NYC Visitor Trends
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- Darleen Carson
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1 About NYC & Company Travel and tourism today is a cornerstone of the City s economy generating a record $61.3 billion in economic impact, welcoming an all-time high of 56.4 million visitors and supporting the jobs of more than 359,000 New Yorkers across all five boroughs. This past year (2014) was the fifth consecutive year of record-breaking performance across all categories and segments: business and leisure, day and overnight, hotel stays and, most importantly, international visitors. NYC & Company has had unparalleled success in promoting the City of New York as a visitor destination. Whether in our rapid recovery from market downturns, or during boom periods, the City consistently outperforms other destinations. With more international visitors, more adult US visitors and more spending, New York City is the most popular big-city destination in the US and competes with cities such as Paris, London, Shanghai and Istanbul for city trips. More international passengers arrive to the US through NYC s airports, and the City is the most important port of entry for overseas arrivals. No other destination has the same depth and breadth of international visitation, the result of strategic investments in diverse markets and the diversity and quality of the City s assets. The City is host to the most dynamic hotel development pipeline in the US. With over 40,000 rooms added to inventory since 2008, the City has seen new developments across the five boroughs, at every price point. Today there are over 20,000 more rooms in the pipeline. Nevertheless, since 2009, the City s hotel room demand has consistently outpaced the extraordinary growth in new hotel inventory. NYC hotel occupancy rates are the highest for a city destination in the US (averaging over 85% year-round for the past six years), while NYC s hotel ADR (average daily room rate) is the highest in the US even as we have added over 35% of new inventory in the upper mid-scale category. NYC & Company is New York City s official destination marketing organization. A 501(c)6 private corporation, NYC & Company represents the interests of nearly 2,000 member organizations across the spectrum of businesses and organizations in the City. Our mission is to maximize travel and tourism opportunities throughout the five boroughs, build economic prosperity and spread the welcoming image of New York City around the world. NYC & Company is the authentic resource for visitors to the City, a place to find everything they need about what to do and see in New York City. In addition to an integrated market development team in New York City with a focus on group, meeting/convention, leisure and events motivated travel, we have built a global communications and market promotion network around the globe, including 17 representative offices on five continents, to promote visitation. Together with satellite convention sales offices in the US to develop group business, NYC & Company s marketing efforts both consumer and business facing position the City to attract business and leisure travelers. 1 NYC & Company works directly with tour operators and travel agents in each market to create tours and packages that drive visitation. Press outreach and market by market communications strategies are tailored to the interests and travel styles of different domestic and international markets and are designed to respond almost instantaneously to sudden market changes or perception issues that may affect travel all the while creating inspiration and urgency.
2 With an array of major communication channels spanning earned media, owned OOH assets domestically and abroad, digital including the award-winning nycgo.com growing social media channels, digital information kiosks and a growing mobile platform, we have built on a strong presence in traditional print publications and print and digital advertising sales to support the core business. The organization is staffed to function as an entirely self-supporting marketing organization with more than 90% of all work done in-house. This creates the ability to respond quickly to rapidly changing needs and market conditions, relying on in-house creative, editorial and digital departments. From branding and graphic design to web, social media and platform development, NYC & Company leads the industry in telling the stories about the City as a destination that motivate visitation and expand the impact of each visitor s time in the City. New York City s Tourism Industry Is Thriving New York City is unique among US destinations. Our market is virtually the largest in the US, the most diverse, the highest spending and, in many cases, the most loyal. Seasonal patterns mean we run from strength to strength with only relatively slow periods during the first two months of each year and the usual national holidays which represent opportunity periods. Visitor volume has been rising steadily since the City turned the corner on the financial crisis in April The recession did slow business travel in 2009, but the City s diversified leisure markets have continued to grow and by 2010 we were back in record territory a trend that has now continued for five years and looks to be in the cards for this year as well. Much of our strength as a world city destination comes from our international markets the lighter-colored layers at the top of each year s bar in the graph below generally growing faster and taking a larger share each year and now accounting for 21% of the year s total number of visitors and representing 50% of the spending. NYC Visitor Trends (p) (millions of visitors) (p)=preliminary. All forecasts are subject to change as new data become available Source: NYC & Company (as of 3/15/15) Domestic International 2
3 NYC is the number one international destination. We get more visitors than any other city or DMO in the country. And frequently we are the number one destination whether our visitors enter the country through the NYC gateway airports, LAX for Pacific Rim countries or Miami for visitors from Latin America. The mix of business and leisure travelers, domestic and international visitors, helps provide a solid base for growing our hotel sector. Whether originating in international or domestic markets on average one-quarter of all visitors to the City are business travelers who are much more likely to stay in our hotels. Likewise, with the country s largest international visitor pool over 12 million people every year who stay on average a week in the City the growth of our international market is key to hotel demand. The Impact of Tourism As New York City s fastest-growing industry, tourism has been a stabilizing force for the City during economic cycles. Our visitor economy is part of the backbone of our City s economy, and visitors also add to the excitement, energy and diversity of NYC. Visitors to the City currently spend $41.4 billion annually across an array of hotels, restaurants, retail stores, museums, theaters and cultural institutions as well as local transportation options and much more. The industry has become a critical revenue generator and job creator growing into New York City s fifth-largest industry by jobs. In 2015, travel and tourism continue to fuel job growth across almost all sectors, particularly in the areas of accommodations, arts, select retail and food services. In 2014 tourism supported more than 359,000 jobs. With significant investment in new product, the industry has seen a 22% increase in jobs since the recession (2008). Only healthcare and education have kept pace with this growth. Leisure & Hospitality +42.8% (Travel & Tourism sub-sector) +22% Education & Health Services +21.9% Professional & Business Services +17% Information +11.9% Financial Services -2.1% Goods Producing -9.3% Source: NYC & Company/BLS/Tourism Economics 3 Substantial Economic Impact As the top overseas destination, as well as the number one destination for Canadian and Mexican air travelers, NYC is the most important driver of international arrivals to the US. With a one-third share of overseas travel and one in six international visitors overall, NYC is key to President Obama s national policy goal of 100 million international visitors by Regarding overseas visitors specifically, New York City has a larger market share than the next two cities combined (Los Angeles and Miami at 12% each). Each share point increase has generated an additional $750 million in direct spending and more than $1 billion in economic impact annually. In total the economic impact of tourism has grown to an all-time high of $61.3 billion in 2014.
