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State of the NYC Travel
              & Tourism Industry




Nadler & Associates
Immediate Challenges

        National Level:
           Another Terrorist Attack
           Flying Concerns
           Further Economic Downturns
           International Hostilities

        NYC-specific:
           How Much of NYC was Destroyed?
           Inappropriate to Visit

Nadler & Associates
NYC Visitor Spending Losses
            Cumulative Losses: $344.8 million

                              $120.6



                                       $65.3
                      $51.3
                                               $33.6           $34.4
                                                       $18.6           $21.1


        Week
       Ending: 9/15           9/22     9/29 10/06 10/13 10/20 10/27

Nadler & Associates
NYC Tourism Industry Losses

         Restaurant sales down 47% (9/10-9/30)

         Broadway ticket sales down 16% (9/11-10/28)

         Combined attendance at three major attractions
          down 40% (9/11-10/15) (Metropolitan Museum of
          Art, MOMA, Bronx Zoo)


         Combined sales at Macy*s and Bloomingdales
          down 20% off original forecast (9/11-9/30)


Nadler & Associates
New York City Losses

         Economic losses of $90-$105 billion

         GCP shrank 3% in 4thQ2001

         $1 billion in tax losses in fiscal year

         56,000 jobs lost in October

         97,100 jobs through March 2002


Nadler & Associates
Rebuilding NYC
   Tourism
NYC’s Messages

           NYC is open for business

           NYC is as secure as possible

           The best way to support NYC right
            now is to come visit

           NYC is going to give you even more
            reasons to come visit

Nadler & Associates
Initial Promotional Audiences


           New Yorkers

           Daytrippers

           Close-in markets



Nadler & Associates
Immediate Response


      • Print advertising
      • Pro-bono placements in
        newspapers & magazines:
          USA Today, Boston Globe,
          Chicago Tribune, Travel +
          Leisure, WHERE, Forbes
          FYI, Forbes Global, Good
          Holiday Ideas (UK), Bridal
          Guide, Conde Nast titles
Nadler & Associates
Extensive Media Outreach

          Crisis Communications Committee
          Thousands of media inquiries
          Meetings with major city news boards
          Interviews with all major newspapers incl.
           NYTimes, LATimes, Miami Herald, WSJ
          Local & national TV appearances:
           CNBC, CNN, FNN, NBC
          Domestic & international press fam tours

Nadler & Associates
Securing Congressional Support




           House Committee on Energy and Commerce,
           Subcommittee on Commerce, Trade &
           Consumer Protection.
  (l-r) L. Conlin, US DOC; W. Norman, TIA; R. Warren, ATA.; J.W. Marriott, Jr.,
  Marriott; C. Nicholas, NYC & Company; F. Lounsberry, Universal Studios; M.
  Crye, Int’l. Cruise Lines Council; T. Jones, Travelocity.com.
Nadler & Associates
NYC CultureFest 2001


      • Inaugural event
      • Free festival with
         performances, exhibits
         and programs
      • 66 participating cultural
         organizations
      • Estimated 60,000
         attendees

Nadler & Associates
NYC Fall Restaurant Week



      • First time ever in the Fall
      • Second week of October;
        extended through 10/31
      • 145 participating restaurants
      • First-ever prix-fixe dinners
      • New sponsor Coca-Cola

Nadler & Associates
Major Groups Choose NYC

        American Federation of State, County and Municipal
          Employees
        American Society of Association Executives
        American Society of Travel Agents
        Coca-Cola
        Magazine Publishers of America
        Meeting Planners International
        US Indoor Track & Field Championships
        World Economic Forum

Nadler & Associates
Paint the Town Red, White & Blue




Nadler & Associates
2001 Travel
  to NYC
Total Domestic Visitors to NYC

       millions                29.8    29.4       29.5



                       27.1

             25.8




           1997       1998    1999    2000      2001
                                              Source: NYC & Company
Nadler & Associates
Domestic Visitor Spending
                        Declined 10%
       $billions
                      $9.778

                                   $8.809




                      2000       2001(p)

Nadler & Associates                     Source: NYC & Company
9/11 Impact: Total Domestic Travel
       NYC domestic travel was growing before 9/11. Following
       9/11, domestic visitor volume plummeted.


