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 “After the pandemic upended life and leisure as we know it, travel is roaring back.”
McKinsey & Company, 2024
by Kevin Jack, Deputy Director
According to a recent report from consulting firm McKinsey & Company, the travel and tourism sector, after losing 75% of its value during the pandemic in 2020, is set to make a full recovery, on a global scale, by the end of 2024. This rebound is critical to the overall health of the U.S. economy because, as the U.S. Travel Association notes, “the travel industry is a primary driver of economic growth and job creation in the U.S.”
Closer to Home
New York’s travel and tourism sector has also largely bounced back from the negative impacts of the COVID-19 pandemic with the state’s visitation, direct spending and total economic impact figures in 2023 above pre-pandemic levels. Perhaps most importantly, the sector continues to be a significant driver of economic growth and job creation across the state.
A report compiled by consulting firm Tourism Economics under contract to Empire State Development found that New York State welcomed a record-setting 306.2 million visitors in 2023. This total includes 293.1 million domestic visitors, 9.1 million from overseas (from outside of North America) and 4.1 million from Canada and Mexico. To put this total count of visitors in context, it is greater than the combined populations of Japan, Germany, the United Kingdom and Australia.
According to the same report, visitors to New York State spent a record $88.1 billion across New York’s economy in 2023. To analyze the downstream effects of this spending on the broader state economy, Tourism Economics developed an input-output model using the IMPLAN software package. The consulting firm’s model traces tourism spending through the local economy and assesses the direct and spin-off impacts of this spending.
The $88.1 billion in direct tourist spending generated a record $136.7 billion in total economic impact across the state. This total economic impact figure was greater than the annual Gross Domestic Product of New Mexico in 2023. State and local tax revenues generated by the travel and tourism sector saved the average New York State household $1,420 in taxes.
Back from the Brink
After falling dramatically in 2020 due to the COVID-19 pandemic, three important travel and tourism metrics — visitation, direct spending and total economic impact — have increased in value in each subsequent year in New York State. From 2022 to 2023, visitation to New York State increased by 5.2%, led by strong growth in the number of visiting Canadians (+32.2%) and overseas guests (+27.2%). Similarly, direct visitor spending rose 12.0% and total economic impact increased by 11.4% in 2022-23. As a result, visitation, direct spending and total economic impact values were all above pre-pandemic levels in 2023.
Overseas Visitors
Did you know that New York was the #1 destination of any state for overseas visitors (from outside of North America) in 2023? Per the U.S. International Trade Administration (ITA), the Empire State’s 9.1 million overseas visitors topped #2 Florida (7.9 million) and #3 California (6.3 million). Rounding out the top five states in 2023 were #4 Nevada (2.1 million) and #5 Texas (1.9 million).
The ITA data also indicate that New York State accounts for 28.8% of the inbound overseas visitor market. In addition, New York experienced the largest net increase in overseas visitation of any state between 2022 and 2023 with a gain of 1,943,000, or a 27.2% increase.
Not surprisingly, much of the overseas visitation to New York State is focused on New York City, which is part of the broader New York-White Plains-Wayne, NY-NJ metro division. This metro division received 8.9 million overseas visitors in 2023, making it the most visited among all U.S. metro areas and divisions, according to the ITA.
In fact, overseas visitation to the New York City metro division was more than twice as high as the number going to the Miami metro area (4.4 million) and about 2.5 times as high as the number of overseas visitors visiting the Los Angeles metro division (3.6 million) or the Orlando metro area (3.5 million).
Other metro areas/divisions in New York also receive significant numbers of overseas visitors. Per the ITA, metro areas/divisions in the state that ranked among the top 100 in the nation in 2023 include: Buffalo-Niagara Falls (#25); Nassau-Suffolk (#49); Albany-Schenectady-Troy (#73); and Poughkeepsie-Newburgh-Middletown (#85).
Overseas visitors are a key segment of the state’s travel and tourism sector due to their above-average spending levels, which in turn have an outsized economic impact. More specifically, data from Tourism Economics show that while this group only accounted for about 3% of New York’s total visitor count, they were responsible for just over 17% of direct tourism spending in the state in 2023.
