By Britta Schmitz
UNITED NATIONS, 7 December 2016 – The 2016 UN Economic Impact Report has been launched at the UN Headquarters this week. The analysis of the UN’s tremendous impact on the City of New York, based on the year 2014, is part of the initiative The New Yorkness of the UN, a program of the Mayor’s Office for International Affairs.
“The presence of the UN Community in New York City is a testament to our status as a global center,“ said Penny Abeywardena, Commissioner of the Mayor’s Office for International Affairs.
“It is an honor to present this report which illustrates both the value that the UN brings to our city and reaffirms that our great metropolis is the natural home for this important global institution.“
The Impact Report focuses on local spendings and tax revenues brought to the city by UN staff members and associates. The report shows that the UN Community contributed an estimated 3.69 billion dollars in total output to the NYC economy.
Total output is a measure defined by the US Bureau of Economic Analysis. It considers the sales in the economy, including the value of goods and services used your-pharmacies.com in the production process, labor costs, taxes, and business’ return on investment.
Net fiscal benefits by the UN Community were around 56 million dollars, as 110 million dollars in tax revenue was generated by the UN, while NYC had expenses of around 54 million dollars due to the presence of the UN.
These expenses include security, education costs for UN staff members sending their children to public schools, as well as 1 million dollars for the Mayor’s Office for International Affairs.
In 2014, NYC missed out on an estimated 99 million dollars of foregone tax revenues, as around 75 % of all UN employees are non-US nationals and thus not required to pay taxes to the City of New York. Some 2,000 UN diplomats were issued tax exemption cards. As a consequence, around 1 million dollars in sales and use tax were unrealized.
The UN Community directly employs almost 16,000 people in NYC, some 12,000 of them reside in one of the five boroughs, spending their money locally and indirectly supporting jobs in the city. The report stresses that some 25,000 full- and part-time jobs in the city are attribute to the presence of the UN Community, through direct employment and the number of jobs its presence is estimated to support.
In 2014, the UN has issued more than 30,000 accreditations for visitors attending meetings and conferences. With each of them staying an estimated 14 days in NYC, these visitors brought approximately 258 million dollars in form of accommodation, transportation, food and personal spendings to the city. Another 212,421 temporary passes (one to four days) were issued for visitors attending meetings, seminars and Model UN conferences.
Back in 1945, NYC competed with other cities to host the UN Headquarters, which so far had resided in London. The Rockefeller family donated 8.5 million dollars (103.2 million dollars in 2014 dollars) to build the UN Headquarters on the waterfront of Turtle Bay on the East River.
“New York is a center where people from all lands have always been welcomed and where they have shared common aspirations and achievements. It is my belief that this City affords an environment uniquely fitted to the task of the UN and that the people of New York would like to have the UN here permanently,” John D. Rockefeller Jr. said in 1946.
Over the past seventy years that the UN has been located in New York, its economic impact has grown. For example, between 1989 and 2014, the number of Missions to the UN rose from 159 to 193 Permanent Missions, directly accounting for an additional 950 jobs. In total, 4,990 staff members were employed by the Missions in 2014.
“The Organization brings enormous value to its host city, and UN staff members actively contribute to the communities where they live, while the City continues to support our diverse UN family. I thank Mayor de Blasio and all New Yorkers for their steadfast support. We look forward to continuing to work together towards our shared goals of global peace, harmony and prosperity for all,” said UN Secretary-General Ban Ki-moon.