ANNUAL REPORT FISCAL YEAR 2010Georgia Department of Economic Development

Dear GDEcD partners,

The 2010 fiscal year marked a time of noteworthy accomplishments in the face of some very significant challenges we confronted in the state of Georgia, and around the world. Put simply, we have been charged to do more with less, and Georgia’s results from this fiscal year show our commitment to meeting that challenge. In all of our economic development divisions, we have bottom line success stories generated by new jobs and investments made all around Georgia.

Through the valuable partnerships we share with companies and communities statewide, our team of economic development professionals continued the work of marketing Georgia to the world. From industries spanning renewable energy to food processing, Georgia took noticeable strides to showcase the state’s vast amount of competitive assets to bring new companies to Georgia, and helped existing ones expand in meaningful ways. All told, Georgia attracted companies that invested $3.74 billion, creating 19,627 jobs, an increase of 15.7 percent, in communities throughout our state. This is almost a 47 percent increase from the last fiscal year.

Tourism continued to successfully attract visitors to our state, in spite of a national trend of decreased tourist expenditures. Georgia was also on the minds of 689,000 international visitors this fiscal year, ranking the state second in the nation in international visitor growth.

The 2008 Georgia Entertainment Industry Investment Act remains the centerpiece of the state’s strategic assets for the entertainment industry, and has kept Georgia at or near the top of the nation’s list of most desirable locations for film and television productions. Our state welcomed 335 productions in FY10, with combined production budgets increasing from $647.6 million in FY09 to $759.3 million in FY10. The entertainment industry’s economic impact in the state totaled $1.4 billion, a 28 percent increase from the previous year.

The task set before us is a critical one, and I am confident in our team’s ability to continue to successfully work toward our mission. I am proud that our GDEcD team brought to bear its best efforts for Georgia during fiscal year 2010, and I am assured that many more successes are in store in 2011 as we join with our partners to bring jobs and investment to Georgia.

Sincerely,

Heidi GreenCommissioner

1

GEORGIA DEPARTMENT OF ECONOMIC DEVELOPMENT

OUR VISION is to be the pre-eminent economic development team in the world — a unique public and private partnership working together for the state of Georgia.

OUR MISSION is to strategically deliver economic development throughout the state by: •Attractingnewbusinessinvestment •Supportingtheexpansionofexistingindustryandsmallbusinesses •LocatingnewmarketsforGeorgiaproducts •Attractingtouristsfromwithinandoutsidethestate •PromotingGeorgiaasadesirablelocationforentertainmentbusinessesandprojects •Partneringwithstakeholderstooptimizeresults

We accomplish these goals by working as a team, being accountable, building relationships, delivering measurable results, bringing value to our customers, acting with integrity and being proactive and strategic.

2

FY10 HIGHLIGHTS

All three GDEcD divisions experienced significant successes despite a challenging economic environment. In addition to creating jobs and investment in the state through business and tourism growth, the department’s marketing outreach extended the Georgia brand nationally and throughout the world, ensuring the state outpaced its competitors as the best choice for travel and business investment. The accomplishments noted on this page are detailed further in the pages to follow.

GLOBAL COMMERCE DIVISION

Economic Impact •Companiesinvested$3.74billionincommunities

around the state, a 46.7% increase from FY09, and created 19,627 jobs, an increase of 15.7%.

•GlobalCommerceworked337projectsinFY10,increasing from 327 in FY09. Expansions of existing Georgia businesses accounted for 64% of these projects and created 57% of the total number of jobs and 40% of the total investment.

•21%ofFY10investmentsweremadebyinternational companies, representing 4,519 jobs and $747 million in investment.

•GDEcD’sInternationalTradeteamassisted235trade deals in 50 countries valued at $21.3 million, an increase of 7% from the previous fiscal year.

•TheGeorgiaCentersofInnovationtransitioned84companies into viable projects. These companies have the potential to create more than 30,000 high-wage jobs and invest $5.5 billion in the state.

Marketing Efforts •DuringFY10,GlobalCommerceteammembers

attended 118 trade shows. Of these, 73 were domestic and 45 were international. All six strategic industries were represented.

•Intotal,23missionsvisited16countries,sixofthem Governor-led missions, while 50 international delegations from 20 countries were received by GDEcD.

