2015 NYIAS Economic Impact

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TABLE OF CONTENTS

INTRODUCTION................................................................................................................................................................1

EXECUTIVE SUMMARY.....................................................................................................................................................2

TOTAL ECONOMIC IMPACT...............................................................................................................................................4

METHODOLOGY................................................................................................................................................................6

NON-LOCAL NYIAS ATTENDEES....................................................................................................................................11

NON-LOCAL PRESS........................................................................................................................................................12

NON-LOCAL EMPLOYEES OF MANUFACTURERS AND EXHIBITING COMPANIES.........................................................................................................15

EXHIBITORS AND EXHIBITING COMPANIES...................................................................................................................16

PUBLIC RELATIONS DEPARTMENTS AND SPECIAL EVENTS.........................................................................................18

NYIAS PRODUCER..........................................................................................................................................................19

SUPPLEMENTARY HOTEL STUDY. .................................................................................................................................20

APPENDIX A: DETAILED METHODOLOGY CONCERNING SURVEYS OF NON-LOCAL NYIAS ATTENDEES.......................21

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INTRODUCTION Held every spring at the Jacob Javits

Convention Center, the New York International Auto Show is North America’s first and largest attended auto show.

The premiere event of its kind, the NYIAS attracts hundreds of thousands of visitors each year. It is estimated that 62 percent of all Show attendees came from outside New York City to attend the Show. The NYIAS is an engine of commerce: The Show’s impact extends far beyond the show floor: while in New York City, attendees contribute significantly to the local economy through expenditures on hotels and restaurants, entertainment, retail goods and other local services. Exhibiting companies, along with members of the press and show-related staff, further stimulate local economic activity by purchasing goods and services directly related to their participation. The road ahead: Based on survey data involving a wide spectrum of NYIAS attendees and other stakeholders, the following report offers a robust outlook for NYIAS and underscores its pivotal importance as a key contributor to business activity in New York.

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EXECUTIVE SUMMARY

The New York International Auto Show retained Keen Independent Research (Keen Independent) to estimate the total economic impact of the 2015 Show on the New York City economy. This report examines Show-generated spending in 2015. Members of the Keen Independent study team conducted similar impact analyses for NYIAS from 2000 through 2011. Keen Independent surveyed the following Show participants: • Attendees, including non-local attendees, members of the press, exhibiting company employees and public relations staff; and • Companies and other groups involved in the Show, including auto manufacturers, other exhibiting companies, public relations departments, and the NYIAS producer. Direct spending: $190 million Based on its analysis of expenditure data, Keen Independent estimated that the 2015 NYIAS generated $190 million in direct spending in New York City, which encompassed lodging, restaurants, entertainment, transportation and retail purchases. Indirect impacts: $111 million Keen Independent used an economic model for the five boroughs of New York City—created by the U.S. Department of Commerce—to estimate the additional impact of money spent by non-local visitors and companies. Analysis of the multiplier effect indicated an additional $58 of spending for every $100 in direct spending. APPROACH

TOTAL IMPACT: $301 MILLION

In total, the 2015 New York International Auto Show generated $301 million in spending in New York City, considerably larger than previous years even after accounting for inflation (see Figure 1). Figure 2 on page 4 illustrates spending by category.

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FIGURE 1 TOTAL ECONOMIC IMPACT OF THE 2015 NYIAS IN MILLIONS OF 2015 DOLLARS

$301 MILLION IN 2015

$300

$269

$258

$250

$230

$211

$200

$186

$156

$150

$100

$50

$0

2000 2002 2006 2008 2011 2013 2015

INDIRECT

DIRECT

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TOTAL ECONOMIC IMPACT FIGURE 2 SUMMARY OF THE ECONOMIC IMPACT OF THE 2015 NEW YORK INTERNATIONAL AUTO SHOW

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

NON-LOCAL ATTENDEES

$111,284,000

$67,627,000

$43,657,000

NON-LOCAL PRESS

$11,571,000

$7,133,000

$4,438,000

NON-LOCAL EMPLOYEES

$27,110,000

$16,560,000

$10,550,000

PR DEPARTMENTS

$22,339,000

$14,007,000

$8,332,000

EXHIBITING COMPANIES

$116,206,000

$76,799,000

$39,406,000

NYIAS PRODUCER

$11,995,000

$7,635,000

$4,360,000

TOTAL DIRECT $189,761,000

TOTAL INDIRECT $110,743,000

$300,505,000

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FIGURE 3

SUMMARY OF DIRECT AND INDIRECT IMPACT BY GROUPS SURVEYED.

