By J. Graber
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The beloved WestWorld of Scottsdale is a major economic engine for the city and the state according to a report the City Council heard Monday night, but Councilman Barry Graham reminded everyone that doesn’t tell the whole story.

The 386-acre venue in northwest Scottsdale contributed $164 million to Arizona’s gross domestic product in fiscal year 2023-24, according to a study conducted by Arizona State University’s Seidman Research Institute.

That impact goes far beyond the WestWorld grounds, according to the report. Visitors attending its events fill nearby hotels, dine in local restaurants, shop in Scottsdale’s retail districts and use transportation services.

The report said the facility brings in $85.6 million in labor income and supported 1,813 jobs statewide in fiscal year 2023-24. It also found WestWorld brought in $4.8 million in direct state and local tax revenues that year.

And it does so seemingly operating on a balanced budget, according to Monday’s report by Scottsdale Senior Director of Enterprise Operations Judy Doyle.

For instance, the facility is budgeted to cost $8.1 million to operate and bring in $8.5 million in revenue this fiscal year.

However, that’s just the operating budget.

When things like indirect costs and depreciation are added into the equation, the facility is expected to have lost $11.5 million last year, though the final numbers have not been fully calculated. That does include one time costs like $2 million to terminate the Monterra banquet facilities contract — the city bought the rights — and $1.1 million to develop the facility’s master plan. That also include an exceptionally large debt payment of $5.7 million due to a refinancing.

That number also doesn’t take into account the bed tax and sales tax revenue the venue generates.

WestWorld has been operating at a deficit for years. For instance, it lost $4.2 million last fiscal year and $4.6 million the year before that.

All that extra cost is absorbed by the city’s general fund.

That doesn’t mean the facility is a bust, Graham noted, but he would like to see more clarity in reporting the true costs of running the facility so taxpayers can decide on their own whether it’s worth it.

“Breaking even would be great,” Graham said after the meeting. “We can live with a loss and do expect a loss, but we need to ask ourselves how much is too much?”

According to a 2022 external audit of WestWorld’s operations, the reason the facility runs at a deficit is its rates are too low.

Doyle said after the meeting that the WestWorld master plan team is looking at the rates and should have a completed document by the end of the calendar year.
Councilwoman Maryann McAllen encouraged trying to expand equestrian events by bringing them in outside of peak times of the year.

“Which allows us to invest in WestWorld and have the taxpayers understand we’re investing in what you wanted initially but it is bringing return because nobody wants to run a venue at a loss,” she said.

Last fiscal year the facility hosted 80 events, including 39 equestrian events.
That means the facility hosted events 257 days of the year with shows like the Barrett-Jackson Collector Car Auction and the Global Champions Arabian Tour.

Councilwoman Kathy Littlefield read an old letter about WestWorld she received from former Mayor Sam Campana in order to remind everybody how important the facility is to Scottsdale’s identity.

“WestWorld of Scottsdale is more than just a venue,” Littlefield read. “It is the beating heart of our city’s vibrant equestrian community and a significant driver or our local economy.”

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