Economic Development
Growing a Global Capital
Mayor Villaraigosa is committed to making sure the City of Los Angeles remains the economic engine for the greater Southern California metropolitan region. The five-county region ranks as the 15th largest economy in the world. LA County alone ranks #1 in the nation with $329.4 billion in two-way trade for the Los Angeles Customs District and 500,000 jobs related to trade.
The Villaraigosa plan envisions Los Angeles as a global, commercial capital linking Asia and the Pacific Rim as well as Central and South America to the economies of the United States and the rest of the world. This is even more important as the U.S. economy slows and the value of the dollar falls increasing the attractiveness of U.S. goods abroad. The plan capitalizes on international trade flows that leverage the City’s geographic advantages and diverse population and expands capacity and efficiency of the Port of Los Angeles and the City’s airport facilities in an environmentally responsible manner.
Created the Office of International Trade
The Mayor created an Office of International Trade to cultivate and strengthen relationship with foreign governments and business leaders that will facilitate increased trade with and investment in the City of Los Angeles.
Los Angeles is now benefiting from Mayor Villaraigosa’s earlier trade missions to China, Korea, Japan, El Salvardor and Mexico. In February 2008, the Mayor welcomed Mexican President Felipe Calderón Hinojosa and members of the Mexican delegation to discuss trade opportunities and witness the signing of a Memorandum of Understanding (MOU) between the Mexico Business Council for Foreign Trade, Investment and Technology (COMCE) and the Los Angeles Area Chamber of Commerce.
In 2006, Mayor Villaraigosa led a delegation of over 50 business leaders to China, South Korea, and Japan that secured $300 million in direct foreign investment. In Beijing, the Mayor opened a LA Inc. tourism office, ensuring a permanent welcome for the millions of Chinese tourists who will visit Los Angeles over the next decade. In Japan, the Mayor launched a See My LA advertising campaign in Tokyo-based FamilyMart convenience stores throughout Japan, South Korea, Taiwan, and Thailand.
Tourism at All-Time High
Thanks to an aggressive advertising campaign (http://www.greaterlosangeles.com/), a record 24.9 million travelers visited Los Angeles in 2005, up from 24.3 million in 2004. Visitor spending also increased for the second consecutive year to $12.9 billion. Travel and tourism generated approximately $401 million in local tax revenue. According to the Los Angeles Economic Development Corporation, the tourism industry provides employment for 260,000 area residents, making travel and tourism the second largest non-farm industry in Los Angeles County after direct international trade. More tourists mean more money for the local economy!
According to a 2007 report released by the Los Angeles Economic Development Corporation, one average daily, round-trip, transoceanic flight of wide-body aircraft from LAX generated $623 million in economic output, and sustained 3,120 direct and indirect jobs in Southern California and $156 million in wages.
Mayor Villaraigosa has initiated several capital improvement projects at LAX to attract international carriers, including the $723 million renovation of the Tom Bradley International Terminal with a $140 million in-line baggage security screening system.
Convention Bookings Up
With a new sales force at LA Inc. , the Convention and Visitors Bureau, and driven by the new LA Live development, convention bookings increased from seven in 2005 to 21 in 2006. By the time the books close on FY 2007, more than 40 convention and tradeshow events will be booked and Los Angeles will be one of the leading event and entertainment districts in the nation. Overall the Los Angeles Convention Center is looking at booking 15% more total events in the 2007-2008 FY as compared to the 2006-2007 FY which already saw over 20% more total bookings as compared to the 2005-2006 FY.