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<br />. <br /> <br />Section VII <br />FINANCIAL ANALYSIS OF THE <br />PROPOSED AQUARIUM <br /> <br />This section of the report presents an analysis of financial performance of the proposed <br />aquarium. Included in this section will be a discussion of revenue potential, aquarium operating <br />expenses and net operating income. <br /> <br />REVENUE <br /> <br />This sub-section presents an analysis of projected revenue at the proposed aquarium. <br /> <br />Revenue is a function of two factors: (1) the number of attendees attracted to the facility; and <br />(2) the level of expenditures per attendee that the facility is capable of generating. The proposed <br />aquariums annual attendance potential was presented in Table #7 (page 14). The second factor, per <br />capita spending, is addressed in the following sub-section. <br /> <br />Per capita expenditures fall into two broad categories: admissions and in-aquarium spending. <br />These are discussed, in turn, below. <br /> <br />As a basis for establishing admission prices for the proposed aquarium, lAD reviewed current <br />_ admission rates spent for other entertainment values in Florida. We believe that admission rates at the <br />proposed aquarium should mirror the rates of premium entertainment values. We can expect this rate <br />to escalate by 3.0 to 4.0 percent by 2012, the assumed opening year for the proposed aquarium. For <br />purposes of analysis, we have assumed a 3.0 percent escalation rate for the proposed aquarium, which <br />would yield a rate of roughly $29.95. Assuming this rate for the proposed aquarium, and further <br />assuming that the per capita expenditure is an additional 46% of marquee rate, the first year per capita <br />admission for the proposed aquarium is calculated to be $14.05 plus $29.95 for a charge for $44.00. <br /> <br />In addition to admissions, the balance of the proposed aquariums per capita expenditures will be <br />accounted specific event spending. The experience of existing aquariums has shown that the largest <br />category of in-aquarium spending is for food, beverage, Sea-Bobs, Sea-Trek, lockers, merchandise, <br />IMAX theater, Marine Biologist for-a-day. <br /> <br />- <br /> <br />Feasibility Study for a Proposed Aquarium at Sunny Isles, Florida <br /> <br />Page 17 <br />