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

LODGING $28,662,000

NON-LOCAL ATTENDEES + NON-LOCAL PRESS + NON-LOCAL EMPLOYEES

$18,137,000

$46,799,000

FOOD AND BEVERAGE $21,810,000

$14,292,000

$36,102,000

ENTERTAINMENT $6,829,000

$12,005,000

$5,176,000

PARKING/GAS $4,095,000

$6,903,000

$2,808,000

LOCAL TRANSPORTATION $8,602,000

$5,941,000

$14,543,000

RETAIL FROM LOCAL STORES $13,683,000

$7,882,000

$21,565,000

ROUNDTRIP TRAVEL $7,639,000

$4,409,000

$12,048,000

PR DEPARTMENTS

$8,332,000

$22,339,000

$14,007,000

EXHIBITING COMPANIES

$116,206,000

$39,406,000

$76,799,000

NYIAS PRODUCER

$7,635,000

$4,360,000

$11,995,000

TOTAL DIRECT $189,761,000

TOTAL INDIRECT $110,743,000

$300,505,000

NOTE: COLUMNS AND ROWS IN THIS REPORT’S FIGURES MAY NOT ADD TO TOTAL DUE TO ROUNDING.

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METHODOLOGY Keen Independent followed a framework for this study consistent with standard economic impact analyses. The research began by collecting spending information from a sample of Show visitors and other participants. With this survey data and NYIAS information about the number of visitors, exhibiting companies and other participants, Keen Independent estimated total direct impacts. The study team then determined indirect impacts through use of an economic model for New York City. Keen Independent collected information on Show-related expenditures from the following sources: Non-local individuals: Keen Independent collected data about the purchases made by non-local individuals through intercept surveys during the Show and electronic surveys immediately following it. • Keen Independent conducted intercept surveys of visitors and exhibiting company employees from Friday, April 10 through Sunday, April 12. Through this effort, the study team obtained 629 completed surveys from non-local attendees. Keen Independent used the survey data collected on Friday, April 10 as representative of the spending patterns of weekday attendees and survey data collected on April 11 and 12 as representative of the weekend attendee. • The study team collected expenditure data through electronic surveys of non- local attendees who purchased their tickets to the Show online. This effort yielded more than 2,600 useable responses. The database of online ticket buyers was assumed to represent a random sample of all non-local attendees. • Keen Independent conducted intercept surveys on April 10 through April 12 of more than 1,000 randomly selected attendees; these surveys helped determine the percentage of total attendees who came from outside of the five boroughs of New York City to attend the Show. Only individuals who came to New York City specifically to attend the Show or who extended their stay in New York City to attend it are included in the impact analysis. Appendix A provides more detail on the methodology used to collect information from non-local Show attendees. DATA COLLECTION

EXHIBITING COMPANIES SPENDING: $22 MILLION

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Members of the press: Immediately following the Show, Keen Independent conducted an electronic survey of out-of-town members of the press who came to New York City to report on the Show. Keen Independent obtained 329 completed surveys. For the purposes of this study, members of the press included all those who obtained press credentials and attended the 2015 Show for business purposes. Exhibiting company employees: During the Show, 50 completed surveys were obtained from exhibiting company employees. Survey data pertain to exhibiting company employees hired to help staff exhibits. Exhibiting companies and public relations departments separately provided expenditure data for company executives and other staff who attended the Show. Manufacturers, exhibiting companies and public relations departments: Keen Independent surveyed auto manufacturers, sponsors, exhibit contract companies, public relations departments and non-local smaller exhibiting companies and vendors participating in the 2015 Show. The study team also collected expenditure data from several of the exhibit contracting companies responsible for the design and management of exhibits.

