Nadler & Associates

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

$51.3

$120.6

$65.3

$33.6

$18.6

$34.4$21.1

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

Ending:

Cumulative Losses: $344.8 million

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

Rebuilding NYC

Tourism

Nadler & Associates

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

2001 Travel

to NYC

Nadler & Associates

Total Domestic Visitors to NYC

25.8

27.1

29.8 29.4 29.5

1997 1998 1999 2000 2001

millions

Source: NYC & Company

Nadler & Associates

Domestic Visitor Spending

Declined 10%

$billions

$9.778

$8.809

2000 2001(p)

Source: NYC & Company

Nadler & Associates

9/11 Impact: Total Domestic Travel

18.79 19.68

10.63 9.83

pre 9/11 post 9/11

2000 2001

NYC domestic travel was growing before 9/11. Following 9/11, domestic visitor volume plummeted.

millions

+5%-8%

Nadler & Associates

Who Came to NYC Immediately After 9/11*

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

% of all NYC visitors

Source: NYC & Company

Nadler & Associates

2001 Int’l. Visitors to the US Declined 11%

47.8

46.4

48.5

50.9

45.5 45.4

49.1

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

Source: Office of Travel & Tourism Industries, US Dept. of Commerce

millions

NYC Travel & Tourism:

One Year Later

Nadler & Associates

76.7%

61.9%

70.7%

76.3%72.1%

62.5%

72.3%76.8% 75.6%

78.1% 77.6%72.7%

76.7% 75.0%

80.9%78.2% 78.8%

85.3%

88.8%86.5% 86.4%

77.5%

66.2%

74.6%

77.3% 77.2%78.4% 79.0%

74.0%

76.8%

70.7%

75.9%

72.1%

61.9%

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

NYC Tourism Post 9/11: Hotel Occupancy

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

Source: PKF Consulting; Hotel RevMax

Nadler & Associates

NYC Tourism Post 9/11: Hotel Room Sales

$305

$242

$268

$306 $300

$238

$259

$292 $296

$325$306

$264$277

$303

$369

$348

$381

$448$458 $461

$437

$295

$331 $330

$268

$300

$352

$284

$355 $350

$295$305

$242

$306

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

$millions

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

Source: NYC & Company

Nadler & Associates

4.60

2.35 2.55 2.71 2.86 2.69 2.58

3.35 3.25 3.46 3.543.88

4.12

3.28 3.38 3.223.55

4.48

3.213.40 3.46 3.51

3.18 3.09

3.793.99 4.00 4.09

4.344.60

2.352.55

2.712.86

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

NYC Tourism Post 9/11: Airport Arrivals

millions

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

Source: PANYNJ

Nadler & Associates

NYC Tourism Post 9/11: Broadway

1091

539

815

1034

898

716 718

1145

948 956

1129

859

1156

678

897

11411063

744

1184

972

825

1143 11241168

10911034

898

539

862883

785 815

928

1038

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

thousands

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

Source: League of Amer. Theaters & Producers

Nadler & Associates

NYC Tourism Post 9/11: Jobs*

381.0388.4

371.2377.7

384.8

359.9 356.7 360.2366.6

373.2 376.3368.8 366.8

371.7 374.2

384.4390.0

403.8

410.0

380.1384.1

393.1 394.3

381.0

379.0

388.4384.7

384.3383.8

391.0

382.6

371.2

384.8

377.7

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

thousands

Source: NYS Dept of Labor

• Aggregate of seven key NYC industries impacted by visitor spending

Nadler & Associates

ruth@nadlerandassociates.com