How Important is Tourism to Rhode Island 2006

How Important is Tourism to Rhode Island? 2006 Tourism Satellite Account Kenneth Mc. Gill Executive Managing Director Travel & Tourism Consulting ken. mcgill@globalinsight. com

About Global Insight: ØPremier economic analysis and consulting organization ØFormed in 2001 by combining WEFA and DRI ØProvides the most comprehensive coverage of countries, regions and industries available from any single source ØBrings a common analytical framework and a consistent set of assumptions to diverse capabilities and products ØMost consistently accurate commercial forecaster www. globalinsight. com/accolades • Provides a broad range of consulting capabilities covering: • § Market Analysis § Business Planning § Investment Strategy § Risk Assessment § Infrastructure Analysis § Policy Evaluation § Economic Development § Economic Impact Strong reputation and experience within the travel & tourism sector Copyright © 2007 Global Insight, Inc. 2

Tourism Satellite Accounting • The Tourism Satellite Account is the international (UN/WTO, OECD) standard for measuring the contribution of tourism to an economy • Measuring the industry “tourism” is difficult: § tourism is not measured in standard economic accounting terms. § Most industries are accounted via the supply-side: firms are categorized into NAICS codes and asked about jobs, revenues, costs. § But tourism is a demand-side activity: the focus is on what the traveler buys before and during a trip( hotel, food, transpo, retail…). § As a result, tourism touches many industries • 4 Cs: Credibility, Comprehensiveness, Comparability, Consistency Copyright © 2007 Global Insight, Inc. 3

Benefits of a TSA ü Which are our best economic development targets? Allows policy -makers to compare the size & growth of tourism to other industrial sectors. ü What is the ROI of public tourism investment? Enables analysts to assess long-term health of the tourism sector vis-a-vis capital investment and govt. support. ü How can we benchmark ourselves against our destination competition? Provides an accepted international standard for benchmarking. ü How can we communicate the full value of tourism to policy makers, businesses, and citizens? Quantifies the value of visitors to Rhode Island. Copyright © 2007 Global Insight, Inc. 4

TSA: Key Terms and Definitions • • Visitor: Over 50 miles, non-commuting or overnight stays Resident Tourism: Only outbound purchases made in advance of a trip are included. No resident usage of RI tourism assets. • Tourism Spending: A TSA concept, includes all spending by all constituents on travel made in the jurisdiction (RI) Visitor Spending: Spending in the jurisdiction by visitors (accommodations, food & beverage, shopping, transportation, entertainment, other) Total Economic Impact: Gross Domestic Product “GDP” definition…spending less value of supply chain purchases made elsewhere. The amount truly retained in jurisdiction. Import Leakages: The value of supply chain purchases made outside of the jurisdiction. • • • Direct Spending/Jobs/Wages/Taxes: Industries that “touch” the visitor (e. g. hotels, restaurants, museums, …) Indirect Spending/Jobs/Wages/Taxes: Industries that supply those that touch the visitor Induced Spending/Jobs/Wages/Taxes: Workers of industries that touch or supply will spend wages locally Copyright © 2007 Global Insight, Inc. 5

T&T Industry and Economy Travel & Tourism Industry The direct effect of travel demand Travel & Tourism Economy The flow-through effect of travel demand across the economy The TSA provides both a narrow & a broad understanding of the Tourism “Industry” Copyright © 2007 Global Insight, Inc. 6

2006 Rhode Island Tourism Results Copyright © 2007 Global Insight, Inc. 7

Rhode Island Tourism Economic Impact - Definitions Impact Sources Approach • TSA: Results (spending, economic impact, jobs, …) conform strictly to the TSA definition (e. g. 50 mile+overnight visitor definition). • TSA + Under 50 Mile: TSA results, plus those trips coming from visitors traveling less than the 50 mile threshold. This classification is both historically consistent with previous Rhode Island studies and arguably more applicable to Rhode Island’s needs. • Total Impact: Total economic contribution of tourism to Rhode Island. Sum of core and non-core tourism. • Core Impact: Economic contribution from industries directly providing goods and services to the visitor. • Non-core Impact: Economic contribution from industries providing goods and services to core tourism providers. Also includes tourism investment. Copyright © 2007 Global Insight, Inc. 8

Rhode Island Tourism: Did You Know? ü ü ü Total tourism expenditures* reached $5. 4 B in 2006 In ’ 06, visitation grew by 2% and expenditures by 1% Avg. spend-per-visitor grew to $308 in ‘ 06 1 of every 10 Rhode Islanders owes his/her job to tourism Rhode Island keeps 61¢ of every dollar spent by visitors Tourism is responsible for 5% of total RI Gross State Product Tourism generated 11% of all state & local tax revenue in ’ 06 Tourism’s tax contribution reached $1, 140 per RI Household Tourism is the 4 th largest industry in RI (based upon jobs) Avg. Annual Tourism Wages reached $28, 900 in ’ 06 Every 249 visitor/travelers creates a new job in RI Appx. 40% of RI restaurant revenue can be attributed to visitors Copyright © 2007 Global Insight, Inc. 9

State Overview: 2006 Totals At A Glance TSA* + Under 50 Mile Visitors Difference Visits 7. 96 M 17. 46 M 9. 50 M Expenditure $3. 69 B $5. 38 B $1. 69 B Economic Impact (GSP) $2. 26 B $3. 20 B $940 M Jobs** 47, 854 70, 079 22, 225 Wages $1. 38 B $2. 04 B $660 M Taxes $860 M $1, 327 M $467 M Tourism Concept Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. Copyright © 2007 Global Insight, Inc. 10

State Overview: Tourism and Under 50 Mile Trips Measurement Tourism (TSA*) + Under 50 Mile Visitor Spending FY 2006 FY 2005 Definition $5. 38 B $5. 34 B • Spending from all tourism factors § Tourism (TSA*) $3. 69 B $3. 67 B • TSA Definition of State Tourism § Under 50 Mile Visitors $1. 69 B $1. 67 B utilize RI tourism assets Tourism + Under 50 Mile Visitors Core Employment** § Core Tourism (TSA) Employment** • Trips from less than 50 miles that 58, 900 • Core TSA + Under 50 mile tourism 58, 921 employment is 2 nd largest industry in Rhode Island 38, 956 39, 201 “Industry” • TSA Definition of Tourism Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data. Copyright © 2007 Global Insight, Inc. 11

Industry Structure: Definitions $5. 38 billion $3. 69 billion $2. 26 billion $1. 71 billion Copyright © 2007 Global Insight, Inc. $1. 43 billion $547 million Source: Global Insight 12

Total Tourism (TSA*) Expenditures • RI visitation grew 2. 1% in ‘ 06 • Leisure travel increased by 4. 2% in ’ 06** • Spending per visit declined by 0. 7% in ‘ 06 • Business travel decreased by 6. 0% in ’ 06** Tourism expenditures tallied $3. 69 billion in 2006 Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Visitors from over 50 miles or overnight only, provided by DK Shifflet & Associates, Ltd. Business travel results were estimated by GII. Copyright © 2007 Global Insight, Inc. 13

Visitors to Rhode Island* Total visitors grew 2. 1% in 2006 with a leisure visitors growing at twice that rate. * Visitors from over 50 miles or overnight only, provided by DK Shifflet & Associates, Ltd. Business travel results were estimated by GII. Copyright © 2007 Global Insight, Inc. 14

Tourism Shows Growth in ‘ 06 Measurement Tourism (TSA*) + Under 50 Mile Visitor Expenditures FY 2005 (billions) FY 2006 (billions) 2005 -06 growth $5. 337 $5. 385 0. 9% $3. 668 $3. 692 0. 6% $2. 223 $2. 257 1. 5% Core** Tourism (direct) $1. 677 $1. 709 1. 9% Non-Core Tourism $0. 546 $0. 547 0. 2% $1. 445 $1. 435 -0. 7% Tourism (TSA*) Expenditures Total Economic Impact Import Leakage Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. Copyright © 2007 Global Insight, Inc. 15

RI Tourism (TSA* Based) continues to grow… Measurement FY 2006 FY 2005 % Economic Value ($B) § Core** Tourism § Total Impact $1. 71 $2. 26 $1. 68 $2. 22 $1, 031 $1, 381 $1, 008 $1, 357 • Solid growth strengthened by 1. 9% leisure travel 1. 5% Wages & Salaries § Core** Tourism ($M) § Total Impact ($M) Employment*** (‘ 000) § Core** Tourism § Total Impact Taxes –Total Impact ($M) 38. 96 47. 85 $856 39. 20 48. 03 $865 Perspective • Average annual salary saw 3. 0% 2. 3% and 2. 3% growth respectively 1. 8% • Core tourism is 4 th largest industry -0. 6% in RI -0. 4% • If tourism didn’t exist, each household would pay an additional -0. 6% $1, 140 in taxes to maintain current tax receipts. Numbers may differ due to rounding Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should Copyright © 2007 Global Insight, Inc. not be confused with RI DLT Leisure & Hospitality Employment data. 16

Total Impact of Tourism • In 2006, the total economic impact of travel & tourism (TSA* direct and indirect) was $2. 26 billion. This represents 5. 5% of RI Gross State Product • The ratio of the total impact to total expenditures reveals that 61% of each tourism dollar spent in Rhode Island is retained in the state. The remainder represents import leakages. • 70, 079 jobs – direct and indirect – were created by the entire tourism TSA + Under 50 mile visitors. This accounts for 14. 2% of total employment in the state. • 47, 854 jobs – direct and indirect – were created by travel & tourism (TSA) economic activity. This accounts for 9. 7% of total employment in the state • Approximately $1. 38 billion in wages & salaries were generated by TSA travel & tourism in 2006. • Tourism (TSA) generated $860 million in federal, state, and local government taxes in 2006, a 0. 6% decrease from 2005. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 17

Sources of Tourism Expenditures • Visitor Spending – Expenditures by visitors who have come from greater than 50 miles or stayed overnight • Business Travel – Businesses’ spending within the state economy on travel • Resident Outbound – Resident spending preparing for an out-of-state trip • Government Spending – Tourism Office Budgets, transportation functions related to tourism, publicly funded attractions and funding for security in tourismintensive areas • Investment – Construction of hotels, attractions, tourism infrastructure, operating and transportation equipment • International – Spending of international visitors within the state • Under 50 Mile Visitors – Spending by residents or non-residents who have come from under 50 miles. No commuters or local utilization. These trips are not included in TSA definition. Copyright © 2007 Global Insight, Inc. 18

Category Distribution of Expenditures Food accounts for the largest share of tourism expenditure for both definitions of expenditures. Combined with accommodation and transportation, these components represent 64% of TSA* related visitor expenditures in Rhode Island. TSA* + <50 Mile Million $ TSA* Million $ 2005 -2006 Growth (TSA*) 1, 213 751 2. 3% Accommodation 655 2. 1% Transportation 670 651 0. 6% 1, 584 758 2. 3% Shopping 914 528 - 5. 1% Total *** $5, 037 $3, 342 0. 7% Entertainment** Food TSA + <50 Mile Shares *** Direct and Indirect Tourism Expenditures (w/o construction & investment) Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting. ** Entertainment category includes all marina and boating activity Copyright © 2007 Global Insight, Inc. 19

Category Distribution of TSA* Expenditures Business spending made up just under 26% of total expenditures in 2006, compared to just under 20% of total visitation. Business expenditures were up 1. 1% in 2006, reflecting lower concentrations in Shopping and higher concentrations in Food. 2006 Totals TSA* (Million $) Leisure (Million $) Business (Million $) Entertainment** 751 581 170 Accommodation 655 493 162 Transportation 651 527 125 Food 758 421 337 Shopping 528 435 93 Total *** $3, 342 $2, 456 $887 *** Direct and Indirect Tourism Expenditures (w/o construction & investment) Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Entertainment category includes all marina and boating activity Copyright © 2007 Global Insight, Inc. 20

Core** TSA* Tourism • Answers the question “How does tourism compare with other industries? ” • Core Tourism measures the size of the industry directly providing goods & services to the visitor. • Indirect effects are excluded – these are part of other supplier industries such as wholesalers. The impact of capital investment is also excluded. • Core Tourism generated $1. 7 billion in economic value in 2006. * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. Copyright © 2007 Global Insight, Inc. 21

Core** TSA* Tourism Impact – Composition The TSA model measures how spending of visitors touches diverse sectors to create the aggregate Core Tourism for Rhode Island. Composition of Core Tourism Rank Industry $ Value (Millions) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Other amusement- gambling- and recreation industries Food services and drinking places Real estate Hotels and motels- including casino hotels Automotive equipment rental and leasing Travel arrangement and reservation services Food and beverage stores Clothing and clothing accessories stores Air transportation Spectator sports Performing arts companies Miscellaneous store retailers Transit and ground passenger transportation Gasoline stations Scenic and sightseeing transportation and support Other Industries Total Source: Global Insight ’ 05 -’ 06 Growth % of Total 425 371 258 189 149 107 39 30 27 25 18 15 13 13 12 20 3. 7% 2. 3% 0. 0% 5. 0% 0. 0% 1. 9% -5. 1% 0. 3% 0. 6% 1. 2% -5. 1% 15. 5% -2. 7% 11. 6% -3. 3% 24. 8% 21. 7% 15. 1% 11. 1% 8. 7% 6. 2% 2. 3% 1. 7% 1. 6% 1. 5% 1. 0% 0. 9% 0. 8% 0. 7% 1. 2% 1, 709 1. 9% 100. 0% * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** © Core Tourism the economic contribution from industries directly providing goods and services to the visitor. Copyright 2007 Globalincludes Insight, Inc. 22

Core** TSA* Tourism – Employment* • Core Tourism is the 4 th largest private sector employer in Rhode Island with 38, 956 direct fulltime equivalency jobs in 2006. • Core Tourism generated 7. 9% of non-farm state employment in 2006. • Core Tourism jobs provided $1, 031 million in wages & salaries in 2006. • Core Tourism’s average annual wage has grown to $26, 468/year. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data. Copyright © 2007 Global Insight, Inc. 23

Core** TSA* Tourism Impact – Employment*** In Rhode Island Is Composed of Many Industries Rank Industry Reported Employment (Thousands) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Health Care and Social Assistance Retail Trade Accommodation and Food Services Professional, Scientific, and Tech. Services Administrative and Waste Services Wholesale Trade Finance and Insurance Manufacturing, Nondurables Core Tourism Construction represented Other Services 38, 956 jobs in Transportation and Warehousing 2006. Manufacturing, Durables Information Educational Services Management of Companies and Enterprises Other Industries State & Local Government 2005 -2006 Growth % of State Tourism. Extracted Employment (Thousands) 74. 05 52. 43 43. 06 35. 54 29. 42 26. 25 23. 07 22. 52 22. 30 21. 34 17. 82 16. 36 10. 38 9. 64 9. 10 15. 5 64. 8 1. 5% -0. 1% 0. 5% -1. 9% 6. 4% 2. 3% 5. 1% -3. 0% -0. 1% 2. 1% -5. 8% -2. 0% -2. 8% -0. 9% 4. 3% -1. 4% -0. 3% 15. 0% 10. 6% 8. 7% 7. 2% 6. 0% 5. 3% 4. 7% 4. 6% 4. 5% 4. 3% 3. 6% 3. 3% 2. 1% 2. 0% 1. 8% 3. 1% 13. 1% 74. 05 49. 42 24. 61 35. 54 27. 22 26. 25 23. 07 22. 52 22. 30 21. 34 16. 82 16. 36 10. 38 9. 64 9. 10 1. 22 64. 8 Total Nonfarm 493. 6 0. 4% 100. % 493. 6 Travel & Tourism 39. 0 - 0. 6% 7. 9% 39. 0 Source: Bureau of Labor Statistics and Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. Copyright These © 2007 employment Global Insight, Inc. should not be confused with RI DLT Leisure & Hospitality Employment data. 24 figures

Total Rhode Island TSA* Tourism Employment*** Down 0. 4% in 2006 Core** Tourism jobs comprise 81% of total tourism-generated employment. Total Impact Core Tourism Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data. Copyright © 2007 Global Insight, Inc. 25

Non-Core TSA* Tourism – Indirect Benefits Many industries not thought of as “tourism” but that supply goods and services to the industry are beneficiaries of RI tourism. Indirect Benefits of Tourism Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Industry $ Value ’ 05 -’ 06 (Millions) Growth % of Total Real estate Wholesale trade Nondepository credit intermediation and related firms Power generation and supply Monetary authorities and depository credit intermediaries Telecommunications Legal services Maintenance and repair of nonresidential buildings Architectural and engineering services Management of companies and enterprises Food services and drinking places Other State and local government enterprises Postal service Employment services Accounting and bookkeeping services Other Industries Investment 73 21 19 17 15 13 12 11 10 10 8 8 7 6 6 154 349 0. 7% 0. 0% 1. 8% 1. 2% 0. 8% 0. 3% 1. 7% 0. 4% 0. 8% 1. 9% 1. 8% 1. 6% 1. 0% 1. 1% 2. 2% 1. 1% 0. 2% 9. 9% 2. 8% 2. 6% 2. 3% 2. 0% 1. 8% 1. 6% 1. 5% 1. 3% 1. 1% 1. 0% 0. 9% 0. 8% 20. 9% 47. 2% Total 739 0. 6% 100. 0% Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 26

TSA* Tourism Generated $861 M in Total Tax Revenue in 2006 • Tourism activity generated $462 million in state and local government revenue in 2006, a 0. 6% decrease over 2005. • In 2006, $314 million in state tax revenue was generated by the travel & tourism sector in Rhode Island. Indirect business tax (sales tax) and the gaming taxes are the two largest contributors. • Tourism contributes disproportionately to state & local tax revenue. While Core Tourism is responsible for 4. 2% of RI GSP, it contributed 10. 9% of state government revenue in 2006. • If tourism didn’t exist, each RI household would pay $1, 140 more in taxes to maintain the current level of state and local tax receipts. * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 27

State and Local Government Revenue Tax Revenues from TSA* Tourism 2006 (Million) ’ 05 -’ 06 Growth Federal Government Corporate Profits Tax Personal Income Social Security & Other Taxes Federal Total State Government Corporate Profits Tax Personal Income Sales Licenses & Fees Gaming Tax Other Taxes State Share of Occupancy Tax State Total Local Government Local Share of Occupancy Taxes Property Taxes Local Total 85. 5 122. 8 189. 7 -1. 2% -0. 5% -0. 4% 398. 1 -0. 6% 7. 6 39. 0 98. 3 10. 2 103. 9 45. 4 9. 6 -1. 0% -0. 5% -1. 4% -0. 6% 0. 7% -1. 0% 3. 9% 314. 0 -0. 4% 5. 7 142. 0 147. 7 3. 9% -1. 4% -1. 2% 859. 8 -0. 6% Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 28

How Important? Gross State Product: $3. 20 billion 7. 8% of GSP Total Employment***: Total Tourismrelated spending of $5. 38 billion 70, 079 jobs 14. 2% of Employment Gross State Product: Total Employment: $2. 26 billion 5. 5% of GSP 47, 854 jobs 9. 7% of Employment Core GSP: $1. 71 billion 4. 1% of GSP Core Employment: 38, 965 jobs 7. 9% of Employment 4 th largest private sector employer Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. Copyright © 2007 Global These employment figures. Insight, should. Inc. not be confused with RI DLT Leisure & Hospitality Employment data. 29

2006 Rhode Island Tourism Regional Analysis Copyright © 2007 Global Insight, Inc. 30

Regional Distribution of Tourism Rhode Island is divided into eight regions in the analysis: § Blackstone Valley • • • Burrillville Central Falls Cumberland Glocester Lincoln North Smithfield Pawtucket Smithfield Woonsocket § Providence • Providence § Warwick • Warwick § Block Island • Block Island § Balance of State • • • Cranston Foster Johnston North Providence Scituate West Warwick Copyright © 2007 Global Insight, Inc. § Newport County • • • Little Compton Middletown Newport Portsmouth Tiverton Jamestown § South County • • • Charlestown Coventry East Greenwich Exeter Hopkinton Narragansett North Kingstown Richmond South Kingstown Westerly West Greenwich § East Bay • • Barrington Bristol East Providence Warren 31

Regional TSA* + Under 50 Mile Expenditures Regional Share of State Expenditures by Category ($M) Balance of State Blackstone Valley Block Island East Bay Newport Providence South County Warwick Total Accomodations Entertainment Food Retail Transportation Total 13. 10 16. 37 86. 49 6. 55 194. 31 108. 03 172. 79 57. 14 45. 66 396. 82 59. 56 39. 07 200. 31 319. 74 88. 45 63. 79 214. 57 245. 77 22. 18 114. 51 218. 62 326. 12 253. 46 188. 86 76. 95 57. 71 50. 57 47. 34 87. 71 355. 89 155. 32 82. 77 70. 94 65. 13 17. 81 40. 76 34. 85 212. 69 38. 87 188. 49 421. 22 781. 80 236. 62 248. 23 735. 81 1, 322. 47 708. 89 581. 05 654. 78 1, 213. 41 1, 584. 08 914. 26 669. 54 5, 036. 08 Entertainment data includes gaming, spectator sports boating and marina activity and other categories. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 32

Regional TSA* Tourism Expenditures Regional Share of State Expenditures by Category ($M) Balance of State Blackstone Valley Block Island East Bay Newport Providence South County Warwick Total Accomodations Entertainment Food Retail Transportation Total 13. 10 16. 37 86. 49 6. 55 194. 31 108. 03 172. 79 57. 14 31. 57 169. 62 52. 60 35. 99 124. 49 221. 06 78. 10 37. 14 96. 06 109. 92 21. 98 56. 86 105. 15 170. 57 111. 44 86. 14 42. 25 31. 69 29. 57 32. 74 48. 18 195. 40 90. 83 57. 46 71. 63 65. 77 14. 33 36. 46 26. 15 214. 75 31. 25 190. 84 254. 60 393. 36 204. 97 168. 60 498. 28 909. 80 484. 42 428. 72 654. 78 750. 57 758. 12 528. 12 651. 17 3, 342. 76 Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. As the TSA definition of tourism includes any overnight stay, accomodations results are the same for TSA and TSA + Under 50 Mile. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 33

Regional Share of Statewide TSA* + Under 50 Mile Expenditures Regional Share of State Expenditures by Category Providence Blackstone Valley Newport South County Warwick Balance of State East Bay Block Island Total Accommodation Entertainment 16. 5% 29. 7% 26. 4% 8. 7% 2. 0% 13. 2% 26. 4% 32. 7% 16. 5% 7. 3% 5. 3% 3. 8% 3. 2% 4. 9% 100. 0% Food Shopping Transportation Total 20. 6% 15. 5% 13. 8% 16. 0% 11. 9% 13. 5% 7. 2% 1. 4% 38. 9% 6. 3% 9. 6% 17. 0% 9. 1% 8. 4% 5. 2% 5. 5% 31. 8% 9. 7% 5. 2% 5. 8% 28. 2% 10. 6% 6. 1% 2. 7% 26. 3% 15. 5% 14. 6% 14. 1% 11. 5% 8. 4% 4. 9% 4. 7% 100. 0% Entertainment data includes gaming, spectator sports boating and marina activity and other categories. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 34

Regional Share of Statewide TSA* + Under 50 Mile Expenditures Expenditure Category Share of Regional Tourism Spending Providence Blackstone Valley Newport South County Warwick Balance of State East Bay Block Island Total Accommodation Entertainment 8. 2% 2. 1% 26. 4% 24. 4% 9. 8% 3. 1% 2. 6% 36. 6% 24. 2% 50. 8% 27. 2% 12. 5% 11. 0% 10. 8% 15. 7% 25. 2% 13. 0% 24. 1% Food Shopping Transportation Total 24. 7% 31. 4% 29. 7% 35. 8% 32. 5% 50. 9% 46. 1% 9. 4% 26. 9% 7. 4% 11. 9% 21. 9% 14. 2% 18. 3% 19. 1% 21. 4% 16. 1% 8. 3% 4. 7% 5. 5% 32. 4% 16. 8% 16. 4% 7. 5% 100. 0% 100. 0% 31. 5% 18. 2% 13. 3% 100. 0% Warwick’s Transportation share is very high as TF Green Airport revenue is counted here. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 35

Regional Share of Statewide TSA* Tourism Regional Share of State Expenditures by Category Accommodation Entertainment Food Shopping Transportation Total Providence Newport South County Warwick Blackstone Valley Balance of State Block Island East Bay 16. 5% 29. 7% 26. 4% 8. 7% 2. 5% 2. 0% 13. 2% 1. 0% 29. 5% 16. 6% 10. 4% 4. 9% 22. 6% 4. 2% 7. 0% 4. 8% 22. 5% 13. 9% 14. 7% 11. 4% 14. 5% 12. 7% 2. 9% 7. 5% 37. 0% 9. 1% 17. 2% 10. 9% 6. 0% 8. 0% 5. 6% 6. 2% 33. 0% 4. 8% 29. 3% 10. 1% 11. 0% 2. 2% 5. 6% 27. 2% 14. 9% 14. 5% 12. 8% 11. 8% 7. 6% 6. 1% 5. 0% Total 100% 100% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. As the TSA definition of tourism includes any overnight stay, accomodations results are the same for TSA and TSA + Under 50 Mile. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 36

Regional Share of Statewide TSA* Tourism Expenditure Category Share of Regional Tourism Spending Providence Newport South County Warwick Blackstone Valley Balance of State Block Island East Bay Total Accommodation Entertainment 11. 9% 39. 0% 35. 7% 13. 3% 4. 2% 5. 1% 42. 2% 3. 9% 24. 3% 25. 0% 16. 1% 8. 7% 43. 1% 12. 4% 25. 7% 21. 3% 19. 6% 22. 5% Food Shopping Transportation Total 18. 7% 21. 1% 23. 0% 20. 1% 27. 9% 37. 7% 10. 7% 33. 7% 21. 5% 9. 7% 18. 8% 13. 4% 8. 1% 16. 6% 14. 4% 19. 4% 23. 6% 5. 2% 6. 5% 44. 5% 16. 7% 28. 1% 7. 0% 21. 6% 100. 0% 100. 0% 22. 7% 15. 8% 19. 5% 100. 0% Warwick’s Transportation share is very high as TF Green Airport revenue is counted here. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 37

TSA* + Under 50 Mile Growth Rates by Region for 2006 Regional Growth Rates by Category 2006 vs 2005 Accomodation Balance of State Blackstone Valley Block Island East Bay Newport Providence South County Warwick Grand Total Entertainment Food Retail Transportation Grand Total 7. 9% 0. 7% 7. 7% 3. 9% 1. 8% 0. 9% 0. 3% 7. 4% 2. 3% 3. 4% 1. 8% 0. 9% 1. 5% 1. 1% 0. 8% 12. 9% 4. 6% 0. 1% 0. 5% 2. 3% 2. 9% 2. 0% 2. 1% -0. 9% -5. 7% -4. 6% -6. 1% -4. 6% -6. 4% -6. 7% -7. 0% 5. 8% 0. 7% 1. 8% 0. 3% 3. 4% 0. 0% -0. 4% -0. 7% 8. 2% 2. 6% -0. 5% 1. 0% -0. 7% -0. 5% 2. 1% 1. 9% 3. 8% -5. 7% 0. 9% Retail is only sector where all regions saw a drop in 2006. Food saw the strongest and most evenly distributed category growth. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 38

Regional Share of Statewide TSA* + Under 50 Mile Visitation and Trips Regional Share of State Visitors 8. 4% 15. 5% 4. 7% 4. 9% 14. 6% 26. 3% 14. 1% 11. 5% 7. 9% 18. 0% 3. 4% 5. 0% 16. 8% 26. 7% 13. 0% 9. 2% Total Visitors (000) 1, 374. 9 3, 148. 3 596. 9 874. 5 2, 932. 0 4, 663. 8 2, 263. 7 1, 607. 2 100. 0% 17, 461. 4 Share of Expenditures Balance of State Blackstone Valley Block Island East Bay Newport Providence South County Warwick Total Share of Visitation Biggest variances from spending shares are in regions where there is a dominant category, such as expensive accomodations in Block Island or high transportation revenue in Warwick Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 40

Regional Share of Statewide TSA* Tourism Visitation Regional Share of State Visitors 7. 6% 11. 8% 6. 1% 5. 0% 14. 9% 27. 2% 14. 5% 12. 8% 7. 9% 12. 8% 5. 5% 6. 4% 15. 4% 29. 4% 13. 3% 9. 3% Total Visitors (000) 627. 9 1, 014. 7 437. 5 511. 1 1, 224. 8 2, 337. 7 1, 060. 1 742. 0 100. 0% 7, 955. 8 Share of Expenditures Balance of State Blackstone Valley Block Island East Bay Newport Providence South County Warwick Total Share of Visitation Biggest variances from spending shares are in regions where there is a dominant category, such as expensive accomodations in Block Island or high transportation revenue in Warwick Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting Copyright © 2007 Global Insight, Inc. 41

Regional Share of Statewide Core** TSA* + Under 50 Mile Employment*** Regional Share of State Tourism Employment Share of State Expenditures Balance of State Blackstone Valley Block Island East Bay Newport Providence South County Warwick Total Share of Total Employment 8. 4% 15. 5% 4. 7% 4. 9% 14. 6% 26. 3% 14. 1% 11. 5% 9. 8% 10. 7% 3. 3% 5. 9% 12. 4% 32. 4% 8. 8% 16. 7% Total Employment 5, 780 6, 322 1, 947 3, 458 7, 309 19, 111 5, 160 9, 813 100. 0% 58, 900 Biggest variances from spending shares are in regions where with a high concentration in one area, such as entertainment for Blackstone Valley, accomodations for Block Island South County, or transportation for Warwick Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting ** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data. Copyright © 2007 Global Insight, Inc. 42

Talking Points: What Does the Entire Industry* Mean to RI? ü Each RI visitor/trip generates about $308 in expenditures, $34 of which goes to RI businesses that do not directly “touch” that visitor ü Every 249 visitors and trips creates a new RI job ü Each visitor and trip creates about $76 in tax receipts, $43 of which goes to state & local authorities ü It takes only 360 visitors and trips to pay for one Rhode Island public school student for one year ü Each RI visitor and trip generates $117 in wages paid to RI workers employed across an array of industries ü Each visitor/trip adds $184 to RI Gross State Product Source: Global Insight * Based on TSA definition of visitor, which includes all overnight visitors and those traveling over 50 miles, non-commuting, and under 50 mile visitors Copyright © 2007 Global Insight, Inc. 45