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

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

3. Copyright © 2007 Global Insight, Inc.3 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 4Cs: Credibility, Comprehensiveness, Comparability, Consistency 3

4. Copyright © 2007 Global Insight, Inc.4 Benefits of a TSA 4 Which are our best economic development targets? Which are our best economic development targets? 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 the value of visitors to Rhode Island. Copyright © 2007 Global Insight, Inc

5. Copyright © 2007 Global Insight, Inc.5 TSA: Key Terms and Definitions Visitor:Visitor: Over 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: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: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

6. Copyright © 2007 Global Insight, Inc.6 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

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

8. Copyright © 2007 Global Insight, Inc.8 Rhode Island Tourism Economic Impact - Definitions TSA:TSA: Results (spending, economic impact, jobs,…) conform strictly to the TSA definition (e.g. 50mile+overnight visitor definition). TSA + Under 50 Mile: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 Impact: Total economic contribution of tourism to Rhode Island. Sum of core and non-core tourism. Core Impact:Core Impact: Economic contribution from industries directly providing goods and services to the visitor. Non-core Impact:Non-core Impact: Economic contribution from industries providing goods and services to core tourism providers. Also includes tourism investment. Approach Impact Sources

9. Copyright © 2007 Global Insight, Inc.9 Rhode Island Tourism: Did You Know? Total tourism expenditures* reached $5.4B in 2006 Total tourism expenditures* reached $5.4B in 2006 In ’06, visitation grew by 2% and expenditures by 1% In ’06, visitation grew by 2% and expenditures by 1% Avg. spend-per-visitor grew to $308 in ‘06 Avg. spend-per-visitor grew to $308 in ‘06 1 of every 10 Rhode Islanders owes his/her job to tourism 1 of every 10 Rhode Islanders owes his/her job to tourism Rhode Island keeps 61¢ of every dollar spent by visitors Rhode Island keeps 61¢ of every dollar spent by visitors Tourism is responsible for 5% of total RI Gross State Product Tourism is responsible for 5% of total RI Gross State Product Tourism generated 11% of all state & local tax revenue in ’06 Tourism generated 11% of all state & local tax revenue in ’06 Tourism’s tax contribution reached $1,140 per RI Household Tourism’s tax contribution reached $1,140 per RI Household Tourism is the 4 th largest industry in RI (based upon jobs) Tourism is the 4 th largest industry in RI (based upon jobs) Avg. Annual Tourism Wages reached $28,900 in ’06 Avg. Annual Tourism Wages reached $28,900 in ’06 Every 249 visitor/travelers creates a new job in RI Every 249 visitor/travelers creates a new job in RI Appx. 40% of RI restaurant revenue can be attributed to visitors Appx. 40% of RI restaurant revenue can be attributed to visitors Total tourism expenditures* reached $5.4B in 2006 Total tourism expenditures* reached $5.4B in 2006 In ’06, visitation grew by 2% and expenditures by 1% In ’06, visitation grew by 2% and expenditures by 1% Avg. spend-per-visitor grew to $308 in ‘06 Avg. spend-per-visitor grew to $308 in ‘06 1 of every 10 Rhode Islanders owes his/her job to tourism 1 of every 10 Rhode Islanders owes his/her job to tourism Rhode Island keeps 61¢ of every dollar spent by visitors Rhode Island keeps 61¢ of every dollar spent by visitors Tourism is responsible for 5% of total RI Gross State Product Tourism is responsible for 5% of total RI Gross State Product Tourism generated 11% of all state & local tax revenue in ’06 Tourism generated 11% of all state & local tax revenue in ’06 Tourism’s tax contribution reached $1,140 per RI Household Tourism’s tax contribution reached $1,140 per RI Household Tourism is the 4 th largest industry in RI (based upon jobs) Tourism is the 4 th largest industry in RI (based upon jobs) Avg. Annual Tourism Wages reached $28,900 in ’06 Avg. Annual Tourism Wages reached $28,900 in ’06 Every 249 visitor/travelers creates a new job in RI Every 249 visitor/travelers creates a new job in RI Appx. 40% of RI restaurant revenue can be attributed to visitors Appx. 40% of RI restaurant revenue can be attributed to visitors

10. Copyright © 2007 Global Insight, Inc.10 State Overview: 2006 Totals At A Glance 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. 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 Jobs**47,85470,079 22,225 Wages $1.38 B $2.04 B $660 M Taxes $860 M $1,327 M $467 M

11. Copyright © 2007 Global Insight, Inc.11 State Overview: Tourism and Under 50Mile Trips 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. MeasurementFY2006FY2005Definition Tourism (TSA*) + Under 50Mile Visitor Spending $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 50Mile Visitors $1.69 B $1.67 B Trips from less than 50 miles that utilize RI tourism assets Tourism + Under 50Mile Visitors Core Employment**58,90058,921 Core TSA + Under 50 mile tourism employment is 2 nd largest industry in Rhode Island  Core Tourism (TSA) Employment**38,95639,201 TSA Definition of Tourism “Industry”

12. Copyright © 2007 Global Insight, Inc.12 Industry Structure: Definitions Source: Global Insight Copyright © 2007 Global Insight, Inc. 12 $5.38 billion $3.69 billion $2.26 billion$1.43 billion $1.71 billion$547 million

13. Copyright © 2007 Global Insight, Inc.13 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 * 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.

