findings in practically all museum management inspection areas. A strong recommendation was issued: The 8th Air Force Museum should drastically downsize to a socalled Heritage Center; to consider taking advantage of two-dimensional displays versus the numerous artifacts currently in its collection; and to depict a much narrower historical perspective. A follow-up to this inspection occurred in 2009 and although improvements were noted in key management areas, the recommendation from the National Museum did not change. In the 2009 report, the Senior Curator for the NMUSAF noted funding, manpower and resource realities simply will not support an operation with such a broad mission and large collection. An organizational analysis conducted in 2010 cited a defunct association and poor business management as a primary cause of the museums deterioration and lack of adequate funding support. Many key military and community leaders understood the enormous potential for the 8 AFM and have resisted implementing the drastic down-sizing recommendations of NMUSAF. The museum and association have recently undergone total management and personnel changes. A new museum director was hired and the association board positions were filled with newly elected officials who hold professional business experience. The Association board also formed a very robust board of advisors with military and private industries most influential regional leaders. In the fall of 2011 the Museum Director and President of the 8 AFMA organized a VIP community economic development and museum visioning discussion. Approximately 36 individuals were in attendance including key USAF leadership, Air Force boosters, elected officials and a handful of national museum and design experts. The consensus was: Explore the realities and feasibility of creating a new museum and support structure.
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1.2. Project Framework This feasibility study was conducted specifically for the 8 AFMA, a certified and licensed 501(c)(3) not-for-profit organization. The study was conducted by a three-man business development and consulting team. Team members are seasoned professionals holding various business industry backgrounds including museum management and are MBA graduates of Sacred Heart University; John F. Welch College of Business. The team performed this study on a volunteer basis and at no-cost to the 8AFMA. In general, the study evaluated the feasibility of the 8 AFMA to build a new museum and have the capability to financially and managerially sustain operations. This new museum will house and display existing 8AFM aircraft and artifacts and fulfill the mission of the USAF field museum at Barksdale, AFB. The team evaluated national and regional market conditions and provided a projection for new museum visitation over a five-year period. An assortment of revenue generating activities were developed based primarily on quantitative research data collected via personal interviews, museum visits, surveys and online professional sources. The revenue generating items are presented in this report as suggestions (along with some to avoid). Financial performance data is presented given a five-year projected period. For feasibility decision making, the team delinked financial operations from capital requirements. The team suggests that no long term debt be taken on by the 8AFMA to build the new museum and all funds should be raised by an 8 AFMA sponsored and dedicated full-time capital fundraising campaign team. This study did not evaluate or delve into specific exhibit choices or displays. The cost of typical fabrication and installation of exhibits for a museum of this magnitude has been assessed and is included in capital requirements. 1.3. Methodology The team started this study by fully appreciating and comprehending the historical background of the museum itself. The minutes of the VIP Community Economic Development and Museum Visioning meeting were studied which provided initial focus. The 8 AFMA President provided a copy of their professionally prepared conceptual drawings for the new museum facility along with the associations structural and legal documents. The drawings clearly reflected a scope, awe and direction which emphasized the grand magnitude of this new museum concept. A copy of the discussion questions; survey and results; museum and organizations visited and conceptual drawings are listed in attachments 2-5. The vision held by museum leadership was to create something more than a passive air museum. The museum would need to be alive and not only reflect upon historical aspects and contributions but consider how the magnificent history could be used in a positive way to influence future generations. The team interpreted this vision and purpose of the museum as follows: The 8th AF Museum and Innovation Development Center Honor the heritage of 8th AF, the 2ndBomb Wing and Barksdale AFB by using its magnificent and often monumental accomplishments along with its aircraft, artifacts and achieves as a backdrop for a dual purpose. First; as an educational institution to stimulate minds and develop a community of innovative leaders/technology savvy individuals with a strong desire, foundation and understanding to exploit and create new technological advances in the primary domains of air, space and cyberspace. Secondly, to allow visitors 7|Page
the opportunity to solemnly reflect and independently interpret the grand legacy of 8AF, 2BW and BAFB. Create a one-of-a-kind academy. An institution which would command national attention and prestige. Establish cooperative agreements and bring together entities such as regional schools; private, state and military university enterprises; Junior ROTC; Civil Air Patrol; STARBASE Program; private industry and technology related institutions. The focus being team-centered innovation; embracing free-thinking to find technical solutions to tomorrows challenges. Enable research for innovation and entrepreneurial topics as well as facilitate the publishing of professional papers and books. Have the infrastructure and environment capable to conduct research, exploit concepts, and build products using skills learned in the Science, Technology, Engineering and Math disciplines. The intent is not to duplicate, compete with or impose on the curriculum of local schools, Sci-Port, STARBASE, etc., rather to take this knowledge already being taught one step further and allow individuals to be creative, innovative and entrepreneurial with it. Have a facility/structure of unique architecture melding Barksdales historic style with contemporary/innovative design. Have the capability to house and maintain aircraft, store/display artifact collection, hold conferences and banquets, contain a high-tech theatre, auditorium, a library/archive research section, multiple classrooms, laboratory, a retail shop, food preparation/dining area, and administrative offices. The facility would also have the capability to accommodate overnight stay for visiting students and chaperones. Outside; a tranquil memorial walkway and amphitheatre. Note: Although not fully explored, the team suggests the 8 AFMA consider a phase II expansion project which could consist of a partial mock-up of a typical WWII style grass airfield with eratype facilities located adjacent to the proposed museum location and on the decommissioned landfill. The facility should be constructed, staffed and managed with the flexibility to educate and entertain; edutainment.
With this vision understood, the team developed a logic map (Figure 1) which would provide the basis for determining if the museum and its configuration could make for a viable project. The logic map projects three maxims: First, the configuration should enable suitable revenue generating features to cover operations and sustainment (O&S) costs. Secondly, the facility along with its configuration and features should enable suitable capital fund raising justification and solicitation rationale for full construction and move-in costs. Third, if configuration and features could not generate enough funds to sustain operations OR if this same configuration and set of features could not provide enough justification and rationale for capital contributions, the team would recommend the project not be pursued. It should be noted, the logic map and configuration would start the museum off carrying zero long term debt. Lastly, much of the research for this project validated (and interviews confirmed), many new museum projects fail or struggle to survive due to managers focusing first and foremost on capital fundraising issues while disregarding a strong sustainment strategy. It is 8|Page
therefore recommended this project only proceed when there is a viable and agreed upon plan to generate revenues to cover operations and sustainment costs. Relying on the irregularity of recurring grants and philanthropy as a means to cover these O&S costs is ill-advised.
Figure 1.1: Project Logic Map
START $X Funds 1
Provides a certain facility /staff with features Y
Drives operations & sustainment costs C
Y determines # of visitors/participants to gen rev to cover costs C
$Rev/vis ok to cover cost C?
Increase fund X with cost of new feature
Add feature 2
Community impact sufficient? 3
Y STOP PROJECT N Alt funding solutions available Y Secure alt funding solutions 4
$E= Economic Impact to local/state/fed
N Drives total capital funding input $F Is F X? E Determines funds justification from eachlvl of govt
APPROVE PROJECT
Notes: 1. X at start = minimum required dollars for basic facility to house aircraft & display artifacts. 2. Features added in a configuration to maximum greatest revenue generation with minimum investment. Feature could be attraction item or capability. 3. Community impact considered sufficient at threshold when additional feature investment cost begin to exceed economic/social impact advantage. 4. Alt funding solutions include corporate and foreign government sponsorship, philanthropy, private & government agency grants, donations & misc fund raising events. These solutions are also foreseen to accommodate any follow-on expansion or renovation projects at future dates.
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1.4. Assumptions Assumptions used in developing this study: The conceptual designs developed by The Estopinal Group (TEG) reflect the basic architectural requirements and desires of the 8 AFMA. The new museum location will be on Barksdale AFB property. However, outside of the main base fenced area to allow easy public access (I-20/I-220 interchange & new base entrance). The new museum will remain a field museum under the USAF Historic Program. The new museum land is provided at no-cost to the museum or 8AFMA. Department of Defense new construction monies will not be requested for building this new museum. Contributions of manpower and funding currently being made to the museum by the 2nd Bomb Wing will continue as they are today. The 2nd Bomb Wing will continue to settle utility costs for the museum. Critical assets (historic aircraft) must be moved indoors or they will be taken away from the 8 AFM and relocated to another museum. Doing nothing is not a viable option. The Museum Director will continue to maintain custodial responsibility for all museum historical assets. The Association and projected hired staff will assume more managerial and employee roles in daily operations; over and above what the Association does today. The time-value of money is not factored and 2012 dollar figures are listed throughout. Capital requirements will be achieved without the need for the Association to acquire long-term debt. The 8AFMA will manage and oversee capital fundraising efforts to cover construction and move-in costs; the fixed assets will be turned over to the 8 AFM/Barksdale AFB upon facility completion. The team identified data to be collected and used both quantitative and qualitative means to compile it. Twenty Five relevant museums and organizations in the US as well as museums in the United Kingdom, Belgium and Germany were visited (listing attachment 4). Face-to-face interviews were conducted with key leaders of the organizations visited (discussion outline attachment 2). An online survey was also presented to current & past museum employees/board members (survey summary attachment 3) as well as those having a keen interest in the museum project. Marketing studies, reports from professional museum associations and other pertinent documents provided resource material as well and are referenced throughout this study.
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1.5. Acknowledgements The team would like to acknowledge and thank all those who provided valuable time and assistance to us as we prepared this feasibility study. A particular thank you goes out to: Terry Snook, Pres 8 AFMA Wayne Estopinal, Pres TEG Sandy Johnson, Senior Associate TEG The Honorable Henry Burns, LA State Rep Pam Glorioso, City Project Coordinator-Office of the Mayor Bossier City Dale Sibley, Chief Administrative Office-Office of the Mayor Shreveport Rod Richardson, Director of Communication- Office of the Mayor Shreveport Kelley Wells, VP Sports & Tourism Marketing- Shreveport/Bossier TB Shiela Norma, Sports & Tourism Administrator-Shreveport/Bossier TB Craig Spohn, Executive Director/Pres Cyber Innovation Center Dave Hadden, Dir Aerospace Education & Jr. ROTC-Bossier City Schools Paul Laflame, 8 AFMA Board of Advisors Mike Thompson, 2 BW Director of Staff Keith Baron, Training Coordinator ASIG (former 8AFM Chief of Mx) Rebecca Mackie, VP & CFO-National WWII Museum John Herrling, Campaign Executive Director-National Museum US Army Jerry White, National Infantry Museum Conception & Development Campaign Greg Camp, Executive VP-National Infantry Foundation Pat Bartness, Pres/COO-Museum of Aviation Foundation Henry Skipper, Pres/CEO-Mighty Eighth Air Force Museum Dr. Vivian Rogers-Price, Research Center Director- Mighty Eighth Air Force Museum Shelley Ragsdale, Dir Marketing-Naval Aviation Museum Foundation Kim McCarley, Dir of Membership & Annual Giving- NAM Foundation Wally Coppinger, Dir Carolinas Aviation Museum Joan Doman, Dir of Operations-AF Armament Museum Foundation Mike Leister, Dir-The Air Mobility Command Museum Brian McClintic, Dir of Sales & Marketing-Max Flight Jean-Marcel Thomas, Director Euro Space Center Charles Debeffe, Marketing Manager Euro Space Center J.M. Perou, past CFO, Euro Space Center Mick Shepherd, Training Program Manager, Royal Air Force Museum Cosford Tim Wallis, Head of Conservation, Royal Air Force Museum Cosford Ian Thirst, Head of Collections, Royal Air Force Museum - London Michael Kaplan, Past Vice President, 8th AFMA/current HQ USAFA/PAVSCP Dr. Gary Joiner, Professor of History, Louisiana State University Dr. Benjamin Cabell, Captain Medical Corps, USNR (ret) Caytie Green, 8AFMA
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2. Marketing Analysis
2.1. Abstract and Overview One of the most critical formulations of information and data for this study is to determine the addressable market and ultimately the number of visitors to the museum. By far, the most reliable source of information used to build this analysis was the lodging reports compiled by the Shreveport-Bossier Convention and Tourism Bureau. These reports provide a very comprehensive overview about how many, how often and how long people visit the area and also about their main purpose of travel. This information helps segment the market. In short, this is how the visitor projection was compiled. First we looked at the purpose of why people come to visit Shreveport-Bossier. Leisure travel is the greatest source of visitors, 74%; followed by business travelers, 17%. Of the 74% leisure travelers, 39% come to visit friends and relatives followed by 17% who come for entertainment. In order to be conservative with our approach we focus only on those with the main purpose of leisure travel. There are other sources of potential visitors, which have been neglected at this stage and not taken into consideration for the financial projections in this paper; again our conservative approach. The following groups were not directly calculated in the visitors captured number: Business travelers & other non leisure (only leisure travelers are considered) People just passing through the area, stopping overnight or for a rest Local population visiting the museum for non-touristic reasons Market capture rate: In line with other major and market savvy museums operating in the US, we assume a 10% market capture rate. That is, 10% of the number of visitors in our segmented market.
Figure 2.1: Addressable Market Table
Addressable Market Target Number of Visitors

