Indiana’s tourist attractions are suffering because of shrinking tax dollars and endowments, even though local travel remains a popular affordable pastime for families.

A report released this week by Ball State University’s Center for Business and Economic Research found that state and local governments and endowments are significantly reducing support for the cultural sector, but the recession’s effects will be alleviated somewhat by steady attendance.

The center’s director, Michael Hicks, who co-wrote the report with Ball State research economist Nalitra Thaiprasert, said signs of museums reducing hours and communities shutting down swimming pools show that some organizations are reaching a critical financial situation.

The Ball State report found that “cultural tourism” – which includes county fairs, theater productions, artistic works, architecture, festivals and museums and is often found on university campuses – accounts for more than $4.9 billion in economic activity in the state, employing more than 43,000 people.

Allen County ranks third in the state for tourist dollars in the arts and creative sectors, the report said.

According to the Ball State study, Allen County’s arts and creative sectors generate about $403 million in economic activity annually, and more than 3,300 people depend on those sectors for jobs.

Hicks said cultural tourism in Indiana is half the size of the auto parts industry. And he believes his study’s estimates are conservative, because they don’t measure outside expenses that families might incur on trips – money spent on hotels, at gas stations and restaurants.

“Many of us don’t realize how big this sector of our economy is,” he said. “It’s a big deal in terms of the number of people whose livelihood is dependent on this.”

Some of those effects on the tourism industry already are being seen in and around the Summit City.

Swinney Pool will not open this summer and will remain closed next summer because of shrinking property tax revenues, city parks officials announced early this month.

DeKalb County’s Auburn Cord Duesenberg Automobile Museum said last month it has reduced its staff by 20 percent through attrition and raised its admission charges for the first time since 2002.

Publicly supported museums, zoos and amusement parks might suffer from shrinking endowments and tax revenues but might be buoyed some by attendance. But in many cases, attendance revenue was never meant to pay the bills, Hicks said.

Those rare attractions where attendance pays the bills are suffering less, said Jim Anderson, director of the Fort Wayne Children’s Zoo.

The Fort Wayne institution, unlike many other zoos, does not rely on tax revenues but instead operates off donations and admission fees.

About 40 percent of the zoo’s visitors come from Allen County, and the remaining visitors largely come from within a 50-mile radius, Anderson said.

But the zoo has been keeping a careful eye on what’s happening elsewhere in the industry.

“Cuts in tax revenues have really hurt other zoos,” Anderson said.

aturner@jg.net