All right. Well, thank you so much for your testimony. And I forgot to bring my World Cup cups, but I have the full set. And I have to commend you on the World Comes to Play marketing slogan, which I think we all really appreciated. Thank you also for sharing a lot of the numbers, and it's clear there was a substantial economic impact.
I heard $2 billion, $1.2 billion in direct spending, and 12— roughly 12K jobs created, and wanted to open to the panel to just dig in a bit more to the methodology that was used there, and if you could explain how we came to those numbers. Yep, I can jump in. Good afternoon, everybody. Justin Kramer with the New York City Economic Development Corporation.
So I'll start by saying both studies were done by Tourism Economics. Tourism Economics is a globally renowned organization that does specifically tourism economic analysis. It's the same organization that, for example, London used when they were reviewing their 2020 Olympics, amongst other recent hosts of the World Cup across the city have also used them as well. So very reputable organization.
The way that the numbers came to pass, and I'll kind of break it out into pieces here. So it starts off with identifying what is the direct spending. So the direct spending is broken up into 2 different parts. The first part of it is direct spending from visitors to New York City. And the way that number is calculated is it specifically looks at 2 different groups.
It takes kind of a bottom-up approach. So the first group is how many people attended a match from outside of the region. And so that number is— there was 645,000 people who attended the 8 matches. Of that number, 78% came from outside of the New York City region. So that is 508,000 people. On top of that, it looks at who attended the official World Cup fan zones and related events.
And through that, on top of it, there was another 626,000 people from outside of the region who came to New York. So this report specifically looks at visitors to New York City, not New York City residents spending. to be clear. So that's the— please. I'm laughing because last time I did this, it was also— I was too quiet.
So I will try to speak louder. My apologies. I feel like I'm eating the microphone now, with it this close to me. So that's how the visitor numbers were calculated. And then that information is put into a model that the organization has that looks at typical visitor spending, actual numbers of spending at the MetLife Stadium, et cetera, and by sector calculates an estimated amount of money that each visitor would spend in New York City.
The second part of the equation is operational spending. And so, that is money that the host committee spent to actually execute on the World Cup happening here in New York. in the region. And so that is money that went in from the federal government, money that went in from the state, money came in from various municipalities, uh, donors, uh, that were part of fundraising efforts that the host committee made.
And so that collective amount, uh, is the amount of operational spending. So you take both the visitor spending, you take the operational spending, and that's where you get the— Revenue. for New York City specifically, the $1.2 billion in direct spending. Now, the economic impact of those dollars and those visitors don't stop with direct spending. There are some knock-on effects as well, specifically indirect spending and also induced spending.
So to give an example of indirect spending, If I own a restaurant in Brooklyn and I need to buy more fish, let's say, to serve the additional customers who are coming in because of the World Cup, that's the indirect spending as a result of the visitor spending coming into the city, if that makes sense. So that's— that is indirect spending.
And then the induced spending is sticking with the analogy of the restaurant. If a A waiter, let's say, works at the restaurant and they picked up an extra shift where they get additional tips or whatever it may be, that extra money gets recycled into the city's economy as well. So they're going to go back to their neighborhood and they're going to spend that money at their local bodega.
They're going to spend it maybe on the rent. They're going to spend it on other things. So there is an analysis that's done that calculates roughly how much that is, both for indirect and for induced. And so that number— Again, for New York City specifically, is about $700,000 added on top of the direct spending. So $1.2— sorry, $1.3 plus $700,000 is how we got to the $2 billion number.
And the same process works out for the regional numbers that you all had cited as well before, which was the regionals. It was $1.9 billion in direct spending and $3.5 billion in overall economic impact. I can also answer the question on the job supported as well. I believe that was part of it. Yeah, cool. I'm learning a lot.
Yes. I feel like I'm a professor slowly breaking down step by step. So the way that the job supported was calculated is by sector. They track each dollar that is spent can be attributed to supporting a job or multiple jobs within that sector. And so based off that total spending broken up by the sectors, it then multiplies that dollar by the number of jobs that dollar supported.
And that's how the 12,100 jobs was calculated. And to be clear, those aren't new jobs. Those are jobs that are supported. There may be some new jobs that were in there, seasonal jobs that came in. full-time jobs, but that— you can't distinguish that through the analysis. So for— on the jobs, were those just temporary over the period, or how are you thinking about the long-term impact?
