Duluth Omnimax On Its Way Out?

First Lehman Brothers, then GM, now the Duluth Omnimax. This is a good thing, a separating of wheat from chaff. They've been operating at a loss since their first year, according to the DNT story below, and besides, an IMAX theater contributes little to sustainable growth in the city regardless. It was tourist bait to begin with, and tourists never bit. Ho hum. The DECC can devote its resources to more profitable ventures now.

If they were smart they'd nip the Hockey Hall of Fame talk in the bud, though, which sounds like Failed Tourist Trap Redux.

Duluth's Omnimax may be near end

By: Brandon Stahl , Duluth News Tribune

When it opened in 1996, attendance at the Duluth Omnimax Theater exceeded expectations — for about two months. Since then, the 270-seat theater has never lived up to its billing, and has operated in the red for several years. With another shortfall predicted for 2008, Dan Russell, the director of the Duluth Entertainment Convention Center, said when the lease is up in 2011, the Omnimax is likely to be turned into something else. “Obviously, I wish the numbers were doing better,” he said. “As we look back, despite the feasibility reports, Duluth probably isn’t big enough to support a full IMAX theater.” Initial estimates said the theater would draw 220,000 to 270,000 visitors a year, according to officials cited in News Tribune stories during its planning. But in its first full year of operation, it instead drew only a little more than 194,000 visitors, its biggest year. Attendance and sales have dropped steadily since then, with budget numbers from the DECC showing the theater projected to take on a $1,000 loss this year. That will be at least its fourth straight year of losses dating back to 2005, totaling $200,690. “To be honest with you,” Russell told the Duluth City Council last Monday, “we’re just hanging on.” Russell said Duluth’s IMAX theater isn’t the only one having financial problems. Indeed, according to IMAX’s SEC filings, the company’s revenue and stock prices have been plunging. IMAX spokeswoman Sarah Gormley said, the company is experiencing “unprecedented growth” with 240 theaters expected in North America by the end of the 2010, triple the number from 2007. “Duluth’s IMAX theatre is not operated by IMAX Corporation, but we consider them to be a good partner and look forward to working with them,” she wrote in an e-mail. Russell cited two reasons for the local theater’s disappointing performance: competition for the same audience from the Great Lakes Aquarium and the Lakes 10 Theater. But, Russell noted Lakes 10 brings $200,000 a year to the DECC, helping to offset losses from the Omnimax. What would be next for the theater if it closed? Russell said that’s still up in the air, but early talk centers around expanding Lakes 10. It also has been mentioned as a new location for the Hockey Hall of Fame, Russell said. “We have a very valuable asset in a perfect location with plenty of parking,” he said. “There are many options to do with the space that will contribute revenues to the DECC for years to come.” Russell said next year should bring more attendance as “Mysteries of the Great Lakes,” which includes footage of Lake Superior, opens in February.