                  18.79 19.68                       millions


                                        10.63   9.83
                       +5%
                                          -8%
                      pre 9/11          post 9/11

Nadler & Associates
                                 2000   2001
Who Came to NYC Immediately After 9/11*

         % of all NYC visitors              2000       2001
        % from New York State                12%        25%
        % coming to see friends/relatives    19%        41%
        % on a business trip                 29%        19%
        % who traveled by air                22%        17%
        % who traveled by train              11%        17%
        % daytrippers                        57%        61%
        Average length of stay                2.1        2.0
        Average daily spending              $188        $154

            *September, October, November
Nadler & Associates                         Source: NYC & Company
2001 Int’l. Visitors to the US Declined 11%

                                                                              millions

                                            50.9
                                                                                49.1
                                 48.5
           47.8
                      46.4
                                                        45.5        45.4




           1997       1998       1999        2000      2001(p)     2002(f)     2003(f)

Nadler & Associates          Source: Office of Travel & Tourism Industries, US Dept. of Commerce
NYC Travel & Tourism:
  One Year Later
NYC Tourism Post 9/11: Hotel Occupancy
               88.8%
                       86.5% 86.4%
       85.3%


                                       77.5%                                 78.4% 79.0%
                                                               77.3% 77.2%                         76.8%                 75.9%
                                                       74.6%                               74.0%
                                                                                                                                 72.1%
                                                                                                                 70.7%
                                               66.2%



                                                                                                           61.9%

                                                                                                                 80.9%
       76.7%                   76.3%                           76.8% 75.6% 78.1% 77.6%             76.7% 75.0%           78.2% 78.8%
                       70.7%           72.1%           72.3%                               72.7%

               61.9%                           62.5%




       Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

                           Aug. 2000 – Dec. 2001                        Aug. 2001 – Dec. 2002

Nadler & Associates                                                             Source: PKF Consulting; Hotel RevMax
NYC Tourism Post 9/11: Hotel Room Sales
                    $458 $461                                                                   $millions
             $448
                                $437




                                                                 $355 $350                                     $381
         $352                                        $331 $330                                   $369
                                                                                                        $348
                                              $295               $325           $295 $305                      $300
      $305                 $306 $300                                    $306                 $303 $268 $306
                                       $284          $292 $296
                                                                                      $277
                    $268                                                       $264
                                              $259
             $242                      $238                                                  $242




       Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

                           Aug. 2000 – Dec. 2001                  Aug. 2001 - Dec. 2002

Nadler & Associates                                                                   Source: NYC & Company
NYC Tourism Post 9/11: Airport Arrivals
                                                                                  4.60
        4.48                                                                                millions
                                                                           4.34
                                                          3.99 4.00 4.09
                                                   3.79
                      3.40 3.46 3.51
               3.21                    3.18 3.09
                                                                                                              2.86
                                                                                                       2.71
                                                                                                2.55
                                                                                         2.35
        4.60
                                                                                  4.12
                                                                           3.88
                                                   3.35 3.25 3.46 3.54                   3.28 3.38 3.22
                                                                                                        3.55
                              2.86 2.69
               2.35 2.55 2.71           2.58




        Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
                        Aug. 2000 – Dec. 2001                  Aug. 2001 - Dec. 2002

Nadler & Associates                                                                         Source: PANYNJ
NYC Tourism Post 9/11: Broadway
                          1184                                          1168                       thousands
                                                    1143 1124
                                                                                     1091
                                                                 1038                                    1034
                                 972                                           928
                                                                                                                898
        883         862
                                       825                                                        815
                                             785
              744



                                                    1145                1129         1156                1141
       1091                                                                                                     1063
                          1034                                                              539
                                                           948    956
                                 898                                           859                 897
                    815
                                       716    718                                           678
              539




        Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun                            Jul   Aug Sep Oct Nov Dec

                          Aug. 2000 – Dec. 2001                  Aug. 2001 – Dec. 2002

Nadler & Associates                                   Source: League of Amer. Theaters & Producers
NYC Tourism Post 9/11: Jobs*
                                       410.0                                                                 thousands
                               403.8

                                                                               393.1 394.3
                                                                                             384.7           388.4
                        391.0                                  384.1
                                                       380.1                                         381.0
               383.8                                                   384.3
                                               382.6                                                                                 384.8
       379.0
                                                                                                                             377.7
                                                                                                                     371.2