Shreveport-Bossier Area
Number of rooms Occupancy rate Purpose Leisure Market Capture Rate Total Number of individuals Day trippers Total people to S-B area Number Just Passing Through TOTAL S-B VISITOR MARKET Total of segmented Markets
nbr/%
9963 74% 74% 10% 3,542,400 1,310,203 4,852,603 176,412 4,676,191 3,460,382
Source
2011 SBTC Lodging Report pg 4 2012 SBTC Economic Indicator Report pg 1 2010 TNS Study Louisiana pg 26 Multiple - AMA & targets from comparative MU's Visiting people overnight in B-S per year Visitors coming to the region for the day People coming to S-B per year Factoring out those just passing through Includes all segments (Business, Leisure, etc) Those various graphics seeking leisure activity
Visitors Captured
346,038 Based on 10% market capture rate
The following paragraphs elaborate in more depth how the visitors captured number was derived. We will start by introducing aspects of a marketing strategy; the importance of differentiation; as well as the origin of visitors and other events in the area. Some may be tempted to view other attractions and venues for leisure activity as competition. We urge the 8 12 | P a g e
AFMA to view these entities as an opportunity to synergize efforts. The Association should avoid trying to directly compete, offering the same value proposition. They should also attempt to gain more visitors than the above estimated to visit not only the new museum but to further explore the Shreveport Bossier area thereby further enhancing the total visitor experience.
2.2. Marketing Strategy The 8th Air Force Museum, as a non-profit organization, depends on the revenues generated by visitors, donations, sponsorship as well as revenues from membership. The purpose of this paper is not to discuss fund raising which is a defining necessity to build the new museum. It is much more the objective to provide ideas and input on what it takes to build a sustainable strategic marketing plan. This plan will increase the chance of long-term museum success and provide a mechanism to ensure revenues are generated in sufficient quantity to cover operational expenses. We have noted prior, the core of the marketing strategy is to understand customer needs and address/satisfy these needs with a variety of features. The museum must be marketed as a place where one can spend quality time repetitively. While conducting our research, we visited and interviewed top management at more than 18 museums and related entities in the United States and a half dozen in Europe as well. It quickly became apparent to us: Marketing was a key function that drove the successful museum. We confirmed that those museums that ran professional marketing departments were much more successful and profitable than their competitors. Additionally, there appeared to be a major misunderstanding about marketing functions among those having weak marketing programs. Unfortunately, some thought of marketing as just having pamphlets and maybe some free news spots. The following abstract is from an article published by the American Association of Museums. It very well explains how important the role of marketing becomes for museums; to benefit from their assets and provide a full range of possible offerings to their visitors1: Museum administrators often underestimate the value of their institutions' offerings. They focus on collections and exhibitions and overlook the possibility that visitors may also seek a contemplative space; a sociable encounter; a distinctive shopping experience; or a place where a family can spend quality time together. In fact, visitors may seek all of these benefits in a single visit. The 8th Air Force Museum has the opportunity to evolve from a showroom of unique artifacts to a center of social encounter and a place where people come together to enjoy their spare time. Museum professionals recognize that museums, as recreational and educational organizations, operate in a marketplace alongside competitors. The focus on visitors as consumers is spreading, and museum officials are seeking better ways to provide consumer value and utilize marketing tools to accomplish their goals.2
1
2
http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm
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2.2.1. Importance of Differentiation and Theoretical Aspects While conducting interviews with business oriented CEOs of museums, we repeatedly received interesting insight of crucial criteria for features when it comes to addressing customer needs. The features, at a minimum must be: Dynamic Interactive An experience you cant have at home and one that differentiates from competing attractions The museum must be run like a business and the thought of differentiation needs to be deeply embedded in all decisions that the museum management takes. Museums that manage well, not only focus on their artifacts but on their possibilities to entertain and offer a place for relaxation, education and well-being. Those who do are drawing record crowds and generating unprecedented visibility. Again, AAM states: In the coming years, museums will have to design a broad array of offerings, identify and respond to needs of different visitor segments, get visitors to spend more time and visit more often, and build durable relationships with their audiences and communities. There is a range of experiences museums can offer to visitors. In recent years, the focus on collections and education has been joined by a focus on museum-going experiences.3 Artifacts and exhibits remain a central piece of museums, but they serve as the basis and are surrounded by other services such as materials focusing on storytelling, exploration of the objects meaning, technical challenges and their solutions. Of course this all combines to create a unique and differentiated atmosphere which makes for an unforgettable event. Things such as dining, taking a break, playing, meeting with friends, or having the space just to reflect in an environment no one else within the region can offer. As a result, visitors feel better informed about, more connected to, and better able to participate in museums. They seek experiences in their museum visits, and they rate the success of their visit according to the quality of their experiences. These experiences go beyond viewing objects, acquiring information, and being on site. Experiencing connotes active engagement (direct observation of or participation in an event), immediacy (knowing something through sensory stimuli), individuality (something that is lived through), and intense, memorable, or unusual encounters. Thus collection-centered museums evolved into education-centered museums and, later, into experience centered museums.4 For the 8th Air Force Museum we can foresee the possibility to use its proximity to the Air Force Base as an element to strengthen the customer experience. For many visitors, getting to know life on base can be a very interesting insight that goes far beyond just looking at artifacts from the past. Additionally, bridging history with educational and hands-on innovative aspects could provide a unique experience in the museum; this should be considered as a key element for
3 4
http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm
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success. In some cases there is some reluctance to promote the museum as a place of entertainment. Defining education and entertainment as opposite ideas is short sighted. Indeed many museums are finding ways to strengthen core museum activities with broader leisure offerings.5 The term rational entertainment was created by Charles Willson Peale, who describes the distinctive effect of his museum's offerings on visitors. For him, rational entertainment was more than simple amusement and diversion; it encompassed both enjoyment and edification. Entertainment, after all, can range from the emotional highs and thrills found at Disney parks to the more cerebral highs embodied in the curiosity, wonderment, and learning that occur at museums.6 It is really important to understand the customers motivation. The visitor of today is expecting that museums address a broader range of their needs. Their aim is to have a variety of experiences, to satisfy social aims, enjoy relaxing and recreational experiences. The museum should make sure that the customer enjoys a care-free time and feels good about himself (using his time in a meaningful way). The museum should drive or create a feeling that they are part of something special; that they feel exceptionally proud of. Given the disparate needs and expectations of visitors, museums have to provide a variety of engaging activities. Visitors expect recreational types of experience that are relaxing and playful, involve learning, and provide them with unusual encounters and an escape from the routines of work and everyday life. Museums can offer a range of experiences that include visual and sensory experiences, learning, recreation, sociability, and celebratory and enchanting experiences.7 2.2.2. Responding to Audience Needs The challenge is to communicate the full range of offerings to the public and identify and respond to the needs of different segments of the audience. Museums should periodically assess the extent to which they are offering visitors variety and quality. Museums, similar to other attraction parks, need to understand how they can motivate their customers to stay for longer time (and spend more money) and come more repetitive to the museum. There are three questions that need to be continually asked in the context of how museums relate to their audiences: How can you increase the time visitors spend in the museum (recognizing that spending more time is equivalent to spending more money)? How are first-time or infrequent visitors persuaded to come back on a regular basis? How can you draw more visitors to the museum during off-hour periods and off-season so that visits can be more equally allocated throughout the year? To increase the time customers stay in the museum you need to enlarge the offerings and services. There are four main types of services:
5 6
http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm 7 http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm
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Physical comfort and accessibility (well-designed galleries, lighted and safe parking lots, ramps, seating and rest areas, clean restrooms, etc.) Hospitality (welcoming behavior on the part of guides, guards, and other employees) Interpretive, narrative, and way-finding information (including the use of different media) that increase a visitor's awareness and knowledge Recreation and diversion: Restaurant, snack-bar, lounge cocktail bar, gift shops and play areas
Museums can provide a variety of services such as library, research and electronic and technical learning environments. They can also provide a variety of restaurants with special cuisine; a location for large and small events; some museums are even finding success with kids birthday parties at the themed museum playground. Events play a significant role in expanding audiences and converting infrequent visitors to regular, active ones...Building an image of a museum as a place to enjoy year-round and not simply to visit periodically for special exhibitions helps develop active audiences.8 While educational and recreational aspects fulfill audience needs, there comes an element of social responsibility. More precisely, the museum can strengthen its cause as it helps facilitate the capacity for the local communities and other leisure attractions to articulate a sense of identity and purpose. This discussion would not be complete without mention of the issues that small museums are facing. They do not enjoy the large audiences and visibility of large museums. They face the obstacles of location and scale and have to struggle for resources, visibility, and audience. Collaboration with other smaller museums or attractions (packaging the offer) can be the solution and has proven successful in other cities. 2.2.3. Adopt a Consumer Focus Statistics show that U.S. museums are expanding in number and size. Audiences as well are larger than ever. Regardless of size, museums can benefit by adopting a consumer focus, providing a greater range of offerings, and striving to satisfy the needs of visitors. Museums that aim to build a broader audience and develop a consumer focus can undertake a process of building a strategic marketing plan. The planning process involves several basic steps that depend heavily on visitor and market research. They include: 1. Assess the museum's strengths and weaknesses as well as external opportunities and competitive threats (SWOT analysis). 2. Determine the target segments and audience mix the museum is seeking to reach. 3. Determine which needs visitors want to satisfy in their museum visits; needs that may not be satisfied by other cultural and recreational providers and which needs the museum can best respond to, given its resources 4. Design offerings to meet audience needs 5. Determine the museum's distinctive position in the marketplace and communicate an attractive image accordingly 6. Set goals and means to measure goal achievement 7. Develop a strategy to reach the goals.
8
http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm
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The marriage of core activities, services, and an array of experiences enlarges the museumgoing experience for all visitors. 2.2.4. Market Environment The greater Shreveport-Bossier metropolitan area or Market Service Area (MSA), having now a population around 482K, transitioned its economy from one that was once centered solely on being a major player in United States oil business to that of today which includes a large service sector economy. The gaming industry with the riverboat gambling casinos dominates the services sector. When looking at visitors within the state of Louisiana and the S-B MSA, about 16% of Louisianas visitors stop in the Shreveport-Bossier area. The average age of visitors is 47, same for the state. Median income of visitors is approximately $62,300 vs. $67,200 for the state. The visitors are most often married (68%); 79% are Caucasian; 17% African-American; and 28% live in the state of Louisiana. The visitors typical trip to the B-S MSA includes an overnight stay 73% of the time and for roughly 2.6 nights. 78% are coming in their own car and 69% of the time they get a hotel. The others generally stay with friends or relatives. The Shreveport-Bossier Convention & Tourist Bureau is the official tourism information agency for the region. The bureau maintains a comprehensive database for researching lodging statistics, attractions, city events and of course things to do.
2.3. Addressable Market We investigated the region around the Shreveport-Bossier area to better understand the dynamics of visitors and how many visitors are coming to the area. This information formed the basis for determining our addressable market. Of course there will be different kinds of visitors coming to the museum. For example: those coming with a main purpose to engage in leisure activities (visiting the museum considered as leisure); business travelers as well as people in transit which dont have leisure activities as their main purpose (e.g. medical, sports). In our planning scenarios we only considered and calculated travelers having leisure activity as their primary purpose of travel and developed factors based on these potential visitors (conservative approach) to determine the addressable market. As stated previously, the primary source of data used to calculate the total number of museum visitors was lodging reports developed for the Shreveport-Bossier area. The information in these reports was the most reliable data and helped us to avoid any double counting of visitors. Other attractions and events in the area claim certain numbers of visitors, but there is little possibility to reliably say how many attractions one person visits during their stay. As well, it was noticed that visitor data to attractions varied greatly depending on source of data; hence the questionable reliability of these visitor numbers. Staying with lodging and visitor profile reports: Statistical factors: Shreveport-Bossier currently has 9,963 hotel/motel rooms9 Occupancy rate for 2011 (and holding steady for 2012) was 74%10
9
10
Shreveport-Bossier Convention & Tourist Bureau, 2011 Lodging Report, page 4 Shreveport-Bossier Convention & Tourist Bureau, 2012 Tourism Economic Indicator, page 1
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74% of visitors have leisure activities as their main purpose of travel11 73% stay overnight, hence 27% are day-tripper12 69% of the overnight visitor stay in hotels/motels, 31% with families/friends/ relatives13 Average number of people travelling in party: Between 1.914 and 2.815 (two sources with slightly different calculating methods). Projection set at average - 2.35 for this study Length of stay 2.6 days16
Figure 2.2: Primary Purpose of Trip
11 12
Calendar Year 2010 Louisiana, TravelsAmerica Visitor Profile Report, December 2011, page 26 Calendar Year 2010 Louisiana, TravelsAmerica Visitor Profile Report, December 2011, page 42 13 Calendar Year 2010 Louisiana, TravelsAmerica Visitor Profile Report, December 2011, page 90 14 Calendar Year 2010 Louisiana, TravelsAmerica Visitor Profile Report, December 2011, page 46 15 Shreveport-Bossier Convention and Tourist Bureau Conversion Study, August 2010, page 16 16 Calendar Year 2010 Louisiana, TravelsAmerica Visitor Profile Report, December 2011, page 44
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Figure 2.3: Day vs. Overnight
Figure 2.4: Length of Stay
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Figure 2.5: Number of Household Members
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Based on the above statistical factors the addressable market and target number of visitors for the 8th Air Force Museum has been computed as follows:
Figure 2.6: Addressable Market Target Number
Addressable Market Target Number of Visitors

