The 2010 Economic Contribution of Tourism to the Meadowlands Liberty Region

The 2010 Economic Contribution of Tourism to the Meadowlands Liberty Region Key Metrics & Evaluation 93 MAIN STREET :: ANNAPOLIS, MD 21401 WWW.VANTAGESTRATEGY.COM :: 202-449- 9708 1 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved. www.vantagestrategy.com

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. www.vantagestrategy.com

NJ Division of Travel & Tourism (NJDTT) D.K. Shifflet & Associates 2010 Tourism Satellite Account State & County Tourism Support/Promo Spending http://www.visitnj.org/new-jersey-tourism-research-and-information Visitor Volume & Spending Panel survey of 600,000 households per year www.dksa.com 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 www.implan.com Jobs Taxes 3 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved. www.vantagestrategy.com

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. www.vantagestrategy.com

Summary of 2010 Meadowlands Tourism Spending by travelers in Meadowlands totaled $561 million in 2010, a 2% increase over 2009. 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 2009. 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 2009. Travelers generated federal, state, and local tax revenue totaling $174.5 million in 2010, up 1.6% from 2009. 5 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved. www.vantagestrategy.com

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 6,270 886 1,337 8,492 Tax Receipts $174.6 2009 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 6,378 881 1,349 8,609 Tax Receipts $171.8M 6 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved. www.vantagestrategy.com

Category Distribution of Visitor Spending Transportation accounts for the largest share of tourism spend. Combined with Accommodation, these components represent 65% of visitor expenditures. 2010 Expenditures 2009-2010 Growth Transportation $224,642,458 0.3% Accommodation $141,992,076 6.2% Food $89,074,694 0.5% Retail $56,345,226 1.4% Entertainment $48,777,372 1.8% Total * $560,831,828 2.0% * 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. www.vantagestrategy.com

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 $10,594-3.87% Cape May $5,270 5.40% Ocean $3,351 4.32% Essex $2,695 2.45% Monmouth $1,922 3.42% Morris $1,650 4.73% Burlington $1,553-1.84% Middlesex $1,459 3.68% Bergen $1,351-0.97% Union $824 0.85% Somerset $782 0.11% Mercer $585 4.08% Meadowlands* $561 1.99% Hudson $514-0.13% Gloucester $511 6.63% Camden $493 1.40% Passaic $388 5.39% Sussex $222 0.99% Hunterdon $134-0.64% Salem $111 5.84% Cumberland $92 0.18% Warren $77-1.53% Growth Rates 5.0%+ 4.0-4.99% 1.0-3.99% 0.0 --.99% <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 $34,577 0.84% Bergen and Hudson in the table above. www.vantagestrategy.com

Meadowlands Tourism: At A Glance 2010 Bottom Line: Measurement 2010 2009 % 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 8,609-1.4% $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. www.vantagestrategy.com

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 8,492 2.3% Tourism Expenditures $34.5B $561M 1.6% Square Miles 8,722 30.4 0.3% 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. www.vantagestrategy.com

Meadowlands Industries Benefit from Tourism: Value Added (GDP) for 2010 Industry* Direct Indirect Induced Total % of Total Retail Trade 118,675,657 703,602 15,650,558 135,029,817 23.2% Lodging 79,562,916 319,552 538,986 80,421,454 13.8% Other Trans. 46,777,448 7,960,033 3,533,520 58,271,002 10.0% FIRE - 20,658,673 36,755,978 57,414,650 9.9% Food & Bev 49,121,674 2,540,168 4,426,984 56,088,826 9.6% Air Transportation 36,052,204 107,469 226,722 36,386,394 6.3% Entertainment 29,175,716 1,113,844 1,491,654 31,781,214 5.5% Bus. Services - 23,705,129 6,747,214 30,452,344 5.2% Educ. & Health - 89,431 22,479,154 22,568,585 3.9% Wholesale Trade & Utilities - 10,442,206 9,162,251 19,604,457 3.4% Other Services - 11,692,431 7,459,776 19,152,207 3.3% Public Administration 151,922 7,434,199 4,742,090 12,328,211 2.1% Manufacturing - 5,297,682 6,180,437 11,478,119 2.0% Information - 5,277,529 3,060,867 8,338,397 1.4% Construction - 1,337,670 698,159 2,035,829 0.4% Natural Resources & Mining - 67,007 29,970 96,977 0.0% Agriculture, Forestry & Fishing - 3,677 5,215 8,892 0.00% Total 359,517,537 98,750,302 123,189,535 581,457,373 100.0% Total - 2009 355,421,437 96,366,402 121,828,917 573,616,757 % 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. www.vantagestrategy.com