Direct Spending
What did visitors to New York State spend their money on in 2023? According to the Tourism Economics report, the five largest direct spending categories were:
- Lodging, including second homes and short-term rentals (e.g., Airbnb), $29.3 billion (33% share of total visitor spending)
- Food and Beverage, $22.2 billion (25%)
- Retail and Service Stations, $15.1 billion (17%)
- Transportation (including both ground and air transportation), $12.8 billion (15%)
- Recreation and Entertainment, $8.6 billion (10%)
Travel and Tourism Jobs
Tourism Economics found that visitor spending directly supported more than 519,000 jobs in New York State in 2023. The largest number of direct jobs were found in Food and Beverage (215,183), Lodging (92,804), Recreation and Entertainment (74,561), Other Transport (58,915) and Air Transport (35,772).
When spin-off impacts (i.e., indirect and induced) are included, the 519,000 figure rises to over 721,000 total jobs. The jobs supported by visitor spending are found across a wide swath of industries. However, job creation is relatively concentrated with the five largest industries accounting for over 73% of total tourism-supported jobs.
The five industries with the most total jobs (direct + spin-off) due to visitor spending in New York State in 2023 include:
- Food and Beverage, 233,451
- Lodging, 94,137
- Recreation and Entertainment, 81,033
- Other Transport, 73,352
- Retail Trade, 45,103
Summary
Travel and tourism is one of the world’s fastest-growing economic sectors. Given that New York State is richly endowed with travel-related assets that attract visitors from across the nation and around the globe, it is no surprise that travel and tourism is a significant economic engine for the state. In addition, our state’s travel and tourism sector has largely bounced back from the negative impacts of COVID-19, with the state’s visitation, direct spending and total economic impact figures in 2023 above pre-pandemic levels. Looking ahead, long-term forecasts from the World Travel & Tourism Council expect the sector to experience above-average growth between 2022 and 2032.
For more information about the economic impact of the travel and tourism sector in New York State and its various regions, see: https://esd.ny.gov/esd-media-center/reports/2023-tourism-economics.
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“The Capital Region’s robust nanotech sector is as important to the future of the country as it is to the local economy.”
by Kevin Alexander, Labor Market Analyst, Capital Region
The Albany Nanotech Complex (ANC) is comprised of multiple buildings with more than one million square-feet of space and is home to several hundred corporate partners. The ANC has been in expansion mode as of late, due in part to receiving numerous grants that have helped to position the complex as a research and development (R&D) center at the forefront of American domestic innovation.
One of the biggest drivers of ANC’s recent growth was its selection by the U.S. Department of Commerce to be the home to the first CHIPS for America R&D flagship facility, part of the National Semiconductor Technology Center (NSTC), which is a public-private consortium dedicated to semiconductor R&D in the U.S. NYCREATES, ANC’s non-profit owner and operator, will receive $825 million to establish the NSTC CHIPS for America Extreme Ultraviolet (EUV) Accelerator. Funding for this initiative comes from the $52 billion CHIPS and Science Act, passed in 2022.
Recent Trends in R&D Jobs
The EUV Accelerator will play a prominent role in advancing the nation’s semiconductor R&D activities. Moreover, it will build upon the Capital Region’s established success in technology R&D. Most semiconductor R&D jobs in the region are found in the “R&D in the Physical, Engineering and Life Sciences” industry (NAICS code 54171). The region’s industry job count fell in 2008-18. However, in 2019 the local R&D industry experienced strong growth, adding 560 jobs, or 8.6%, per data from the Quarterly Census of Employment and Wages. Growth stalled following the pandemic in 2020, but after two years of consistent gains, the job count reached 7,680 in 2023, its highest level on records dating back to 2000.
Concentration of R&D Jobs
One measure of an industry’s importance to a region is its concentration of jobs relative to the nation — also known as a “location quotient.” Data from analytics firm Lightcast show that the local semiconductor R&D industry has a location quotient of 2.64. This means the industry’s share of total employment in the region is more than 2.5 times the industry’s share at the national level. Moreover, this high value suggests that the local semiconductor R&D industry is export-oriented, meaning it sells goods or services to customers from outside the region.