4 Visitor spending generated $10.38 billion in tax revenues last year, including $3.7 billion in city taxes and over $1.7 in state taxes. The benefit of this additional tax revenue lowered the average household tax bill by over $1,700 in state and local taxes. Unprecedented Hotel Growth The strength of a destination s hotel sector is often one of the best barometers of a strong tourism industry. To this end, New York City s hotels are thriving and expanding at a rate never seen before. Over the past eight years, the City has added 167 new hotels, increasing room inventory to a record 102,000. Yet this considerable growth corresponded with an increase in room-nights sold with over 32.4 million sold in 2014, 2.4 million more than in 2013, all while room inventory increased by more than 6%, showing demand is outpacing development. Filling new inventory over the short term, with particular focus on need periods, will continue to be key to NYC & Company s marketing efforts. Overall, the City s hotel industry generated billions in tax revenue and, most importantly, has seen an approximately 22% increase in jobs. Furthermore, the hotel sector s expansion outside of traditional tourism areas has been a key corollary to the visitation success in boroughs beyond Manhattan. Queens and Brooklyn have added nine and five hotels, respectively, in the last two years alone, with 10 new hotels expected to come online in each borough in coming years. Additionally, Staten Island has had three hotels open since 2006, and the Bronx is expecting to add three hotels in the next three years. In fact, by the end of 2015, at least 87 new hotels will be operating outside Manhattan. Conventions, Meetings and Trade Shows One of the best and most efficient ways to generate visitation and fill hotel rooms is through the recruitment of conventions, meetings and trade shows. These events typically draw thousands of delegates and consumers to the City visitors who stay in our hotels, dine at our restaurants, shop in our stores and explore our cultural institutions. While the City has always been a top-of-mind destination for these kinds of events, NYC & Company works alongside venues and hotels to generate leads and increase the value of meetings, trade shows and conventions brought to the City. Additionally, NYC & Company is exploring ways to aid NYC-based trade shows in expanding their international presence to help draw more people and make the City even more attractive for organizers. The combined effect of operational and marketing efforts has resulted in a 53% increase in the number of delegates since the downturn while economic impact has gone up 109% and direct spending has grown 110%. In 2014 the City had more conventioneers than Las Vegas, despite having just over 2 million square feet of convention space compared to more than 10 million square feet in Las Vegas. Group will continue to be a focus of our marketing strategies going forward. Taking It to the Next Level At the 2015 Annual Meeting in March, CEO Fred Dixon and NYC & Company announced that New York City is on the road to the next 10 million visitors an achievement that while challenging can be reached by The new goal represents NYC & Company s approach to travel and tourism an open acknowledgement of the current economic strength and future potential of the industry. By setting such an ambitious target, the organization hopes to highlight the undeniable
5 A PRODUCTION OF Certain terms and conditions may apply. Tickets are in limited quantities and are subject to availability. SPONSORED BY: importance of tourism to the City s economy both now and in the years to come and to work with its partners, public and private, to prepare the City for the capacity to host 67 million visitors while maintaining a high quality of life for all New Yorkers. New York City is fortunate to have nearly 100% global brand recognition. Indeed, this brand awareness makes the City an aspirational destination for millions of people from around the world they want to come explore the City they have heard and seen so much about in TV and movies, books and pop culture, history, literature, art and social media an unrivaled and most unique position. The next 10 million visitors will be a cross-section of generations and a polyglot community of world travelers, a combination of domestic and international arrivals, people visiting friends and family as well as doing business here and staying for more time to have more experiences. Therefore, leveraging the City s iconic position to engage the visitor in unique cost-effective ways has become a critical mission for NYC & Company. Increasing the value of each visitor through activities, length of stay, experiencing more of the City and repeat visitation is at the heart of this strategy. As always, NYC & Company continues to sell the City to key international markets in Europe, while still expanding our efforts in developing markets like China, Brazil and India and exploring new opportunities in emerging world regions in the Middle East and Southeast Asia. Informed by economic and global conditions, we strategically promote New York City in markets with potential to grow through acquiring first-time visitors and repeat trips. The strategic focus and investment in emerging travel markets means that New York City is leading the way in attracting visitors. Today NYC & Company is moving deeper into South America with outreach to Chile, Colombia and Peru to take advantage of these rising economies. With representation, sales and press missions in market, New York City will again help open new opportunities for international visitation. BROADWAY WEEK SEPT 1-14 NYC & Company Major Programs and Initiatives Official NYC Family Ambassador Airport Welcoming Campaign NYC Restaurant Week Broadway Week Off-Broadway Week Comedy Week NYCGO Insider Guides (Neighborhood x Neighborhood) NYC X Design Tourism Ready (educational programming for members and borough tourism workshops) City to City Tourism Partnerships London, Madrid, Amsterdam, São Paulo, Mexico City and Seoul NYC I Do (destination weddings) Make It NYC (meetings and groups) Mayor s Cup Citywide Sports Competitions To learn more about NYC & Company, please visit nycgo.com. TICKETS ON SALE AUGUST 18 NYCGO.COM/BROADWAYWEEK 5
6 Tourism Facts 2013* 2014** YOY % CHANGE Total Visitation to NYC 54.3 million 56.4 million Domestic Visitation 42.9 million 44.2 million International Visitation 11.4 million 12.2 million Meeting Delegate Visitation 5.9 million 6.1 million Total Direct Spending $38.8 billion $41.4 billion Total Economic Impact $57.3 billion $61.3 billion NYC Tax Revenue Earned $3.5 billion $3.7 billion Jobs Supported by Tourism 348, , NYS Tax Revenue Earned $1.6 billion $1.7 billion Avg. Daily Hotel Room Rate $291 $ Avg. Hotel Occupancy 88.2% 89.4% Room-Nights Sold 30.1 million 32.4 million Hotel Rooms 95, , * Updated, as of March 17, 2015 **Preliminary results, as of March 17,
7 Chief Marketing Officer Job Description and Key Accountabilities Reporting to the President and CEO of the organization, the Chief Marketing Officer (CMO) is a member of the executive management team and provides leadership and strategic direction for the overall brand positioning, messaging and companymanaged vehicles and marketing resources. The Chief Marketing Officer is responsible for the development of NYC & Company s marketing plan and its execution to fulfill our vision and mission. The CMO will lead all aspects of plan development, coordination of business unit contributions and maximizing integration for optimal results. Key objectives will include driving visitation year-round from across segments, focusing on need periods for hotel demand and visitation, protecting and enhancing the brand, effectively managing corporate partnerships and increased market penetration while managing a talented team of in-house creative, editorial, video, photography, digital (including developers) and marketing professionals. NYC & Company operates as a fully self-contained creative and marketing agency with few outside services. Among other new projects, the CMO will be charged with developing a new social media, digital and content strategy and lead the development and execution of a website and multi-digital channel relaunch in the coming year. Focus will be on cutting-edge technology and innovative strategy to actively engage, inspire and create urgency to visit. 7 Requirements Twelve to 15 years of tenured experience in strategic marketing management. Comprehensive experience with, and demonstrated success in, dynamic team leadership. A track record of innovation and success in tourism, digital marketing and content, publishing, creative, editorial, advertising, promotions and/or sales, ideally in a relevant industry segment. Experience in leveraging emerging trends/technology, crafting effective digital strategies and architecting an engaging user experience online and within social media platforms. Tenured experience in current and/or most recent positions, with proven success in execution of company vision across multi-platforms and channels. International experience developing and implementing marketing programs, strategies and systems particularly multilingual to support a multimillion dollar global marketing effort. Excellent verbal and written communications skills, with particular emphasis on effective presentation and negotiation skills. Ability to create innovative strategies, partnerships and programs beyond existing models. Proven ability to formulate and execute results utilizing strong analytical, critical decision-making and strategic planning skills.»» Strong interpersonal skills, presence and ability to effectively build strong productive relationships both internally and externally.
8 Proven ability to lead, engage and collaborate with individuals across various disciplines, cultures and backgrounds to achieve shared goals, in a team environment. Demonstrated ability in staff motivation, supervision, coaching and team building; recognizing the internal agency environment, where CMO familiarity and leadership experience is expected. Ability to analyze and solve complex marketing and management problems. Ability to respond effectively to a dynamic marketplace and quickly changing priorities and/or responsibilities. Ability to think and manage creatively in a fast-paced work environment. Education Minimum of a Bachelor s Degree, Master s and advanced degree preferred. If you are interested in this position, please respond via with cover letter, résumé and compensation information to Jim Carra, Executive Vice President, SearchWide carra@searchwide.com or call For additional information on this and other opportunities with SearchWide, please visit searchwide.com. 8
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