Category of expenditures for these groups included:

• Construction of staging and exhibit spaces, including both materials and labor; • Freight loading, unloading and transportation of exhibit material; • Building support services such as trash removal and janitorial services, electrical, plumbing and phone service and other building and exhibit support services; • Employment services; • Printing and publishing services; • Auto detailing; • Security; • Advertising, including signage, public relations and press conference staff; • Photography and videography; • Entertainment and catering; and • Other goods and services.

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METHODOLOGY (CONTINUED)

NYIAS Producer: This key stakeholder makes purchases of goods and services from suppliers prior to and during the Show. Expenditure categories include: • Advertising, including billboards, banners, signage, public relations, media buy and related services; • Machinery and equipment rental and leasing of Convention Center Space; • Technical and professional services, including information services, accounting and Show management; • Building support services, such as trash removal and janitorial services, electrical, plumbing and phone service and other building and exhibit support services; • Show entertainment, including celebrity talent; • Transportation to/from and within New York City; • Printing and related services; • Security; • Photography and videography; • Postage and mailings; • Food services; • Hotel accommodations for NYIAS staff; and • Other goods and services. Expenditures made in New York City by the NYIAS Producer are included in the economic impact analysis. IMPACT MODEL The RIMS-II (Regional Input-Output Modeling System) model of the New York City economy provides data to calculate the total economic impact of events such as the 2015 Show. The U.S. Department of Commerce developed the RIMS-II model, incorporating regional data as recent as 2010. Multipliers are specific to New York City and the individual economic sectors affected by direct spending from non-local visitors and other participants in the Show.

Keen Independent’s overall study methods, including the surveys, were consistent with research in 2011 and prior years.

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DIRECT SPENDING: $190 MILLION

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TOTAL IMPACT NON-LOCAL ATTENDEES: $111 MILLION

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NON-LOCAL NYIAS ATTENDEES

FIGURE 4 TOTAL IMPACT OF NON-LOCAL ATTENDEES

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

LODGING $16,273,000

$10,298,000

$26,571,000

Non-local attendees represented $68 million in direct spending.

FOOD AND BEVERAGE $18,593,000

$12,184,000

$30,777,000

More than nine out of ten of non-local attendees surveyed indicated that they came to New York City for the primary reason of attending the Show. In total, non-local attendees who came to New York City specifically to attend the Show represented almost 56 percent of total attendance. Most of these individuals made day trips from the Tri-State area to attend the Show; 12 percent of non-local attendees indicated that they paid for lodging in New York City. Non-local attendees who came to New York City specifically to attend the 2015 Show spent about $68 million in New York City. More money was spent by out-of-town visitors on food services and lodging than any other sector. Total expenditures in these categories amount to $18.6 and $16.3 million, respectively. In total, non-local attendees generated more than $111 million in spending in New York City as a result of the 2015 Show. Figure 4 presents the direct, indirect and total economic impacts associated with the non-local NYIAS attendee portion of the spending flow model. The appendix has a more detailed description of the non-local attendee portion of the spending flow model.

ENTERTAINMENT $5,264,000

$3,989,000

$9,253,000

NON-LOCAL ATTENDEES

PARKING/GAS $3,552,000

$2,432,000

$5,984,000

LOCAL TRANSPORTATION $7,931,000

$5,476,000

$13,407,000

RETAIL FROM LOCAL STORES $11,517,000

$6,634,000

$18,151,000

ROUNDTRIP TRAVEL $4,497,000

$2,644,000

$7,141,000

TOTAL DIRECT $67,627,000

TOTAL INDIRECT $43,657,000

$111,284,000

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NON-LOCAL PRESS

FIGURE 5 TOTAL IMPACT OF NON-LOCAL PRESS

10,466 members of the press and media. $7 million in economic impact.

