1. How Important is Tourism to Rhode Island? 2006 Tourism Satellite Account September 27, 2007 Kenneth McGill Executive Managing Director Travel & Tourism Consulting ken.mcgill@globalinsight.com

2. Copyright © 2007 Global Insight, Inc.2 Quick Introduction to Global Insight What is Tourism Satellite Accounting? 2006 Rhode Island Tourism Results What Do Visitors Mean to RI? Agenda How Important is Tourism to Rhode Island?

3. Copyright © 2007 Global Insight, Inc.3  Tourism Economic Impact  Project Feasibility Studies  Performance Benchmarking Global Insight Premier country intelligence, economic analysis & forecasting, and consulting organization globally Most comprehensive coverage of countries, regions, and industries available from any single source Common analytical framework and a consistent set of assumptions Broad range of capabilities include:  Strategic and Tactical Planning Tools  Market Risk Assessment  Tourism Forecasts Global Insight consistently has the best track record among commercial forecasters. See www.globalinsight.com/accoladeswww.globalinsight.com/accolades

4. Copyright © 2007 Global Insight, Inc.4 Global Insight by the numbers…  Over 4,000 clients worldwide… 2,800+ -Corporate, Financial, and Commercial 37 -US States, 118 -Cities/Local Govt, 70 Federal Government agencies 35 Foreign Central Banks, 23 International Statistical agencies, plus IMF, World Bank, IADB, EC, OECD, UN, SABIC, CEIC… 100+ Trade, Professional, Non-profit Organizations  Global Insight’s 2006 Turnover was $97million (65% N.A., 35% Intnl) with an operating margin of just over 9%  We have 640 employees housed in 25 offices in 14 countries  Global Insight is over 40 years young

5. Copyright © 2007 Global Insight, Inc.5 Travel and Tourism Practice Visitation & Spending ForecastsVisitation & Spending Forecasts –by category and by country, region, state, or U.S. city. Market size, growth, and share. Market Feasibility & Investment FacilitationMarket Feasibility & Investment Facilitation market analysis & research, demand/supply review, policy evaluation, development cost analysis. Destination Impact & Concession SupportDestination Impact & Concession Support economic impact of the construction and operations of individual facilities –resort, convention center, entertainment venue, event… Tourism Economic Impact & Tourism Satellite AccountingTourism Economic Impact & Tourism Satellite Accounting conforming to the UN/WTO standards. What does travel & tourism contribute in jobs, wages, spending, and taxes to a national or local economy? Tourism Policy AnalysisTourism Policy Analysis travel & tourism policy evaluation and rationalization.

6. Copyright © 2007 Global Insight, Inc.6 TSA | Transportation Security Administration | US Department of... Tourette Syndrome Association TSA Home PageTourette Syndrome Association TSA Home Page… Texas Society of Anesthesiologists Turtle Survival Alliance Columbia University - Turkish Student Association TSA : Telecommunication Society Of Australia Trust for the Study of Adolescence Tarheel Swimming Association The Thinking Skills Assessment Home Page TSA - the snowboard asylum online, uk snowboard shops full of... Toronto School of Art What is a Tourism Satellite Account (TSA)?

7. Copyright © 2007 Global Insight, Inc.7 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 industry is not measured in standard economic accounting systems.  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. As a result, tourism touches many industries 4Cs: Credibility, Comprehensiveness, Comparability, Consistency 7

8. Copyright © 2007 Global Insight, Inc.8 The Distinct Value of the TSA Credibility Credibility  The TSA is the product of countless committees, conferences, papers and expert opinions.  It defines tourism in measurements consistent with System of National Accounts (SNA) economic accounts.  It has been ratified by the UN, OECD and Eurostat. Comprehensiveness Comprehensiveness  TSA includes a wider view of tourism demand to include second home activity, capital investment, outbound resident purchases, and government spending -not just visitor spending.  TSA explicitly counts employment, sales, and GDP and allows (implicitly) for measurement of wages and taxes.  System also provides a framework for indirect impact analysis.

9. Copyright © 2007 Global Insight, Inc.9 The Distinct Value of the TSA Comparability Comparability  Only the TSA provides measurements of tourism that are designed to be consistent with SNA.  This facilitates inter-industry comparisons  Facilitates inter-country/sub-national comparisons  Enables share analysis (tourism is x% of GSP, wages, jobs) Consistency Consistency  Measuring tourism using the same data sources and methodology year in and year out facilitates the analysis of tourism growth, promotional and public investment ROI, and economic development comparisons  Changing research vendors or personnel should not result in a re-start

10. Copyright © 2007 Global Insight, Inc.10 Benefits of a TSA 10 Are we spending enough on tourism promotion and infrastructure? Are we spending enough on tourism promotion and infrastructure? Compares government support of the tourism sector with government revenue generated by tourism. Which are our best economic development targets and are candidate- requested concessions worth it? Which are our best economic development targets and are candidate- requested concessions worth it? Allows policy-makers to compare the size & growth of tourism to other industrial sectors. What is the ROI of public tourism investment? 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. How can we benchmark ourselves against our destination competition? How can we benchmark ourselves against our destination competition? Provides an accepted international standard for benchmarking. How can we communicate the full value of tourism to policy makers, businesses, and citizens? How can we communicate the full value of tourism to policy makers, businesses, and citizens? Quantifies how other industries benefit from tourism. Copyright © 2007 Global Insight, Inc

11. Copyright © 2007 Global Insight, Inc.11 TSA and Tourism Economic Impact Client Examples Tourism Satellite Account  RHODE ISLAND  Israel  New Jersey  Dubai  Bahamas  Abu Dhabi  Kansas  North Dakota  Guam  North Carolina  Alaska  South Carolina  Delaware  Virginia  Utah Economic Impact  Idaho  Pennsylvania  Indiana  Maryland City Tourism Impact Dallas Boston Arlington, TX Sacramento Baltimore Philadelphia Orlando Washington, DC NYC Camden & SNJ Tulsa St. Louis Kansas City Battle Creek, MI Durham, NC Savannah Pittsburgh Austin Indianapolis