Meadowlands Industries Benefit from Tourism: Employment for 2010 Industry* Direct Indirect Induced Total % of Total Retail Trade 1,784 11 232 2,027 23.9% Food & Bev 1,356 70 122 1,548 18.2% Lodging 1,201 5 8 1,214 14.3% Entertainment 1,026 12 33 1,070 12.6% Other Trans. 734 87 40 861 10.1% Educ. & Health - 2 368 370 4.4% Other Services - 202 167 369 4.3% Bus. Services - 197 58 255 3.0% FIRE - 81 138 218 2.6% Air Transportation 167 0 1 169 2.0% Public Administration 2 97 62 160 1.9% Wholesale Trade & Utilities - 47 46 93 1.1% Manufacturing - 37 39 77 0.9% Information - 20 12 31 0.4% Construction - 18 9 27 0.3% Natural Resources & Mining - 0 0 1 0.0% Agriculture, Forestry & Fishing - 0 0 0 0.0% Total 6,270 886 1,337 8,492 100.0% Total - 2009 6,378 881 1,349 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. www.vantagestrategy.com

Meadowlands Industries Benefit from Tourism: Wages for 2010 Industry* Direct Indirect Induced Total % of Total Retail Trade 72,574,052 442,111 9,457,977 82,474,140 22.7% Lodging 46,182,870 185,486 312,858 46,681,214 12.9% Food & Bev 34,968,423 1,808,279 3,151,453 39,928,155 11.0% Other Trans. 30,379,279 5,512,266 2,337,464 38,229,008 10.5% Entertainment 22,744,635 947,765 1,198,245 24,890,644 6.9% Bus. Services - 18,984,351 5,391,187 24,375,538 6.7% Air Transportation 23,428,259 69,838 147,334 23,645,430 6.5% Educ. & Health - 80,520 20,529,604 20,610,124 5.7% Other Services - 9,382,421 6,430,738 15,813,159 4.4% FIRE - 4,979,020 7,399,211 12,378,231 3.4% Public Administration 143,914 7,042,350 4,492,139 11,678,402 3.2% Wholesale Trade & Utilities - 5,091,968 4,789,776 9,881,743 2.7% Manufacturing - 2,932,127 3,480,959 6,413,086 1.8% Information - 2,979,196 1,511,309 4,490,505 1.2% Construction - 1,138,181 594,041 1,732,222 0.5% Natural Resources & Mining - 29,095 12,993 42,088 0.0% Agriculture, Forestry & Fishing - 4,802 7,483 12,285 0.0% Total 230,421,432 61,609,774 71,244,769 363,275,975 100.0% Total - 2009 228,751,080 60,052,209 70,457,611 359,260,900 % 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. www.vantagestrategy.com

Meadowlands Liberty Tourism-Initiated Tax Revenue Tax (in thousands of current $) 2009 2010 % Change Federal: US Corporate Income $5,377 $5,481 1.9% Personal Income $30,954 $31,297 1.1% Excise & Fees $9,283 $9,421 1.5% Social Security & Other Taxes $37,802 $38,248 1.2% Federal Total $83,416 $84,447 1.2% State - New Jersey Corporate Income $4,572 $4,660 1.9% Personal Income $7,736 $7,822 1.1% Social Insurance $372 $376 1.2% Other Business Taxes $852 $864 1.4% Licenses, Fines & Fees $1,063 $1,078 1.4% Hotel Occupancy Fee $6,685 $7,100 6.2% Sales Taxes $25,457 $25,840 1.5% New Jersey Total $46,736 $47,739 2.1% Local - Meadowlands Liberty Hotel Tax $3,343 $3,550 6.2% Property Taxes $37,984 $38,547 1.5% Other Excise & Fees $303 $306 1.2% Local Tax Total $41,629 $42,403 1.9% Total Meadowlands Liberty Tourism-Initiated Taxes $171,781 $174,590 1.6% 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 2010 14 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved. www.vantagestrategy.com

Meadowlands Liberty Contributed Nearly $48m in State Tax Revenue in 2010 State tourism-initiated taxes from the Meadowlands grew by 2.1% in 2010. 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 FY2009-2010 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. www.vantagestrategy.com

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. www.vantagestrategy.com

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 (http://www.visitnj.org/newjersey-tourism-research-and-information), augmented by other data from D.K. Shifflet & Associates (www.dksa.com) and Office of Travel & Tourism Industries data on international visitation and spending (http://tinet.ita.doc.gov). 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 (www.implan.com). 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. www.vantagestrategy.com

Thank You! R E S E A R C H Kenneth McGill Jon Gray Phone: (202) 449-9708 Fax: (202) 449-1370 Mobile: (610) 213-2558 Email:ken.mcgill@vantagestrategy.com Email:jonathan.gray@vantagestrategy.com 93 Main Street, Suite 200 Annapolis, MD 21401 www.vantagestrategy.com 18 Vantage Strategy ::. Copyright 2010 Vantage Strategy. All Rights Reserved. www.vantagestrategy.com