The 2010 Economic Contribution of Tourism to the Meadowlands Liberty Region

Transcription

1 The 2010 Economic Contribution of Tourism to the Meadowlands Liberty Region Key Metrics & Evaluation 93 MAIN STREET :: ANNAPOLIS, MD :: Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

2 Tourism Spending Resounds Through the Meadowlands and Surrounding Area Economy Visitor-initiated spending benefits local businesses, many of which do not actually touch visitors Hotels, restaurants, entertainment venues, etc. hire employees, pay wages, earn income, pay taxes They also buy materials, supplies, services -much of it from local suppliers Taxes are generated from spending, income, properties, fees, licenses, etc 2 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

3 NJ Division of Travel & Tourism (NJDTT) D.K. Shifflet & Associates 2010 Tourism Satellite Account State & County Tourism Support/Promo Spending Visitor Volume & Spending Panel survey of 600,000 households per year Methodology: Key Data Inputs and Analysis Tools Meadowlands Tourism Economic Impact Value-Added (GDP) Government Sources Bureau of Labor Statistics Bureau of Economic Analysis NJ OMB Various transportation stats Wages & Income Private Data Sources IMPLAN Model F.W. Dodge Construction Smith Travel Research Realtors rental property rates Local economic model Defacto standard for most econ impact work Jobs Taxes 3 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

4 A Glance of the Meadowlands Region and Major Attractions MetLife Stadium Home to the New York Giants and Jets, this state of the art stadium sits over 82K fans for games and events. American Dream Mall Construction continues on what is slated to be the 3rd largest mall in the world Meadowlands Exposition Center A 61k sq. foot venue with capacity for 5,000. Only miles away from NYC, airports, and hotels 4 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

5 Summary of 2010 Meadowlands Tourism Spending by travelers in Meadowlands totaled $561 million in 2010, a 2% increase over Travelers spent $142 million on lodging, $89 million on food & beverages, $56 million on shopping, $49 million on entertainment and recreation, and $225 million on transportation. The economic impact of these expenditures (after import leakages) totaled $582 million. This includes $360 million in direct economic impact, $99 million in indirect economic impact (supplier effect), and $123 million in induced economic impact (income effect). Of every tourism dollar spent in Meadowlands in 2010, 81 cents 'stayed' local and contributed directly to Meadowlands gross metro product. Traveler spending supported 8,492 Jobs and $363 million in labor income. Traveler spending supported 8,492 jobs in Meadowlands in 2010, a 1.4% decline compared to Of these, over 6,270 were directly employed by tourism sectors. Tourism generated an additional 886 indirect jobs and 1,337 induced jobs. $363 million in total wages and proprietor income were generated for these employees, up 1.1% from Travelers generated federal, state, and local tax revenue totaling $174.5 million in 2010, up 1.6% from Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

6 Total Spending Meadowlands-Liberty: 2010 & 2009 Economic Impact Summary 2010 Direct Indirect Induced Total $560.8M Economic Impact (GDP) $359.5M $98.8M $123.2M $581.5M Wages $230.4M $61.6M $71.2M $363.3M Jobs 6, ,337 8,492 Tax Receipts $ Direct Indirect Induced Total Total Spending $549.9M Economic Impact (GDP) $355.4M $96.4M $121.8M $573.6M Wages $228.8M $60.1M $70.5M $359.3M Jobs 6, ,349 8,609 Tax Receipts $171.8M 6 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

7 Category Distribution of Visitor Spending Transportation accounts for the largest share of tourism spend. Combined with Accommodation, these components represent 65% of visitor expenditures Expenditures Growth Transportation $224,642, % Accommodation $141,992, % Food $89,074, % Retail $56,345, % Entertainment $48,777, % Total * $560,831, % * Direct and Indirect Tourism Expenditures (w/o construction & investment) Source: NJDTT, Vantage Strategy, Smith Travel Research, BLS Transportation 40% Food Meadowlands accounts for 1.6% of all Tourism Expenditures in the state of New Jersey Retail 10% Accommodation 25% Accommodation Food 16% Entertainment 9% 7 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

8 2010 NJ Tourism Expenditure by County Expenditures (In Millions) $5,000+ $2,000-$4,999 $1,000-$1999 $100-$999 <$100 Counties Tourism Expenditure ($$ in MM) 09-'10 Growth Atlantic $10, % Cape May $5, % Ocean $3, % Essex $2, % Monmouth $1, % Morris $1, % Burlington $1, % Middlesex $1, % Bergen $1, % Union $ % Somerset $ % Mercer $ % Meadowlands* $ % Hudson $ % Gloucester $ % Camden $ % Passaic $ % Sussex $ % Hunterdon $ % Salem $ % Cumberland $ % Warren $ % Growth Rates 5.0% % % % <0.0% *The Meadowlands includes 26 zip codes within Bergen and Hudson county. There is overlap in the Meadowlands and 8 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Grand Reserved. Total $34, % Bergen and Hudson in the table above.