12. Copyright © 2007 Global Insight, Inc.12 RI TSA: Definitions Visitor:Visitor: GT 50 miles, non-commuting or overnight stays Resident Tourism:Resident Tourism: Only outbound purchases made in advance of a trip are included. No resident usage of RI tourism assets.* Tourism Spending:Tourism Spending: A TSA concept, includes all spending by all constituents on travel made in the jurisdiction (RI) Visitor Spending:Visitor Spending: Spending in the jurisdiction by visitors (accommodations, food & beverage, shopping, transportation, entertainment, other) Total Economic Impact: “GDP” definition…spending less value of supply chain purchases made elsewhere. The amount truly retained in jurisdiction. Import Leakages:Import Leakages: The value of supply chain purchases made outside of the jurisdiction. Direct Spending/Jobs/Wages/Taxes:Direct Spending/Jobs/Wages/Taxes: Industries that “touch” the visitor (e.g. hotels, restaurants, museums,…) Indirect Spending/Jobs/Wages/Taxes:Indirect Spending/Jobs/Wages/Taxes: Industries that supply those that touch the visitor Induced Spending/Jobs/Wages/Taxes:Induced Spending/Jobs/Wages/Taxes: Workers of industries that touch or supply will spend wages locally

13. Copyright © 2007 Global Insight, Inc.13 Travel & Tourism Economy T&T Industry and Economy The TSA provides both a narrow & a broad understanding of the Tourism “Industry” Travel & Tourism Economy The flow-through effect of travel demand across the economy Travel & Tourism Industry The direct effect of travel demand

14. Copyright © 2007 Global Insight, Inc.14 2006 Rhode Island Tourism Results

15. Copyright © 2007 Global Insight, Inc.15 State Overview: Totals At A Glance Source: Global Insight * Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. Tourism ConceptTSA 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 Jobs47,85470,079 22,225 Wages $1.38 B $2.04 B $660 M Taxes $860 M $1,327 M $467 M

16. Copyright © 2007 Global Insight, Inc.16 State Overview: Tourism and Under 50Mile Visitors Source: Global Insight * Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. MeasurementFY2006FY2005Definition Tourism (TSA) + Under 50Mile Visitor Spending $5.38 B $5.34 B Spending from all tourism actors  Tourism (TSA) $3.69 B $3.67 B TSA Definition of State Tourism  Under 50Mile Visitors $1.69 B $1.67 B Visitors from less than 50 miles that utilize RI tourism assets Tourism + Under 50Mile Visitors Employment*58,90058,921 Employment required to support core RI tourism activity  Core Tourism Employment*38,95639,201 TSA Definition of Tourism “Industry”

17. Copyright © 2007 Global Insight, Inc.17 Industry Structure: Definitions Source: Global Insight Copyright © 2007 Global Insight, Inc. 17 $5.38 billion $3.69 billion $2.26 billion$1.43 billion $1.71 billion$547 million

18. Copyright © 2007 Global Insight, Inc.18 Total Tourism (TSA) Expenditures RI visitation grew 2.1% in ‘06 Spending per visit declined by 0.7% in ‘06 Leisure travel increased by 4.2% in ’06 Business travel decreased by 6.0% in ‘06 Tourism expenditures tallied $3.69 billion in 2006 Source: Global Insight

19. Copyright © 2007 Global Insight, Inc.19 Visitors to Rhode Island* Total visitors grew 2.1% in 2006 with a leisure visitors growing at twice that rate. * Visitors from GT 50 miles only, provided by DK Shifflet & Associates, Ltd. Business travel results were estimated by GII.

20. Copyright © 2007 Global Insight, Inc.20 Tourism Shows Growth in ‘06 MeasurementFY2005 (billions) FY2006 (billions) 2005-06 growth Tourism (TSA) + Under 50Mile Visitor Expenditures $5.337$5.3850.9% Tourism (TSA) Expenditures $3.668$3.6920.6% Total Economic Impact $2.223$2.2571.5% Core Tourism (direct) $1.677$1.7091.9% Non-Core Tourism $0.546$0.5470.2% Import Leakage $1.445$1.435-0.7% Source: Global Insight

21. Copyright © 2007 Global Insight, Inc.21 MeasurementFY2006FY2005%Perspective Economic Value ($B) Economic Value ($B)  Core Tourism  Total Impact $1.71$2.26 $1.68 $2.22 1.9% 1.5% Solid growth strengthened by leisure travel Wages & Salaries  Core Tourism ($M)  Total Impact ($M) $1,031$1,381 $1,008 $1,357 2.3% 1.8% Average annual salary saw 3.0% and 2.3% growth respectively Employment (‘000) Employment (‘000)  Core Tourism  Total Impact 38.9647.85 39.20 48.03 -0.6% -0.4% Core tourism is 4 th largest industry in RI Taxes –Total Impact ($M) Taxes –Total Impact ($M)$856$865-0.6% If tourism didn’t exist, each household would pay an additional $1,140 in taxes to maintain current tax receipts. Numbers may differ due to rounding 2006 Bottom Line: RI Tourism continues to grow… Source: Global Insight

22. Copyright © 2007 Global Insight, Inc.22 Measurement 20062005 %Perspective RI Domestic Visitation (‘000)7.967.792.1% Leisure visits were very strong RI Tourism (TSA) + Under 50Mile Visitor Spending $5.38 B$5.34 B0.9% Short-haul visitors added $1.69B RI Tourism (TSA) + Under 50Mile Visitor Jobs (‘000) 70.170.2-0.2% This definition ranks tourism as 2 nd largest industry in state RI Tourism (TSA) Jobs (‘000)  Core Tourism  Total Impact 38.96 47.85 39.20 48.03 -0.6% -0.4% Core tourism employment share in RI is much higher than US RI Tourism (TSA) Wages  Core Tourism  Total Impact $1,031 $1,381 $1,008 $1,357 2.3% 1.8% Avg. annual wage increased to over $28,872/year Tourism (TSA) as a % of RI GSP5.5%5.7% Core plus Non-core makes tourism 9 th largest industry in RI RI % of US Tourism  Jobs  Output 0.9% 0.3% 0.9% 0.3% -2.0% -5.0% Nationally, jobs were up 1.2% in tourism 2006 RI Tourism Scorecard Source: Global Insight

23. Copyright © 2007 Global Insight, Inc.23 Total Impact of Tourism In 2006, the total economic impact of travel & tourism (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 50mile visitors. This accounts for 14.2% of total employment in the state. 47,854 jobs – direct and indirect – were created by travel & tourism economic activity. This accounts for 9.7% of total employment in the state Approximately $1.38 billion in wages & salaries were generated by travel & tourism in 2006. Tourism generated $860 million in federal, state, and local government taxes in 2006, a 0.6% decrease from 2005.

