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Weaker consumer confidence, spending declines and reluctance to drive long distances are affecting even one of North County's most storied attractions, the Del Mar racetrack.
Economic impact studies by the county and UC San Diego pegs the racetrack's overall economic contribution to the region at between $90 million and $100 million per year. Just two weeks are left in the seven-week racing season at Del Mar, with the final day of racing coming Sept. 3.
We spoke with Mike Ernst, chief financial officer of the Del Mar Thoroughbred Club, about how the racetrack has weathered the weakened economy:
QUESTION: What are your expectations on how this year will compare to last?
ANSWER: I think we'll probably come in right about the same, maybe a little off this year. We're pleased attendance has come in about the same as last year, but the amount spent is off a little bit in that the amount wagered is down while the amount on concessions is holding its own.
Q: How much is the amount wagered off?
A: It's down 8 (percent) or 9 percent on average amount wagered per person, and our view is we're pleased folks are coming out to the races and we understand that when times are tough, they may not wager as much.
Q: Some national reports say horse racing is a declining trend. Do you think the drop in wagering is a result of that or only from the general economic weakness?
A: I think it's virtually all from the economic downturn. What we do at Del Mar is not just a race meet, it's a summer festival that features horse racing. ... Our demographics are younger and more female than any racetrack in America.
Q: What about out-of-towners -- how have those numbers changed?
A: Usually, about 40 percent of our attendees are coming from outside the county, so that's outside money that we're bringing into San Diego. We've seen a little bit of a decline in the Orange County, Los Angeles area in the number of folks driving down over the weekend. At the same time, the amount of people coming from the Amtrak or Coaster has increased significantly.
Q: Has the breakdown between weekday and weekend attendance changed at all with the slowdown in the economy?
A: I've been fortunate enough to be here for 17 years and have gone through a couple of downturns. What we find is our weekend crowds hang in there. It's that Monday, Wednesday, Thursday attendance that is off. And it is understandable that people are less likely to take the afternoon off and go to the races. People are working a little harder.
Q: With all these factors, where do you expect gross revenue to come in?
A: I think we'll be at our target level of right at $50 million.
Q: And are those profits going to be about the same as last year as well?
A: They may be off just a little. Last year, we were at $13.5 million. All the profits generated are paid into a state agency and reinvested into the Del Mar community and the fairgrounds.
Q: So down about 5 percent or less?
A: Something in that neighborhood.
To see more of the North County Times, or to subscribe to the newspaper, go to http://www.nctimes.com. Copyright (c) 2008, North County Times, Escondido, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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