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

LODGING $2,675,000

$1,692,000

$4,367,000

Two-thirds of the 10,466 members of the press and media who attended the 2015 Show came from outside of New York City. On average, these non-local individuals stayed in New York City for about three nights. About one-half of all non-local members of the press paid for lodging in New York City while attending the Show. Model results indicate that money spent by out-of-town members of the press generated the largest direct impacts in the accommodations and travel sectors of the local economy. Expenditures on lodging account for close to 38 percent of all press- related spending, amounting to $2,675,000.

FOOD AND BEVERAGE $1,051,000

$689,000

$1,740,000

ENTERTAINMENT $306,000

$233,000

$539,000

Overall, spending by non-local press is much higher than was reported in previous years due to the greater number of non-local press attending the 2015 Show.

NON-LOCAL PRESS

PARKING/GAS $453,000

$312,000

$765,000

Indirect impacts from non-local members of the press totaled $4.4 million in 2015.

LOCAL TRANSPORTATION $99,000

$70,000

$169,000

In sum, non-local members of the press generated close to $12 million in spending in New York City as a result of the 2015 Show. Figure 5 portrays the direct, indirect and total economic impacts of non-local press on the New York City economy.

RETAIL FROM LOCAL STORES $761,000

$439,000

$1,200,000

ROUNDTRIP TRAVEL $1,788,000

$1,003,000

$2,791,000

TOTAL DIRECT $7,133,000

TOTAL INDIRECT $4,438,000

$11,571,000

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TOTAL IMPACT OF NON-LOCAL PRESS: $11.5 MILLION

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TOTAL IMPACT OF NON-LOCAL EMPLOYEES: $27.1 MILLION

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NON-LOCAL EMPLOYEES OF MANUFACTURERS AND EXHIBITING COMPANIES

FIGURE 6 TOTAL IMPACT OF NON-LOCAL EMPLOYEES

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

5,660 non-local individuals. A $16.6 million contribution to the local economy.

LODGING $9,714,000

$6,147,000

$15,861,000

FOOD AND BEVERAGE $2,166,000

These employees include exhibit display staff, individuals responsible for exhibit management, public relations employees and auto manufacturer executives. In general, floor display staff and exhibit management employees stayed in New York City for the duration of the Show. Auto manufacturer, public relations employees and similar staff stayed an average of three to five nights. Keen Independent examined impacts from these employees based on survey data collected on-site from individual exhibitors at the Show as well as information from exhibiting companies and auto manufacturers. As for prior years, the model includes one-half of total expenditures on airfare for non-local employees. As with the non- local press expenditures, this impact is largely driven by the large number of non-local employees (5,660 in 2015).

$1,419,000

$3,585,000

ENTERTAINMENT $1,259,000

$954,000

$2,213,000

NON-LOCAL EMPLOYEES

PARKING/GAS $90,000

$64,000

$154,000

LOCAL TRANSPORTATION $572,000

$395,000

$967,000

Money spent on lodging (about $10 million) accounts for much of the expenditures related to non-local employees.

RETAIL FROM LOCAL STORES $1,405,000

$809,000

$2,214,000

The indirect impacts from non-local employees totaled $10.6 million.

ROUNDTRIP TRAVEL $1,354,000

Overall, non-local employees generated $27 million in spending in New York City. Figure 6 examines the total economic impacts by spending category.

$762,000

$2,116,000

TOTAL DIRECT $16,560,000

TOTAL INDIRECT $10,550,000

$27,110,000

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EXHIBITORS AND EXHIBITING COMPANIES

FIGURE 7 TOTAL IMPACT OF EXHIBITING COMPANIES

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

56 auto manufacturer exhibits. 80+ smaller exhibitors. $77 million in direct spending.

BOOTH CONSTRUCTION $49,715,000

$21,813,000

$71,528,000

LOADING AND TRANSPORTATION $12,065,000

$8,354,000

$20,419,000

Exhibiting companies generated $116 million in spending after accounting for indirect impacts, as shown in Figure 7.

