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Tourism’s Economics Impact on the Meadowlands Liberty

May 2018 Table of contents

| Economics 2 1) Tourism Impact Summary and Trends Economic impact summary Tourism’s Impact on the Meadowlands Liberty Region Nominal dollars, millions Visitor spending $5,110.8 Total economic output $8,154 Direct expenditures $5,111 Indirect and induced output $3,043 Total income $2,455 In 2017, visitors spent $5.1 billion in the Meadowlands Direct income $1,457 Liberty Region. This spending supported a total of $8.2 Indirect and induced income $998 billion in , 62,728 jobs, and $2.0 billion in income. Total jobs 62,728 Direct jobs 44,649 Tourism supported $303 million of state taxes and $287 Indirect and induced jobs 18,079 million in local taxes. Without tourism every household in the Meadowlands Liberty Region would have to State Taxes and $303.2 contribute an additional $968 annually to maintain the Sales $230.6 current level of government services. Personal Income $35.7 Corporate $17.8 Detailed results are available in section 2. Social $6.5 Excise and $12.6 Local Taxes and Revenue $287.4 Sales $3.1 Bed Tax $34.2 Excise and Fees $18.1 $232.0 Source: Tourism Economics | Tourism Economics 4 Tourism is one of the largest industries in the Meadowlands Liberty Region

Employment by in the Meadowlands Liberty Region

Health care and social assistance 122,458 98,271 Professional and technical services 89,772 Finance and 80,794 Real estate 70,046 Administrative and support services 60,422 Transportation and warehousing 54,534 Tourism (direct ) 44,649 44,308 36,584 Educational services 26,102 Information 22,103 19,724 Utilities 1,381 0 40 80 120 Jobs, 000's Sources: BEA; Tourism Economics Note that BEA 2016 estimates are used for other industries | Tourism Economics 5 The tourism sector is a major The tourism sector sustains 6.8% of all contributor to the Meadowlands private sector jobs and 3.2% of all private Liberty Region’s sector income in the Meadowlands Liberty Region

Tourism’s share of key local indicators Direct Indirect Induced

6.8% of Jobs 4.8% 0.9% 1.1% total county jobs

3.2% of Wages 1.9% 0.6% 0.6% total county wages

0% 2% 4% 6% 8% Sources: BEA; Tourism Economics Share of county total | Tourism Economics 6 Visitor spending in the Visitors to the Meadowlands Liberty Region Meadowlands Liberty Region spent $5.1 billion in 2017

Meadowlands Region visitor spending by sector, 2017 Dollars, millions and percent of total

$950m of spending on $887m of spending on local transportation 17% 19%

$5.1 billion

$713m of spending 14% in total on visitor spending 30% 20% $1,005m of $1,555m of spending on retail spending on food and beverage

Source: Tourism Economics | Tourism Economics 7 Visitor spending has been steadily Visitor spending reached $5.1 billion in increasing 2017, up from $4.3 billion in 2012, a 19% increase in five years

Visitor spending in the Meadowlands Liberty Region Dollars, billions $6.0 $5.1

Thousands $4.9 $4.9 $5.0 $4.7 $4.4 $4.3 $4.0

$3.0

$2.0

$1.0

$0.0 2012 2013 2014 2015 2016 2017 Source: Tourism Economics | Tourism Economics 8 Tourism spending is changing with Low prices have reduced the prices share of spending on transportation over time

Visitor spending by category in the Meadowlands Region Dollars, millions 100% 18.1% 18.0% 18.1% 18.4% 18.2% 18.6% 80%

29.0% 29.2% 29.3% 29.9% 30.3% 30.4% Accommodation 60%

F&B 40% 19.8% 20.1% 19.9% 20.0% 19.9% 19.7% Retail 13.6% 14.1% 14.2% 14.0% 14.0% 14.0% 20% Recreation 19.5% 18.7% 18.5% 17.7% 17.5% 17.4% 0% Transportation 2012 2013 2014 2015 2016 2017 Source: Tourism Economics | Tourism Economics 9 2) Detailed Results Tourism’s Impact on generated $5.1 billion in sales (1 of 2) direct sales and supported $8.2 billion in total business sales