24. Copyright © 2007 Global Insight, Inc.24 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 tourism- intensive areas Investment – Construction of hotels, attractions, tourism infrastructure, operating and transportation equipment International – Spending of international visitors within the state Under 50Mile Visitors – Spending by residents or non-residents who have come from under 50 miles. No commuters or local utilization. Not included in TSA definition.

25. Copyright © 2007 Global Insight, Inc.25 Breaking Down Tourism Expenditures – $3.69 Billion 11% of TSA Expenditures in Rhode Island come from outside of visitor spending. Million $ Share Of Total 2006 Growth Investment2487%-2% Visitors3,30389%1% Other1414%0% Total3,692100%1% Source: Global Insight In State total includes residents, investment, government and internal business

26. Copyright © 2007 Global Insight, Inc.26 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 + <50Mile Million $ TSA Million $ 2005-2006 Growth (TSA) Entertainment**1,2137512.3% Accommodation655 2.1% Transportation6706510.6% Food1,5847582.3% Shopping914528- 5.1% Total *$5,037$3,3420.7% * Direct and Indirect Tourism Expenditures (w/o construction & investment) Source: Global Insight ** Entertainment category includes all marina and boating activity TSA + <50Mile Shares

27. Copyright © 2007 Global Insight, Inc.27 Category Distribution of 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, mainly due to a low concentration in Shopping (the worst state-wide category) and a strong concentration in Food (the best state-wide category). 2006 TotalsTSA (Million $) Leisure (Million $) Business (Million $) Entertainment**751581170 Accommodation655493162 Transportation651527125 Food758421337 Shopping52843593 Total *$3,342$2,456$887 * Direct and Indirect Tourism Expenditures (w/o construction & investment) Source: Global Insight ** Entertainment category includes all marina and boating activity

28. Copyright © 2007 Global Insight, Inc.28 Core 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. This ranks core tourism as the 10th largest private industry in RI in terms of Gross State Product.

29. Copyright © 2007 Global Insight, Inc.29 Core Tourism – Gross State Product Core Tourism contributed $1.71 billion in economic value in 2006. Tourism ranked as the 10 th largest private industry in Rhode Island. RankIndustryMillions $ ’05-’06 Growth % of State 1Real Estate and Rental and Leasing6,5164.0%15.8% 2Finance and Insurance6,0517.8%14.7% 3Health Care and Social Assistance4,3135.1%10.5% 4Durables Manufacturing3,1963.5%7.8% 5Retail Trade2,8994.2%7.0% 6Wholesale Trade2,4006.2%5.8% 7Professional, Scientific, and Tech. Services2,3946.1%5.8% 8Construction2,2685.3%5.5% 9Information1,8545.6%4.5% 10Accommodation and Food Services1,3176.1%3.2% 11Non-Durables Manufacturing1,2421.9%3.0% 12Administrative and Waste Services1,1366.6%2.8% 13Other Services1,0285.7%2.5% 14Educational Services1,0116.0%2.5% 15Management of Companies and Enterprises9577.7%2.3% Other Industries2,6084.7%6.3% Total41,1895.3%100.0% Government4,8794.3% Travel & Tourism1,7091.9%4.1% Core Travel & Tourism would have 4.1% of Rhode Island’s GSP Source: Bureau of Economic Analysis and Global Insight

30. Copyright © 2007 Global Insight, Inc.30 Core 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 RankIndustry$ Value ’05-’06 % of (Millions) Growth Total 1Other amusement- gambling- and recreation industries4253.7%24.8% 2Food services and drinking places3712.3%21.7% 3Real estate2580.0%15.1% 4Hotels and motels- including casino hotels1895.0%11.1% 5Automotive equipment rental and leasing1490.0%8.7% 6Travel arrangement and reservation services1071.9%6.2% 7Food and beverage stores39-5.1%2.3% 8Clothing and clothing accessories stores30-5.1%1.7% 9Air transportation270.3%1.6% 10Spectator sports250.6%1.5% 11Performing arts companies181.2%1.0% 12Miscellaneous store retailers15-5.1%0.9% 13Transit and ground passenger transportation1315.5%0.8% 14Gasoline stations13-2.7%0.8% 15Scenic and sightseeing transportation and support1211.6%0.7% Other Industries20-3.3%1.2% Total1,7091.9%100.0% Source: Global Insight

31. Copyright © 2007 Global Insight, Inc.31 Core Tourism – Employment Core Tourism is the 4 th largest private sector employer in Rhode Island with 38,956 direct full- time 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.

32. Copyright © 2007 Global Insight, Inc.32 Core Tourism Impact – Employment Travel & tourism is RI’s 4 th largest private sector employer. RankIndustry Employment (Thousands) 2005-2006 Growth % of State LQ Index 1Health Care and Social Assistance74.051.5%15.0%1.4 2Retail Trade52.43-0.1%10.6%0.9 3Accommodation and Food Services43.060.5%8.7%1.1 4Professional, Scientific, and Tech. Services35.54-1.9%7.2%1.3 5Administrative and Waste Services29.426.4%6.0%1.0 6Wholesale Trade26.252.3%5.3%1.2 7Finance and Insurance23.075.1%4.7%1.0 8Manufacturing, Nondurables22.52-3.0%4.6%1.2 9Construction22.30-0.1%4.5%0.8 10Other Services21.342.1%4.3%1.1 11Transportation and Warehousing17.82-5.8%3.6%1.1 12Manufacturing, Durables16.36-2.0%3.3%0.5 13Information10.38-2.8%2.1%0.9 14Educational Services9.64-0.9%2.0%0.9 15Management of Companies and Enterprises9.104.3%1.8%1.4 Other Industries15.5-1.4%3.1%0.5 State & Local Government64.8-0.3%13.1%0.9 Total Nonfarm493.60.4%100.%1.0 Core Tourism represented 38,956 jobs in 2006. Travel & Tourism39.0- 0.6% 7.9%1.8 Tourism’s contribution to RI employment is 1.8 times that of the US in total Source: Bureau of Labor Statistics and Global Insight

33. Copyright © 2007 Global Insight, Inc.33 Core Tourism Impact and Employment Removing Tourism components from the major state categories of employment and GSP is enough to move TSA employment up from 4 th to 3 rd, as the impact on Accomodation and Food Services is significant, moving that category to 6 th overall.