Shreveport-Bossier Area Number of rooms Occupancy rate Purpose Leisure Day trippers Overnighters Percent paying hotel Staying w/ rel or friends Avg nbr people in party Avg nbr people in party Avg night stay Just passing through Market Capture Rate Motel people per night Motel people per year Non-hotel people per yr Total overnight people Avg night stay factor Day trippers Total people to S-B area Number just passing through TOTAL S-B VISITOR MARKET Total of Segmented Market Visitors Captured nbr/% 9963 74% 74% 27% 73% 69% 31% 2.8 1.9 2.6 4.98% 10% 17,411 6,355,066 2,855,175 9,210,240 3,542,400 1,310,203 4,852,603 176,412 Source 2011 Lodging Report pg 4 2012 SBTC Economic Indicator Report 2010 TNS study Louisiana pg 26 2010 TNS study Louisiana pg 42 2010 TNS study Louisiana pg 42 2010 TNS study Louisiana pg 90 2010 TNS study Louisiana pg 90 SBTB Conversion study pg 16 2010 TNS study Louisiana pg 46 2010 TNS study Louisiana pg 44 2011 Lodging Report pg 4 AMA & targets of comparative MU's 9963*74%*2.35 (avg party size) 17,411*365 9.210M-6.355M 6.355M/69% results = people overnighting in B-S per year Visitors coming to the region for the day People coming to S-B per year Factoring out those just passing through
4,676,191 Includes all segments (Business, Leisure, etc) Those various graphics seeking leisure 3,460,382 activity (4.676M*74%) 346,038 Based on 10% market capture rate
The addressable market for the museum is targeted at 346.000 people. There will be the typical gyrations in attendance during the first few years of operations. The first two years will be the ramp-up phase as excitement for the new museum will be very high. This will culminate with visitation numbers exceeding the target number. Moving on to years three and four, the attendance will most likely fall and settle around the 346K target. After this time, the museum will need to revisit their offering to visitors; consider upgrading exhibits and features or else attendance will drop off. Ideally, a marketing strategy should set out to continually gain market share. This would mean driving the market to consider the museum a primary destination and not just a leisure activity to visit while in the area. The staffing concept 21 | P a g e
as well as the financial projection is built upon this number. The graph below illustrates the typically evolution of visitors for any attraction same expectation for the museum.
Figure 2.7: Evolution of visitors
# Visitors Upgrade Add New Steady-State Features No re-investment: Visitors go elsewhere Optimal: Gain Market Share
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
2.3.1. Sanity Check Addressable Market The purpose of this sanity check is to make sure our addressable market estimates are solid and not out-of-line with comparative museums. Basically, we considered three inputs for addressable market numbers and decided to take the lowest estimated number and use this as the basis of all financial / budget projections. The main reason is to be on the conservative side of estimations. Data considered: Average number of visitors in the US to Science / Technology Center Museums Market capture rate of museums in the United States of America Calculated addressable market based on lodging reports and leisure travel profiles
Average number of visitors in the US to Science / Technology Center Museums: The latest estimates cite at least 17,500 museums are operating in the United States. The American Association of Museums estimates these museums host 850 million visitors per year.17 The AAM also reports that the median attendance across the US by type of museum was as follows:
Figure 2.8: Median Attendance by Museum Type Art Museum Children's/Youth Museum General Museum Historic House/Site History Museum/Historical Society Living Collections Natural History/Anthropology Museum Science/Technology Center/Museum Specialized Museum
17
44,878 130,870 58,500 11,700 10,000 208,574 58,176 357,103 22,000
http://www.aam-us.org/aboutmuseums/abc.cfm
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It is interesting to observe the museums that are attached to science & technology as well as children/youth museums attract the largest number of visitors. The median of 357K visitors per year fits well to the addressable market predicted and targeted for this study. Market capture rate of museums in the United States of America Many of the larger and more established museums investigated for this study were asked how they calculated the target for number of visitors. The standard method used was based on gaining a percentage of local area visitors. The target percentage was 10% of all people coming to visit the local area. Some exceeded this percentage and others did not. In our case, if we were to use this method, the target for addressable market would come to roughly 467K people. While this number of people is not an unthinkable target for museum visitors, it is more prudent to view it at this stage as a goal when a market growth strategy is implemented; after the steady state of visitors is achieved. Based on the above information, we feel very confident the calculated number of 346K visitors per year is very realistic and achievable. One last note on this: During our interviews with many museum managers, it became readily apparent: When museums did not achieve the number of visitors predicted, they most often had a short-sided marketing effort. Those that reached and exceeded predictions ALWAYS had a robust team of marketing professionals on staff. 2.4. Origin of Visitors The origin of visitors was not a prime factor for this study but will be of necessity when conducting a marketing campaign. With limited marketing budgets, targeting your most likely audience with attractive messages makes sense. We took a look at where visitors to the Shreveport-Bossier are coming from. There were several good sources used to compile this segment of visitor profile. Tourism inquiries for Shreveport-Bossier are a great indicator of who is coming and where they are coming from. Past surveys also gathered data on where visitors were coming originating. Lastly, we looked at which media the visitors preferred and specifics on how they got the information they needed. Again, this information will help when formulating a strategic marketing plan.
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Figure 2.9: Inquiry Origin Map
The above illustration shows the main cities and regions where most inquiries into ShreveportBossier are coming from.18 Statistics show the most visitors throughout the state originate from within the state. After that, they are originating in Texas.19
Figure 2.10: Source of Visitors
However, specifically for Shreveport Bossier, Arkansas comes in third over the states ranking with Mississippi. Other state origins are different as well when comparing Shreveport-Bossier to that of the state in total.20
18 19
http:www.shreveport-bossier.org/sys/pdf/Shreveport-Bossier_BrandPrint_Final_Report.pdf Calendar Year 2010 Louisiana, TravelsAmerica Visitor Profile Report, December 2011, page 24
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Figure 2.11: Visitor State Percentage
Figure 2.12: Top 5 Visitor States
Top 5 Visitor States for Shreveport-Bossier:
2.5. Current Activities What are visitors doing today in the area? In the following paragraphs we elaborate about the different main attractions and venues that bring people to the city and region today. This information is not directly relevant to the methodology used in this study to determine the addressable market. Our main reason for this was to avoid double counting of visitors. However, this information is relevant for marketing communications. More specifically, the MARCOM that deals with the how, where and when of communicating the product, place, price and the promotion. The following illustration excerpted from the 2010 SBCTB conversion study shows the events and activities that are bringing people to the area today21.
20
http://www.shreveport-bossier.org/sys/pdf/Shreveport-Bossier_BrandPrint_Final_Report.pdf (Over 2,800 visitor addresses were collected and geo-coded (assigned) to a Core Based Statistical Area (CBSA)) 21 Destination Exploration, Shreveport-Bossier Convention and Tourist Bureau, Conversion Study, August 2010
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Figure 2.13: Places and Activities Visited
Gaming / Casinos: No surprise, gaming and casinos dominate activities of those visiting the city. In 2010 casino admissions accounted for 11.5 M visitors.22 Shopping is also a big attraction for city visitors. One other item of interest on this illustration is the number of visitors who had visited the 8AFM; 11%. The 8AFM today claims 35K to 50K visitors a year. It is our thought that this number is underestimated. The museum currently does not have a positive means to establish this number. Often visitors go through the airpark and do not enter the main facility. Digital counters are available but no longer maintained.
22
Tourism Annual Report 2010, Shreveport-Bossier Convention & Tourist Bureau
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A simple correlation using the illustration above and knowing the factual visitation at Sci-Port is 167,681/yr and also understanding 19% of visitors attended Sci-Port, places the 8AFM visitor estimate at just over 97K per year. This raises some questions as to the real current visitation statistics at the 8AFM. 2.6. Other Events What other events bring people to the area? 54% of the visitors are not necessarily attending a special event or venue. However, 46% do come for festivals, often do stay several days and therefore could also be very interesting for the museum to attract as potential visitors. Below we are the most prominent events which are cited in the 2010 SBCTB conversion study.23
Figure 2.14: Festivals Visited
23
Destination Exploration, Shreveport-Bossier Convention and Tourist Bureau, Conversion Study, August 2010
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The following details specifics on some of these key events. It should be noted, the BAFB Air Show represents a grand opportunity for the museum to leverage off. Additionally, it is not unthinkable to link other events to a capability at the new proposed museum an opportunity to capitalize on. Mardi Gras: Mardi Gras celebrations in Shreveport date to the mid-nineteenth century when krewes and parades were organized along the lines of those of New Orleans. Mardi Gras is an important part of the cultural life of the Shreveport metropolitan area with more than 440K party goers annually.24 Mudbug Madness: Mudbug Madness is a four-day festival held each Memorial Day weekend. Mudbug Madness is nationally recognized as one of the Southeast Tourism Societys Top 20 Events, drawing as many as 56,000 people in one day. It means that this event brings more than 200.000 people to the area during 4 days. Red River Revel Arts Festival: The Red River Revel Arts Festival is an eight-day outdoor arts festival. It ranks as one of the top ten events in Louisiana. This festival celebrates the arts with more than 120 visual artists from across the country. Four performance stages feature live music and a large area is dedicated specifically to providing arts education for children.25 The festival attracts more than 180.000 people every year. Barksdale Air Force Base Annual Air Show: The BAFB Air Show attacks a very large crowd over a several day event. In 2011, 215K visitors attended the show. It is the largest air show in the south-central region of the United States. It is held in the spring on the air base and often features prime acts such as the U.S. Air Force Thunderbirds and other demonstration teams.27
25
http://www.shreveport-bossier.org/mardi-gras/ http://www.topeventsusa.com/state-events-louisiana.html 26 http://www.shreveporttimes.com/article/20120407/NEWS01/204070343/Updates-offered-Barksdale-Air-ForceBase-air-show 27 http://www.shreveporttimes.com/article/20120407/NEWS01/204070343/Updates-offered-Barksdale-Air-ForceBase-air-show
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2.7. Competitive Venues When considering competition at the regional level and for the short term, the new 8 AFM will continue to have the same competitors they have today. However, given the size, scope and awe of this new museum, 8AFMA managers will eventually (within 2 to 3 years) find themselves competing beyond regional venues as they seek to grow market share, attain primary destination status and raise annual visitation beyond just a percentage of those already slatted to visit the Shreveport-Bossier area. When looking solely at museums or entities with a technical nature, there are basically three other attractions that compete with the 8 AFM for visitors. The following is a summary of these venues: Sci-Port Discovery Center: Sci-Port is a 92,000 square-foot science and entertainment center in Shreveport-Bossier, featuring over 290 science, space science, technology and math exhibits; daily changing programs, an IMAX Dome Theatre, open-access, interactive, laser Space Dome Planetarium, gift shop and cafe. Sci-Port is located on the downtown Shreveport Riverfront. Sci-Port: Louisiana's Science Center is a private, non-profit 501(c)(3) organization. The center opened in 1998. Sci-Port boasts strong partnerships with school systems, effective collaborations with community organizations and diverse public/private support. The science center has become a cornerstone in the economic and educational development of the southern region and a leader of informal science education in the state of Louisiana. The Centers annual report for 2010-2011 states the center hosted 168K visitors (52K from school groups) and realized roughly $1.63M in earned revenue; captured $3.22M from various support entities and had $3.25M in operating expenses. http://www.sciport.org/index.php?src Louisiana State Exhibit Museum: The Louisiana State Exhibit Museum (LSEM) houses many dynamic collections and rotating exhibits that offer insight into the history and culture of Louisiana and beyond. The Museum is considered a major attraction in Northwest Louisiana, the state and the Ark-La-Tex and has been so since it opened in 1939. Annual visitation average is 73K per year. LSEM presents historical exhibitions and public programs for people of all ages and ethnicities. Murals and exhibits relate the story of Louisianas great natural resources, agriculture, industry and history. The Museum is listed on the National Register of Historic Places. It is also the only public museum in Louisiana honored as a Smithsonian Institution Affiliate. Admission and tours are free. Regular hours are 9 a.m. to 4 p.m. Mondays through Fridays. The Museum is also part of the Louisiana State Fair. Each year more than 42,000 children are claimed to visit the Museum from area schools. LSEM is part of the State of Louisiana Museum System and receives funding to operate from the state. http://flsem.mmcchosting.com/ Louisiana State Oil and Gas Museum: Located in Oil City (about a 20-minute ride outside of Shreveport), the Louisiana State Oil and Gas Museum interprets the drama of Louisianas early oil industry history through photographs, films and life-size dioramas. This region of Louisiana was built on the oil and gas industry. Those visitors interested in the technical aspects of oil field work find the museum particularly appealing. The museum has a collection of machinery, rigs and equipment depicting the character of oil and gas production. Annual visitation is 29 | P a g e
approximately 7.5K per year. The recent discussion by State officials to suspend funding of some of the state run museums place the continued operation of this establishment in jeopardy. http://www.sos.la.gov/tabid/242/Default.aspx Other aviation related museums: Across the US there are 200+ aviation associated museums. Not all would be grouped into the same class as the new 8AFM. However, it is prudent to understand some of the aviation related leisure activity options visitors have. Below is a listing of aviation museums or related venues located in the primary visitor feeder states (AR, MS, OK, LA, TX) for Shreveport-Bossier tourism. Arkansas (2) Arkansas Air and Military Museum: 4290 S School St, Fayetteville, AR 72701. http://www.arkansas.com/exit.axd?url=http%3a%2f%2fwww.arkairmuseum.org%2f Aviation Cadet World: 39 County Road 2073, Eureka Springs, AR 72632. http://aviationcadet.com/ Mississippi (2) Mississippi Armed Forces Museum: Building 850, Camp Shelby Joint Forces Training Center. West of Hattiesburg (has a few aircraft). http://www.armedforcesmuseum.us/Pages/Home.html Key Field Airport Terminal: Meridian MS. Display to the Key Brothers record setting first modern aerial refueling. Web site not located. Oklahoma (1) Stafford Air & Space Museum: 3000 E Logan Rd, Weatherford, OK 73096. http://staffordmuseum.com/ Louisiana (4) Chennault Aviation and Military Museum of Louisiana: 701 Kansas Lane, Monroe, LA 71203. http://www.chennaultmuseum.org/web/ Jackson Barracks Military Museum: 6400 St. Claude Avenue, New Orleans, LA 70146. (Renovated after hurricane flooding; over a dozen military aircraft) National WW II Museum: 945 Magazine St, New Orleans, LA 70130.http://www.ddaymuseum.org/ Wedell-Williams Memorial Aviation Museum: 118 Cotton Rd, Patterson, LA 70392. http://www.crt.state.la.us/museum/properties/LSMpatterson.aspx Texas (16) 1940 Air Terminal Museum: 8325 Travel Air St, Houston, TX 77061. http://www.1940airterminal.org/ American Airlines CR Smith Museum: 4601 Texas Highway 360 at FAA Road, Fort Worth, TX 76155. http://www.crsmithmuseum.org/Exhibits.aspx Cavanaugh Flight Museum: 4572 Claire Chennault, Addison, TX 75001. http://www.cavanaughflightmuseum.com/ Freedom Museum: 600 N. Hobart, Pampa, TX 790656 (B-25 and a UH-1). http://www.freedommuseumusa.org/ 30 | P a g e
Frontiers of Flight Museum: 6911 Lemmon Ave, Dallas, TX75209. http://www.flightmuseum.com/ Hangar 25 Museum: Apron Dr, Big Spring, TX - McMahon Wrinkle Airport. http://www.hangar25airmuseum.com/main/index.asp Historic Aviation Memorial Museum: Tyler Pounds Regional Airport, Tyler, TX. http://www.tylerhamm.org/index.htm Lonestar Flight Museum: 2002 Terminal Dr, Galveston, TX 77554. http://www.lsfm.org/ National Museum of the Pacific War: 340 E Main St, Fredericksburg, TX 78624. http://www.pacificwarmuseum.org/Index.asp National WASP World War II Museum: 210 Avenger Field Rd, Sweetwater, TX 79556.http://waspmuseum.org/ Silent Wings Museum: Lubbock Preston Smith International Airport, 6202 N I-27, Lubbock, TX79403. http://www.silentwingsmuseum.com/ Texas Air Museum: Slaton Municipal Airport, Slaton, TX 79364. http://www.thetexasairmuseum.org/ Texas Air Museum at Stinson Field: 1234 99th St, San Antonio, TX 78214. http://www.texasairmuseum.org/ USS Lexington Museum on the Bay: 2914 N Shoreline Blvd, Corpus Christi, TX 78403. http://www.usslexington.com/index.php?option=com_content&task=view&id=1&Itemid =345 Veterans Memorial Air Park: 3300 Ross Ave., Fort Worth, TX 76106. http://facmuseum.org/ Vintage Flying Museum: Hangar 33 South, 505 NW 38th St, Fort Worth, TX 76106. http://www.vintageflyingmuseum.org/
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2.8. Comparative Venues During the course of preparing this feasibility study, there were venues we visited which had outstanding model programs. The 8 AFMA would benefit from seeking out and benchmarking from these successful establishments. Although there are bound to be other great models to adopt and build upon, the following represents some of the more stand-out programs we noticed. Starting with the museum with a strong business model. The National Naval Aviation Museum (NAM) located in Pensacola, FL and the NAM Foundation together have excelled in building a spectacular museum business model which seems to have broken the traditional museum mindset; sufficient revenues cannot be generated to cover operating and overhead costs. The NAM Foundation invests heavily in staffing (100 paid employees) with emphasis on business development leaders and a robust marketing team. In principle, the museum has a similar structure to that of the 8 AFM (US military governed museum; on US military installation property; US military owned aircraft and artifacts; partnered management between government funded employees and supporting foundation). The molded relationship between the government entity and foundation seems to have proven successful and one to emulate. The museum is attracting just over 810K visitors a year. In 2010, the foundation generated $5.4M in operating and contribution revenues as well as $5.5M for its highly acclaimed National Flight Academy (innovative education program). In total for 2010, the foundation held $22.8M in assets, had accumulated an $8.53M endowment for NAM perpetuation and did not carry any long term debt or liabilities. Primary direct revenue generators included: museum store (on-line as well), assortment of flight simulators, IMAX theatre, and a restaurant. Other factors: RV park for visitors; amenities for kids (childrens play area); open cockpit mock-ups; kids summer camps; events/symposiums; base tours. Visitor projections are based on percentage of visitors to the area (mainly from South Eastern US). The National Infantry Museum (NIM) in Columbus, Georgia is a model facility with an array of exhibits that tell the museums story to roughly 350K visitors per year in a fascinating and awe inspiring way. Of the $110M construction cost, $17M was paid-out for displays/dioramas. Of all the museums visited for this study, this museum was the most impressive and breathtaking for exhibits design/planning, facility layout and events functionality. This museum is also pursuing an aggressive Donation-for-Entrance campaign and has implemented some unique measures to increase participation. The museum has approximately $5M per year O&M cost of in which the NIM Foundation contributes 1/3 from in-house revenues. Not seen at any of the other museums visited, the NIM capital fundraising campaign secured foreign financial contributions from the South Korean Government as well as the Korean based Samsung Corp. When considering education programs, the Museum of Aviation at Robbins AFB, Warner Robbins, GA had a very noteworthy educational program structure. The program was directly tied-in with local school programs. The mandatory curriculum items were accomplished at the museum and were a requirement for certain grade completion. Although the museum is netting on average minus $400K/yr to run the education programs, it is seeking ways to recoup these excess costs. On the revenue side, the museum receives from the city, a percentage of collected local area hotel tax and is 32 | P a g e
gaining additional revenues with a relatively newly installed flight simulator. The museum hosts500-600 events per year and generates good revenue from golf tournaments and auctions. The museum recently discontinued their difficult contractual arrangement and financial losing proposition with IMAX despite having 602K visitors per year. They have converted to a more flexible self-owned high-tech theatre. The Mighty Eighth Museum also had robust educational arrangements with overnight events and invested heavily in its research capability; a function headed by a professional researcher holding a PhD. The National Flight Academy at the NAM seems to be a robust and model program. However, our team did not personally evaluate the scope or extent of this program. The Euro Space Center hosted school groups throughout the year with a wide array of space and aviation projects set up for teams. They had a full mock-up space shuttle control center and shuttle. The kids would rotate positions as they performed a launch, docking and return flight. The Center has on-site dormitory rooms to accommodate 80 kids; 4-per room with their own bathroom. More private overnight facilities for the chaperones are available as well. This arrangement is very unique and was not seem at any of the US museums visited.
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3. The Concept for the Museum

3.1. Introduction In section 1.3, some of the specific elements of the museum concept were discussed as a part of the vision for the museum and are not fully repeated here. Moving more broadly and theoretical, the new museum has to be no less than spectacular. It must be awe inspiring and something which will generate a desire to visit/re-visit by those throughout the nation and abroad. The atmosphere has to be unique and ideally of such magnitude and of a specialty not easily attainable elsewhere. Of course, at center will be the function to honor the magnificent accomplishments and significant historical activity of 8th Air Force, the 2nd Bomb Wing and Barksdale, AFB. The way in which this story is to be presented and told should be treated as an entire study unto itself and best made by professional historians and curators. This also should be accomplished before solidifying any facility design schemes. The museum has to be alive and a place where different segments of the population can come and fulfill different needs. Aside from a sole visit for historic reasons; conferences, banquets, meetings, ceremonies, parties or a place to take a break; an event where the stage is lined with artifacts and aircraft that portray even the most unthinkable challenges and obstacles have solutions when people come together for common purpose and cause. Those involved with planning this endeavor must think big and bold and have the courage to take on calculated risk. There should be multiple ways to absorb the historic aspects aside from taking a tour through the museum. The concept envisioned is one which not only honors the past but also looks to the future. As been said many times in this report, education must be a key element within the museum. However, the education program envisioned here goes a bit further than traditional aviation museum education. It should not duplicate curriculum being taught in regional public schools, universities or other entities. The program should not compete (locally) for education programs. The program would not just discuss the effects of air passing over and under a wing. The program envisioned is bold and one which will in short time command national attention. The concept: Create a program which creates innovators; build a technology driven innovation and development center. Create an institution which is fully equipped with facilities, a staff and tools to nurture ideas and accommodate bringing these ideas to reality. Build a facility with laboratories, fabrication rooms, test cells and the like. Partner with the Cyber Innovation Center. Integrate platforms such as information technology, computer automated design and mechanical automation into the innovation process. Create a culture where issues are problem centered not subject centered; where collaboration is encouraged over individual achievement; where intrinsic motivation is nurtured by having the means to play, fulfill a passion and provide a purpose. Cultivate innovation and entrepreneurship which expands upon what is already being taught and learned in the Science, Technology, Engineering and Mathematics fields. It could be termed i-STEM. Envisioned are teams of people working together to find and create new ways to satisfy difficult technical challenges. This would be the element which carries this museum beyond the bounds of spectacular.
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The following is a short commentary which sets the corner stone as to why having an innovation development center at the core of the 8AFM makes good sense. As a nation, the U.S. has fought very hard to keep its most precious asset; Freedom. This fight has not only involved military members but everyday citizens as well. The rewards of this freedom are not always so evident; especially to the citizens themselves. However, there is one very big reward of this freedom often going unnoticed. This reward is one which other nations are attempting so hard to duplicate. It is the inherent capability to innovate. As many developing/developed nations such as China, India and Russia are finding out, and despite having some very smart people in these countries, this capability is not so easy to cultivate and often cannot be developed by education alone. Individuals who have experienced living in a society of freedom such as that very often experienced in the U.S. are well advantaged. There is a link between the degree of political, societal, individual and economic freedom and the capability of a nation to innovate. In order to successfully innovate, one must have an environment where they can came together with others and experiment uninhibited with their thoughts and ideas. Freedom to think outside of norms; freedom to try, fail, and try again without negative consequence; freedom to transition from the most desperate of conditions to that of success. This is a facet of American society which needs to be capitalized on. The world is such today where competition in all markets is growing fiercer by the day. The companies and nations that can bring about new technologies and advance on new solutions to long term challenges will prosper; those who do not will falter. It should come as no surprise, the security of the U.S. and its freedom is at stake. The U.S economic standing in the world is shrinking and new threats emerge almost daily. Taking advantage and nurturing this organic capability to innovate will be one of the most critical and defining challenges for America, its economy and continued role of leadership on the global stage. It presents a grand opportunity for the museum to play a key role and participate in. This situation is well understood by economists and the business community, concerned citizens and wise politicians. Having a prime avenue to nurture the innovative spirits in the minds of the creative youth is something very attractive for many, many, reasons. It will also provide the leverage needed to support building such a grand museum. A recently published book titled; Creating Innovators: The Making of Young People Who Will Change The World, by Tony Wagner, PhD., Harvard Graduate School, and renowned scholar of change education, is a book which presents a road map to educate young people to be innovators. Wagner states The world no longer cares what you know; the world cares what you can do with what it is you do know. (http://www.tonywagner.com/)
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3.2. SWOT Analysis As many understand, the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is a tool to analyze the current internal and external aspects of an organization. To ensure the future of this new museum, a strategy was built upon the core competencies and strengths of the museum and then matched to those identified opportunities. Additionally, it will be important for managers to take positive action to turn weaknesses into strengths and to mitigate external threats. A core thought process in the definition of the strategy is the aspect of differentiation. In our view the museum of the future has to be operated like a company that competes in an open market for consumers and customers. The museum needs to be able to create shared value. This SWOT analysis was compiled using various sources of information which included an online survey taken by thirty relevant stakeholders of the museum. These stakeholders did help us obtain a more precise inside view of the museum and its operations. The results of this survey can be found in attachment 3. These stakeholders have very different backgrounds which enabled a broader view on the subjects. The following is a summary of survey information which was very much in-line with research gained from professional publications and personal interviews. Major strengths of the museum are its location/vicinity to BAFB, the magnificent 8th Air Force history and its great air-park collection In-door facilities are needed in order to preserve aircraft and allow proper maintenance. A state-accredited education program should be developed in-house with appropriate classrooms. Topics should include history of military aviation, the story of 8 AF from its beginning, the stories of the aircraft, the story of Barksdale AFB, how the 8th AF and BAFB have interacted within the region, the story of what 8AF and BAFB mean in national and international politics. Trained personnel should be hired to conduct tours and manage the organization. New facilities should be designed in order to enable special events to be held and include an auditorium and themed restaurant. New attractions like a motion simulator should be added in order to bring some additional revenues. The museum should be moved outside of the base security zone. The security check has a negative impact on the number of visitors. The interactivity between visitors and the exhibitions should be enhanced. The cooperation with volunteers should be reinforced in order to allow visitors to have a personal feel while reducing labor costs. Some sponsorship could be found from other organizations for special events or exhibits. Tie in with other museums or attractions in the region. Visitors want personalized stories, not only pictures on a wall Exhibits have to be continuously renewed. 36 | P a g e
The above feedback as well as other research culminated in the following SWOT analysis which is also further elaborated in narrative.
Figure 3.1: SWOT Analysis
INTERNAL
Strengths
1. 2. 3. 4. 5. Outstanding aircraft collection Access and proximity to Barksdale AFB Cost advantage from being on BAFB property and linked to the USAF Brand name includes 8thAF and its significant lineage Core association management team with strong-depth of business experience 1.
Weaknesses
Inadequate capability to maintain aircraft and artifacts in good conditions. (open air museum) Historical pattern of alternating strategies Having visitors to process through main base entrance Lack of revenue generating entities to support the museums operating costs Under developed marketing strategy Dated facility and exhibits Underdeveloped education program Lack of understanding of the total customer concept. a. Needs b. Expectations c. Value propositions Tarnished brand image with past supporters
2. 3. 4. 5. 6. 7. 8.
9.
EXTERNAL
Opportunities
1. Leverage the proximity to the AFB (Golf tournament, base tour, air show, access to base resources) Entering into strategic alliances with corporate industries Organize/host events in a new facility Growing concern about US education system and enthusiasm for nontraditional education programs Leverage the strong community supporters Collaborate with other attractions in the region Take advantage of high rate of visitors in local area seeking leisure activities 1. 2. 3. 4. 5. 6. 7.
Threats
Change in rules for non-profit organizations Change in customer preferences in favor of other attractions Changes to base policy, USAF museum program or redistribution of current assets Potential major storm, tornado damages Drastic drop in city visitation (casinos, attractions) Liability concerns and coverage of losses Terrorism
2. 3. 4.
5. 6. 7.
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Strengths: Outstanding Aircraft Collection: Many of the aircraft at the museum are very rare or have significant heritage which makes it a unique destination for some passionate visitors. Access and Proximity to Barksdale, AFB: Being a part of BAFB enables many of the resources on base to be accessed or leveraged. The base itself has significant history in the region and it has been at the core of strategic power the nation. Many civilian people are curious to get a firsthand macro look at operations and life on such an air-base. Cost Advantage Being Part of BAFB: Technical and other human resources can be tapped sometimes avoiding the necessity for outsourcing professional services. Brand name includes 8th Air Force: The brand name already has global recognition. This is a significant goal brand managers strive to achieve and often something which costs companies millions of dollars to accomplish. The reputation of 8th Air Force along with its name has a significant intrinsic value. This fact is something which will draw a good portion of visitors all on its own. Core Association Management Team with Business Experience: The management board and the board of trustees comprise people from various backgrounds. More importantly, many have extensive experience in business operations which is a must for museums nowadays.
Weaknesses: Inadequate Capability to Maintain Aircraft and Artifacts in Proper Condition: The aircraft on display outdoors is problematic. Rain, sun and bird excrements are very aggressive, deteriorate the aircraft and compound maintenance costs. With the current operating environment, the museum does not have the financial capability to maintain the aircraft and artifacts in a condition which warrants continued custody of the assets. Historical Pattern of Alternating Strategies: The 8 AFM is a 30 year-old institution whose reputation has been tarnished by not following a clear and consistent long-term development strategy. Visitors Needing to Process through Security: For security reasons, current non-military ID or authorized base visitors need to process through base security personnel for entry. This is a burdensome administrative task; is frustrating and detracting to museum visitors; and also a security concern for the Installation Commander. Lack of Revenue Generating Features: With the actual situation, the museum is not able to obtain or generate enough revenues to cover all needed expenditures. The museum is now very dependent on external funding sources (donations, grants, voluntary activism) which can represent a threat, especially in this period of crises.
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Under developed Marketing Strategy: Research has shown and museum visits have proven that successful museums are those that have a clear strategy and focus on marketing their museums offer - not the case for the 8 AFM. Dated facility and exhibits: Many of exhibits are outdated and do not conform to acceptable museum standards. In order to be more attractive, exhibits would need to be completely overhauled. Underdeveloped Education Program: The current education program at the museum is weak and not structured as it should be. A competitive entity such as Sci-Port has a spectacular education program and is only a few miles away. Visitors are being lost due to this fact. Additionally, education is a primary objective for the museum and this is being marginally accomplished. Lack of Understanding the Total Customer Concept: In order to best match the offering made by the museum to the customer, the customer needs, expectations and value proposition must be clearly understood. This is normally accomplished with some sort of visitor profile study which has not been done at the 8 AFM. Tarnished Brand Image with Past Supporters: While being considered a weakness, it is primarily with those who have supported the museum both financially and with voluntary support over the past many years. The support was normally contingent on the promise for improvement which was seldom realized. As a note on this: There remains an abundance of passion and enthusiasm amongst passive museum supporters. Once the museum demonstrates its seriousness and dedication to moving forward, these past supports are most likely going to jump back onboard.
Opportunities Leverage Proximity and Access to BAFB. Maybe overlooked to a point, as far as the museum is concerned, BAFB facilities could be used to develop the activities of the museum. Some events could be made in cooperation with the golf course, base clubs, and even conducting base tours. Those in the public setting who have never experienced being on a military installation are extremely curious and would like the opportunity to see what is happening. Enter into Strategic Alliances with Corporate/Business Entities: The key is matching the resources/abilities of the museum along with its assets to that of the needs or desires in the private sector. With some creative thinking, propositions should be made where the interest of the museum and those in the private sector are fulfilled. The popularity of corporate social responsibility is growing around the world and makes for fertile ground in this area. Additionally, foreign supporters should not be overlooked as 8th Air Force casts a big shadow. Organize and Host Events in New Facility: Some of the museums we visited hosted up to 500 events a year. Not only does this provide great exposure for the museum, it can provide a source of revenue. Holding some of these events outside normal opening hours can also be considered. Growing Concern for U.S. Education System: The enthusiasm for non-traditional education programs grows as the confidence in the public school systems shrink. This presents a grand 39 | P a g e
opportunity for the museum to part of a solution not for the region but for the nation. Having a nationally recognized model program is not too high of a goal and is one which is very plausible to achieve. Leverage Community Supporters: The communities in the region and of the state are very patriotic and supportive of the military. Many of these folks who have not been part of the military either through work or service hold deep affections when offered an opportunity to be part of it. This is the same phenomenon that yields the hundreds of volunteers at comparative museums. Whether through volunteerism or financial support, this community source will be the dividing line between success and failure. Collaborate with Other Regional Attractions/Entities: Even though most other attractions in the region could be considered competitors, there is room for collaboration. For example: Sci-Port could serve as a prime collaborator since they educate the STEM subject areas and could be a natural hand-off with the 8 AFM for innovation and cooperative projects. The Cyber Innovation Center is also a natural partner for the museum. Being part of the National Cyber Research Park is a hand-in-glove fit with plentiful synergizing opportunities. High Rate of Visitors Seeking Leisure Activity: The number of visitors already coming to the local area is very strong and more important, three-quarters are coming for leisure activities. With a good marketing campaign, visitor participation can explode well beyond current visitation rates. Threats Rule Changes for Non-Profit Organizations: State and national rules for non-profit organizations could change in the near future. Changes to tax codes could place limits on the ability to generate revenues. Other changes could require the 8AFMA to establish and LLC or some other structure to act as a revenue generating arm. These changes could impact the financial realizations of the museum. This threat is very real at the National WWII Museum in New Orleans as they deal with inquiries on restaurant operations and whether they migrated from a requirement to have direct museum correlation. Change in Customer Preferences: Although all organizations need to react to this, if the change is such where museums in general become less significant and visitors migrate elsewhere, it will become very hard to remain relevant. Changes to Base Policy, USAF Heritage Program or Redistribution of Current Museum Assets: The museum is very dependent on the USAF Heritage program and decision making by the National Museum USAF. The 8AFM does not own the assets; they are on loan from the National Museum USAF. It has happened in the past, museums have lost their aircraft after expending tens of thousands of hours in labor and hundreds of thousands of dollars in restoration costs. If the USAF decides to move aircraft (especially the rare classics) to another museum, it would have a devastating impact on the 8AFM and supporters. Although less likely to come as surprise, the base could change policy or lines of support as well.
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Major Storm/Water or Tornado Damage: BAFB has not been spared from significant damage during the past few hurricanes to hit Louisiana. However, wind squalls and tornados have done some damage in the past to outside aircraft. Of course having an indoor facility would mitigate this to a large degree Drastic Reduction in City Visitation (Casino attraction): Casinos are drawing the mainstay of tourists to the city. Theoretically, it other cities or states instituted changes to casino gambling laws, it could result in a loss of visitors to Shreveport-Bossier. In the short term, this would reduce visitors to the museum. Liability Concerns and Coverage of Losses: The museum management team will be required to mitigate threats from liability concerns which could affect finances as well as reputation. All safety issues for visitors must be treated with great care as well as for theft and fire protection. SUMMARY: The summary result of the SWOT analysis is as follows: The aircraft collections purpose will be enlarged in the museum. Besides the traditional function of an artifact telling a story of the past, it will serve multiple purposes. For example, the aircraft brought indoors, will serve not only to tell an airpower story but serve as a backdrop providing a unique atmosphere for events. It will provide a place where you can create a special surrounding for banquets, weddings, conferences, social gatherings and educational activity. The museum will evolve into a social hub for groups to get together, give opportunity for people to spend quality time and socialize in a one of a kind atmosphere. Secondly, the aircraft collection will help to strengthen the museums mandate for education. Building the bridge between history, technology and innovation will become a core element of the museums offering. The growing concern for the school system should be viewed as an enabler to strengthen the role the museum can play with regards to education in the region and potentially the state. The aircraft will be showcased to illustrate how real technological and strategic challenges were faced and overcome. The museum must become a place where one can have interaction with its heritage. Having access to the base should be used to satisfy the interest of the public about life on the airbase. It can be provide a snap-shot view in a whole different world and help them to better understand and see first hand the professionalism and pride of the USAF as well as how taxpayer money is being spent. The 8th Air Force museum also can take full advantage of its brand name and the associations that go along with it. It is clearly about the great achievements from the air. There is an opportunity to translate this association with a unique experience for visitors. Having an advanced full motion flight simulator can do this; it is an interactive attraction and gives joy and fun to the visitor. To become successful in what the museum intends to do requires the right people in the right job. There is a strong core 8AFMA management team that has a breath of experience in business development and operations which should be able to transform this organization into an effective and efficient museum. 41 | P a g e
That being said it is worthwhile to mention that the organizational staffing as it is today, has been identified as a weakness and requires managerial actions and decisions. A much higher emphasizes on marketing is imperative to achieve the required number of visitors projected. In the long-run the museum must evolve into a primary destination. This also mitigates the dependency on the casino risk mentioned earlier. A professional marketing department will focus on understanding the customer concept and identifying their needs, translating those into features that create value for the customer and differentiation from competing venues and attractions. The major weaknesses existing today will be mitigated by re-locating to the new location and by implementing organizational and structural changes at the museum. For instance, the new facility will take aircraft out of the out-door elements; artifacts will be protected and professionally presented; and the new facility will open up opportunities for special events which go far beyond what is feasible today. In the end, the core competencies and strengths of the museum must be matched with the abundant opportunities that the new organization and facility will bring to the museum.
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3.3. Museum Components The facility is foreseen to include features and capabilities as illustrated on the conceptual drawings provided by TEG Corporation (attachment 5). In addition, a 36K square foot maintenance/industrial facility is programmed for construction in this study as well as 10,4K square foot dormitory. The maintenance and industrial area is foreseen for aircraft construction and maintenance, fabrication and testing of products developed by innovation teams as well as technical training operations. The dormitory is foreseen to have 26-400 sq ft (with bath) rooms. 20 set up to accommodate 4-students per room and the rest for Chaperones or VIPs. These components are viewed as essential elements which provide unique and integral core capabilities for the museum. One other component not illustrated on the conceptual drawings is a memorial walkway which is also programmed and budgeted in this project. Lastly, although not programmed, a large conference area could be situated into an elevated position and integrated into the facility design with a glass wall and spectacular view of the aircraft display area. Specific requirements for components require further study and arrangement however, some of the items which should also be considered include: Banquet capability for up to 450 Store location arranged to maximize effective use of employees - store worker considered for donation program at entrance Restaurant location and seating to allow a prominent view of aircraft display area Visitor flow coming into, walking through and exiting the museum. The theater is foreseen to have a high-tech projection and audio system but not an IMAX type of contractual relationship. Financial projections assumed this feature would provide a continuous loop presentation free of charge. Other options for special showings are very feasible. The Auditorium is not seen in this project as a revenue generator but a component which adds value to the museum capability. Symposiums, conferences, meetings and even commanders call are viable use options. The full layout of the educational complex with classrooms, office space, laboratories etc needs full review by an education specialist, having a basic framework for the overall educational/iSTEM plan.
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3.4. Organizational Structure The following organizational structure and alignment was derived from regulatory requirements of Air Force Instruction 84-103, U.S. Air Force Heritage Program; benchmarking of comparative organizations; as well as theoretical structure of organization to optimize performance. This is not to imply a sole solution. It just sets a base for consideration and also allows for financial projections which incorporate wage and labor costs.
Figure 3.2: Organizational Alignment and Relationships
Recommended Organizational Alignment and Relationships

8th AF Museum Association Staff
8 AFMA BOD
8th AF Museum
2 BW DS
GM
Admin Mngr
MU Dir Curator Ops Supt
Admin Asst
Dir Fin & Bud Sen Acct Grant Writer Dir Mrkt & Bus Dev Mrkt Spec Retail Mngr Concess Mngr Event Assts- V Fac/Sec Mngr Sec Guards Sim Oper Janitor H-keep Grnds Mx Acft Mx Sup Acft Techs - V Dir Staff & Ops Comp & IT Mngr IT Spec Vol Coord Tour Driver Tour Guides - V Recepts V G-Shop V Archive's V Exhibits V Dir Ed
VOLUNTEER POSITIONS Note: MU Director is required by USAF requirements to be the Volunteer Program Administrator; have oversight of Volunteer Coordinator; ensure mandates are complied with.
Ed Spec
Mrkt Spec Events Coord
Ed Spec Instrucs V Research Assts - V
Year 1 Year 2 Potential Outsource
Volunteer
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The following spreadsheet illustrates projected staffing requirements and the associated cost factors.
Figure 3.3: Salary and Expense Table
Fixed Salary Breakdown

