Atlantic City CVA Supports Landmark Study

Study Shows Strong ROI of Business Travel

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. September 23, 2009

SEPTEMBER 23, 2009 - A first-ever study by the respected Oxford Economics firm offers proof that business travel impacts the bottom line of business. The landmark research shows that for every dollar invested in business travel, businesses experience an average of $12.50 in increased revenue and $3.80 in new profits. Supporting research from the Center for Exhibition Industry Research (2009) also shows that the average cost of identifying a potential customer at an exhibition is $215, while it costs $443 to identify a potential customer outside of an exhibition.

Jeff Vasser, president of the Atlantic City Convention & Visitors Authority (ACCVA) agrees that, "This further solidifies the notion that business travel in general, and conventions and meetings in particular, can play a large role in economic recovery. We've tracked the impact of delegate spending on the Atlantic City area for years, and now we have a full picture of how business travel positively benefits the businesses that hold their trade shows, meetings and conventions here."

In 2008, bookings at the Atlantic City Convention Center brought more than 520,000 attendees, who used nearly 141,000 room nights and generated $231.6 million in estimated delegate spending to the Atlantic City area. According to Vasser, "We now know that the economic impact of this type of travel is much larger than the impact on our local economy alone. It also spreads to the businesses that send exhibitors and delegates."

Conversely, the research also shows that curbing business travel can have a strong negative impact on corporate profits. The average U.S. business would forfeit 17 percent of its profits in the first year of eliminating business travel and it would take more than three years for profits to recover. "It's clear that businesses should not cut their travel and convention budgets when times get tough," Vasser said.

The Oxford Economic team's comprehensive research spanned 13 years and examined 14 economic sectors. The findings were also reviewed by Dr. Martin A. Asher, adjunct professor of finance at the Wharton School. It is sponsored in part by the Destination & Travel Foundation, a combined effort of the U.S. Travel Association and Destination Marketing Association International. For additional information about the study, visit http://www.ustravel.org/pressmedia/pressrec.asp?Item=995.

The Atlantic City Convention & Visitors Authority serves as the destination's principal marketing arm, stimulating economic growth through convention, business and leisure tourism development. The Authority oversees the management of the Atlantic City Convention Center and Boardwalk Hall. The Authority is the first destination marketing organization in New Jersey to achieve prestigious Destination Marketing Accreditation by the Destination Marketing Association International. For complete Atlantic City information, visit www.atlanticcitynj.com. Also follow us on Facebook at:

www.facebook.com/AtlanticCityNJ