34. Copyright © 2007 Global Insight, Inc.34 Total Rhode Island Tourism Employment Down 0.4% in 2006 Core Tourism Total Impact Source: Global Insight Core Tourism jobs comprise 81% of total tourism-generated employment.

35. Copyright © 2007 Global Insight, Inc.35 Non-Core 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 RankIndustry$ Value ’05-’06 % of (Millions) GrowthTotal 1Real estate730.7%9.9% 2Wholesale trade210.0%2.8% 3Nondepository credit intermediation and related firms191.8%2.6% 4Power generation and supply171.2%2.3% 5Monetary authorities and depository credit intermediaries150.8%2.0% 6Telecommunications130.3%1.8% 7Legal services121.7%1.6% 8Maintenance and repair of nonresidential buildings110.4%1.5% 9Architectural and engineering services100.8%1.3% 10Management of companies and enterprises101.9%1.3% 11Food services and drinking places81.8%1.1% 12Other State and local government enterprises81.6%1.1% 13Postal service71.0% 14Employment services61.1%0.9% 15Accounting and bookkeeping services62.2%0.8% Other Industries1541.1%20.9% Investment3490.2%47.2% Total7390.6%100.0% Source: Global Insight

36. Copyright © 2007 Global Insight, Inc.36 Non-Core Tourism – Construction Benefits The Construction sector is also a significant beneficiary of tourism. Source: FW Dodge Data is “Value of Construction Contracts”, measuring the value of construction at the time when work begins, encompassing total value for entire projects which start or break ground in a given year, excluding ancillary costs such as land acquisition.

37. Copyright © 2007 Global Insight, Inc.37 Accommodation – Seasonal 2 nd Home Seasonal 2 nd homes are an important part of accommodation expenditure, especially for Washington County. County Rental Income (M$) # of Seasonal 2nd Homes BRISTOL$3.9280 KENT$11.6828 NEWPORT$91.82,551 PROVIDENCE$32.81,172 WASHINGTON$228.48,157 Total$368.612,988 Source: Global Insight and US Bureau of Census

38. Copyright © 2007 Global Insight, Inc.38 Tourism Generated $861M 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 revenue. While tourism is responsible for 4.2% of RI GSP, it contributed 10.8% 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.

39. Copyright © 2007 Global Insight, Inc.39 State and Local Government Revenue Tax Revenues from Tourism2006 (Million) ’05-’06 Growth Federal Government Corporate Profits Tax85.5-1.2% Personal Income122.8-0.5% Social Security & Other Taxes189.7-0.4% Federal Total398.1-0.6% State Government Corporate Profits Tax7.6-1.0% Personal Income39.0-0.5% Sales98.3-1.4% Licenses & Fees10.2-0.6% Gaming Tax103.90.7% Other Taxes45.4-1.0% Occupancy Tax9.63.9% State Total314.0-0.4% Local Government Local Occupancy Taxes5.73.9% Property Taxes142.0-1.4% Local Total 147.7-1.2% Total859.8-0.6%

40. Copyright © 2007 Global Insight, Inc.40 Gross State Product: $3.20 billion 7.8% of GSP Total Employment: 70,079 jobs 14.2% of Employment Gross State Product: $2.26 billion 5.5 % of GSP Total Employment: 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 4th largest private sector employer How Important? Total Tourism- related spending of $5.38 billion

41. Copyright © 2007 Global Insight, Inc.41 Talking Points: What Do Visitors Mean to RI? Each RI visitor/traveler generates about $464 in expenditures, $53 of which goes to RI businesses that do not directly “touch” that visitor Each RI visitor/traveler generates about $464 in expenditures, $53 of which goes to RI businesses that do not directly “touch” that visitor Every 166 visitors creates a new RI job Every 166 visitors creates a new RI job Each visitor creates about $108 in tax receipts, $58 of which goes to state & local authorities Each visitor creates about $108 in tax receipts, $58 of which goes to state & local authorities It takes only 239 visitors to pay for one Rhode Island public school student for one year It takes only 239 visitors to pay for one Rhode Island public school student for one year Each RI visitor generates $174 in wages paid to RI workers employed across an array of industries Each RI visitor generates $174 in wages paid to RI workers employed across an array of industries Each visitor adds about $284 to RI Gross State Product Each visitor adds about $284 to RI Gross State Product Based on TSA definition of “visitor”.

42. Copyright © 2007 Global Insight, Inc.42 Talking Points: What Does the Entire Industry Mean to RI? Each RI visitor/traveler generates about $308 in expenditures, $34 of which goes to RI businesses that do not directly “touch” that visitor Each RI visitor/traveler generates about $308 in expenditures, $34 of which goes to RI businesses that do not directly “touch” that visitor Every 249 visitors creates a new RI job Every 249 visitors creates a new RI job Each visitor creates about $76 in tax receipts, $43 of which goes to state & local authorities Each visitor creates about $76 in tax receipts, $43 of which goes to state & local authorities It takes only 360 visitors to pay for one Rhode Island public school student for one year It takes only 360 visitors to pay for one Rhode Island public school student for one year Each RI visitor generates $117 in wages paid to RI workers employed across an array of industries Each RI visitor generates $117 in wages paid to RI workers employed across an array of industries Each visitor adds about $184 to RI Gross State Product Each visitor adds about $184 to RI Gross State Product Based on TSA + Under 50Mile definition of “visitor”.