BUILDING SUPPORT SERVICES $2,184,000

$1,391,000

$3,575,000

EMPLOYMENT SERVICES $1,653,000

$1,057,000

$2,710,000

PRINTING AND PUBLISHING $459,000

$229,000

$688,000

CAR DETAILING $617,000

$405,000

$1,022,000

EXHIBITING COMPANIES

SECURITY $628,000

$422,000

$1,050,000

ADVERTISING $1,689,000

$1,123,000

$2,812,000

CATERING $1,693,000

$1,108,000

$2,801,000

AUDIO/VISUAL SERVICES $1,947,000

$1,194,000

$3,141,000

ENTERTAINMENT 1,129,000

$727,000

$1,856,000

OTHER GOODS AND SERVICES $3,027,000

$1,577,000

$4,604,000

TOTAL DIRECT $76,806,000

TOTAL INDIRECT $39,400,000

$116,206,000

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TOTAL IMPACT OF EXHIBITING COMPANIES: $116 MILLION

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PUBLIC RELATIONS DEPARTMENTS AND SPECIAL EVENTS

FIGURE 8 TOTAL IMPACT OF PR DEPARTMENTS AND SPECIAL EVENTS

33 public relations departments. $14 million in direct economic contributions.

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

EMPLOYMENT SERVICES $1,064,000

$680,000

$1,744,000

All local expenditures made by public relations departments are included in the model (excepting employee expenditures already counted, such as lodging), as this spending would not have occurred if the 2015 Show had not taken place. At $6.5 million, expenditures on multimedia and videography/photographic services account for the greatest portion of direct spending by PR departments. Including indirect impacts, exhibiting companies generated $22 million in spending in New York City as a result of their participation in the 2015 Show. Figure 8 illustrates the impacts associated with this portion of the spending flow model.

LOADING AND TRANSPORTATION $1,388,000

$879,000

$2,267,000

PRINTING AND PUBLISHING $38,000

$19,000

$57,000

AUDIO/VISUAL SERVICES $6,537,000

$4,017,000

$10,554,000

PR DEPARTMENTS

CATERING $498,000

$326,000

$824,000

ADVERTISING $380,000

$253,000

$633,000

STAGING AND OTHER MATERIALS $3,154,000

$1,588,000

$4,742,000

OTHER GOODS AND SERVICES $950,000

$568,000

$1,518,000

TOTAL DIRECT $14,009,000

TOTAL INDIRECT $8,330,000

$22,339,000

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FIGURE 9 TOTAL IMPACT OF NYIAS PRODUCER

NYIAS PRODUCER

DIRECT IMPACT

INDIRECT IMPACT

TOTAL IMPACT

ADVERTISING $1,220,000

$805,000

$2,025,000

Producing a $7 million lift to New York City commerce.

PROFESSIONAL SERVICES $727,000

$428,000

$1,155,000

EMPLOYMENT SERVICES $964,000

$612,000

$1,576,000

After adding indirect effects, the NYIAS Producer generated $12 million in spending in New York City. Figure 9 traces the direct, indirect, and total economic impacts associated with the NYIAS Producer.

SUPPORT SERVICES $1,725,000

$1,182,000

$2,907,000

RENTAL/LEASING $2,034,000

$749,000

$2,783,000

ENTERTAINMENT $114,000

$73,000

$187,000

NYIAS PRODUCER

TRANSPORTATION $160,000

$90,000

$250,000

PHOTOGRAPHY/VIDEOGRAPHY $20,000

$14,000

$34,000

POSTAGE AND MAILINGS $30,000

$17,000

$47,000

SECURITY $322,000

$214,000

$536,000

FOOD AND BEVERAGE $16,000

$10,000

$26,000

PRINTING $198,000

$98,000

$296,000

LODGING $75,000

$47,000

$122,000

OTHER GOODS AND SERVICES $32,000

$19,000

$51,000

TOTAL DIRECT $7,637,000

TOTAL INDIRECT $4,358,000

$11,995,000

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FIGURE 10 SUMMARY OF THE 2015 NEW YORK INTERNATIONAL AUTO SHOW IMPACT ON HOTELS AND LODGING IN NYC (ASSUMING 750,000 ATTENDEES).