TOURISM DIVISION

Economic Impact •ThetravelindustryinGeorgiagenerated$19.4

billion in tourist expenditures last year despite

record drops experienced by the national industry due to the economy. Tourism expenditures decreased 7.9% nationally, while in Georgia the decrease was only 6.6%.

•Tourismgeneratedalmost$1.5billioninstateandlocal tax revenue.

•Georgiawasthesecondfastest-growingdestination in the U.S. for international travelers, with a 9% increase.

•Georgiaranks8thintheU.S.forspendingbydomestic travelers.

•HotelreservationsmadeattheVisitorInformationCenters generated almost $2 million.

Marketing Efforts •ExploreGeorgia.orgexperienceda45%increasein

website traffic, totaling 1,018,008 visits. •101internationaltouroperatorsand332domestic

operators are now offering Georgia tours to consumers.

•156communitieswereassistedbyregionalandproduct development staff.

•750,000travelguidesweredistributed.

FILM, MUSIC & DIGITAL ENTERTAINMENT OFFICE

Economic Impact•Investmentsinthestatebyentertainment

companies have surpassed all previous highs, with more than $759 million invested in FY10, an increase of 440% over FY07.

•InFY10,335projectslocatedinGeorgia,withanaggregate economic impact of $1.4 billion in the state. Just three years prior in FY07, the economic impact was $241 million.

•Investmentbythegameindustryhastotaledover$300 million dollars since 2005, with an economic impact of $535 million dollars.

•Over50Georgiacountieshaveexperiencedthebenefits of film and television production in their communities since 2008.

Infrastructure Growth •InFY10,morethanadozencompaniesopened,

expanded or relocated facilities to Georgia. •EUE/ScreenGemsenteredintoa50-yearlease

with the City of Atlanta (with an option to renew) todeveloptheLakewoodFairgroundsproperty,and is in the process of building additional studios on the site, including the construction of a 37,000-square-foot dividable stage that will be one of the largest in the United States.

3

MISSION

To generate economic development throughout the state by: •PromotingGeorgia’seconomicadvantagesand

opportunities to companies around the world •Attractingnewbusinessinvestmentandincreasing

the state’s GDP •Increasingaboveaveragewageopportunitiesfor

Georgians •Supportingtheretentionandexpansionof

Georgia’s existing industry •Encouragingthegrowthanddevelopmentof

Georgia’s entrepreneurs and small businesses •LocatingandgrowingnewmarketsforGeorgia

products and services

MILESTONES OF FY10

Reorganization •TheGlobalCommerceteamunderwenta

reorganizationthatdividedprojectmanagers into industry-based teams, consolidated two regional teams into one 12-region unit and created account managers for assisting industry teams with marketing, communications and creative requests.

Cuba •InJune2010,GovernorPerdueledatrade

delegation of 41 business leaders to Havana, Cuba. The mission, whose purpose was to strengthen business relations between Georgia and Cuba, featured representatives from Georgia’s agriculture, forestry, medical equipment, telecommunications, and shipping industries. Business leaders, government officials and representatives of the Ports Authority met with key purchasing officials within the Cuban government during the trade mission. In total, there were 23 missions to 16 countries in FY10, six of which were Governor-led missions.

Dubai Airshow •InNovember2009,GovernorPerdueandthirty

Georgia representatives traveled to the UAE for the Dubai Airshow. GDEcD sponsored a booth inside the exhibition hall and a “chalet” outside for meeting with prospects.

•Theshowattractednearly900exhibitorsfrom50countries and 50,000 visitors.

•TheUAEhastraditionallybeenoneofthekeyexport markets for aerospace companies based in Georgia. The state of Georgia registered an exponential increase in its exports to the UAE, from $4.3 million USD in 2007 to $82 million USD in 2008.

China •TheGlobalCommerceteamcontinuedto

increase Georgia’s presence in China with two commissioner-led investment seminar missions to five cities.

Budget reduction •TheGlobalCommerceteamfaceditslargestbudget

cut in FY09 (18%) and continued to face additional cuts in FY10 with an additional 7% cut during FY10. The FY11 budget has started at 3% less than the FY10 fiscal year.