43. Copyright © 2007 Global Insight, Inc.43 2006 Rhode Island Tourism Regional Analysis

44. Copyright © 2007 Global Insight, Inc.44 Regional Distribution of Tourism  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 Rhode Island is divided into eight regions in the analysis:  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

45. Copyright © 2007 Global Insight, Inc.45 Regional Distribution of Tourism To understand the county breakdown, Global Insight approached industry members and state agencies to develop local level analysis. This research included analysis of:  Seasonal second homes  Seasonality of employment – compared across counties/regions  Existing tourism studies

46. Copyright © 2007 Global Insight, Inc.46 Regional Distribution of TSA + Under 50Mile Expenditures Providence is clearly the leading tourism region. Under the broader definition, Blackstone Valley is the 2 nd largest region Less of a bump from additional Food $ than others Full accounting of gaming revenues move region to #2 Entertainment and Retail Drive High Spending

47. Copyright © 2007 Global Insight, Inc.47 Regional Distribution of TSA Tourism Expenditures Providence remains the leading tourism region. TSA definitions limit gaming revenue accounting for Newport and Blackstone Valley Low Retail and Food Relative to Others Transportation (Airport) is major contributor Entertainment and Retail Drive High Spending Seasonal second homes dominate

48. Copyright © 2007 Global Insight, Inc.48 Regional Growth in TSA + Under 50Mile Expenditure

49. Copyright © 2007 Global Insight, Inc.49 Regional Growth in TSA Tourism Expenditure

50. Copyright © 2007 Global Insight, Inc.50 Regional TSA + Under 50Mile Expenditures Regional Share of State Expenditures by Category ($M) AccomodationsEntertainmentFoodRetailTransportationTotal Balance of State 13.10 45.66 214.57 76.95 70.94 421.22 Blackstone Valley 16.37 396.82 245.77 57.71 65.13 781.80 Block Island 86.49 59.56 22.18 50.57 17.81 236.62 East Bay 6.55 39.07 114.51 47.34 40.76 248.23 Newport 194.31 200.31 218.62 87.71 34.85 735.81 Providence 108.03 319.74 326.12 355.89 212.69 1,322.47 South County 172.79 88.45 253.46 155.32 38.87 708.89 Warwick 57.14 63.79 188.86 82.77 188.49 581.05 Total 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.

51. Copyright © 2007 Global Insight, Inc.51 Regional TSA Tourism Expenditures Regional Share of State Expenditures by Category ($M) AccomodationsEntertainmentFoodRetailTransportationTotal Balance of State 13.10 31.57 96.06 42.25 71.63 254.60 Blackstone Valley 16.37 169.62 109.92 31.69 65.77 393.36 Block Island 86.49 52.60 21.98 29.57 14.33 204.97 East Bay 6.55 35.99 56.86 32.74 36.46 168.60 Newport 194.31 124.49 105.15 48.18 26.15 498.28 Providence 108.03 221.06 170.57 195.40 214.75 909.80 South County 172.79 78.10 111.44 90.83 31.25 484.42 Warwick 57.14 37.14 86.14 57.46 190.84 428.72 Total 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 50Mile.

52. Copyright © 2007 Global Insight, Inc.52 Regional Share of Statewide TSA + Under 50Mile Expenditures Regional Share of State Expenditures by Category AccommodationEntertainmentFoodShoppingTransportationTotal Providence16.5%26.4%20.6%38.9%31.8%26.3% Blackstone Valley2.5%32.7%15.5%6.3%9.7%15.5% Newport29.7%16.5%13.8%9.6%5.2%14.6% South County26.4%7.3%16.0%17.0%5.8%14.1% Warwick8.7%5.3%11.9%9.1%28.2%11.5% Balance of State2.0%3.8%13.5%8.4%10.6%8.4% East Bay1.0%3.2%7.2%5.2%6.1%4.9% Block Island13.2%4.9%1.4%5.5%2.7%4.7% Total100.0% Entertainment data includes gaming, spectator sports boating and marina activity and other categories.

53. Copyright © 2007 Global Insight, Inc.53 Expenditure Category Share of Regional Tourism Spending AccommodationEntertainmentFoodShoppingTransportationTotal Providence8.2%24.2%24.7%26.9%16.1%100.0% Blackstone Valley2.1%50.8%31.4%7.4%8.3%100.0% Newport26.4%27.2%29.7%11.9%4.7%100.0% South County24.4%12.5%35.8%21.9%5.5%100.0% Warwick9.8%11.0%32.5%14.2%32.4%100.0% Balance of State3.1%10.8%50.9%18.3%16.8%100.0% East Bay2.6%15.7%46.1%19.1%16.4%100.0% Block Island36.6%25.2%9.4%21.4%7.5%100.0% Total13.0%24.1%31.5%18.2%13.3%100.0% Regional Share of Statewide TSA + Under 50Mile Expenditures Warwick’s Transportation share is very high as TF Green Airport revenue is counted here.

54. Copyright © 2007 Global Insight, Inc.54 Regional Share of Statewide TSA Tourism Regional Share of State Expenditures by Category AccommodationEntertainmentFoodShoppingTransportationTotal Providence16.5%29.5%22.5%37.0%33.0%27.2% Newport29.7%16.6%13.9%9.1%4.0%14.9% South County26.4%10.4%14.7%17.2%4.8%14.5% Warwick8.7%4.9%11.4%10.9%29.3%12.8% Blackstone Valley2.5%22.6%14.5%6.0%10.1%11.8% Balance of State2.0%4.2%12.7%8.0%11.0%7.6% Block Island13.2%7.0%2.9%5.6%2.2%6.1% East Bay1.0%4.8%7.5%6.2%5.6%5.0% Total100% 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 50Mile.

55. Copyright © 2007 Global Insight, Inc.55 Regional Share of Statewide TSA Tourism Expenditure Category Share of Regional Tourism Spending AccommodationEntertainmentFoodShoppingTransportationTotal Providence11.9%24.3%18.7%21.5%23.6%100.0% Newport39.0%25.0%21.1%9.7%5.2%100.0% South County35.7%16.1%23.0%18.8%6.5%100.0% Warwick13.3%8.7%20.1%13.4%44.5%100.0% Blackstone Valley4.2%43.1%27.9%8.1%16.7%100.0% Balance of State5.1%12.4%37.7%16.6%28.1%100.0% Block Island42.2%25.7%10.7%14.4%7.0%100.0% East Bay3.9%21.3%33.7%19.4%21.6%100.0% Total19.6%22.5%22.7%15.8%19.5%100.0% Warwick’s Transportation share is very high as TF Green Airport revenue is counted here.