               388.4                                                                                                                 390.0
       381.0                           384.8                                                                                 384.4
                               377.7
                                                                               373.2 376.3                           374.2
                       371.2
                                                                       366.6                 368.8 366.8 371.7
                                               359.9 356.7 360.2




       Aug Sep         Oct Nov Dec Jan                 Feb Mar         Apr May Jun            Jul    Aug Sep         Oct Nov Dec

                               Aug. 2000 – Dec. 2001                      Aug. 2001 – Dec. 2002
                  • Aggregate of seven key NYC industries impacted by visitor spending

                                                                                                    Source: NYS Dept of Labor
Nadler & Associates
Nadler & Associates
ruth@nadlerandassociates.com

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How NYC Fared After 9 11

  • 1. State of the NYC Travel & Tourism Industry Nadler & Associates
  • 2. Immediate Challenges National Level:  Another Terrorist Attack  Flying Concerns  Further Economic Downturns  International Hostilities NYC-specific:  How Much of NYC was Destroyed?  Inappropriate to Visit Nadler & Associates
  • 3. NYC Visitor Spending Losses Cumulative Losses: $344.8 million $120.6 $65.3 $51.3 $33.6 $34.4 $18.6 $21.1 Week Ending: 9/15 9/22 9/29 10/06 10/13 10/20 10/27 Nadler & Associates
  • 4. NYC Tourism Industry Losses  Restaurant sales down 47% (9/10-9/30)  Broadway ticket sales down 16% (9/11-10/28)  Combined attendance at three major attractions down 40% (9/11-10/15) (Metropolitan Museum of Art, MOMA, Bronx Zoo)  Combined sales at Macy*s and Bloomingdales down 20% off original forecast (9/11-9/30) Nadler & Associates
  • 5. New York City Losses  Economic losses of $90-$105 billion  GCP shrank 3% in 4thQ2001  $1 billion in tax losses in fiscal year  56,000 jobs lost in October  97,100 jobs through March 2002 Nadler & Associates
  • 6. Rebuilding NYC Tourism
  • 7. NYC’s Messages  NYC is open for business  NYC is as secure as possible  The best way to support NYC right now is to come visit  NYC is going to give you even more reasons to come visit Nadler & Associates
  • 8. Initial Promotional Audiences  New Yorkers  Daytrippers  Close-in markets Nadler & Associates
  • 9. Immediate Response • Print advertising • Pro-bono placements in newspapers & magazines: USA Today, Boston Globe, Chicago Tribune, Travel + Leisure, WHERE, Forbes FYI, Forbes Global, Good Holiday Ideas (UK), Bridal Guide, Conde Nast titles Nadler & Associates
  • 10. Extensive Media Outreach  Crisis Communications Committee  Thousands of media inquiries  Meetings with major city news boards  Interviews with all major newspapers incl. NYTimes, LATimes, Miami Herald, WSJ  Local & national TV appearances: CNBC, CNN, FNN, NBC  Domestic & international press fam tours Nadler & Associates
  • 11. Securing Congressional Support House Committee on Energy and Commerce, Subcommittee on Commerce, Trade & Consumer Protection. (l-r) L. Conlin, US DOC; W. Norman, TIA; R. Warren, ATA.; J.W. Marriott, Jr., Marriott; C. Nicholas, NYC & Company; F. Lounsberry, Universal Studios; M. Crye, Int’l. Cruise Lines Council; T. Jones, Travelocity.com. Nadler & Associates
  • 12. NYC CultureFest 2001 • Inaugural event • Free festival with performances, exhibits and programs • 66 participating cultural organizations • Estimated 60,000 attendees Nadler & Associates