DIVISION RESULTS

The following pages show a detailed statistical overview for Global Commerce’s fiscal year accomplishments. •FiveIndustrySectorTeams:Aerospace,Defense

& Advanced Manufacturing; Agribusiness, FoodProcessing&Logistics;HealthSciences&Advanced Technologies; Corporate Solutions; and Innovation & Small Enterprise

•ThreeInternationalTeams:InternationalInvestment, International Trade and Protocol

•ExistingIndustryandRegionalRecruitment •CommunityandExternalAlliances

PROJECTS TEAMSEach year hundreds of companies announce major expansions and relocations to Georgia. The Department of Economic Development tracks and records only those projects that required assistance from the state. This assistance comes in many forms: site selection, incentives review, grant awards, infrastructure, workforce training, labor recruitment, etc. The following section shows a cumulative analysis for all industry sector teams as well as the regional team.

4

GLOBAL COMMERCE DIVISION FY10 RESULTS

2006 2007 2008 2009 2010 Announcements 254 281 321 327 337

Jobs 24,660 17,385 19,668 17,467 19,627

Investment $5.76B $2.78B $3.26B $2.55B $3.74B

Leads 945 1,181 1,386 1,402 1,304

PercentofLeads26% 23% 23% 23% 26%toLocations

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010

Jobs

JOBS

0

$1

$2

$3

$4

$5

$6

$7

2006 2007 2008 2009 2010

Investment ($B)

INVESTMENT (in billions)

0

200

400

600

800

1,000

1,200

1,400

1,600

2006 2007 2008 2009 2010

Prospects

PROSPECTS

5

GLOBAL COMMERCE DIVISION

Percentage changes in leads, announcements, jobs and investment from FY09 to FY10: •Leadsdecreased6.9%,whichisindicative

of companies using technology, such as Georgia.org, to self-qualify

•Announcementsincreased2.4% •Investmentincreased46.7% •Jobsincreased11.4%.

Rural Projects •194(58%)ofthe337projectswerelocatedin

rural Georgia (outside of Metro Atlanta, Macon, Savannah, Augusta and Columbus).

•Ruralprojectsaccountedfor10,020(51%)ofallnew jobs announced and $2 billion (57%) of all new investment.

Foreign Direct Investment •72(21%)ofthe337projectswereinternational,

direct foreign investment projects. These 72 projects will create 4,519 jobs (23% of the total) and $747 million (20%) of the total investment.

•Typically,FDIprojectscreatemorejobsperproject and have a high investment number.

NewCompanies •121(36%)ofthe337projectslocatedwerethe

result of start-up companies or companies investing in Georgia for the first time.

Expansions of Existing Georgia Companies •216(64%)wereexpansionsofexistingGeorgia

businesses. These expansions will create 11,026 jobs (56% of the total), and $2.2 billion in investment (58% of the total).

CommunityVisits •DuringFY10,industryteamprojectmanagers

made 650 prospect visits to communities. During these trips, prospects are generally shown various sites or buildings that fit the parameters of their project.

Metro Atlanta42%

Rural58%

Metro v. Rural Projects

METRO V. RURAL PROJECTS

Existing Industry

64%

New36%

Existing Industry v. New

EXISTING INDUSTRY V. NEW PROJECTS

FDI21%

Domestic79%

Foreign Direct Investment (FDI)FOREIGN INVESTMENT (FDI) V. DOMESTIC PROJECTS

6

COMPANY JOBS INVESTMENT COUNTY TYPE JBS SA (Pilgrim’s Pride) 1,400 $30 million Coffee Expansion

Dendreon N/A $70million Fulton Expansion

Mitsubishi Power Systems Americas, Inc.

500 $325million Chatham New

GEEnergy 400 $15million Cobb New

ConvergentERS 392 $3.5million Richmond New

Colgate-Palmolive 350 $90million Douglas New

MAGESOLAR 350 $30million Laurens New

FirstData 350 $5million Cobb New

BrightIdeasLLC 350 $4million Gwinnett Expansion

Wamar International, Inc. 300 $4.5 million Fulton Expansion

LARGEST PROJECTS LOCATED IN FY10

7

GLOBAL COMMERCE DIVISION

GLOBAL COMMERCE TEAMS

The following teams focus on new investment oppor-tunities for Georgia. These project managers develop industry-specific project leads and recruit companies to Georgia, working in partnership with the state’s Centers of Innovation and communities around Georgia.