56. Copyright © 2007 Global Insight, Inc.56 TSA + Under 50Mile Growth Rates by Region for 2006 Regional Growth Rates by Category 2006 vs 2005 AccomodationEntertainmentFoodRetailTransportationGrand Total Balance of State7.9%7.4%12.9%-0.9%5.8%8.2% Blackstone Valley0.7%2.3%4.6%-5.7%0.7%2.2% Block Island7.7%3.4%0.1%-4.6%1.8%2.6% East Bay3.9%1.8%0.5%-6.1%0.3%-0.5% Newport1.8%0.9%2.3%-4.6%3.4%1.0% Providence0.8%1.5%2.9%-6.4%0.0%-0.7% South County0.9%1.1%2.0%-6.7%-0.4%-0.5% Warwick0.3%0.8%2.1%-7.0%-0.7%-0.5% Grand Total2.1%1.9%3.8%-5.7%0.7%0.9% Retail is only sector where all regions saw a drop in 2006. Food saw the strongest and most evenly distributed category growth.

57. Copyright © 2007 Global Insight, Inc.57 TSA Tourism Growth Rates by Region for 2006 Regional Growth Rates by Category 2006 vs 2005 AccomodationEntertainmentFoodRetailTransportationGrand Total Balance of State7.9%8.0%7.2%-0.1%5.7%5.6% Blackstone Valley0.7%2.8%4.1%-4.9%0.6%2.0% Block Island7.7%3.9%-0.4%-3.9%1.8%3.6% East Bay3.9%2.4%0.0%-5.3%0.2%-0.4% Newport1.8%0.7%-0.4%-4.7%3.2%0.5% Providence0.8%2.0%2.4%-5.6%-0.1%-0.3% South County0.9%1.6%1.5%-6.0%-0.5%-0.3% Warwick0.3%1.4%1.6%-6.2%-0.7% Total2.1%2.3% -5.1%0.6%0.7% Retail is only sector where all regions saw a drop in 2006. Entertainment saw the strongest and most evenly distributed category growth.

58. Copyright © 2007 Global Insight, Inc.58 Regional Share of Statewide TSA + Under 50Mile Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Balance of State8.4%7.9%1,374.9 Blackstone Valley15.5%18.0%3,148.3 Block Island4.7%3.4%596.9 East Bay4.9%5.0%874.5 Newport14.6%16.8%2,932.0 Providence26.3%26.7%4,663.8 South County14.1%13.0%2,263.7 Warwick11.5%9.2%1,607.2 Total100.0% 17,461.4 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

59. Copyright © 2007 Global Insight, Inc.59 Regional Share of Statewide TSA Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Balance of State7.6%7.9%627.9 Blackstone Valley11.8%12.8%1,014.7 Block Island6.1%5.5%437.5 East Bay5.0%6.4%511.1 Newport14.9%15.4%1,224.8 Providence27.2%29.4%2,337.7 South County14.5%13.3%1,060.1 Warwick12.8%9.3%742.0 Total100.0% 7,955.8 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

60. Copyright © 2007 Global Insight, Inc.60 Regional Share of Statewide Core TSA + Under 50Mile Employment Regional Share of State Tourism Employment Share of State Expenditures Share of Total Employment Total Employment Balance of State8.4%9.8%5,780 Blackstone Valley15.5%10.7%6,322 Block Island4.7%3.3%1,947 East Bay4.9%5.9%3,458 Newport14.6%12.4%7,309 Providence26.3%32.4%19,111 South County14.1%8.8%5,160 Warwick11.5%16.7%9,813 Total100.0% 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 and South County, or transportation for Warwick

61. Copyright © 2007 Global Insight, Inc.61 Regional Share of Statewide Tourism Employment Regional Share of State Tourism Employment Share of State Expenditures Share of Total Employment Total Employment Balance of State7.6%9.3%3,630 Blackstone Valley11.8%10.1%3,930 Block Island6.1%3.5%1,367 East Bay5.0%6.3%2,441 Newport14.9%12.3%4,782 Providence27.2%33.5%13,038 South County14.5%8.2%3,208 Warwick12.8%16.8%6,559 Total100.0% 38,956 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations in Block Island and South County or high transportation revenue in Warwick

62. Copyright © 2007 Global Insight, Inc.62 Accommodation – Seasonal 2 nd Home Seasonal 2 nd homes are an important part of accommodation expenditure, especially for those regions part of Washington County. County Rental Income (mn$) # of Seasonal 2nd Homes BRISTOL$3.9280 KENT$11.6828 NEWPORT$91.82,551 PROVIDENCE$32.81,172 WASHINGTON$228.48,157 Total$368.612,988 Source: Global Insight and US Bureau of Census

63. Copyright © 2007 Global Insight, Inc.63 Impact of Seasonal Homes on Accomodations Expenditures Accomodations Expenditures Total Accomodations Expenditures ($M) Accomodations Without Seasonal Homes ($M) Difference ($M) Balance of State13.109.813.29 Blackstone Valley16.3712.264.11 Block Island86.498.9277.57 East Bay6.554.771.77 Newport194.31102.4891.84 Providence108.0380.9227.11 South County172.7917.82154.97 Warwick57.1449.247.90 Total654.78286.22368.56

