Tourism, technology, international trade and Hollywood forecast as leading economic recovery industries

 LAEDC Mid-year Forecast Shows Improving Economic 

Picture and Job Growth in 2011

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Los Angeles County’s entertainment, tourism and international trade sectors
will lead a “measured recovery,” but housing remains an issue

Dr. Nancy Sidhu, LAEDC

            Los Angeles —In a new report released today, the Los Angeles County Economic Development Corporation (LAEDC) projects the U.S. economy will grow by 3.1 percent in 2010 and by 2.9 percent in 2011 after contracting by 2.4 percent in 2009. The report also shows that employment will grow through year end 2010, and the nation’s unemployment rate will decline slowly, reaching the nine percent range by the end of 2011.

            According to the “2010-2011 Economic Forecast and Industry Outlook: Mid-Year Update” report produced by the LAEDC’s Kyser Center for Economic Research, California’s recovery will be led by tourism, international trade, technology, and television and film production.

            “We are seeing a measured recovery under way,” said the Kyser Center’s Chief Economist and report co-author, Dr. Nancy Sidhu. “Automotive and housing-related purchases and business investment in equipment will contribute to the recovery as well, but consumer spending holds one of the keys to the overall economic outlook.”

            Tourism will see an increase in 2010 and 2011, as more people visit the region and stay in hotels in the area. The outlook for the Los Angeles region’s large tourist industry is improving, albeit slowly. Most local theme parks, such as Universal Studios Hollywood, Knott’s Berry Farm and Disneyland and Disney’s California Adventures, have new attractions opening this year or plans for major park improvements. With the opening of the new hotels at L.A. Live, the City of Los Angeles has booked several major business shows. In Los Angeles County, the hotel occupancy rate is about 69.7 percent compared with 65.5 percent in 2009.

The region’s famed motion picture/television production industry got off to a good start this year as well. Domestic box office receipts were up strongly over the year, the state film production incentive plan was well received, and television networks, both broadcast and cable, produced a number of pilots and series. Jobs in the entertainment industry started to rebound at the end of 2009, and for 2010, an increase of 16,900 jobs is estimated in the motion picture and sound recording sector in Los Angeles County..
For full story visit: http://bit.ly/9p622a

The SoCal's Most Trust Economist in media and business circles - Jack Kyser, LAEDC retires

Jack Kyser, LAEDC

LAEDC will continue to provide the region’s most up-to-date and timely economic information, analysis and forecasting under the ongoing leadership of Chief Economist, Dr. Nancy Sidhu

Los Angeles — Jack Kyser, the Los Angeles County Economic Development Corporation’s (LAEDC) Founding Economist, today announced his retirement effective June 30th after nearly 30 years as the chief interpreter of the L.A. County economy. Kyser will retire from full time work, but will remain as a consultant to the organization.
The LAEDC’s economic research department, the Kyser Center for Economic Research, will continue under the leadership of Chief Economist, Dr. Nancy Sidhu, to provide critical economic analysis and insight on topics related to the L.A. County economy, as well as produce unbiased analytical research about the industry sectors leading the Southern California five-County economy.
“It was the right time to retire as the department has never been stronger in terms of its economic research capabilities than it is now,” said LAEDC Founding Economist Jack Kyser. “The department is in good hands under Nancy’s leadership. She has done an extraordinary job leading the team and will continue to provide important analyses, opinions and interpretations about the region.” For the full story, bios and images visit:
Visit: http://www.mayocommunications.com/2010-NEWS%20RELEASES/NR-336.htm

LAEDC Study Concludes Redbox’s $1 DVD New-Release Rentals Could Result in $1 Billion in Entertainment Industry Losses

Ripple Effect of Lost Revenues in Southern California Could Cost More Than 9,280 Jobs and $1.5 Billion in Economic Output, Along With Reduced Contributions to Guild and Union Pension Plans

Los Angeles – The Los Angeles County Economic Development Corporation (LAEDC) has unveiled a new economic study entitled “The Economic Implications of Low Cost DVD Rentals” which illustrates the negative impact that low cost, new-release DVD rentals could have on the Entertainment industry and the Southern California economy. 

The LAEDC study, which utilizes the Redbox model of $1 DVD rentals available at the street date, shows the ripple effect of $1 billion in lost revenues to the domestic home video industry in the Southern California region – the entertainment capital of the world – would lead to an additional $500 million in reduced economic activity.  The loss of motion picture production in and around Los Angeles would result in the loss of more than 9,280 jobs with annual earnings of almost $395 million, according to the LAEDC’s study.

“The economics of the motion picture industry are based on exclusive release windows which allow price differentiation - that is - some earlier transactions take place at higher price points," said Gregory Freeman, vice president of Consulting and Economic Policy for the LAEDC.  "Redbox, or any other distributor that weakens the release window model, could reduce overall industry revenues.  Lower revenues will likely lead to lower production activity, hurting the Southern California economy.”       

Of the 9,280 jobs, more than half of the losses will occur in the Information Sector, the LAEDC found.  In addition to motion picture and sound recording industries, this sector includes publishing industries, radio and television broadcasting, telecommunications industries and Internet service providers.  Other industries impacted will be retail trade, accommodation and food services, health care and social assistance, professional, scientific and technical services, and manufacturing, among others.  

For the full story and LAEDC Study link visit: http://tinyurl.com/yeqcw94
 

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