Position General Manager Dir of Fin & Budget Dir Mrkt and Bus Dev Dir of Staff & Ops Dir of Ed Comp & IT Mngr Senior Acct IT spec Grant Writer Ed Spec Ed Spec Mrkt Spec Mrkt Spec Facility/Security Mngr Admin Mngr Retail Store Mngr Admin Asst Vol Coordinator Concession Mngr Events Coord TOTAL FIXED SALARY Year 1 TOTAL FIXED SALARY from year 2 Yearly Salary Received $85,000 $65,000 $65,000 $65,000 $65,000 $60,000 $50,000 $50,000 $45,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $35,000 $30,000 $30,000 $30,000 $25,000 Bonus & Incentives $20,000 $15,000 $15,000 $15,000 $15,000 Tax and Admin Component (25%) $26,250 $20,000 $20,000 $20,000 $20,000 $15,000 $12,500 $12,500 $13,750 $10,000 $10,000 $12,500 $12,500 $10,000 $10,000 $8,750 $7,500 $7,500 $7,500 $6,250 Budgeted Amount $131,250 $100,000 $100,000 $100,000 $100,000 $75,000 $62,500 $62,500 $68,750 $50,000 $50,000 $62,500 $62,500 $50,000 $50,000 $43,750 $37,500 $37,500 $37,500 $31,250 $1,137,500 $1,312,500 LA Avg Annual Salary* $87,253 $75,743 $76,914 $66,033 $54,343 $80,047 $53,010 $54,506 $44,671 $41,369 $41,369 $39,289 $39,289 $41,048 $37,604 $33,727 $33,148 $30,777 $26,362 $28,100 Shreve Avg Annual Salary* $89,013 $76,423 $71,769 $60,345 $49,216 $69,585 $47,938 $47,893 $46,394 $40,581 $40,581 $42,881 $42,881 $38,694 $38,113 $35,087 $31,941 $31,279 $26,672 $25,314 Occupational Code 11-1021 11-3031 11-2021 11-9199 11-3042 11-3021 13-2011 15-1071 13-1199 25-2022 25-2022 19-3021 19-3021 33-1099 43-1011 41-1011 43-6011 43-4161 35-1012 43-9199
$10,000
$10,000 $10,000
Variable Salary Sim Operator Aircraft Mx Tech Security Guard Housekeeping Tour Driver Grounds Mx Photo assistant Educator TOTAL VAR SALARY Expense Accounts Aircraft/Asset Maint Marketing Administrative Travel Uniform/Clothing
Hourly Rate $10.00 $20.00 $10.00 $8.00 $10.00 $10.00 $10.00 $20.00
Projected Annual Hours first year 2867 2000 3248 32580 1448 2080 2867.04 960
Tax and Admin Component (25%) $7,168 $10,000 $8,120 $65,160 $3,620 $5,200 $7,168 $4,800
Budgeted Amount $35,838 $50,000 $40,600 $325,800 $18,100 $26,000 $35,838 $24,000 $496,338
LA Avg Hr Wage* $7.26 $22.95 $10.57 $7.47 $10.81 $9.89 $12.37 NA
Shreve Avg Hr Wage* $7.44 $23.55 $9.44 $6.86 $9.64 $9.49 $13.65 NA
Occupational Code 39-3091 49-3011 33-9032 37-2012 39-6021 37-3011 27-4021 25-2022
Total Exp TOTAL EXPENSES Volunteer Positions Tour dir Tour Guide/driver x 8 Receptionist x 8 Gift Shop x 5 Docent x 15 Total *Source: Louisiana Occupational Employment Wage Survey
Annually $80,000 $200,000 $50,000 $50,000 $5,000 $385,000
$2,018,838
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4. Financials
4.1. Operations - Management and operating financial projections overview Based on the concept plan described above; analysis of the market potential; review of the current operations of the 8AFM; and examination of comparable museums; we have prepared a forecast of revenues and expenses for the operating activities of the proposed museum. This forecast is focused on the operations side of the business and de-linked from the initial capital investment scheme. Again, one of the assumptions is no long term debt will be carried. If adequate capital for initial construction and move-in costs cannot be secured, this project should not be pursued. Our overall approach to operations and financial planning is to create a base year operating scenario, which reflects operations of the Museum when all programs are established and operations have somewhat stabilized. The estimates developed are those judged to be most appropriate at the time of preparation. Inevitably, some assumptions used in the estimates will not materialize as projected and unanticipated events will occur which will impact the operations scheme planned for the Museum. Along the path of any project, having a risk mitigation plan is a wise decision. It should also be understood, the estimates are intended to provide a planning framework to meet dual objectives of responsible financial management and informing the community and potential investors. As planning for the project continues revisions to the projections to reflect actual conditions should be made. Revenue sources and expenses are described below and detailed financial schedules are provided in attachments 7 4.2. Revenue Features Admission-Voluntary Donations The 8 AFM would continue to have free admission. However, many museums around the country are implementing positive methods to solicit donations at the entrance way. For example, at the National Infantry Museum, visitors are filed to and greeted by a friendly staff member (volunteer) who informs the customer about the free entrance with a suggested $5 per person donation to support the non-profit entity. During our visit to the NIM this process was observed and many visitors seemed generous in supporting this feature although staffing of volunteers at the NIM limits running the program continuously. The NIM also provides a sticky-label which is prominently placed on the outer garment to show the person contributed. Those not having a label could be later approached by a staff member roaming the museum or at one of the concessions. A study sponsored by the American Association of Museums on this solicitation for entrance donation has shown to be much more successful than having just an unattended donation box. The study also showed those with a robust solicitation scheme actually receives 75% of what is recommended.28 Therefore, an average donation of $3.75 per person is expected. For the first year of operation, and based on an estimated 327K visitors, this is feature is projected to generate $1.22M. Additionally, all register transactions for charge/debit cards will have a solicitation statement and easy option for donation.
28
http://www.aam-us.org/pubs/mn/MN_JF07_cost-free.cfm
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Membership Museums around the country offer various types of membership programs. The museum development team should tailor a program based on the features eventually decided on. Having various package offers is a must and for each higher level, the offer needs to grow appropriately for the membership cost. Some best practices observed and researched: members VIP club room with courtesy beverages and snacks; retail, concession and event discounts, member only symposium, reserved/premium parking & event seating; use of facility room for private functions; periodical; identification card; access to historical information; etc. One of the key elements of membership is: the member must get the feeling they are privileged. In order to develop an estimate for this feature, we used a very conservative estimate based on comparative museums. Estimated net revenue of $75 per member per year was used. A projection of 500 members for the first year with a growth rate of 250 new members per year was factored yielding $112K in net revenues by year 5. Lastly, having a staff member dedicated to the membership program will most certainly drive this revenue generator much higher than projected. Food Concessions The museum has several options for managing this feature. In-house, outsourced or a hybrid management scheme should be decided. The trade-off is management and control versus net profits. Some new museums we visited had opted to outsource this function for ease of management and organization. However, looking back at the situation, many are realizing the cost of the missed/reduced revenues and having second thoughts on their decision not to perform in-house or hybrid. For our projections, we used a conservative net figure based on an outsourced operation. Visiting the museum will take between two and three hours. We estimate a percentage of people visiting the museum will use the food facilities. Some will take full meals others just snacks and beverages. We also estimate a portion of the base and local populace will take advantage of this service for its unique atmosphere. The restaurant should be made in such a way that it is very attractive. People coming would have a unique experience of having breakfast, lunch or a drink while taking in a spectacular view of the museum architecture, aircraft and exhibits. For financial calculation purposes, the food activity was split in two separate sections: lunch meal and BSSB (breakfast, snacks, sweets and beverages). Based on the local restaurant meal prices and comparable museums profits, we estimate an average meal sales-price of $10 and a net profit margin of 20% per lunch meal. With a conservative approach, we factor 20% of visitors will take lunch every opening day of the museum and some 50 external people would come each working day. In total, this lunch meal activity would generate net revenue of $157K the first year. In addition to lunch meals, the museum would sell other small food items at an estimated average price of $3.50 with a net margin of 20%. Considering a 5% capture rate on visitors each opening day and some additional 30 external people every working day, this BSSB activity would generate some $30K in year one. Total food concession net revenues for year 1 is estimated at $186.4K.
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Events The museum architecture will facilitate various events of various sizes. The lay-out of the museum would allow elegant banquet seating for up to 450 people (this number should be studied and refined based on competitive venues and opportune niche) or smaller ceremony type of events of around 25. This should be a unique and attractive experience being situated amongst an amassing collection of aircraft and exhibits. The facilities are not foreseen to be rented but provided on the basis the museums food services are prime provider. Although two scenarios were used to calculate event revenue, other events are sure to be offered and accepted. Events such as conferences, symposiums, presentations, parties, dinners, weddings are a few. Projections used for this study were: 52 small group events averaging 25 people and 36 large events averaging 150 people in year one. Having a margin of 35%, this will net $63.5K. It should be noted; at the USAF Field Museum at Warner Robbins, the museum hosts 500-600 events per year (mainly military related). Museum Store/Online Store A museum store will offer the visitor specific gifts linked to museum, aviation and military themes. Revenue from the museum store, based on national averages and comparison with other comparable museums, is expected to generate an average of $3 sales per visitor with a cost of goods sold equal to 50% of sales price. The store will follow museum operating hours and forecasted to have two employees working during operating hours. A labor rate of $12.50 per hour (include 25% tax & administrative components) was used.29 A note on store employees: The museum floor plan and store location within the facility should consider maximizing staffing and also customer flow within the museum. For example, having the store located near the exit/entrance could allow the store cashier to also serve as the museum receptionist; also this location funnels customers through the store upon exiting. In addition to the brick-and-mortar museum store, customers will have the opportunity to buy items online at the museums on-line store. Based on similar museums both in the US and abroad, a factor of 6% of in-store sales is used to forecast on-line sales. Here again, this is a very conservative estimate. With proper web-based marketing, it is not unlikely that on-line sales exceed in-store sales. Such is the case at the National Naval Aviation Museum. Cost of goods sold is slated for 50% of sales price (industry standard) with the addition of commission and fees for online retail facilitating services estimated at 5% of sales. In all, retail operations are estimated to net just over $400K a year. Simulator In order to attract people and fulfill a portion of the interactive requirement, some kind of new high-tech attraction was sought. The attraction was a key factor to support reaching targeted museum visitors. Some of the attractions considered were the IMAX or a something along the lines of a 4D Theater. Looking at marketing requirements we would want to offer an experience where people could not have at home or with a local
29
*Source: Louisiana Occupational Employment Wage Survey
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competitor. IMAX was eliminated due to the abundance of offering already in the Shreveport-Bossier area and feedback from other museums (except NAM) on the difficult contractual agreements with the IMAX corp. A 4D theater similar to the one at the National WWII museum was considered but investment costs seemed to outweigh potential returns. A good theater with high quality projection and sound is already considered in the free offering to museum visitors. We would recommend having a flight simulator. However, not the typical motion simulator but a very interactive one. Max Flight manufactures and sells a fully interactive simulator that performs 360 degrees of motion over two axes. The enclosed cabin for two people has dual flight controls and high resolution graphics based on Microsoft X flight sim software. It is by far, the most advanced and realistic similar we could find. This was validated by one of our team members (an FAA licensed pilot) who visited the Max Flight factory and flew the simulator. The simulator has selectable aircraft and can operate for various amounts of times. Although 30% has been claimed as a capture rate with the simulator, we have used a more conservative 15% capture rate the first year and 20% the second year. A price of $8 per ride was factored (NAM charges $10). The investment cost for the 3D simulator is roughly $156. With the above consideration for capture rate; considering available operating time of the simulator equals 90% of the opening time of the museum; and having a cycle time of 4 minutes per ride; the simulator would have an average 78% usage rate. A second simulator is factored for year-2. As visitation increases and opportunities increase there will be needs in peak periods where one simulator could not compensate. Maintenance costs are $2K per year (MF Corporation); power requirement is electric only and for safety considerations, one operator per simulator. After factoring a depreciation expenses, this simulator is projected to generate $330K net profit the first year. On-Base Tour One of the greatest untapped assets of this museum is its location on Barksdale, AFB. Giving the chance to visitors to have a small trip around the base would be a unique experience that could not be lived anywhere else in the region. Our recommendation is therefore to conduct base tours. For security consideration, we envisioned using an enclosed street-tram similar to those sold by Trams International. With trailer type extensions, the tram can accommodate up to 100 people including those with reduced mobility. It is envisioned that this would be a window tour and passengers would not need to exit the tram during the tour. A $5 price per tour was used for this feature with a 1-hour cycle time (30 min drive, 30 min load/unload). A capture rate of 30% of visitors is expected. Initial investment cost is $250K and a wear out/replacement expense is calculated over a five-year period having a salvage value of $125k. The Tram would require one driver and one additional guide to interactively explain the base operations and answer questions. This service is very important in order to have that unique experience. Additional expenses considered; $4K/year maintenance cost and $25K/year running costs (fuel). Net 49 | P a g e
profit for year-1 is estimated at $395K. Note: On-base tours are also being offered at Ellsworth, AFB by the South Dakota Air and Space Museum. This feature will require visitors to submit identification for a security pass. It is thought the museums Security Manager or Security Guard would be able to obtain authorization to facilitate this pass. Bricks Program This currently existing program is expected to be relocated to the new museum and continued. The program would remain a revenue generator with an estimate net of $9.5K per year. Cockpit Pictures An offer would be made to visitors to get a picture of themselves sitting in the cockpit of certain designated museum aircraft. It is foreseen the picture would be taken with a professional grade digital camera by a trained photographer. Pictures would be sent remotely to the museum store for printing and for the customer to pick up. An 8th Air Force Museum logo and some words about the aircraft would frame the picture. This offer could be enhanced by having available some era clothing or helmet for the customer to wear for the photo. This feature has been a proven success at many Air Force Base open house events. A 10% capture rate of total number of visitors is used. When deducting the cost for paper, ink and packaging, an average net profit of $4 per photo is predicted. The initial investment for this feature is set at $30k and would be depreciated over a period of 3 years. One photographer is needed who will also assist people getting into and out of the cockpit safely. Exhibits Sponsorships Sustaining attendance at the Museum will be dependent on periodic refreshment of exhibits. In order to reduce the renewal cost, several museums found success offsetting the cost of these temporary exhibits with external sponsorship. For this study, the temporary exhibits for the 8 AFM are projected to follow this mechanism to cover costs and the exhibit would carry some non-intrusive evidence about the sponsors support. For financial planning purposes, an estimate of $200K per year is programmed for cost and $200K per year is the assumed sponsorship revenue, making this feature a $0 net program. Education Activities The education program ran by the museum is foreseen to be a $0 net program. Fees for organized courses, day camps, and overnights are set in such a way that the revenue covers the direct expenses. Considering one class of 16 students held by one teacher and one educator, the student cost would be approximately 27 dollars per day. Meals and accommodation cost are considered separate from the education activity. The museums grant writer would be tasked to assist school systems or select individuals in finding monies to help pay for or offset these costs.
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4.3 Expenses: Administration Administrative Personnel corresponds to the total fixed salary for staffing expenses. The cost of each position is estimated based on the Louisiana Occupational Employment Wage Survey.30 Some positioned are schedule to phase in as programs expand. In year2, a Senior Accountant, Marketing Specialist, Education Specialist and Technician are added to the staff. In total, the administrative personnel expense will be $1.137M in year one and rise up to $1.312M for the follow on years. General Administrative costs have to be considered in order to operate such a museum. In total, those represent some $111K per year. These include expenditures for banking, audits, telephone, postage, printing, IT, office equipment maintenance, uniforms, transportation, etc. Housekeeping costs are factored based on one 9 hours of labor every opening day. This task is also identified as a potential for outsourcing. Security Guard cost is considered as an hourly expense by having one security guard present during normal operating hours as well as duration after hour events. Guards would be responsible to the Facility/Security Manager (F/SM salary considered in Admin Per). Security Guard is also identified for possible outsourcing.
Building Wear Out and Replacement costs (capital re-investment). As mentioned earlier, depreciation expense is not factored as a booked expense since the 8AFMA will not be legal owners of the facility. However, there are expenses being factored into the financial figures to account for wear-out and replacement costs. An average of $500K per year is used and accumulated for this anticipated expenditure at the 5-10 year point of operations. This will preclude having to re-source a major portion of capital funding. Various accounting methods could be used to properly book this entry. Utilities, Repairs and Maintenance cost have been calculated based on similar operating facilities. As stated previously as an assumption, the base will continue to settle utility costs for the museum. This being the case, a reduced expense of $2 per square foot is estimated and factored in the financials which will provide a subsidy to the base. This is estimated at an average of $296.6K per year.
Development and Marketing In addition to fixed salaries included in the administrative personnel cost, a marketing expense of 10% (avg $421K/yr) of total projected earned revenues (sales) is used. This is
30
http://www.bls.gov/oes/current/oes_la.htm
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an industry standard for successful museums. Additionally, a $100K per year is allocated for fund raising activity. Results of Operations The total annual expenses associated with running the museum during year-1, given all assumptions and estimates is programmed at $3.754M. Having total revenues of $3.832M leaves an annual operating profit of roughly $87K. For years 2-5, a positive net income from operations is projected which fluctuates due to changes in visitation numbers. A summary of these operating estimates is shown in Figure below.
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Feasibility Study 8th AFM Figure 4.1: Income Table Income from operating activities
1 1 25% 81 750 1 25% 81 750 1 27% 88 290
Year 1 327 000
Year 2 363 300
Year 3 346 000
Year 4 346 000
Year 5 346 000
Total number of visitors % Yearly Number of visitors Opening time of museum Total opening hours of museum Opening time per day Opening days
23% 75 210
724 8 90,5
724 8 90,5
724 8 90,5
724 8 90,5
2 896 8 362
2 896 8 362
2 896 8 362
2 896 8 362
2 896 8 362
Revenues
Volountary donations (net) Membership (net) Food concessions (Net) Events (Net) Museum store sales (Gross) Online store (Gross) Simulator On-base tour Bricks program (net) Cockpit pictures Exhibits sponsorships Education activities
282 038 9 375 43 579 12 731 225 630 14 535 90 252 112 815 2 375 30 084 12 960 836 375 306 563 9 375 46 596 12 731 245 250 15 799 98 100 122 625 2 375 32 700 100 000 12 960 1 005 074 306 563 9 375 46 596 12 731 245 250 15 799 98 100 122 625 2 375 32 700 12 960 905 074 331 088 9 375 49 613 25 331 264 870 17 063 105 948 132 435 2 375 35 316 100 000 12 960 1 086 374
1 226 250 37 500 186 384 63 525 981 000 63 198 392 400 490 500 9 500 130 800 200 000 51 840
1 362 375 56 250 203 127 63 525 1 089 900 70 213 581 280 544 950 9 500 145 320 200 000 51 840
1 297 500 75 000 195 148 63 525 1 038 000 66 870 553 600 519 000 9 500 138 400 200 000 103 680
1 297 500 93 750 195 148 63 525 1 038 000 66 870 553 600 519 000 9 500 138 400 200 000 103 680
1 297 500 112 500 195 148 63 525 1 038 000 66 870 553 600 519 000 9 500 138 400 200 000 103 680
Total Earned revenues Expenses

Operations Programs and education Education personnel Other education cost Subtotal P&E Museum store Personnel Cost of goods Subtotal shop Online store Cost of goods sold Subtotal shop Simulator Wear-out and replacement cost Personnel Maintenance Subtotal simulator On-base tour Wear-out and replacement cost Personnel Maintenance Subtotal Base Tour Cockpit pictures Wear-out and replacement cost Personnel Maintenance Subtotal shop Exhibits and collections Cost of new temporary exhibits Aircraft maintenance technician Aircraft/asset maintenance Collection and exhibits maintenance Subtotal E&C Other expenses Administration Administrative personnel General administrative costs Housekeeping cost Security cost Subtotal Administration Building Utilities, repairs and maintenance costs Wear-out and replacement cost Subtotal building Development and marketing Marketing Fundraising Subtotal development
3 832 896
4 378 280
4 260 222
4 278 972
4 297 722
12 000 960 12 960 18 100 112 815 130 915 7 268 7 268 6 800 8 960 460 16 220 2 083 14 335 6 748 23 167 2 250 8 960 460 11 670 25 000 25 000
12 000 960 12 960 18 100 122 625 140 725 7 900 7 900 6 800 8 960 500 16 260 2 083 14 335 7 335 23 754 2 250 8 960 500 11 710 100 000 25 000 125 000
12 000 960 12 960 18 100 122 625 140 725 7 900 7 900 6 800 8 960 500 16 260 2 083 14 335 7 335 23 754 2 250 8 960 500 11 710 25 000 25 000
12 000 960 12 960 18 100 132 435 150 535 8 532 8 532 6 800 8 960 540 16 300 2 083 14 335 7 922 24 340 2 250 8 960 540 11 750 100 000 25 000 125 000
48 000 3 840 51 840 72 400 490 500 562 900 31 599 31 599 27 200 35 838 2 000 65 038 8 333 57 341 29 340 95 014 9 000 35 838 2 000 46 838 200 000 100 000 300 000
48 000 3 840 51 840 72 400 544 950 617 350 35 107 35 107 54 400 71 676 4 444 130 520 8 333 57 341 29 340 95 014 9 000 35 838 2 000 46 838 200 000 50 000 80 000 100 000 430 000
96 000 7 680 103 680 72 400 519 000 591 400 33 435 33 435 54 400 71 676 4 232 130 308 8 333 57 341 29 340 95 014 9 000 35 838 2 000 46 838 200 000 50 000 80 000 100 000 430 000
96 000 7 680 103 680 72 400 519 000 591 400 33 435 33 435 54 400 71 676 4 232 130 308 8 333 57 341 29 340 95 014 9 000 35 838 2 000 46 838 200 000 50 000 80 000 100 000 430 000
96 000 7 680 103 680 72 400 519 000 591 400 33 435 33 435 54 400 71 676 4 232 130 308 8 333 57 341 29 340 95 014 9 000 35 838 2 000 46 838 200 000 50 000 80 000 100 000 430 000
284 375 27 750 8 145 1 000 321 270 74 150 125 000 199 150 95 822 25 000 120 822
284 375 27 750 8 145 10 050 330 320 74 150 125 000 199 150 95 822 25 000 120 822
284 375 27 750 8 145 10 050 330 320 74 150 125 000 199 150 95 822 25 000 120 822
284 375 27 750 8 145 10 450 330 720 74 150 125 000 199 150 95 822 25 000 120 822
1 137 500 111 000 32 580 31 550 1 312 630 296 600 500 000 796 600 383 290 100 000 483 290
1 312 500 111 000 32 580 40 600 1 496 680 296 600 500 000 796 600 437 828 100 000 537 828
1 312 500 111 000 32 580 40 600 1 496 680 296 600 500 000 796 600 426 022 100 000 526 022
1 312 500 111 000 32 580 40 600 1 496 680 296 600 500 000 796 600 427 897 100 000 527 897
1 312 500 111 000 32 580 40 600 1 496 680 296 600 500 000 796 600 429 772 100 000 529 772
Total expenses Income from operations
868 441
988 600
888 600
1 000 108
3 745 749 87 148
4 237 777 140 503
4 249 978 10 245
4 251 853 27 120
4 253 728 43 995
(32 066)
16 474
16 474
86 265
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4.4 Capital Requirements The following table represents estimates of the capital required to build the proposed museum in a ready to operate configuration. Construction costs are based on 2012 RS Means construction calculator. Exhibits costs are estimated based on recently constructed and comparable museum expenditures for exhibits and displays. Infrastructure costs are mainly based on industry standards (some estimates did not have comparable means to calculate so professional estimates were used). Attraction capital figures were obtained from manufactures. As stated previously, if the project gets classed as a government based project (accepted government funds for construction) the Davis-Bacon Act then requires premium wages to be paid. This would drive constructions costs approximately 20% higher. An industry standard of 50% cost overrun is figured so to allow contingency planning.
Figure 4.2: Capital Requirements Table
Initial Capital Requirements Estimate

Main Facility Rooms for education center 26 dorm rooms w/bath; 400sq ft ea. 10400 Aircraft Hangar/Industrial area 36000 Memorial Walkway Construction Cost Exhibits Aircraft restoration & relocation Fabrication, lab, test cell, machinery Furniture, fixtures and office equip Professional fees and expenses. Theater, auditorium, IT equip Food services equip/banquet furnishing Infrastructure Capital Required Flight simulator 1 Tram for base tour 1 Cockpit pictures 1 Attractions Capital Required Total Initial Capital Required Union Labor Cost Overrun $156.000 $250.000 $30.000 Unit Unit Unit Size 148300 Unit Cost $235 $220 $240 $/sqft $/sqft $/sqft Projected Cost $34.850.500 $2.288.000 $8.640.000 $1.500.000 $47.278.500 $15.000.000 $3.500.000
est
7.5% 15%
$2.500.000 $3.545.888 $7.091.775 $1.500.000 $800.000 $81.216.163 $156.000 $250.000 $30.000 $436.000 $81.652.163 $16.243.233 $40.826.081
20% 50%
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5. Economic Impact
5.1 Quantitative Methodology The methodology used to estimate the economic impact of the new 8AFM follows a model developed by the Americans for the Arts, the nation's leading nonprofit organization for advancing the arts and arts education. It is based on their in-depth national economic impact study of nonprofit arts and culture organizations and their audiences. The model is called the Arts & Economic Prosperity IV Calculator. Being these are estimates the following caveats are advised and must be kept in mind: 1. The results are based on averages of similarly populated communities. 2. The results are estimates. The Standard Deviation and the 95% confidence interval provide a sense of how well the averages represent the sets of numbers from which they were derived. 3. Input/output models were customized for each of these similarly populated communities, providing very specific employment, household income, and government revenue data. The estimates are derived by assessing two sources of spending, local area population and number of visitors to the museum. Spending by the museum includes 8 AFMA and appropriated USAF funds. Visitor spending takes into consideration only that portion attributed to this museum. Economic impact of spending is based on impact per $100,000 of spending. Thus, every $100,000 of spending attributed to the 8 AFM; based on the greater Shreveport-Bossier City metropolitan area having a population of 482K, has the following estimated economic impact on the community.
Figure 5.1: Economic Impact Input Data
INPUT DATA
8 AFMA Expenses 8 AFM Expenses* Tot Expenses Visitors
Year 1 $3.745.749 $701.950 $4.447.699 327000
Year 2 $4.237.777 $701.950 $4.939.727 363300
Year 3 $4.249.978 $701.950 $4.951.928 346000
Year 4 $4.251.853 $701.950 $4.953.803 346000
Year 5 $4.253.728 $701.950 $4.955.678 346000
5-Yr Avg $4.147.817 $701.950 $4.849.767 345660
*Source: 2009 DOD Annual Report to Congress
Figure 5.2: Economic Impact Per $100K of Spending by Organizations
Population Cohort
Fewer than 50,000 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 or More Avg. of All Study Regions Standard Deviation 95% Confidence Interval
Full-Time Equivalent Jobs 3,24 3,70 3,68 3,54 3,33 3,31 3,46 0,86 0,14
Resident Household Income $73.227 $84.132 $82.457 $86.526 $84.772 $83.867 $82.084 $13.592 $2.268
Local Government Revenue $3.537 $3.489 $3.825 $3.913 $4.065 $4.123 $3.819 $1.189 $198
State Government Revenue $4.284 $4.109 $4.491 $5.031 $5.381 $4.790 $4.656 $1.481 $247
*Source: Arts & Economic Prosperity IV Calculator
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Figure 5.3: Economic Impact MU Spending
MU Spending Impact
Full-Time Equivalent Jobs MU Expense Spending Resident Household Income Local Government Revenue State Government Revenue
Year 1 157,45 $4.447.699 $3.848.416 $174.038 $223.764
Year 2 174,87 $4.939.727 $4.274.148 $193.292 $248.518
Year 3 175,30 $4.951.928 $4.284.705 $193.769 $249.131
Year 4 175,36 $4.953.803 $4.286.328 $193.842 $249.226
Year 5 175,43 $4.955.678 $4.287.950 $193.916 $249.320
5-Yr Avg 171,68 $4.849.767 $4.196.309 $189.771 $243.992
Moving next to the impact from visitor spending: This calculation factors median per person visitor spending - in this case $21.90 per person. Total visitors are multiplied and impact per $100K of spending is assessed.
Figure 5.4: Median Per Person Event Related Audience Spending
Visitor Expenditures
Expenditure Category Refreshments during visit Meals/before & After Souvenirs and gifts Clothing or accessories Transportation (gas,bus,taxi) Child care Lodging (One night only) Other/Miscellaneous Median Per Person TOTAL Fewer than 50K $2,93 $9,63 $3,59 $1,29 $2,15 $0,31 $3,71 $1,04 $22,47 50K to 99,9K $2,14 $7,77 $2,05 $1,05 $2,03 $0,26 $2,73 $0,70 $20,31
POPULATION COHORT 100K to 249,9K $2,45 $8,61 $2,06 $1,02 $1,79 $0,27 $1,52 $0,64 $19,07 250K to 499,9K $2,85 $8,97 $2,00 $1,20 $2,37 $0,24 $2,37 $0,78 $21,90 500K to 999,9K $2,58 $11,86 $2,33 $0,98 $2,58 $0,29 $2,53 $0,70 $24,02 1000K or More $3,57 $11,11 $2,32 $1,46 $2,97 $0,35 $2,12 $0,62 $25,64
Figure 5.5: Economic Impact Per $100K of Event Related Spending by Audience
Population Cohort Fewer than 50,000 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 or More Avg. of All Study Regions Standard Deviation 95% Confidence Interval Median Per Person Spending $22,47 $20,31 $19,07 $21,90 $24,02 $25,64 $22,47 Full-Time Equivalent Jobs 2,50 2,77 2,84 2,84 2,52 2,68 2,69 0,60 0,10 Resident Household Income $50.122 $60.371 $59.133 $62.535 $52.014 $59.359 $57.140 $14.045 $2.343
Local Government Revenue $4.977 $5.241 $5.155 $5.338 $4.848 $5.039 $5.100 $1.483 $247
State Government Revenue $4.837 $5.677 $5.689 $6.686 $5.767 $6.361 $5.802 $1.767 $295
*Source: Arts & Economic Prosperity IV Calculator
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Figure 5.6: Visitor Spending Impact
Visitor Spending Impact

Full-Time Equivalent Jobs Total Visitor Spending Resident Household Income Local Government Revenue State Government Revenue
Year 1 203,38 $7.161.300 $4.478.319 $382.270 $478.805
Year 2 225,96 $7.956.270 $4.975.453 $424.706 $531.956
Year 3 215,20 $7.577.400 $4.738.527 $404.482 $506.625
Year 4 215,20 $7.577.400 $4.738.527 $404.482 $506.625
Year 5 215,20 $7.577.400 $4.738.527 $404.482 $506.625
5-Yr Avg 214,99 $7.569.954 $4.733.871 $404.084 $506.127
Figure 5.7: Total Economic Impact
Total Economic Impact

Full-Time Equivalent Jobs Total Expenditures Resident Household Income Local Government Revenue State Government Revenue
Year 1 360,83 $11.608.999 $8.326.735 $556.309 $702.568
Year 2 400,82 $12.895.997 $9.249.602 $617.997 $780.474
Year 3 390,50 $12.529.328 $9.023.232 $598.251 $755.756
Year 4 390,56 $12.531.203 $9.024.855 $598.324 $755.851
Year 5 390,63 $12.533.078 $9.026.477 $598.397 $755.945
5-Yr Avg 386,67 $12.419.721 $8.930.180 $593.856 $750.119
Definitions that apply to the above; derived from Americas for the Arts: Total Expenditures is the total dollar amount spent by the museum and those individuals visiting the museum. The average dollars spent per person has been estimated using related activity in similarly populated communities. FTE Jobs is the total number of full-time equivalent jobs in the community that are supported by the expenditures made by the museum and those visiting. It could be one full-time, two half-time and four quarter-time employees. Household income is the total dollars paid to community residents as a result of expenditures made by the museum and those visiting. Household income includes salaries wages and proprietary income. Government revenue is the total dollars received by local and state governments (e.g. license fee, taxes) as a result of expenditures made by the museum and those visiting the museum.
5.2. Other Methodology In March of 2011, the 8 AF Museum Director had requested a marketing agency, Randall Travel Marketing to estimate the economic impact of the current museum as well as a new museum close to configuration and size of that being assessed in this feasibility study. Below are these projections used the RTM methodology which appear far more inflated and somewhat illusive than the projections calculated above. Although the method RTM used may be a marketing industry standard for calculating economic impact, it more so represents figures which are part of a total industry and not truly as a result of a single entity within the industry.
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Current Status (same data as cited in RTM study): 50,000 x 2.31 115,500 x $749.11 $86,522,205 865 Current annual visitation **Average number of nights visitors stay Room nights generated in Shreveport-Bossier area **Average daily spending by leisure visitors Total annual spending by visitors to 8AFM Jobs generated in Shreveport-Bossier (based on one job for every $100K in visitor spending)
Projected Status New Museum RTM Methodology 346,000 Projected annual visitation x 2.31 **Average number of nights visitors stay 799260 Room nights generated in Shreveport-Bossier area x $749.11 $598.7M 5987 $512.2M 5122 **Average daily spending by leisure visitors Total annual spending by visitors to 8AFM Jobs generated in Shreveport-Bossier (based on one job for every $100K in visitor spending) Net annual spending in Shreveport-Bossier area with new museum Net jobs with new museum
**Source: Randall Travel Marketing Study Mar 3, 2011
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6. Summary and Recommendations

In Summary, our research has shown that an operations plan can be developed for this new proposed 8 AFM which would generate sufficient revenues to cover O&S costs. However, in order to accomplish this, a robust marketing staff and operations strategy would have to be implemented. In addition, a staff of business oriented managers would be needed to develop, implement and oversee these features which leverage the museums assets. Education is also a key element for the museum and in keeping with the dynamics of success for future museums; the program needs to be unique and not of similar nature with regional competitors. A program of innovation and entrepreneurship built upon STEM subjects such as the one discussed in this study (i-STEM) will most certainly provide a viable solution. The storyline of the museum; the exhibits and displays have to be further developed by a group of museum professionals. In short, with the right composition of a dedicated and business savvy group of people, coupled with the right strategy, there is no logical argument to support saying that this new proposed museum cannot be built to premiere status and prosper. As for recommendations, the following is a short-list of necessary steps in moving forward. First: Re-confirm the dedication needed for this project is present prior to moving forward. This is not only something for the 8 AFMA leadership but that of the 2nd Bomb Wing as well. Gain consensus on museum features & exhibit concept. Ensure the design meets those standards discussed in this study Market new museum proposal and bolster Advisory Board. A General Manager for the museum association who could champion this effort should be recruited. Obtain seed $ to finance and hire capital fundraising campaign team. Based on comparative museums, a dedicated and full-time team should cost approximately $350K/yr. This campaign should be planned to last at least 3-years and in theory could self finance after the first year. An ineffective/unsuccessful capital campaign obviously would mean the project should not be pursued. Lastly, avoid long term debt and be prepared for increased construction costs (premium wages) due to the Davis-Bacon Act (up to 20%) if government monies are received for the capital effort.
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Attachment 1 Organizational Structure

Basic organizational structure& functions as it pertains to USAF field museums.
Sec of Air Force

Statutory Responsibilities Executed by USAFHP BOD & USAFHP Dir
USAF Heritage Prgm Board of Directors

Guide and assist USAFHP Dir
Chief of Staff USAF Vice Chief of Staff USAF Historian AF/HO

Policy & Guidance
Material Command
MAJCOM Oversees Nat Museum
Global Strike Command

MAJCOM Oversees 8th Air Force Historian is MU Functional Manager for MUs in this command only
National Museum of USAF

Director oversees all hist prop Director doubles as Director USAFHP Performs Certification inspections Functional expertise for field museums
8th Air Force

Numbered Air Force over 2nd BW Historian has no role in museum oversight
2nd Bomb Wing

Led by Installation Commander Signature on historical property acct
8th Air Force Museum

Museum Director oversees MU operations Director works close with Assoc leaders
8th Air Force Museum Assoc

Provides support to Museum Private Org Not officially USAF
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Attachment 2 Discussion Matrix