64. Copyright © 2007 Global Insight, Inc.64 Regional TSA + Under 50Mile Accomodation and State Expenditure Shares

65. Copyright © 2007 Global Insight, Inc.65 Regional TSA Tourism Accomodation and State Expenditure Shares

66. Copyright © 2007 Global Insight, Inc.66 Regional TSA + Under 50Mile Entertainment and State Expenditure Shares

67. Copyright © 2007 Global Insight, Inc.67 Regional TSA Tourism Entertainment and State Expenditure Shares

68. Copyright © 2007 Global Insight, Inc.68 Regional TSA + Under 50Mile Transportation and State Expenditure Shares

69. Copyright © 2007 Global Insight, Inc.69 Regional TSA Tourism Transportation and State Expenditure Shares

70. Copyright © 2007 Global Insight, Inc.70 Regional TSA + Under 50Mile Food and State Expenditure Shares

71. Copyright © 2007 Global Insight, Inc.71 Regional TSA Tourism Food and State Expenditure Shares

72. Copyright © 2007 Global Insight, Inc.72 Regional TSA + Under 50Mile Shopping and State Expenditure Shares

73. Copyright © 2007 Global Insight, Inc.73 Regional TSA Tourism Shopping and State Expenditure Shares

74. Copyright © 2007 Global Insight, Inc.74 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$16,369$396,818$245,766$57,712$65,134$781,79815.5% 2005$16,262$388,077$235,046$61,185$64,661$765,23115.3% 2004$16,338$363,146$225,829$66,573$65,952$737,83814.8% Blackstone Valley

75. Copyright © 2007 Global Insight, Inc.75 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$16,369$169,619$109,923$31,686$65,765$393,36311.8% 2005$16,262$165,026$105,632$33,322$65,343$385,58511.6% 2004$16,338$154,447$101,347$39,706$65,846$377,68311.2% Blackstone Valley

76. Copyright © 2007 Global Insight, Inc.76 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 20062.5%32.7%15.5%6.3%9.7%15.5% 20052.5%32.6%15.4%6.3%9.7%15.3% 20042.5%32.4%15.3%6.3%9.8%14.8% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Blackstone Valley

77. Copyright © 2007 Global Insight, Inc.77 Regional Share of Statewide Tourism (TSA) Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 20062.5%22.6%14.5%6.0%10.1%11.8% 20052.5%22.5%14.3%6.0%10.1%11.6% 20042.5%22.4%14.2%6.0%10.1%11.2% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Blackstone Valley

78. Copyright © 2007 Global Insight, Inc.78 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Blackstone Valley15.5%18.0%3,148.3 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

79. Copyright © 2007 Global Insight, Inc.79 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Blackstone Valley11.8%12.8%1,014.7 State100.0% 7,995.9

80. Copyright © 2007 Global Insight, Inc.80 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$86,493$59,563$22,179$50,568$17,814$236,6174.7% 2005$80,302$57,612$22,152$53,023$17,491$230,5794.6% 2004$80,679$53,911$17,885$57,692$17,840$228,0064.6% Block Island

81. Copyright © 2007 Global Insight, Inc.81 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$86,493$52,597$21,984$29,573$14,325$204,9716.1% 2005$80,302$50,611$22,062$30,759$14,077$197,8106.0% 2004$80,679$47,366$21,167$36,652$14,185$200,0495.9% Block Island

82. Copyright © 2007 Global Insight, Inc.82 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 200613.2%4.9%1.4%5.5%2.7%4.7% 200512.5%4.8%1.5%5.5%2.6%4.6% 200412.4%4.8%1.2%5.5%2.7%4.6% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Block Island

83. Copyright © 2007 Global Insight, Inc.83 Regional Share of Statewide Tourism (TSA) Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 200613.2%7.0%2.9%5.6%2.2%6.1% 200512.5%6.9%3.0%5.5%2.2%6.0% 200412.4%6.9%3.0%5.5%2.2%5.9% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Block Island

84. Copyright © 2007 Global Insight, Inc.84 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Block Island4.7%3.4%596.9 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

85. Copyright © 2007 Global Insight, Inc.85 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Block Island6.1%5.5%437.5 State100.0% 7,995.9

86. Copyright © 2007 Global Insight, Inc.86 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$6,548$39,074$114,507$47,340$40,759$248,2284.9% 2005$6,299$38,366$113,913$50,390$40,625$249,5935.0% 2004$6,328$35,902$111,990$54,827$41,436$250,4835.0% East Bay

87. Copyright © 2007 Global Insight, Inc.87 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$6,548$35,990$56,857$32,742$36,464$168,6005.0% 2005$6,299$35,156$56,833$34,571$36,375$169,2335.1% 2004$6,328$32,902$54,527$41,194$36,655$171,6065.1% East Bay

88. Copyright © 2007 Global Insight, Inc.88 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 20061.0%3.2%7.2%5.2%6.1%4.9% 20051.0%3.2%7.5%5.2%6.1%5.0% 20041.0%3.2%7.6%5.2%6.2%5.0% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. East Bay

89. Copyright © 2007 Global Insight, Inc.89 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 20061.0%4.8%7.5%6.2%5.6%5.0% 20051.0%4.8%7.7%6.2%5.6%5.1% 20041.0%4.8%7.6%6.2%5.6%5.1% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. East Bay

90. Copyright © 2007 Global Insight, Inc.90 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) East Bay4.9%5.0%874.5 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

91. Copyright © 2007 Global Insight, Inc.91 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) East Bay5.0%6.4%511.1 State100.0% 7,995.9

92. Copyright © 2007 Global Insight, Inc.92 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$194,314$200,312$218,622$87,710$34,850$735,80914.6% 2005$190,806$198,608$213,718$91,987$33,704$728,82314.6% 2004$196,664$193,836$217,007$96,450$26,005$729,96114.7% Newport

93. Copyright © 2007 Global Insight, Inc.93 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$194,314$124,488$105,152$48,179$26,148$498,28114.9% 2005$190,806$123,609$105,573$50,566$25,334$495,88914.9% 2004$196,664$118,502$104,946$60,863$25,321$506,29615.0% Newport

94. Copyright © 2007 Global Insight, Inc.94 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 200629.7%16.5%13.8%9.6%5.2%14.6% 200529.8%16.7%14.0%9.5%5.1%14.6% 200430.3%17.3%14.7%9.2%3.9%14.7% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Newport

95. Copyright © 2007 Global Insight, Inc.95 Regional Share of Statewide Tourism (TSA) Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 200629.7%16.6%13.9%9.1%4.0%14.9% 200529.8%16.8%14.2%9.1%3.9%14.9% 200430.3%17.2%14.7%9.2%3.9%15.0% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Newport