Semiconductor Manufacturing Jobs
The NSTC designation will also have a significant impact on the region’s semiconductor manufacturing industry. Data from Lightcast show that the region had 2,870 jobs in “Semiconductor and Related Device Manufacturing” (NAICS code 334413) in 2023. In addition, the industry had a high location quotient of 4.15, indicating the Capital Region provides an ideal location for semiconductor manufacturers to expand in the globally competitive field. Lightcast data also show that these jobs were relatively high paying, with an average annual wage of $151,000, more than double the region’s all-industry average wage.
GlobalFoundries
The rise of semiconductor manufacturing in the Capital Region began in the early 2010s, which coincided with expansions at the ANC and the emergence of GlobalFoundries (GF). A 2018 report from the Albany-based Center for Economic Growth (CEG) examined the effects of investments by the state and GF in the region’s nanotechnology sector. The report cited the creation of 9,000 direct jobs. Spin-off jobs — primarily in construction- and component-related industries — were estimated at 60,000-80,000.
Growth at GF alone greatly exceeded expectations. They originally pledged to create 1,200 jobs. According to the 2018 CEG report, GF created 3,500 new jobs and preserved 2,000 existing ones with the 2015 acquisition of IBM’s chip factory in East Fishkill (Dutchess County). The undertone of the report emphasized the necessity of commitment and investment from state, local and federal governments as essential for the industry to avoid stagnation.
In November 2024, GF finalized a $1.5 billion subsidy awarded through the CHIPS and Science Act to support expanding their operations in New York and Vermont. GF will be upgrading and expanding its Fab 8 campus and headquarters in Malta (Saratoga County). In addition to the upgrades needed to increase production, long-term plans call for the construction of a second factory at the campus. New York State will also be providing $550 million in funding from the Green CHIPS Program. In total, GF will be investing $13 billion over the next 10 years towards expansions in Vermont and New York’s Capital Region. GF estimates they will create 1,000 manufacturing jobs and more than 9,000 temporary construction jobs over the course of the projects.
Recent Developments
New York State has partnered with IBM, Micron Technology, Applied Materials and Tokyo Electron to invest $10 billion ($1 billion from the state) towards the new NanoFab Reflection building at the ANC. This announcement came about 10 months before the site was designated the NSTC flagship facility. The investment is expected to directly create “at least” 700 new jobs over the next few years and retain thousands more.
In September 2024, IBM signed a long-term lease expanding its footprint in the ZEN building at the ANC. The space will accommodate an additional 150-300 workers at the site, where IBM conducts its semiconductor R&D.
The Northeast Regional Defense Technology Hub, known as NORDTECH, is a coalition of public and private sector entities from across the state. The coalition consists of NYCREATES; UAlbany’s College of Nanotechnology, Science, and Engineering; Cornell University; RPI; and IBM. NORDTECH is one of eight regional hubs that comprise the U.S. Microelectronics Commons program. Over the past two years, the partners have been awarded $80 million from the CHIPS and Science Act to develop new semiconductor technology for the U.S. Department of Defense.
Conclusion
The Capital Region’s robust nanotech sector — including both its R&D and manufacturing firms — is as important to the future of the country as it is to the local economy. As a growing sector with thousands of high-wage workers, it is poised to be a long-term catalyst for the Capital Region economy.
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 In October 2024, New York State’s seasonally adjusted private sector job count decreased over the month by 800, or less than 0.1%, to 8,391,200. In addition, the state’s seasonally adjusted unemployment rate held steady at 4.4% in October 2024, while New York’s seasonally adjusted labor force participation rate was unchanged at 61.2%.
Capital
Over the past year, the private sector job count in the Capital Region rose by 900, or 0.2%, to 441,000 in October 2024. Job gains occurred in the following sectors:
- education and health services (+4,200)
- manufacturing (+200)
Job losses occurred in the following sectors:
- trade, transportation and utilities (-1,300)
- leisure and hospitality (-700)
- information (-500)
- financial activities (-400)
- natural resources, mining and construction (-300)
- other services (-300)
Central NY
The number of private sector jobs in the Syracuse metro area increased over the past year by 2,100, or 0.8%, to 261,200 in October 2024. Job gains occurred in the following sectors:
- education and health services (+2,100)
- professional and business services (+600)
- natural resources, mining and construction (+400)
- manufacturing (+200)
The largest job losses occurred in the following sectors:
- leisure and hospitality (-400)
- information (-300)
- trade, transportation and utilities (-300)
Finger Lakes
From October 2023 to October 2024, the number of private sector jobs in the Rochester metro area rose by 8,700, or 1.9%, to 463,000. The largest job gains occurred in the following sectors:
- education and health services (+8,600)
- leisure and hospitality (+1,200)
- financial activities (+500)
The largest job losses occurred in the following sectors:
- professional and business services (-900)
- information (-300)
- other services (-200)
- trade, transportation and utilities (-200)
Hudson Valley
Over the past year, the number of private sector jobs in the Hudson Valley grew by 9,400, or 1.1%, to 828,900 in October 2024. Employment gains occurred in these sectors:
- education and health services (+9,400)
- other services (+2,400)
- leisure and hospitality (+900)
- financial activities (+200)
Job losses occurred in the following sectors:
- natural resources, mining and construction (-1,200)
- trade, transportation and utilities (-1,000)
- professional and business services (-800)
- information (-500)
Long Island
For the year ending October 2024, the number of private sector jobs on Long Island increased by 13,500, or 1.2%, to 1,172,500. Job gains occurred in the following sectors:
- education and health services (+13,000)
- leisure and hospitality (+5,100)
- natural resources, mining and construction (+2,700)
- other services (+400)
Job losses occurred in these sectors:
- professional and business services (-4,400)
- trade, transportation and utilities (-1,500)
- financial activities (-1,200)
- information (-300)
- manufacturing (-300)
Mohawk Valley
For the 12-month period ending October 2024, the number of private sector jobs in the Mohawk Valley region increased by 1,000, or 0.7%, to 143,600. The following sectors had the largest over-the-year employment gains:
- education and health services (+900)
- trade, transportation and utilities (+300)
The largest job loss occurred in the following sector:
New York City
The private sector job count in New York City rose over the past year by 75,400, or 1.8%, to 4,210,300 in October 2024. Job gains occurred in these sectors:
- education and health services (+85,200)
- leisure and hospitality (+16,600)
- trade, transportation and utilities (+1,200)
Employment losses occurred in the following sectors:
- natural resources, mining and construction (-11,300)
- information (-8,100)
- financial activities (-5,700)
- other services (-1,300)
- manufacturing (-1,200)
North Country
The number of private sector jobs in the North Country region rose over the year by 1,000, or 0.9%, to 111,500 in October 2024. Job gains were greatest in the following sectors:
- trade, transportation and utilities (+400)
- education and health services (+300)
- leisure and hospitality (+300)
- professional and business services (+200)
Southern Tier
For the 12-month period ending October 2024, the number of private sector jobs in the Southern Tier region decreased by 500, or 0.2%, to 217,700. Job gains occurred in the following sectors:
- natural resources, mining and construction (+400)
- leisure and hospitality (+300)
- private education and health services (+200)
Job losses were greatest in the following sectors:
- trade, transportation and utilities (-600)
- manufacturing (-300)
- professional and business services (-300)
Western NY
Over the past 12 months, the private sector job count in the Buffalo-Niagara Falls metro area rose by 2,100, or 0.4%, to 472,000 in October 2024. The greatest job gains occurred in the following sectors:
- education and health services (+4,000)
- natural resources, mining and construction (+800)
Job losses were greatest in the following sectors:
- professional and business services (-1,000)
- trade, transportation and utilities (-600)
- leisure and hospitality (-500)
- financial activities (-300)
- other services (-300)
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