Questionnaire: 8th Air Force Museum Association - Feasibility Study Strategy: 1. What is the major aim of the museum? 2. How did you develop your strategy to achieve this goal? 3. Did you have a kind of process? 4. How did you determine which attraction/activity you would offer? 5. Did you see where having one drove a natural pair with another? 6. Is there trade-offs between some activities? 7. What do you think about our strategy (map) for this feasibility study? Financials: Revenue streams. 1. What is the number of visitors or customers per year? a. Visitors: b. Other customers: 2. Do you have some figures on the average spent per visitor or customer? 3. Can you share some figures on the profit generated by the different features? Imax, catering, gift shops 4. Do you organize other events like lectures, educational events, celebrations or shows? Are those generating profit? Operating costs: 1. Per sqm or what are the measures to determine 2. Labor costs 3. Maintenance i. Building per year ii. Artifacts per year iii. Maintenance times? iv. Costs for getting new artifacts / planes => how much investment is needed. (Private collections?) Initial costs: 1. Initial construction cost / building based on sqft i. Diorama / cost for displays ii. Can you briefly explain how the initial funding was made and what were the arguments to get them? Government, donations, corporate sponsorship, investors? iii. If applicable, what were the mechanisms to get public aids or funding for education? iv. How can you measure or evaluate the benefit for the community?
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Organizational: 1. What are the typical functions required to run a museum like yours? Service, Research, Admin,? 2. Do you have some ratios on the different types of staff you have? Employees, volunteers,.? 3. Are there specific skills needed in your business for the different positions compared to other businesses? 4. How many resources do you have? Do you match your resources to the demand? How? 5. How do you showcase your artifacts in an interesting & educational way? Marketing: 1. How did you define your opening hours? 2. How did you find the needs of the customers? 3. What is your attractive market? Why? 4. How did you find or estimate the needs of the customers? 5. How do you segment your customers? i. Why do customers come to the museum? ii. What do they expect? iii. Type of people and characteristics (education / income / age / demographics) iv. Number of visitors? v. Seasonality vi. What products do you have? What are ways to differentiate? 6. How far is your reach (Local vs non local customers) 7. Do you have an idea of the economic impact of customers to the local economy? Locals/non-locals? 8. What is your marketing strategy to generate interest and promote the museum? Media used? Other means of promotion? 9. What is your pricing policy or strategy? How to price events, IMAX, catering etc. 10. What do you see as the biggest challenge? 11. Did you have to change your marketing strategy/TM since inception? 12. What has to be considered to best know the potential market for such a project? Other: 1. Safety 2. First aid care 3. Security
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Attachment 3 Survey Data Feedback from online survey sent to major stakeholders of the museum. Introduction
We are a three-man business development and consulting team conducting a feasibility study on a major expansion project of your 8th Air Force Museum located on Barksdale Air Force Base, Louisiana. Our team is made of MBA students at the Sacred Heart University in Luxembourg, Europe. The aim of this survey is to collect information from people who are familiar with the museum and have an inside view for the possible future development of the museum. By doing so, we would like to try and find innovative ideas to develop the 8th Air Force Museum. All the information that is transmitted by this questionnaire will remain confidential. If you want to remain anonymous you can, however, by providing your contact information, we will be able to ask further questions concerning the proposed ideas. First Name: _________________________________________ Surname: _________________________________________ Tel N: _________________________________________ E-Mail: _________________________________________ The following questions are not compulsory, feel free to answer according to your best perception. If you have multiple ideas for a specific topic, please fill one separate page for each individual idea. Thank you for your interest in the museum.
1. According to your opinion, what are the top 5 new things (attractions, events, education programs, etc.) that would highly enhance the attraction of the museum to visitors? Description of the ideas
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1- New facility to house all aircraft (indoors), as well as indoor maintenance facility (hanger) 2- New facility to include classroom space to co-exist with display areas. These classrooms would include modern audio-visual capabilities to enhance a "teaching environment" for school age children to learn the history of the Eighth Air Force and the men/women/families of the folks who made up the Eighth Air Force 3- Maintenance hangar to include all equipment to strip down-repair-build up-paint aircraft for repair 4-Trained (volunteer) personnel to conduct tours and provide historical lessons of museum assets 5-A motion aircraft simulator to provide income as well as allow visitors to experience flight
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Res.
1-HANDS-ON EXHIBITS: The interactive nature of hands-on exhibits will keep the interest of the participant and enhance their learning experience. These exhibits could include basic, no-motion simulators, flight control panel mock-ups, miniature models of wind tunnels that will demonstrate aerodynamics, military aviation history games, an aircraft nose section that allows visitors to get into a flight deck and climb into the pilot's seat, etc. 2-STATE-ACCREDITIED EDUCATIONAL PROGRAMS: A strong portfolio of ACCREDITED educational programs geared for different audiences (JROTC, grades 1-5, 6-8, HS, etc) will provide an outsidethe-classroom training environment that will encourage the participants to learn. Accredited programs would become part of a curriculum for which the student could earn credits toward graduation. 3-INCORPORATE an AUDITORIUM/BALLROOM INTO the NEW DESIGN: With provisions for a venue that could accommodate meetings, lectures, parties and other gatherings, the museum could boost revenue. 4-CAFETERIA/SNACK BAR: Also another way to increase revenue 5-SCHEDULED SPEAKERS/SPECIAL EVENTS: Having scheduled speakers or special events, perhaps on a monthly basis, will ensure that new information, new material, new exhibits are available for museum patrons on a regular basis. This will ensure that the museum program does not become stagnated and patrons could come back and see something different on every visit. Speakers could include veterans who flew some of the aircraft on display that could tell the story from their own personal point of view - Always interesting and effective. 1-New building with indoors displays. 2-Interactive education and fun stations. 3-Movie/video opportunities to view history. 4-A theme restaurant to attract daily lunch crowd. 5-Outside the security zone. 1-Interactive exhibits 2-As many real items / artifacts as possible 3-Limit interpretation without supporting artifacts 4-East of access to the public 5-Exhibits that tell the story without a lot of spin 1-More aircraft to display, particularly WW II birds. 2-Dioramas - Aviators in flight mock-ups, with sound effects; briefing room with maps of targets; maintenance and ordinance shops with mannequins in uniform 3-A meaningful research library, with a collection of personal reminiscences, letters, photos etc. 4-Volunteer tour guides to explain the exhibits 5-Develop programs and speakers for schools, civic clubs and community organizations. Terry Snook can't do it all himself. Interactive displays, Open plane day, more knowledge of the base. Potential drawbacks. NONE 1-Hands-On Exhibits: Acquiring such exhibits would likely be initially extremely expensive. Such an undertaking might necessitate corporate sponsorship; something not normally allowed if a museum is owned and operated by the military. If sponsorship is not available, acquiring exhibits would be a painstakingly slow bit-piece process 2-State-Accredited Educational Programs: May likely require certified teachers to administer those programs. In the event it is possible to start such programs, relationships with area schools would have to be extremely close and may become quite complex to maintain3/4-Meeting/Event Venue / Cafeteria: While effective revenue producers, the extra infrastructure and physical plant space requirements would greatly increase
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construction cost of a new museum5-Scheduled Speakers and Special Events: There are actually very few drawbacks to these concepts. The museum is located in an area heavily populated with retired military and veterans; there will be no short supply. Special events may create some issues in that there are very strict guidelines that must be followed if the museum remains under military ownership Res. Res. 3 4 Cost Moving toward the Smithsonian / World War II museum model in which interpretation takes control from both the overall story and the ability to see real items. You will lose the core audience of veterans and interested adults. 1-Money, of course. Private and business sources will have to be tapped - government grants are too shaky to depend on as the main source of income. Volunteers, lots of them, will be needed to make ideas # 2 through 5 work, but will need some paid staff to coordinate their activities. 2-Without effective fund raising, nothing much will happen.
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Res. 6 The inconvenience of getting on base, old displays, lack of knowledge. 2. What ideas would you like to share, how the museum could generate revenues besides the gift shop? Description of the ideas. Res. 1 1- Motion Aircraft simulator (such as NMUSAF) 2- Organized and advertised non-profit museum association 3- Organization will sponsor events such as an annual fun-run, silent auction with dinner held in the new museum facility, golf tournaments, rent out museum "at night" for private events. 1-There are so many fund raising ideas out there now, that it would be difficult to come up with something new. Most anything should work just fine. 2-Corporate Sponsorship of exhibits has historically been an effective means of acquiring new exhibits and exhibit maintenance. 3-Having a venue that could be rented out for reunions, parties, receptions, etc. Interactive displays, simulators and movies/videos. Modest entrance fees, host symposia, large outreach into the community and veterans groups, coordinate some publishing of books or essays, web presence, etc. Try to contact veterans in the region, especially Air Force vets (and particularly, those with a connection to Global Strike), looking for volunteers, donors, and possible fund raisers. Beg for whatever help they can offer, appeal to patriotism and esprit de corps, local pride. The more widespread the participation, the easier it is to raise money (especially from businesses). Defense contractors should be approached for donations, both in cash and for technical advice and support. Boeing could probably use some favorable publicity on how their aircraft have won all our wars since 1941. The Naval Aviation Museum in Pensacola, Florida, has never charged for admission, but has been very successful in their profitable extras - gift shop, high quality sandwich shop, IMAX theater, flight simulators, photo booth, etc. Res. 6 Guided Tours, Sell artifacts
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Potential drawbacks. Res. 1 May require museum personnel or association personnel to work "after hours" to keep an eye on the event. All of these options would be difficult to execute on a military installation. Fund raisers may need to be held off-site. How effective could a fundraising event be if it were held away from that which you are trying to support?
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3 4 5 Time and possible lack of coordination if too little effort is brought forward. It takes money to make money.
Res. 6 Based on Terry's schedule, time it takes to research if we can sell and value 3. If it was your museum, what would be the top 3 to 5 things you would change to reduce cost? Description of the ideas. Res. 1 1- sponsorship of "aircraft" with local and national organizations to assist with financial requirements of keeping the aircraft and/or facility in pristine condition. 2- seek grants from influential figures and organizations Reducing costs IS NOT a viable option. The museum already operates on an incredibly miniscule budget as it is - Costs couldn't be reduced any lower. The museum's budget, operating costs and overhead have always been small when compared to any other museum; and as such, the museum has historically stretched every available dollar to the greatest extent possible. 1.remove non aircraft displays from air park. 2.recruit and engage more volunteers, volunteers in the gift shop 1. Automate procedures. 2. Put all collections in Past Perfect software and USE this as a management tool. 3. Hire a curator to properly register the collection. This should reduce maintenance and insure longevity of fragile items. No idea.
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Potential drawbacks. Res. 1-6 NONE 4. Besides the annual air show, are there other events or opportunities in the local area that the museum could benefit from? Description of the event or opportunity. Res. 1 Fund raisers in the local community such as silent auctions that coincide with events such as "Mudbug Madness", artist shows, etc. The museum should be structured and operated in such a way as to be able to create its own events and opportunities. Until that day comes, however, the museum can associate itself with military parades and other military/veteran recognition events that are held by the city. The museum could also create a satellite presence at VA facilities, Veteran's Centers and the like.
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EAA fly ins Yes. Make sure that the museum is an integral part of other museums and attractions in the region. Tie in with Sci-Port and the Tourist Bureau so that the museum is a destination, not just an attraction. No idea - I've only been in the area 2 years. Red River Revel, Mudbug madness Potential drawbacks. Fund raisers in the local community such as silent auctions that coincide with events such as "Mudbug Madness", artist shows, etc. The museum should be structured and operated in such a way as to be able to create its own events and opportunities. Until that day comes, however, the museum can associate itself with military parades and other military/veteran recognition events that are held by the city. The museum could also create a satellite presence at VA facilities, Veteran's Centers and the like. EAA fly ins Yes. Make sure that the museum is an integral part of other museums and attractions in the region. Tie in with Sci-Port and the Tourist Bureau so that the museum is a destination, not just an attraction. No idea - I've only been in the area 2 years.
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Res. 6 Red River Revel, Mudbug madness 5. In your opinion, what makes our 8th Air force Museum unique (location, collection, people,) and how does it differ from other aviation museums? Please state the different ideas. Res. 1 -outstanding aircraft -outstanding people It's not so much the uniqueness of the museum as it is the small number of military aviation museums altogether. In that respect, the military aviation museum concept as a whole is unique as these museums are few and far between. Having said that; There are a few very special exhibits in this museum not available elsewhere Case and point, the Ford built B-24J. The B-52D on display also has a long and distinguished operational history. Exhibits like these and some others do prevent this museum from becoming a carbon copy of others, thus ensuring there are things to be seen and learned here that are not available elsewhere. A Great air park on an active Air Force Base the 8th AF Story Potential quality of the aircraft holdings, the heritage of the Mighty Eighth, above all, the stories that it can tell. This is not just a museum, it is a legacy.
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Res.
Location on base is a mixed blessing - the base is beautiful and drips with history, but having to go through security to get on probably is something of a deterrent. The proposed new location will take care of that. The aircraft collection is small, but very pertinent to the museum's purpose; more planes to see would certainly enhance the appeal. The battleship USS Alabama in Mobile has a lot more planes, including USAF aircraft, than this museum; I conclude that old non-flying war-birds can be had, if pursued with energy and initiative. There seem to be a lot of veterans (and civilian aviation buffs) in the Shreveport-Bossier area who might be interested in helping out. The WW II Museum in New Orleans has done well with exhibits that are mostly photos, narrative videos, interactive maps, and static displays of weapons, mostly small arms. They do charge admission. The Air Force Armament Museum at Eglin AFB is pretty comparable to the one at Barksdale in some respects - a similar number of aircraft on display, a small building but they've scavenged a lot of weaponry, past and present, and displayed it well. The Nimitz Museum in Fredericksburg, Texas, gets a lot of relatively inexpensive mileage out of a few rusty tanks, small arms, and reconstruction of Japanese bunkers to create the images of island warfare.
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6 Do you see some of those differentiation characteristics as a potential to further develop the museum? Please explain.
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1 2 Simply put: The museum MUST be further developed. As there are only a few military aviation museums to begin with, they could easily disappear if not strongly supported. The personal back stories available in-person at these museums is what makes them so endearing. These back stories, along with the histories and stories associated with some of the individual aircraft exhibits, would not be available when "searching on the internet"; and would certainly detract from the true learning experience Early Aviation at Barksdale Air Force story since WWII, Korea, Vietnam, Cold War and SAC Yes. I believe the answers above are self evident. The museum should shamelessly copy the ideas of other museums - send committees to the smaller ones to begin with to see how they make things work with limited budgets, and to get ideas on how best to get and display artifacts people would want to see.
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Res. 6 6. What draws you back to a museum? Res. 1 - quality of displays - historical content - staff I want the personal stories. I want to be able to talk to the veterans who have "...Been there and done that". Reading aircraft specs off an information placard, or reading an exhibit's item description posted on a wall is not what makes a museum. This is all the information you can get with a few mouse clicks on a computer. However, when you can add that information to a handson exhibit through which you can get up close and personal; the learning experience is truly an experience. Add to that an opportunity to talk to someone who was actually part of that history, and the entire experience is exponentially enhanced. It is just a great place. I love the looks on visitors faces.
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I am an associate professor of history. It is genetic. I'm a military history buff, not a casual tourist, so my answer would probably not help you much, but I do love to look at warplanes, warships, weaponry, maps, photos and all, even when I've seen them before. However, repeat visits call for new exhibits from time to time. Some museums have faked it by just moving the exhibits around when they haven't had anything new for a while, and even that helps.
Res. 6 The people and the good that the museum does 7. Do you see factors that could negatively affect the number of visitors in the future? Res. Res. 1 2 continued deterioration of outdoor displays If the museum remains "inside the gate", it will just not receive the number of visitors that it could potentially draw. People want to show up, park the car, then visit the museum; not be subject to the security restrictions and procedures necessary to gain access to the base. If the museum remains "owned and operated" by the military, some of the ideas necessary for its survival (corporate sponsorship, fund-raising, etc) would not be available. Perhaps a waiver, agreement, or MOU retaining military ownership, but civilian operation of the museum would be a viable option allowing some of those doors to be opened up and available. Until moved outside the security area, visitor count will remain lower than it should be. Once moved, easy access from I-20 and I-220. Inability to access the museum in its current location, lack of a coordinated marketing effort, inability for the museum to have a very visible stance in the community, lack of networking with the parish governing authorities and school boards, lack of creation of school tours that specifically address GLE tasks. The museum has been essentially unchanged for over 20 years to my certain knowledge, so it will have to be presented to locals almost as a new entity. The on-base issue I've mentioned; it won't keep away people with a strong interest, but a more accessible location and effective promotion should help a lot.
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Res. 6 8. What specific educational activities would you link, develop and incorporate into the 8 AFM story? Res. 1 Depending on grade of children 1- Elementary / basic history of flight / instructor dressed as a pilot or an actual aircrew member doing the talking/ build and fly paper airplanes/civilian flight instructor to talk about aviation lessons 2- Middle / how aviation and specifically military aviation has changed our lives / specific instances of military heroism / build-grade-fly paper airplanes, awards for best design--longest flight/ civilian flight instructor to talk about aviation lessons 3- high school / historical accts of military operations from active military flyers/historical accts of specific aircraft using models/photos/show video snippets of military heroes Do what it takes to get an accredited curriculum. Seek out certified teachers to volunteer to teach classes so that there is some benefit to attending classes at the museum. Something that students attending the classes can receive in return; namely, credit for taking the class. Create classes that can become part of a school's math, history, or science curriculum such as aerodynamics, notable historic military aviation pioneers, propulsion concepts, etc.
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Interactive features of early aviation, WWII and the current Air Force inventory and mission. 1-History of military aviation. 2-Story of the 8th AF from its beginning. 3-Story of the aircraft, both individual plans and types. 4-Story of Barksdale AFB 5-How the 8th AF and BAFB have interacted with the region. 6-Story of what the 8AF and BAFB mean in national and international politics.
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9. Any other comments? Res. 1 Positive direction of Museum Association to get civil interest--military organizational support-"big name" retired military personnel who want to see improvement--Sell to senior leadership "Adopt-a-Plane" program. "Museum is the other leg of operational bomb squadrons" which would mesh expert maintainers to donate time and resources to repair/restore museum assets to flyable storage condition. BUILD A MUSEUM.
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2 3 The history of the museum and the association are a hard nut to crack. Many years of neglect and bad relationships will require some time to overcome. The lack of local political support stems from that and tough budgets. A benefactor would help overcome. N/A Pretty long questionnaire to stay thoughtful through. Take smaller bites next time?
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Attachment 4 Museums and Related Organizations Visited

ORGANIZATION
AMC MU US Army Nat MU Smith Nat A&S MU Mighty 8th MU MU of Aviation Nat Infantry MU Armaments MU Carolinas Aviation Museum Nat WWII MU Nat Naval Aviation Museum Office of the Mayor Office of the Mayor 2nd Bomb Wing GSC Historian Tourism Bureau Cyber Innovation Center Shreveport Times Parkway High School TEG Eng & Architect Max Flight Corporation Louisiana House of Rep Euro Space Center RAF Museum RAF Museum Technical Museum Speyer
LOCATION
Dover, Delaware Arlington, Virginia Washington, DC Savannah, Georgia Macon, Georgia Columbus, Georgia Ft Walton Bch, Florida Charlotte, North Carolina New Orleans, Louisiana Pensacola, Florida Bossier City, Louisiana Shreveport, Louisiana Barksdale AFB, Louisiana Barksdale AFB, Louisiana Shreveport, Louisiana Bossier City, Louisiana Shreveport, Louisiana Bossier City, Louisiana Shreveport, Louisiana Toms River, New Jersey Haughton, Louisiana Transinne, Belgium Cosford, England London, England Speyer, Germany
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Attachment 5 Conceptual Drawings Provided by TEG, Shreveport LA
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Attachment 6 Financial Schedules

Entrance Voluntary donations (Net)
Year Quarter Number of visitors Recommanded donation Average donation per visitor (net) 5 3,75 1 1 75 210 5 3,8 282 038 1 2 81 750 5 3,8 306 563 1 3 81 750 5 3,8 306 563 1 4 88 290 5 3,8 331 088 Year 1 327 000 5 3,8 1 226 250 Year 2 363 300 5 3,8 1 362 375 Year3 346 000 5 3,8 1 297 500 Year4 346 000 5 3,8 1 297 500 Year5 346 000 5 3,8 1 297 500
Profit (net)
Membership (net)
Year Quarter Year 1 Year 2 Year3 Year4 Year5
Operations
Members Growth per year 500 250 75 500 750 1 000 1 250 1 500
Revenues
net earning per member per year Total revenues 75 37 500 37 500 75 56 250 56 250 75 75 000 75 000 75 93 750 93 750 75 112 500 112 500
Profit (net)
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Food concessions
Year Quarter 1 1 1 2 1 3 1 Year 1 4 Year 2 Year 3 Year 4 Year 4
Operations
Visits Number of visitors Opening time of the activity Operating hours Operating hours per day Number of days Lunch meals Avg cost of lunch meal
Visitors
75 210 724 8 90,5 10 20% 10
81 750 724 8 90,5 10
81 750 724 8 90,5 10
88 290 724 8 90,5 10
327 000 2 896 8 362 10
363 300 2 896 8 362 10
346 000 2 896 8 362 10
346 000 2 896 8 362 10
346 000 2 896 8 362 10
percentage visitors buying lunch meal Number of visitors buying a lunch meal Number of lunch meals per day for visitors
External people
20% 20% 20% 20% 15 042 16 350 16 350 17 658 166 181 181 195 65 65 65 65 3250 3250 3250 3250 50 50 50 50 18 292 19 600 19 600 20 908 216 231 231 245
65 400 181 260 13 000 50 78 400 231
72 660 201 260 13 000 50 85 660 251
69 200 191 260 13 000 50 82 200 241
69 200 191 260 13 000 50 82 200 241
69 200 191 260 13 000 50 82 200 241
opening days for additional people add people coming for a lunch meal Number of lunch meals per day for external people Total number of lunch meals
Number of lunch meals per day in working days
260 50
B-fast/snack/sweet/bev Avg Cost BSSB