  • 13. NYC Fall Restaurant Week • First time ever in the Fall • Second week of October; extended through 10/31 • 145 participating restaurants • First-ever prix-fixe dinners • New sponsor Coca-Cola Nadler & Associates
  • 14. Major Groups Choose NYC  American Federation of State, County and Municipal Employees  American Society of Association Executives  American Society of Travel Agents  Coca-Cola  Magazine Publishers of America  Meeting Planners International  US Indoor Track & Field Championships  World Economic Forum Nadler & Associates
  • 15. Paint the Town Red, White & Blue Nadler & Associates
  • 16. 2001 Travel to NYC
  • 17. Total Domestic Visitors to NYC millions 29.8 29.4 29.5 27.1 25.8 1997 1998 1999 2000 2001 Source: NYC & Company Nadler & Associates
  • 18. Domestic Visitor Spending Declined 10% $billions $9.778 $8.809 2000 2001(p) Nadler & Associates Source: NYC & Company
  • 19. 9/11 Impact: Total Domestic Travel NYC domestic travel was growing before 9/11. Following 9/11, domestic visitor volume plummeted. 18.79 19.68 millions 10.63 9.83 +5% -8% pre 9/11 post 9/11 Nadler & Associates 2000 2001
  • 20. Who Came to NYC Immediately After 9/11* % of all NYC visitors 2000 2001 % from New York State 12% 25% % coming to see friends/relatives 19% 41% % on a business trip 29% 19% % who traveled by air 22% 17% % who traveled by train 11% 17% % daytrippers 57% 61% Average length of stay 2.1 2.0 Average daily spending $188 $154 *September, October, November Nadler & Associates Source: NYC & Company
  • 21. 2001 Int’l. Visitors to the US Declined 11% millions 50.9 49.1 48.5 47.8 46.4 45.5 45.4 1997 1998 1999 2000 2001(p) 2002(f) 2003(f) Nadler & Associates Source: Office of Travel & Tourism Industries, US Dept. of Commerce
  • 22. NYC Travel & Tourism: One Year Later
  • 23. NYC Tourism Post 9/11: Hotel Occupancy 88.8% 86.5% 86.4% 85.3% 77.5% 78.4% 79.0% 77.3% 77.2% 76.8% 75.9% 74.6% 74.0% 72.1% 70.7% 66.2% 61.9% 80.9% 76.7% 76.3% 76.8% 75.6% 78.1% 77.6% 76.7% 75.0% 78.2% 78.8% 70.7% 72.1% 72.3% 72.7% 61.9% 62.5% Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug. 2000 – Dec. 2001 Aug. 2001 – Dec. 2002 Nadler & Associates Source: PKF Consulting; Hotel RevMax
  • 24. NYC Tourism Post 9/11: Hotel Room Sales $458 $461 $millions $448 $437 $355 $350 $381 $352 $331 $330 $369 $348 $295 $325 $295 $305 $300 $305 $306 $300 $306 $303 $268 $306 $284 $292 $296 $277 $268 $264 $259 $242 $238 $242 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug. 2000 – Dec. 2001 Aug. 2001 - Dec. 2002 Nadler & Associates Source: NYC & Company
  • 25. NYC Tourism Post 9/11: Airport Arrivals 4.60 4.48 millions 4.34 3.99 4.00 4.09 3.79 3.40 3.46 3.51 3.21 3.18 3.09 2.86 2.71 2.55 2.35 4.60 4.12 3.88 3.35 3.25 3.46 3.54 3.28 3.38 3.22 3.55 2.86 2.69 2.35 2.55 2.71 2.58 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug. 2000 – Dec. 2001 Aug. 2001 - Dec. 2002 Nadler & Associates Source: PANYNJ
  • 26. NYC Tourism Post 9/11: Broadway 1184 1168 thousands 1143 1124 1091 1038 1034 972 928 898 883 862 825 815 785 744 1145 1129 1156 1141 1091 1063 1034 539 948 956 898 859 897 815 716 718 678 539 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug. 2000 – Dec. 2001 Aug. 2001 – Dec. 2002 Nadler & Associates Source: League of Amer. Theaters & Producers
  • 27. NYC Tourism Post 9/11: Jobs* 410.0 thousands 403.8 393.1 394.3 384.7 388.4 391.0 384.1 380.1 381.0 383.8 384.3 382.6 384.8 379.0 377.7 371.2 388.4 390.0 381.0 384.8 384.4 377.7 373.2 376.3 374.2 371.2 366.6 368.8 366.8 371.7 359.9 356.7 360.2 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug. 2000 – Dec. 2001 Aug. 2001 – Dec. 2002 • Aggregate of seven key NYC industries impacted by visitor spending Source: NYS Dept of Labor Nadler & Associates