NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

From September 11th through the end of the year, financial services in New York will account for $4.2 billion in losses of economic output in the New York economy, over and above capital losses and the impact of the economic slowdown. That amounts to more than a third of New York City’s estimated short-term losses. Over half of the sector’s output loss in New York during this period will be the result ofjob dislocation. Financial firms have, at least temporarily, moved about 32,400 jobs out of Lower Manhattan to other N^ York City locations, mostly in Midtown. In addition. 19.000 jobs have been moved to sites outside ot New York City, at least temporarily. Some businesses may be reluctant to return their workforces to New York due to continued challenges posed by the transport and communications infrastructure in Lower Manhattan.

Interviews with industry leaders demonstrate that managers are focused on obtaining improved security, operating out of multiple locations and ensuring that their core business services have alternative telecommunications and energy systems to fall back on in the event of a natural or manmade disaster.

> Tourism: September 11 th has generated widespread fear of air travel and persuaded many people here and abroad to stay home.

The Harris Interactive survey of consumers in Britain and Canada suggested that travel to New York from those countries would decline approximately 40% in the fourth quarter, a significant blow, when compared to the levels anticipated before the attack. International visitors strengthen the New York economy because they spend three times as much per person as visitors from other locations.

While discounts and other incentives naay persuade some to travel, they will also reduce revenue from travelers who would have come even without those reductions. The New York travel and tourism industry, which has enjoyed annual revenue of $34 billion, is likely to lose $7 billion to $13 billion in revenues by the end of2003, and will lose approximately 25,000 jobs in 2001.

12 New York City Partnership and Chamber of Commerce

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