Visitors
3,5 5%
3,5 5% 3 761 42 65 1 950 30 5 711 72
3,5 5% 4 088 45 65 1 950 30 6 038 75
3,5 5% 4 088 45 65 1 950 30 6 038 75
3,5 5% 4 415 49 65 1 950 30 6 365 79
3,5 5% 16 350 45 260 7 800 30 24 150 75
3,5 5% 18 165 50 260 7 800 30 25 965 80
3,5 5% 17 300 48 260 7 800 30 25 100 78
3,5 5% 17 300 48 260 7 800 30 25 100 78
3,5 5% 17 300 48 260 7 800 30 25 100 78
Percent buying B-fast/snack/sweets/Bev Number buying BSSB Number BSSB per day for visitors
External people
opening days for additional people Number of BSSB meals for external people Number of BSSB meals per day for external people Total number of BSSB meals
Number of BSSB meals per day in working days
260 30
Revenues
Net profit margin on Meals 20% Average earning per lunch meal (Net) $ 2,0 Average earning per B-fast meal (Net) $ 0,7 2,0 1,2 2,0 1,2 46 596 2,0 1,2 46 596 2,0 1,2 49 613 2,0 1,2 186 384 156 800 29 584 2,0 1,2 203 127 171 320 31 807 2,0 1,2 195 148 164 400 30 748 2,0 1,2 195 148 164 400 30 748 2,0 1,2 195 148 164 400 30 748
Profit
Lunch meals BSSB
$ 43 579
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Museum store
Year Quarter 1 1 1 2 1 3 1 4 Year 1 Year 2 Year3 Year4 Year5
Operations
Opening time of the activity Operating hours Operating hours per day Number of days Visits Number of visitors Number of visitors per day percentage of people buying gifts number of visitors buying gifts per day opening time of gift shop per day number of gifts sold number of gifts per hour 724 8 90,5 75210 831 50% 416 8 37605 52 6 225 630 724 8 90,5 81750 903 50% 452 8 40875 56 6 245 250 724 8 90,5 81750 903 50% 452 8 40875 56 6 245 250 724 8 90,5 2 896 8 362 2 896 8 362 363 300 1004 2 896 8 362 346 000 956 2 896 8 362 346 000 956 2 896 8 362 346 000 956
50%
88290 327 000 976 903 50% 488 8 44145 163 500 61 6 264 870
181 650
173 000
173 000
173 000
Sales
Average sales per purchase Sales $ 6,0 981 000 1 089 900 1 038 000 1 038 000 1 038 000
Expenses Fixed costs

Labor costs N of operators needed Unit labor cost Total direct labor costs Cost of goods sold Costs 2 2 2 2 12,5 12,5 12,5 12,5 18 100 18 100 18 100 18 100 72 400 50% 112 815 122 625 122 625 132 435 490 500 130 915 94 715 140 725 104 525 140 725 104 525 150 535 114 335 562 900 418 100 2 12,5
72 400 544 950 617 350 472 550
72 400 519 000 591 400 446 600
72 400 519 000 591 400 446 600
72 400 519 000 591 400 446 600
Net profit
Online store
Year Quarter Visits Number of visitors 75210 225 630 6% 6% 14 535 81750 245 250 6% 15 799 81750 245 250 6% 15 799 88290 264 870 6% 17 063 327000 981 000 6% 63 198 363300 1 089 900 6% 70 213 346000 1 038 000 6% 66 870 346000 1 038 000 6% 66 870 346000 1 038 000 6% 66 870 1 1 1 2 1 3 1 4 Year 1 Year 2 Year3 Year4 Year5
Museum store sales Sales

Ratio online / inhouse Online sales
Expenses
Online commission and fees Cost of goods sold Expenses 5% 50% 727 7 268 7 994 6 541 790 7 900 8 690 7 110 790 7 900 8 690 7 110 853 8 532 9 385 7 679 3 160 31 599 34 759 28 439 3 511 35 107 38 617 31 596 3 343 33 435 36 778 30 091 3 343 33 435 36 778 30 091 3 343 33 435 36 778 30 091
Profit
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Simulator
Year Quarter 1 1 75210 90% 90% 7,2 651,6 1 2 81750 90% 7,2 651,6 1 3 81750 90% 7,2 651,6 1 4 Year 1 Year 2 Year3 Year4 Year5
Operations
Number of visitors Opening time of the activity Opening time of simulator/opening time of museum. Opening hours of simulator per day Total opening hours of simulator Visits Capture rate Number of visitors on max flight Occupancy rate Max number of visitors per run Number of simulators Rides per hour per simulator Maximum number of visits per hour Maximum visits per day Maximum number of visits Occupancy rate Price for one individual run Sales 15% 15% 15% 15% 11 282 12 263 12 263 2 2 2 1 1 1 12 12 12 24 24 24 173 173 173 15 638 15 638 15 638 72% 78% 78% 15% 13 244 2 1 12 24 173 15 638 85% 88290 327 000 90% 7,2 651,6 90% 2 606 23% 15% 49 050 363 300 90% 2 606 346 000 90% 2 606 346 000 90% 2 606 346 000 90% 2 606
20% 72 660
20% 69 200
20% 69 200
20% 69 200
1 12
1 12
2 12
2 12
2 12
2 12
62 554 125 107 125 107 125 107 125 107 78% 58% 55% 55% 55%
Sales
$8 8 8 8 8 8 8 8 8 8 90 252 98 100 98 100 105 948 392 400 581 280 553 600 553 600 553 600
Expenses
Initial investment Equipment Installation Lifetime (yrs) Residual value after lifetime Wear-out and replacement cost Direct Labor costs N of operators needed Unit labor cost Working hours Total direct labor costs Maintenance costs costs Total Costs 1 12,5 1,1 1 12,5 717 8 960 460 16 220 74 033 1 12,5 717 8 960 500 16 260 81 841 1 12,5 717 8 960 500 16 260 81 841 1 12,5 717 8 960 540 16 300 89 649 150 000 6 000 5 20 000 2 267 6 800 6 800 6 800 6 800 27 200 54 400 54 400 54 400 54 400
2 867 35 838 2 000 65 038 327 362
2 867 71 676 4 444 130 520 450 760
2 867 71 676 4 232 130 308 423 292
2 867 71 676 4 232 130 308 423 292
2 867 71 676 4 232 130 308 423 292
2 000
Profit
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On Base Tour
Year Quarter Number of visitors 1 1 75 210 1 2 81 750 1 3 81 750 1 Year 1 Year 2 Year 3 Year 4 Year 5 4 88 290 327 000 363 300 346 000 346 000 346 000
Operations
Opening time of base tour/opening time of museum. Total opening hours of museum Capture rate Number of visitors on base tour Max number of visitors per run Number of buses Rides per hour per bus Maximum number of visits per hour Maximum number of visits Occupancy rate of busses 90% 90% 652 30% 22 563 100 1 1 100 65 160 35% 90% 652 30% 24 525 100 1 1 100 65 160 38% 90% 652 30% 24 525 100 1 1 100 65 160 38% 90% 652 30% 26 487 90% 2 606 90% 2 606 90% 2 606 90% 2 606 90% 2 606
30%
30% 30% 30% 30% 30% 98 100 108 990 103 800 103 800 103 800
100 1
100 100 100 100 100 100 1 1 1 1 1 1 1 1 1 1 1 1 100 100 100 100 100 100 65 160 260 640 260 640 260 640 260 640 260 640 41% 38% 42% 40% 40% 40%
Sales
Price for one run run ($) Total revenues 5 5 5 5 5 $112 815 $122 625 $122 625 $132 435 $490 500 $544 950 $519 000 $519 000 $519 000
Expenses Initial investment

Tram Lifetime (yrs) Residual value after lifetime Wear-out and replacement cost per machine per month 250 000 5 125 000
$2 083 1 1,1 10,0
$2 083 1 717 10,0 $7 168 1 717 10,0 $7 168 $14 335 $920 $5 828 $6 748 23 167
$2 083 1 717 10,0 $7 168 1 717 10,0 $7 168 $14 335 $1 000 $6 335 $7 335 23 754 98 871
$2 083 1 717 10,0 $7 168 1 717 10,0 $7 168 $14 335 $1 000 $6 335 $7 335 23 754 98 871
$2 083 1 717 10,0 $7 168 1 717 10,0 $7 168 $14 335 $1 080 $6 842 $7 922 24 340 108 095
$8 333 1 2 867 10 $28 670 1 716,76 10 $28 670 $57 341 $4 000 $25 340 $29 340 95 014 395 486
$8 333 1 2 867 10 $28 670 1 716,76 10 $28 670 $57 341 $4 000 $25 340 $29 340 95 014 449 936
$8 333 1 2 867 10 $28 670 1 716,76 10 $28 670 $57 341 $4 000 $25 340 $29 340 95 014 423 986
$8 333 1 2 867 10 $28 670 1 716,76 10 $28 670 $57 341 $4 000 $25 340 $29 340 95 014 423 986
$8 333 1 2 867 10 $28 670 1 716,76 10 $28 670 $57 341 $4 000 $25 340 $29 340 95 014 423 986
Direct Labor costs

N of Drivers needed Drivers Working hours Unit labor cost Labor cost for Drivers N of guides needed Guides Working hours/opening hours Unit labor cost for guides Labor cost for guides Total direct labor costs $
1 1,1 10,0
Other running costs

Fixed maintenance costs $ 4 000 Variable running cost $ 6 335 Total maintenance costs $ Costs
Profit
89 648
Brick Program
Year Quarter 1 1 1 2 1 3 1 4 Year 1 Year 2 Year 3 Year 4 Year 5
Operations
Visits Number of visitors taking a brick 100 75210 81750 81750 88290 327 000 25 25 25 25 100 2375 2375 2375 2 375 2 375 2 375 363 300 100 346 000 100 346 000 100 346 000 100
Sales
Net Revenue for one brick ($) Net profit 95 2 375 2 375 9 500 9 500 9 500 9 500 9 500
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Cockpit pictures
Year Quarter Number of visitors 1 1 1 1 Year 1 1 2 3 4 75 210 81 750 81 750 88 290 327 000 Year 2 363 300 Year3 346 000 Year4 346 000 Year5 346 000
Operations
Opening time of the activity Opening time Total opening hours of cockpit pictures Visits Capture rate Number of visitors taking a picture Max number of visitors per picture Number of cockpits Pictures per hour Maximum number of pictures per hour Maximum number of pictures possible Occupancy rate 10% 10% 7 521 10% 8 175 10% 8 175 10% 8 829 10% 32 700 1 1 30 30 78 192 42% 10% 36 330 1 1 30 30 78 192 46% 10% 34 600 1 1 30 30 78 192 44% 10% 34 600 1 1 30 30 78 192 44% 10% 34 600 1 1 30 30 78 192 44% 90% 90% 652 90% 652 90% 652 90% 652 90% 2 606 90% 2 606 90% 2 606 90% 2 606 90% 2 606
1 1 1 1 1 1 1 1 30 30 30 30 30 30 30 30 30 19 548 19 548 19 548 19 548 38% 42% 42% 45%
Sales
Net Revenue for one picture ($) Total revenues 4 4 4 4 4 4 4 4 4 4 30 084 32 700 32 700 35 316 130 800 145 320 138 400 138 400 138 400
Expenses Initial investment

Equipment Lifetime (yrs) Residual value after lifetime Wear-out and replacement cost $30 000 3 3000 750 1 12,5 1,1
2 250 1 12,5 717 8 960 8 960 460 11 670 18 415
2 250 1 12,5 717 8 960 8 960 500 11 710 20 991
2 250 1 12,5 717 8 960 8 960 500 11 710 20 991
2 250 1 12,5 717 8 960 8 960 540 11 750 23 567
9 000
9 000
9 000
9 000
9 000
Direct Labor costs

N of photographers needed Fotographers' unit labor cost Working hours Labor cost for fotographers Total direct labor costs $ 2 867 35 838 35 838 2 000 46 838 83 962 2 867 35 838 35 838 2 000 46 838 98 482 2 867 35 838 35 838 2 000 46 838 91 562 2 867 35 838 35 838 2 000 46 838 91 562 2 867 35 838 35 838 2 000 46 838 91 562
Maintenance costs
Maintenance costs Costs $ 2 000 $
Profit
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Administration
Year Quarter Opening time of museum Total opening hours of museum Opening time per day Opening days 1 1 724 8 90,5 284 375 1 2 724 8 90,5 284 375 1 3 724 8 90,5 284 375 1 4 724 8 90,5 284 375 Year 1 Year 2 Year 3 Year 4 Year 5
2 896 8 362 1 137 500
2 896 8 362 1 312 500
2 896 8 362 1 312 500
2 896 8 362 1 312 500
2 896 8 362 1 312 500
General administrative personnel Banking/Legal/audit Professionnel services Membership and dues Postage Printing Stationnary and supplies Equipment maintenance Telephone Insurance Uniforms IT platform Travel/Transportation General administrative costs
Hours per day Unit cost ($/h) Dayly hours Evening hours per Event Number of events Evening hours Unit cost ($/h)
10 000 10 000 8 000 25 000 5 000 5 000 5 000 6 000 10 000 2 000 15 000 10 000 111 000
2 500 2 500 2 000 6 250 1 250 1 250 1 250 1 500 2 500 500 3 750 2 500 27 750 9 8 145 724
2 500 2 500 2 000 6 250 1 250 1 250 1 250 1 500 2 500 500 3 750 2 500 27 750 9 8 145 724
2 500 2 500 2 000 6 250 1 250 1 250 1 250 1 500 2 500 500 3 750 2 500 27 750 9 8 145 724
2 500 2 500 2 000 6 250 1 250 1 250 1 250 1 500 2 500 500 3 750 2 500 27 750 9 8 145 724
10 000 10 000 8 000 25 000 5 000 5 000 5 000 6 000 10 000 2 000 15 000 10 000 111 000
10000 10000 8000 25000 5000 5000 5000 6000 10000 2000 15000 10000 111000
10000 10000 8000 25000 5000 5000 5000 6000 10000 2000 15000 10000 111000
10000 10000 8000 25000 5000 5000 5000 6000 10000 2000 15000 10000 111000
10000 10000 8000 25000 5000 5000 5000 6000 10000 2000 15000 10000 111000
Housekeeping costs
10 3 136 4 88 352 13
32 580 2 896
32580 2896
32580 2896
32580 2896
32580 2896
20 80
20 80
20 80
28 112
88 352
352
352
352
352
Security costs costs
1 000
10 050
10 050
10 450
31 550
40600
40600
40600
40600
Building expense
Year Quarter 1 1 2 74 150 125 000 199 150 1 2 2 74 150 125 000 199 150 1 3 2 74 150 125 000 199 150 1 4 2 74 150 125 000 199 150 Year 1 Year 2 Year3 Year4 Year5
Repairs and maintenance

Maintenance cost per sq ft Surface of museum (sq ft) Utilities, repairs and maintenance costs Wear-out and replacement cost Other Building expenses 2 148 300 500 000 2 148 300 296 600 500 000 796 600 2 148 300 296 600 500 000 796 600 2 148 300 296 600 500 000 796 600 2 148 300 296 600 500 000 796 600 2 148 300 296 600 500 000 796 600
Development and marketing

Year Quarter Number of visitors Total revenues
Percentage of annual sales spent in marketing
1 1 1 2 75 210 81 750 836 375 1 005 074 10% 95 822 25 000 10% 95 822 25 000
1 1 Year 1 3 4 81 750 88 290 905 074 1 086 374 3 832 896 10% 95 822 25 000 10% 95 822 25 000
Year 2 363 300 4 378 280
Year3 346 000 4 260 222
Year4 346 000 4 278 972
Year5 346 000 4 297 722
Marketing expenses Fundraising costs additional to salaries 100 000
383 290 100 000
437 828 100 000
426 022 100 000
427 897 100 000
429 772 100 000
79 | P a g e

Aviation Museum Operations

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Aviation Museum Operations

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2012

Feasibility Study for the 8th Air Force Museum

Feasibility Study 8th AFM

2.3 Addressable Market

3. The Concept for the Museum

6. Summary and Recommendations

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Provides a certain facility /staff with features Y

Drives operations & sustainment costs C

Y determines # of visitors/participants to gen rev to cover costs C

$Rev/vis ok to cover cost C?

Increase fund X with cost of new feature

Community impact sufficient? 3

$E= Economic Impact to local/state/fed

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Addressable Market Target Number of Visitors

346,038 Based on 10% market capture rate

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm 7 http://www.aam-us.org/pubs/mn/MN_MJ99_DeliveringExperience.cfm

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Figure 2.3: Day vs. Overnight

Figure 2.4: Length of Stay

Feasibility Study 8th AFM

Figure 2.5: Number of Household Members

Feasibility Study 8th AFM

Addressable Market Target Number of Visitors

Feasibility Study 8th AFM

44,878 130,870 58,500 11,700 10,000 208,574 58,176 357,103 22,000

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Figure 2.9: Inquiry Origin Map

Feasibility Study 8th AFM

Figure 2.11: Visitor State Percentage

Figure 2.12: Top 5 Visitor States

Top 5 Visitor States for Shreveport-Bossier:

Feasibility Study 8th AFM

Figure 2.13: Places and Activities Visited

Tourism Annual Report 2010, Shreveport-Bossier Convention & Tourist Bureau

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

3. The Concept for the Museum

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM

Feasibility Study 8th AFM