New York City Without Broadway: City Loses Billions Due to Theater Closures

Broadway shows are what millions of tourists visit New York for every year. But with the onset of the pandemic, theaters closed and more than 1100 actors were out of work. The last time Times Square faced such financial uncertainty was after the 11/XNUMX attacks. The newspaper writes about the problems facing the theater industry in New York CNBC.

Shows that were canceled

Harrison Chapman presented his girlfriend with tickets to West Side Story last December. He thought he had made the perfect Christmas present. But two weeks before they were due to head to the play in March, 41-theater Broadway was closed amid the coronavirus pandemic. “My girlfriend was upset,” said Chapman, 24, who lives in Manhattan. The money for the tickets was returned to him, but he will not rush to attend the show when the theaters are working. “We'd love to go because Broadway is really unique, but we probably won't be the first people in line even when it opens,” he said.

Six months later, Broadway remains closed and plans to reopen only in 2021. The opening date has already been postponed several times and may be postponed again. On September 25, the Metropolitan Opera announced the cancellation of the entire 2020-2021 season due to the pandemic, which is a threatening sign for all performing groups.

The pandemic has hit the theater industry hard, especially in its central New York area. Popular shows like Hamilton, The Lion King and Moulin Rouge, which sold millions of dollars worth of tickets each week, are not generating any income. And it will last at least four more months.

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The lack of viewers who have spent billions in restaurants, hotels and public transport is further damaging the city's economy.

Over the last Broadway season from May 28, 2018 to May 26, 2019, the show grossed over $ 1,83 billion in an annual report released by the Broadway League, making it the largest season in history.

The league did not release figures for the 2019-2020 season, which ended in May. But it is known that Broadway in 2020 sold only $ 300 million worth of tickets before closing.

With more than 19 million deaths associated with COVID-1 worldwide, it is clear that the pandemic will have ongoing devastating consequences for the future of Broadway shows and the New York City economy.

Shows waiting in the wings

Numerous musicals and performances have already been postponed or canceled due to the coronavirus.

Martin McDonagh's comedy "Executioners," starring Dan Stevens and Mark Addy, was canceled after playing just 13 preview shows. The official opening was supposed to take place on March 19, 2020.

Just nine preliminary appearances of "Who's Afraid of Virginia Woolf?" Edward Albee took place before the show officially closed on March 21st.

The Tony-nominated musical Beetlejuice was set to close on June 6, but the producers hope to find new space to adapt the Tim Burton film.

Disney's musical Frozen has also been halted due to the coronavirus.

The Actors' Equity Association, representing some 51 actors and stage managers in the live theater industry, said more than 1100 of its members had lost their jobs on Broadway during the pandemic.

Overall, the New York City theater industry provides more than 96 jobs for New Yorkers, according to the Broadway League. This includes those involved in the production and those working in the Broadway area - retailers, taxi drivers and restaurant owners.

Several producers were able to showcase pre-recorded versions of their work in order to preserve wages and health insurance for their actors and crews.

Christopher Ashley's production of Diana, a musical about Princess Diana of Wales, will be filmed at the Longacre Theater without an audience and will be released on Netflix.

Others had to look for alternative sources of income at a time when there weren't many options. “So many of our members have relied on unemployment insurance for the pandemic, even though federal funds have run out,” said Actors Equity spokesman Brandon Lorenz.

The union partnered with The Actors Fund to help its members pay rent and food through an initiative called the Curtain Up Fund. He is also pushing for the HEROES Act, which will renew pandemic unemployment insurance and $ 9 billion in arts funding. “One long-term Broadway show has shut down due to the pandemic, and while we hope most of them can resume work. The only thing I can say with confidence when it comes to reopening the theater is that it will depend on a stronger national testing strategy and control of the virus, ”Lorenz said.

Impact on New York

The closure of Broadway is reflected in other areas far from the theatrical world. Tourists who travel to New York to watch musicals and performances contribute billions of dollars to the local economy as they pay for taxis, food and hotel accommodations.

For the past 25 years, Henry Pinkney has visited New York City with his family every year to watch several Broadway shows. This year, the 68-year-old Michigan resident received tickets to Six, To Kill a Mockingbird, The Lehman Trilogy and the Plaza Suite ahead of Memorial Day weekend. In the end, he received a refund for all four performances.

Pinckney said his family plans to return to the city, but not until "the COVID-19 situation is under control."

People like Pinckney, who come to New York from other states or countries, are responsible for 65% of the annual ticket sales on Broadway. These visitors contributed nearly $ 11,5 billion to the New York economy last year, according to an annual report released by the Broadway League. About $ 8 billion of this amount was spent on restaurants, hotels, shops and public transportation.

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“Broadway is the honey that attracts bees,” said Tim Tompkins, president of the Times Square Alliance, a nonprofit that promotes the theater district.

Tompkins noted that with the onset of the pandemic, activity on the streets around Times Square has decreased, the number of tourists has dropped significantly. At the height of the pandemic, the number of pedestrians in the area dropped by 90%, he said.

Broadway tourists are especially important to the area. How long they are in town and how long they spend in and around Times Square is very important.

The Broadway League determined that, in 2019, American tourists coming to visit Broadway stayed in New York City for an average of three days. Foreign tourists attending the show stayed in the Big Apple for about 6,7 days.

During their stay, these tourists spent $ 1,8 billion on food and drink, $ 2,2 billion on housing and $ 1,04 billion on local retail stores.

Times Square last faced such financial uncertainty following the September 11, 2001 terrorist attacks. Then the flow of visitors and their costs plummeted due to restrictions on flights and fear of another attack in a densely populated area.

In the days following the attack, New York City lost more than $ 300 million in visitor spending and Broadway lost about $ 5 million in ticket sales. Hotels that were usually 90% full turned out to be half empty. Restaurants lost between $ 6 and $ 10 million a day.

However, 48 hours after the attack, the lights came on again on Broadway. “It was almost like a patriotic duty to visit New York and watch a Broadway show,” Tompkins said. “The difference now is that it's happening everywhere. Each tourist destination will compete for tourists. "