SUPPLEMENTARY HOTEL STUDY

AVERAGE ROOM COST

ROOM NIGHTS

TOTAL IMPACT

NON-LOCAL ATTENDEES

$262

$12,203,000

46,600

$25 million in lodging expenditures.

NON-LOCAL PRESS

$312

$2,674,000

8,600

Keen Independent estimated the impact on hotels and lodging in New York City from hotel stays by non-local attendees, exhibit staff, exhibiting company and manufacturer employees, and public relations staff. As shown in Figure 10, these groups spent about $25 million on lodging as a direct result of the 2015 Show. This impact was higher than reported for previous years ($16 million in 2011 and $13 million in 2013, for example). Non-local attendees account for the majority of spending on lodging during the Show. Approximately 12 percent of non-local attendees paid for lodging during their stay. The average group size of these non-local attendees was 3.3 people, and they booked an average of 1.5 rooms per night for two nights. These visitors accounted for more than 46,000 room nights in New York City and $12 million of spending on hotels and lodging ($262 per night). The study team directly collected room nights from PR departments and exhibiting companies. Total spent on lodging was estimated by multiplying total room nights by average cost per room for these groups.

NON-LOCAL EMPLOYEES

$289

$9,713,000

33,600

NYIAS

N/A

$75,000

N/A

TOTAL ROOM NIGHTS 88,800

TOTAL AVERAGE COST $278

$24,665,000

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APPENDIX A: DETAILED METHODOLOGY CONCERNING SURVEYS OF NON-LOCAL NYIAS ATTENDEES

Surveys: Keen Independent obtained 163 visitor intercept surveys on Friday, April 10 and 466 surveys on the weekend of April 11 for a total of 629 surveys. The study team used the 163 surveys collected on Friday to represent the spending patterns of weekday attendees and the remaining surveys to represent the typical weekend crowd. Keen Independent also performed an online survey of non-local Show visitors who purchased online tickets to the Show. The study team emailed the online survey to non-local attendees immediately following the Show and received 2,909 completed surveys. To research place of residence of Show attendees, Keen Independent also collected zip code information from a random sample of more than 1,000 people at the Show as well as from the database of online ticket buyers. Analysis of these data provided the percentage of attendees who came from outside New York City to attend the Show. Analysis: Keen Independent separately analyzed expenditure data from the weekday and weekend intercept and online ticket buyer surveys. This analysis yielded four sets of results for the following model inputs: • Proportion of non-local attendees who came to New York City for the primary reason of attending the Auto Show or who extended their stay in order to attend the Auto Show; • Average party size; • Average number of days spent in New York City; • Proportion of non-local attendees who paid for lodging in New York City; • Average number of nights spent in New York City by those who paid for lodging; • Average number of rooms paid for per night per party; • Average amount spent per room per night by those who paid for lodging in New York City;

• Proportion of non-local attendees who spent money on food and beverages in New York City; • Average amount spent per party per day by those who spent money on food and beverages; • Proportion of non-local attendees who spent money on parking in New York City; • Average amount spent per party per day by those who spent money on parking; • Proportion of non-local attendees who spent money on gas in New York City; • Average amount spent per party per day by those who spent money on gas; • Proportion of non-local attendees who spent money on entertainment, local transportation, retail purchases from local stores, and on round trip transportation in getting to New York City; and • Average amount spent per party in total on entertainment, local transportation, retail purchases from local stores and on round-trip transportation in getting to New York City. The study team independently used responses to the weekday and weekend intercept and online surveys to calculate spending for a proportionate amount of the total number of non-local attendees (e.g., the weekday intercept survey set was used to estimate spending for 7 percent of non-local attendees). About 62 percent of all Show attendees came from outside of the New York City area to attend the Show. And, more than 90 percent of the non-local attendees surveyed indicated that they came to New York City for the primary reason of attending the Auto Show (or extended their stay to see the Show).

New York International Auto Show Headquarters 18-10 Whitestone Expressway Whitestone, NY 11357 718-746-5300 AutoshowNY.com

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