14. Copyright © 2007 Global Insight, Inc.14 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.

15. Copyright © 2007 Global Insight, Inc.15 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 * 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.

16. Copyright © 2007 Global Insight, Inc.16 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 RI Tourism (TSA* Based) continues to grow… 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.

17. Copyright © 2007 Global Insight, Inc.17 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 50mile 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

18. Copyright © 2007 Global Insight, Inc.18 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. These trips are not included in TSA definition.

19. Copyright © 2007 Global Insight, Inc.19 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 * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting. ** Entertainment category includes all marina and boating activity TSA + <50Mile Shares

20. Copyright © 2007 Global Insight, Inc.20 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**751581170 Accommodation655493162 Transportation651527125 Food758421337 Shopping52843593 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

21. Copyright © 2007 Global Insight, Inc.21 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.

22. Copyright © 2007 Global Insight, Inc.22 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 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 * 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.

23. Copyright © 2007 Global Insight, Inc.23 Core** TSA* 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. 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.

24. Copyright © 2007 Global Insight, Inc.24 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. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data. Core** TSA* Tourism Impact – Employment*** In Rhode Island Is Composed of Many Industries RankIndustry Reported Employment (Thousands) 2005-2006 Growth % of State Tourism- Extracted Employment (Thousands) 1Health Care and Social Assistance74.051.5%15.0%74.05 2Retail Trade52.43-0.1%10.6%49.42 3Accommodation and Food Services43.060.5%8.7%24.61 4Professional, Scientific, and Tech. Services35.54-1.9%7.2%35.54 5Administrative and Waste Services29.426.4%6.0%27.22 6Wholesale Trade26.252.3%5.3%26.25 7Finance and Insurance23.075.1%4.7%23.07 8Manufacturing, Nondurables22.52-3.0%4.6%22.52 9Construction22.30-0.1%4.5%22.30 10Other Services21.342.1%4.3%21.34 11Transportation and Warehousing17.82-5.8%3.6%16.82 12Manufacturing, Durables16.36-2.0%3.3%16.36 13Information10.38-2.8%2.1%10.38 14Educational Services9.64-0.9%2.0%9.64 15Management of Companies and Enterprises9.104.3%1.8%9.10 Other Industries15.5-1.4%3.1%1.22 State & Local Government64.8-0.3%13.1%64.8 Total Nonfarm493.60.4%100.%493.6 Core Tourism represented 38,956 jobs in 2006. Travel & Tourism39.0- 0.6% 7.9%39.0

25. Copyright © 2007 Global Insight, Inc.25 Total Rhode Island TSA* Tourism Employment*** Down 0.4% in 2006 Core Tourism Total Impact Core** Tourism jobs comprise 81% of total tourism-generated employment. 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.

26. Copyright © 2007 Global Insight, Inc.26 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 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 * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

27. Copyright © 2007 Global Insight, Inc.27 TSA* 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 & 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

28. Copyright © 2007 Global Insight, Inc.28 State and Local Government Revenue Tax Revenues from TSA* 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% State Share of Occupancy Tax9.63.9% State Total314.0-0.4% Local Government Local Share of Occupancy Taxes5.73.9% Property Taxes142.0-1.4% Local Total 147.7-1.2% Total859.8-0.6% Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

29. Copyright © 2007 Global Insight, Inc.29 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 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.

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

31. Copyright © 2007 Global Insight, Inc.31 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

32. Copyright © 2007 Global Insight, Inc.32 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

33. Copyright © 2007 Global Insight, Inc.33 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

34. Copyright © 2007 Global Insight, Inc.34 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

35. Copyright © 2007 Global Insight, Inc.35 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

36. Copyright © 2007 Global Insight, Inc.36 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

37. Copyright © 2007 Global Insight, Inc.37 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

38. Copyright © 2007 Global Insight, Inc.38 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

39. Copyright © 2007 Global Insight, Inc.39 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. Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

40. Copyright © 2007 Global Insight, Inc.40 Regional Share of Statewide TSA* + Under 50Mile Visitation and Trips 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 Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

41. Copyright © 2007 Global Insight, Inc.41 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 Source: Global Insight * TSA includes all overnight visitors and those traveling over 50 miles, non-commuting

42. Copyright © 2007 Global Insight, Inc.42 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 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.

43. Copyright © 2007 Global Insight, Inc.43 Regional Share of Statewide Core TSA* 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 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.

44. Copyright © 2007 Global Insight, Inc.44 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 Source: Global Insight * Based on TSA definition of visitor, which includes all overnight visitors and those traveling over 50 miles, non-commuting

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