9 Meadowlands Tourism: At A Glance 2010 Bottom Line: Measurement % Growth Perspective Economic Value (GDP) $581.5M $573.6M 1.4% 81 cents of every dollar spent on tourism stayed in Meadowlands Tourism-Initiated Wages & Salaries Tourism-Initiated Employment ( 000) Tourism-Initiated Taxes $363.3M $359.3M 1.1% 8,492 8, % $174.6M $171.8M 1.6% Meadowlands annual tourism wages average about $36,750. NJ state tourism employment fell by -1.5% in 2010 Tourism-initiated jobs comprised about 1.5% of all Bergen + Hudson employment About 31 of each tourism dollar goes to federal, state, & local taxes Numbers may differ due to rounding Source: Vantage Strategy 9 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

10 NJ State & Meadowlands Liberty Comparison Measurement New Jersey Meadowlands Total Tourism Economic Impact (GDP) Tourism-Initiated Wages & Salaries Tourism-Initiated Employment Meadowlands Liberty % of State $25.0B $581.5M 2.3% $14.0B $363.3M 2.6% 375.2K 8, % Tourism Expenditures $34.5B $561M 1.6% Square Miles 8, % The Meadowlands is a highly concentrated region of tourism spending. Despite covering only 0.3% the physical area of NJ, the Meadowlands contributes over 2% of the state s Tourism economy. This equates to about $19.1 million in economic value per square mile. 10 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

11 Meadowlands Industries Benefit from Tourism: Value Added (GDP) for 2010 Industry* Direct Indirect Induced Total % of Total Retail Trade 118,675, ,602 15,650, ,029, % Lodging 79,562, , ,986 80,421, % Other Trans. 46,777,448 7,960,033 3,533,520 58,271, % FIRE - 20,658,673 36,755,978 57,414, % Food & Bev 49,121,674 2,540,168 4,426,984 56,088, % Air Transportation 36,052, , ,722 36,386, % Entertainment 29,175,716 1,113,844 1,491,654 31,781, % Bus. Services - 23,705,129 6,747,214 30,452, % Educ. & Health - 89,431 22,479,154 22,568, % Wholesale Trade & Utilities - 10,442,206 9,162,251 19,604, % Other Services - 11,692,431 7,459,776 19,152, % Public Administration 151,922 7,434,199 4,742,090 12,328, % Manufacturing - 5,297,682 6,180,437 11,478, % Information - 5,277,529 3,060,867 8,338, % Construction - 1,337, ,159 2,035, % Natural Resources & Mining - 67,007 29,970 96, % Agriculture, Forestry & Fishing - 3,677 5,215 8, % Total 359,517,537 98,750, ,189, ,457, % Total ,421,437 96,366, ,828, ,616,757 % Change 1.2% 2.5% 1.1% 1.4% Table Source: Vantage Strategy *See appendix for full industry descriptions 11 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

12 Meadowlands Industries Benefit from Tourism: Employment for 2010 Industry* Direct Indirect Induced Total % of Total Retail Trade 1, , % Food & Bev 1, , % Lodging 1, , % Entertainment 1, , % Other Trans % Educ. & Health % Other Services % Bus. Services % FIRE % Air Transportation % Public Administration % Wholesale Trade & Utilities % Manufacturing % Information % Construction % Natural Resources & Mining % Agriculture, Forestry & Fishing % Total 6, ,337 8, % Total , ,349 8,608 % Change -1.7% 0.5% -0.9% -1.4% Table Source: Vantage Strategy *See appendix for full industry descriptions 12 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

13 Meadowlands Industries Benefit from Tourism: Wages for 2010 Industry* Direct Indirect Induced Total % of Total Retail Trade 72,574, ,111 9,457,977 82,474, % Lodging 46,182, , ,858 46,681, % Food & Bev 34,968,423 1,808,279 3,151,453 39,928, % Other Trans. 30,379,279 5,512,266 2,337,464 38,229, % Entertainment 22,744, ,765 1,198,245 24,890, % Bus. Services - 18,984,351 5,391,187 24,375, % Air Transportation 23,428,259 69, ,334 23,645, % Educ. & Health - 80,520 20,529,604 20,610, % Other Services - 9,382,421 6,430,738 15,813, % FIRE - 4,979,020 7,399,211 12,378, % Public Administration 143,914 7,042,350 4,492,139 11,678, % Wholesale Trade & Utilities - 5,091,968 4,789,776 9,881, % Manufacturing - 2,932,127 3,480,959 6,413, % Information - 2,979,196 1,511,309 4,490, % Construction - 1,138, ,041 1,732, % Natural Resources & Mining - 29,095 12,993 42, % Agriculture, Forestry & Fishing - 4,802 7,483 12, % Total 230,421,432 61,609,774 71,244, ,275, % Total ,751,080 60,052,209 70,457, ,260,900 % Change 0.7% 2.6% 1.1% 1.1% Table Source: Vantage Strategy *See appendix for full industry descriptions 13 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