Tourism industry generated business sales, millions Direct Indirect Induced Total , Fishing, - $0.5 $0.3 $0.8 Construction and Utilities - $64.7 $29.9 $94.6 Manufacturing - $43.0 $23.8 $66.8 Wholesale Trade - $77.7 $80.6 $158.3 Air - $2.5 $3.7 $6.2 Other Transport $231.9 $153.0 $42.1 $427.0 Retail Trade $1,005.0 $21.5 $132.5 $1,159.0 Gasoline Stations $500.1 $1.3 $5.7 $507.2 - $128.2 $93.0 $221.2 Finance, Insurance and Real Estate $200.2 $395.4 $550.9 $1,146.4 Business Services - $385.9 $137.9 $523.8 and Care - $2.9 $284.5 $287.4 Recreation and $713.3 $48.7 $26.6 $788.6 Lodging $905.6 $0.5 $0.4 $906.4 Food & Beverage $1,554.8 $23.0 $99.9 $1,677.6 Personal Services - $40.0 $67.4 $107.5 Government - $53.8 $21.4 $75.2 TOTAL $5,110.8 $1,442.7 $1,600.6 $8,154.1 Source: Tourism Economics

| Tourism Economics 11 Tourism’s Impact on business sales (2 of 2)

Tourism industry generated business sales, 2017

Food & Beverage Retail Trade FIRE* Lodging Recreation and Entertainment Direct Business Services Indirect Gasoline Stations Induced Other Transport Education and Health Care Communications Wholesale Trade Personal Services Construction and Utilities Government Manufacturing Air Transport Agriculture, Fishing, Mining $0 $500 $1,000 $1,500 $2,000 *Finance, insurance and real estate Dollars, millions Source: Tourism Economics

| Tourism Economics 12 Tourism’s Impact on income (1 Tourism generated $1.2 billion in of 2) local income and supported $2.0 billion in total income

Tourism industry generated income, millions Direct Indirect Induced Total Agriculture, Fishing, Mining - $0.1 $0.1 $0.2 Construction and Utilities - $14.8 $7.0 $21.8 Manufacturing - $5.3 $2.4 $7.7 Wholesale Trade - $19.8 $20.6 $40.4 Air Transport - $0.5 $0.7 $1.2 Other Transport $120.6 $45.8 $12.2 $178.6 Retail Trade $128.6 $7.1 $39.0 $174.7 Gasoline Stations $34.4 $0.5 $2.3 $37.2 Communications - $27.7 $13.8 $41.5 Finance, Insurance and Real Estate $59.1 $74.6 $68.4 $202.1 Business Services - $150.4 $54.7 $205.1 Education and Health Care - $1.3 $116.5 $117.8 Recreation and Entertainment $173.6 $15.0 $6.8 $195.4 Lodging $216.3 $0.1 $0.1 $216.5 Food & Beverage $474.3 $8.5 $29.9 $512.7 Personal Services - $14.0 $31.3 $45.3 Government - $27.3 $8.1 $35.4 TOTAL $1,206.9 $413.0 $413.8 $2,033.7 Source: Tourism Economics

| Tourism Economics 13 Tourism’s Impact on income (2 of 2)

Tourism industry generated income, 2017

Food & Beverage Lodging Business Services

FIRE* Direct Recreation and Entertainment Indirect Other Transport Induced Retail Trade Education and Health Care Personal Services Communications Wholesale Trade Gasoline Stations Government Construction and Utilities Manufacturing Air Transport Agriculture, Fishing, Mining $0 $200 $400 $600 *Finance, insurance and real estate Dollars, millions Source: Tourism Economics

| Tourism Economics 14 Tourism’s Impact on jobs (1 of 2) Tourism generated 44,649 jobs directly and supported 62,728 total jobs

Tourism industry generated employment Direct Indirect Induced Total Agriculture, Fishing, Mining - 7 3 10 Construction and Utilities - 205 89 294 Manufacturing - 113 46 159 Wholesale Trade - 290 301 591 Air Transport - 5 7 12 Other Transport 2,341 1,012 284 3,637 Retail Trade 4,857 217 1,209 6,283 Gasoline Stations 647 14 62 723 Communications - 273 168 441 Finance, Insurance and Real Estate 580 1,494 1,215 3,289 Business Services - 2,412 972 3,384 Education and Health Care - 61 2,665 2,726 Recreation and Entertainment 11,108 698 315 12,121 Lodging 4,549 4 3 4,556 Food & Beverage 20,567 423 1,448 22,438 Personal Services - 363 1,204 1,567 Government - 396 101 497 TOTAL 44,649 7,987 10,092 62,728 Source: Tourism Economics

| Tourism Economics 15 Tourism’s Impact on jobs (2 of 2)

Tourism industry generated employment, 2017

Food & Beverage Lodging Other Transport Recreation and Entertainment Direct Retail Trade Indirect Induced Business Services FIRE* Education and Health Care Personal Services Gasoline Stations Wholesale Trade Government Communications Construction and Utilities Manufacturing Air Transport Agriculture, Fishing, Mining 0 5,000 10,000 15,000 20,000 25,000 30,000 *Finance, insurance and real estate Jobs Source: Tourism Economics

| Tourism Economics 16 Tourism’s Impact on taxes (2 of Tourism supported a total of $287 2) million in local government revenue

Tourism supported Tourism supported , millions tax , millions Direct Indirect/Induced Total Total Federal $425.0 $300.0 $725.0 State Revenues $303.2 Personal Income $172.7 $118.7 $291.5 Sales $230.6 Corporate $38.8 $36.8 $75.6 Bed Tax - Indirect business $21.5 $16.5 $38.0 Personal Income $35.7 Social Security $191.9 $128.0 $319.9 Corporate $17.8 Social Security $6.5 State and Local $362.9 $184.3 $590.6 Excise and Fees $12.6 Sales $138.7 $45.8 $233.7 Property - Bed Tax $34.2 - $34.2 Personal Income $21.2 $26.0 $35.7 Local Govt. Revenues $287.4 Corporate $9.1 $8.7 $17.8 Sales $3.1 Social Insurance $3.9 $2.5 $6.5 Bed Tax $34.2 Excise and Fees $18.2 $13.3 $30.7 Personal Income - Property $137.7 $88.1 $232.0 Corporate - Total $787.9 $484.4 $1,315.6 Social Security - Source: Tourism Economics Excise and Fees $18.1 Property $232.0 Total $590.6 Source: Tourism Economics

| Tourism Economics 17 3) Methodology How tourism generates impact Tourism spending flows through the economy and generates economic benefit through multiple channels

Our analysis of tourism’s impact on the Meadowlands Liberty Region How tourism spending flows through the starts with actual spending by tourists, but also considers the downstream effects of this injection of spending into the local economy and generates economic benefits economy. To determine the total economic impact of tourism in the Meadowlands Liberty Region, we input tourism spending into a of the Meadowlands Liberty Region’s economy created in IMPLAN. This model calculates three distinct types of impact: direct, indirect, and induced. ▪ Travelers create direct economic value within a discreet group of sectors (e.g. recreation, transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within each sector.

▪ Each directly affected sector also purchases and services as inputs (e.g. food wholesalers, utilities) into . These impacts are called indirect impacts.

▪ Lastly, the induced impact is generated when employees whose wages are generated either directly or indirectly by tourism, spend those wages in the local economy.

The impacts on business sales, jobs, wages, and taxes are calculated for all three levels of impact.

| Tourism Economics 19 Illustrating the concepts

Travel & Tourism Industry & Tourism Economic Impact T ■ The direct effect of visitor spending & T The flow-through effect of T&T all demand D IR O across the economy E V ACCOMMODATIONACCOMODATION C T E ■ Expands the focus to measure the CATERING, ENTERTAINMENT R overall impact of T&T on all sectors of RECREATION, TRANSPORTATION A the economy &OTHER TRAVEL RELATED SERVICES L L T & T /, UTILITIES & T T I , SANITATION SERVICES M IN FURNISHINGS AND EQUIPMENT SUPPLIERS, D P SECURITY SERVICES, RENTAL MANUFACTURING, IR A E C TRANSPORTATION ADMINISTRATION, TOURISM C T T PROMOTION, SHIP , AIRCRAFT MANUFACTURING, DEVELOPMENT, GLASS PRODUCTS, IRON/STEEL T & T FOOD & BEVERAGE SUPPLY, RETAILERS IN D BUSINESS SERVICES, WHOLESALERS, , U C UTILITIES, MANUFACTURERS, HOUSING, PERSONAL SERVICES E D