Yeah, for the analysis that was done by Tourism Economics, it doesn't disaggregate the information to that level. So all up, I guess, what do you expect the city tax revenue generated by that $2 billion economic impact to be? And as a refresher, while we're talking about that, the city investment was roughly $90 million, I believe. So just trying to get at what the return was if we got our money back, so to say.
Absolutely. So this was an event that stretched across multiple agencies, multiple levels of government and multiple fiscal years. So we're still evaluating both the total cost of the event as well as the projected tax revenue. What we do know from today's analysis is that the World Cup brought around $2 billion to New York City's economy, supported 12,000 jobs, and reached across all 5 boroughs.
On the— I guess you've now completed this analysis. How does it compare to what the projections were? Where were you? Where were you on point? Where were projections a bit off? So to make one— thank you for the question— uh, to distinguish one thing. So the initial projections that you all may remember, which was regionally $3.3 billion, that was for the region.
That was also done by Tourism Economics. So the same company? The same company, correct, that did both post-World Cup the city and the region. We intentionally chose the same organizations so we have an apples-to-apples comparison. There was no pre-New York City-specific analysis done, so we only can look at the regional analysis, which again netted out to be $3.3 billion, and then the post-World Cup was $3.5 billion.
So as a region, we saw a bump or an increase of $200 billion, which is positive. We can't break it down further than that because we have no baseline to compare it to for the city. But we do know that we did see a lift in a lot of numbers that show that there was people who came to the city.
Subway ridership up. NYC Ferry ridership up. Citi Bike ridership up, I think, 20%. I'll backtrack myself here, but roughly 20% more international visitors using Citi Bike versus the previous year. Thank you. On the visitors, the total number of out-of-state visitors, if you could remind me. Yeah, the total of visitors was roughly 1.1— let's see here— 1.134 million.
And do we have a sense of whether or not those visitors were actually attending the Cup or going to the free events and how that Yeah, so— Oh, I forgot. The breakout was those who attended the matches, 508,000 people from outside the region attended the matches. And then there was another 626,000 who attended events within the city that were official World Cup events.
So, roughly 50/50. Yeah. For those of us looking for simple numbers. One last question here on the opportunity cost. So, summer is a big tourism period for New York City. Does the analysis have or speak to the opportunity cost from displacing regular tourists for the FIFA-related ones? If you could speak to that. Yeah, thank you for the question, and I meant to bring that up earlier, so thank you.
The analysis at Tourism Economics does take into consideration displacement from those who may have not come to New York City because of higher hotel costs or because they frankly didn't want to be in the city when there was an influx of more people being here. And so that number was removed from the $2 billion number, so it's already incorporated into it.
Keep in mind that also does not take into consideration that a lot of people were exposed to the World Cup, New York City through the World Cup, and so it may lead to new tourists coming, and also folks who may have just delayed their trip and will still come to the city, just pushed it back by a few weeks.
Can I add briefly? So initially when we took office, the plan had been for there to be a The games would be in New Jersey and the Fan Fest would be in New Jersey as well. And so, one of the things our administration did was work with the FIFA host committee to bring Fan Fest to the 5 boroughs.
And so, the 600,000 number of people who came from outside of this region to New York City for the World Cup, you know, they could have gone to New Jersey for the Fan Fest. And in the end, we had free Fan Fests across all 5 boroughs, which we feel really strongly did drive visitation. visitation and also spend across the 5 boroughs.
And that reminds me of a stat I meant to mention earlier. To Maya's point, the city did capture 70% of visitor spending in the region. Relative to New Jersey? To the whole region. So the whole region experienced $1.7 billion in visitor spending, and we got 70% of that. So clear majority. You mentioned higher prices. I'm curious if you have a sense of how much of that $2.2 billion economic impact is from higher prices due to more demand, for example.
I think that was true with hotel pricing or additional transactions. So the model did take into consideration— well, I'll take a step back. So the model is based off of something that's called an in-plan input/output model. And that model is an industry-agreed-upon model that is calibrated to the New York City market. And so, based off the prices of goods or services, based off the different sectors.
And so, the report did take into consideration a bump in prices for— I'm sorry. lodging. I'm happy to follow up with some more information on that.