96. Copyright © 2007 Global Insight, Inc.96 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Newport14.6%16.8%2,932.0 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

97. Copyright © 2007 Global Insight, Inc.97 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Newport14.9%15.4%1,224.8 State100.0% 7,995.9

98. Copyright © 2007 Global Insight, Inc.98 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportationGrand Total Share of State 2006$108,034$319,743$326,120$355,889$212,687$1,322,474 27.2%27.2% 26.3% 2005$107,151$315,015$317,067$380,103$212,704$1,332,040 27.6%27.6% 26.7% 2004$107,654$294,778$309,737$413,571$216,950$1,342,689 27.8%27.8% 27.0% Providence

99. Copyright © 2007 Global Insight, Inc.99 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportationGrand Total Share of State 2006$108,034$221,056$170,571$195,395$214,746$909,80227.2% 2005$107,151$216,662$166,630$207,007$214,947$912,39627.5% 2004$107,654$202,772$159,869$246,669$216,601$933,56527.7% Providence

100. Copyright © 2007 Global Insight, Inc.100 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 200616.5%26.4%20.6%38.9%31.8%26.3% 200516.7%26.5%20.8%39.2%32.0%26.7% 200416.6%26.3%21.0%39.3%32.4%27.0% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Providence

101. Copyright © 2007 Global Insight, Inc.101 Regional Share of Statewide Tourism (TSA) Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 200616.5%29.5%22.5%37.0%33.0%27.2% 200516.7%29.5%22.5%37.2%33.2%27.5% 200416.6%29.4%22.4%37.2%33.2%27.7% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Providence

102. Copyright © 2007 Global Insight, Inc.102 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Providence26.3%26.7%4,663.8 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

103. Copyright © 2007 Global Insight, Inc.103 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Providence27.2%29.4%2,337.7 State100.0% 7,995.9

104. Copyright © 2007 Global Insight, Inc.104 Providence Convention Data Data covers RI Convention Center  Non-business data removed from RICC totals  Primary exclusion are the Public Shows FY’07 Attendees drop due to a 28,000 decrease (52%) in Trade Shows attendance.  Revenue from Trade Shows was down 26%  Revenue from Meetings was up 39% RevenueAttendees FY ‘07$5,756,18590,602 FY ‘06$5,401,410120,066 FY ‘05$5,303,260119,093

105. Copyright © 2007 Global Insight, Inc.105 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$172,789$88,450$253,461$155,319$38,867$708,88714.1% 2005$171,252$87,481$248,514$166,531$39,021$712,79914.3% 2004$172,056$81,861$238,162$181,194$39,800$713,07414.3% South County

106. Copyright © 2007 Global Insight, Inc.106 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$172,789$78,105$111,441$90,833$31,255$484,42214.5% 2005$171,252$76,850$109,789$96,605$31,405$485,90114.6% 2004$172,056$71,923$105,334$115,114$31,647$496,07414.7% South County

107. Copyright © 2007 Global Insight, Inc.107 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 200626.4%7.3%16.0%17.0%5.8%14.1% 200526.7%7.3%16.3%17.2%5.9%14.3% 200426.5%7.3%16.1%17.2%5.9%14.3% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. South County

108. Copyright © 2007 Global Insight, Inc.108 Regional Share of Statewide Tourism (TSA) Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 200626.4%10.4%14.7%17.2%4.8%14.5% 200526.7%10.5%14.8%17.4%4.9%14.6% 200426.5%10.4%14.7%17.3%4.9%14.7% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. South County

109. Copyright © 2007 Global Insight, Inc.109 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) South County14.1%13.0%2,263.7 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

110. Copyright © 2007 Global Insight, Inc.110 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) South County14.5%13.3%1,060.1 State100.0% 7,995.9

111. Copyright © 2007 Global Insight, Inc.111 Regional Distribution of Tourism TSA + Under 50mile Visitors $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$57,138$63,788$188,859$82,771$188,494$581,05011.5% 2005$56,969$63,253$185,036$88,977$189,735$583,97011.7% 2004$57,236$59,190$181,975$96,811$193,522$588,73311.8% Warwick

112. Copyright © 2007 Global Insight, Inc.112 Regional Distribution of Tourism (TSA) $(000)AccomodationsEntertainmentFoodRetailTransportation Grand Total Share of State 2006$57,138$37,143$86,138$57,462$190,839$428,71912.8% 2005$56,969$36,641$84,799$61,272$192,258$431,93913.0% 2004$57,236$34,292$81,358$73,012$193,738$439,63613.0% Warwick

113. Copyright © 2007 Global Insight, Inc.113 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Expenditures by Category AccomodationsEntertainmentFoodRetailTransportationTotal 20068.7%5.3%11.9%9.1%28.2%11.5% 20058.9%5.3%12.1%9.2%28.5%11.7% 20048.8%5.3%12.3%9.2%28.9%11.8% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Warwick

114. Copyright © 2007 Global Insight, Inc.114 Regional Share of Statewide Tourism (TSA) Expenditure Category Share of Regional Tourism Spending AccomodationsEntertainmentFoodRetailTransportationTotal 20068.7%4.9%11.4%10.9%29.3%12.8% 20058.9%5.0%11.4%11.0%29.7%13.0% 20048.8%5.0%11.4%11.0%29.7%13.0% State100.0% Accomodation data includes seasonal second home rentals, which creates significant differences in share from state room tax data. Warwick

115. Copyright © 2007 Global Insight, Inc.115 Regional Share of Statewide Tourism TSA + Under 50mile Visitors Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Warwick11.5%9.2%1,607.2 State100.0% 17,461.4 Biggest variances from spending shares are in regions where there is a dominant category, such as accomodations or high transportation revenue.

116. Copyright © 2007 Global Insight, Inc.116 Regional Share of Statewide Tourism Visitation Regional Share of State Visitors Share of ExpendituresShare of Visitation Total Visitors (000) Warwick12.8%9.3%742.0 State100.0% 7,995.9

117. Thank You! Ken McGill Executive Managing Director, Travel & Tourism Ken.mcgill@globalinsight.com