14 Meadowlands Liberty Tourism-Initiated Tax Revenue Tax (in thousands of current $) % Change Federal: US Corporate Income $5,377 $5, % Personal Income $30,954 $31, % Excise & Fees $9,283 $9, % Social Security & Other Taxes $37,802 $38, % Federal Total $83,416 $84, % State - New Jersey Corporate Income $4,572 $4, % Personal Income $7,736 $7, % Social Insurance $372 $ % Other Business Taxes $852 $ % Licenses, Fines & Fees $1,063 $1, % Hotel Occupancy Fee $6,685 $7, % Sales Taxes $25,457 $25, % New Jersey Total $46,736 $47, % Local - Meadowlands Liberty Hotel Tax $3,343 $3, % Property Taxes $37,984 $38, % Other Excise & Fees $303 $ % Local Tax Total $41,629 $42, % Total Meadowlands Liberty Tourism-Initiated Taxes $171,781 $174, % Meadowlands Liberty tourism generated nearly $175million in total taxes in 2010, up 1.6% over a recessionary 2009 Meadowlands Liberty sent $48M to Trenton in 2010, Sales Taxes & Hotel Occupancy Fees comprising about 70% Property taxes are by far the largest local tourism tax category at $39M in Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

15 Meadowlands Liberty Contributed Nearly $48m in State Tax Revenue in 2010 State tourism-initiated taxes from the Meadowlands grew by 2.1% in This compares to an overall NJ state tax decline of -1.1%** Meadowlands-Liberty Tourism State Tax Contributions* by Source 2010 Corporate Income $4,660 10% * in thousands of current $ Sales Taxes $25,839 57% Hotel Occupancy Fee $7,100 15% **Source- NJ FY Summaries of Rev., Expenditures, and Fund Balances CAFR Report Source: Vantage Strategy, IMPLAN, NJ Division of Taxation, & Bergan and Hudson Counties Personal Income $7,822 16% Social Insurance $376 1% Other Business Taxes $864 2% Licenses, Fines & Fees $1,078 2% 15 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

16 What Do Visitors Mean to the Meadowlands Liberty Area? Visitors support about 1 in every 20 jobs in the Meadowlands Liberty area Revenue collected from tourism in Meadowlands Liberty is sufficient to support 5,279 New Jersey public school students If Meadowlands Liberty tourism did not exist, each of the 564,000 households in Bergen & Hudson counties would have to pay an additional $160 per year to maintain current state & local tax levels 81 cents of each tourism dollar spent in the Meadowlands Liberty stays in the area 16 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

17 Appendix: Methodology The purpose of this study is to estimate the economic contribution of travel & tourism to the Meadowlands Liberty area for the 2010 travel year. The study accounts for all visitor-initiated commerce, while working carefully to exclude spending from Meadowlands residents. Travelers are defined as those who made an overnight trip or traveled in excess of 50 miles, each way, for a day-trip. The spending of visitors from both domestic and international markets has also been included. The total economic impact of travelers is separated into three distinct effects: direct, indirect, and induced. The direct impacts represent the value added of those sectors that interact directly, or touch, the visitor. The indirect impact represents the benefit to local suppliers to those direct sectors. This would include, for example, Meadowlands-based food suppliers to restaurants. The induced impact adds the impact of tourism-generated wages as they are spent throughout the local economy on an array of goods & services. The economic impacts reported in this study are based on traveler spending as reported in the 2010 New Jersey Tourism Satellite Account ( augmented by other data from D.K. Shifflet & Associates ( and Office of Travel & Tourism Industries data on international visitation and spending ( These traveler data are reconciled with BLS reported employment data to derive spending levels that are representative at the county level. An economic model of tbergen & Hudson counties is also critical to estimating how this traveler spending resounds through the local economy. Vantage Strategy uses the IMPLAN model to translate the impacts of visitor commerce into Meadowlands jobs, wages, taxes, and value-added/gdp ( IMPLAN is a non-proprietary economic model that has fast become the defacto standard for most economic impact assessment in the US. This model is critical to measuring the direct, indirect, and induced impacts of Meadowlands tourism. IMPLAN also helps to measure how much of each tourism dollar remains in the local economy. Total traveler spending generally exceeds the direct impact of tourism. This is because not all goods and services purchased by travelers are supplied by firms located in the Meadowlands Liberty area. The IMPLAN model accounts for these import leakages to suppliers located outside of the Meadowlands. Generally, the more diversified a local economy, the lower the import leakages and the higher the retention of visitor spending. 17 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.

18 Thank You! R E S E A R C H Kenneth McGill Jon Gray Phone: (202) Fax: (202) Mobile: (610) ken.mcgill@vantagestrategy.com jonathan.gray@vantagestrategy.com 93 Main Street, Suite 200 Annapolis, MD Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved.