Big Apple tourist industry still reeling
By Nina Siegal
Bloomberg News Service
NEW YORK — As many as 45,000 people who work in New York City's $25 billion-a-year tourism industry might lose their jobs this year because of the drop in business caused by the World Trade Center attack, said Cristyne L. Nicholas, chief executive of the city's convention and visitors bureau.
Bloomberg News Service library photo
"The city's tourism outlook has taken a dramatic turn for the worse" since Sept. 11, Nicholas said in testimony prepared for a New York State Assembly committee on tourism. She said the city might lose 25,000 to 45,000 jobs.
Broadway performers gathered in New York City's Times Square to rally support for Broadway and tourism by making a live recording of "New York, New York" on Sept. 28, about two weeks after the terrorist attacks.
About 282,000 people work in tourism-related businesses, including hotels, tour groups, museums, restaurants, retail stores, theaters and visitor attractions, said Nicholas, who heads NYC & Co., a non-profit group that represents 1,300 firms.
Last year, 37.4 million visitors spent $17 billion in the city, she said. Based on projections, Nicholas said about 34 million people will visit the city by the end of the year, a drop of 14 percent. Nicholas said she anticipated a loss of $2.1 billion in direct tourist spending.
"In short, the tremendous gains that the city's tourism industry has enjoyed over the last five years have been erased," Nicholas said.
Nicholas asked the state Assembly for $25 million to support expanded marketing initiatives that will boost New York tourism. New York's current tourism budget, $12.6 million, ranks 16th in the nation, she said.
Joseph D. Morelle, Democrat of Irondequoit, chairman of the Assembly Committee on Tourism, Arts and Sports Development, said he supported more funding for promotion of tourism. He didn't specify an amount.
"In the wake of Sept. 11 it is apparent and obvious to everyone that we just have not made the kinds of investments we should, and so it's time to play a little catch up," Morelle said.
The city has started using television and print advertising to help promote tourism, and cultural institutions are offering weekend discounts. NYC & Co. is promoting travel packages and discounts at Broadway shows, hotels and attractions through a campaign called "Paint the Town Red, White and Blue."
She also urged creation of a "dedicated funding stream" for the "I Love New York" campaign, which has a $40 million budget this year. She said the state of Illinois has a tourism budget of $55 million and Florida operates its tourist bureaus with $54 million annually.
The Hawai'i Tourism Authority has an annual budget of $61 million.