AEROSPACE, DEFENSE AND ADVANCED MANUFACTURING TEAMThese eight professionals work with companies specializinginaerospace,defenseandadvancedmanufacturing (including automotive) as well as textiles, paper, housing and chemicals. These are primarily new investment opportunities for Georgia in these industries.

AGRIBUSINESS, FOOD PROCESSING AND LOGISTICS TEAMThese seven professionals work with companies specializinginagribusiness,foodprocessing,energyand logistics. These are primarily new investment opportunities for Georgia in these industries.

CORPORATE SOLUTIONS TEAMThese four professionals work with headquarters relocation projects as well as financial services companies and call centers.

HEALTH SCIENCES AND ADVANCED TECHNOLOGIES TEAMThese four professionals work with companies in the strategic industries of health sciences, information technology, solar energy components, digital media and other high-tech products.

Announcements

Jobs

Investment

Leads

Community visits

165% of total

1,5888% of total

$351MM9% of total

193

15% of total

15324% of total

Announcements

Jobs

Investment

Leads

Community visits

206% of total

4,22222% of total

$468MM13% of total

128

10% of total

16525% of total

Announcements

Jobs

Investment

Leads

Community visits

175% of total

1,7159% of total

$244MM7% of total

91

7% of total

8213% of total

Announcements

Jobs

Investment

Leads

Community visits

185% of total

1,4667% of total

$328MM9% of total

143

11% of total

7712% of total

8

EXISTING INDUSTRY AND REGIONAL RECRUITMENT TEAMThese twelve regional staff members work with Georgia’s existing companies to help them grow, identify expansion opportunities and work new investment projects specifically targeted for their region. Their regional knowledge comes from living and working in these communities and provides a unique advantage to their clients.

INTERNATIONAL INVESTMENTS TEAMThis team is comprised of seven professionals in Georgia and professional staff in the following international offices: China, Germany, Japan, Korea, Canada and the United Kingdom. Their language and cultural expertise provide an advantage to companies seeking foreign direct investment in the United States. These project managers serve as Georgia’s frontline recruiters and project lead developers.

Announcements

Jobs

Investment

Leads

Community visits

3510% of total

1,3167% of total

$391MM10% of total

138

11% of total

17327% of total

9

Announcements

Jobs

Investment

Georgia Companies Assisted

Leads

22567% of total

8,90545% of total

$1.9B51% of total

1,409

61147% of total

CENTERS OF INNOVATIONThe Centers of Innovation focus on Georgia’s strategic industries(Aerospace,Agribusiness,Energy,LifeSciences,LogisticsandManufacturing)tohelpsmall,innovative Georgia companies grow. They provide high-growth Georgia companies access to university levelresearch,productcommercialization,industrynetworking, investors and funding services. Once the project reaches a viable stage, it is transitioned to the appropriate industry team. Innovation projects require technical expertise and typically require more assistance than traditional projects; however, they create very high-quality, high-paying jobs.

CENTERS OF INNOVATION AEROSPACE AGRIBUSINESS ENERGY LIFE SCIENCES LOGISTICS MANUFACTURING

Projects transitioned to industry teams

24 22 15 0 5 18

Innovation-based projects in the pipeline

13 57 59 15 24 29

Potential jobs 958 1,719 25,518 190 146 1,507

Potential investment $682MM $518MM $4.4B $24MM $19MM $306MM

Technical assistance provided to industry teams

5 7 3 0 1 1

10

INTERNATIONAL TRADE TEAMThis team of eight works closely with Georgia’s internationaltradeofficeslocatedinBrazil,Canada, Chile, China, Germany, Israel, Mexico, and the United Kingdom to help companies export.Exporting creates twice as many jobs as domestic trade. For every job created in making the productor providing a service, another job is created in getting the product to market.

DEAL HIGHLIGHTS•Tradehelpedcompaniesclose235deals.•48%ofthesedealswerefromcompanieslocated

outside of metro Atlanta.•24%ofTrade’skeyclientscloseddealsasaresult

of assistance provided, averaging 2.55 deals per company.

TRADE ASSISTANCE PROVIDED BY INTERNATIONAL OFFICES•60%ofTrade’sdealswereattributedtoGDEcD’s

international offices.•53%ofTrade’skeyclientsreceivedassistancefrom

Georgia’s international offices.•60%oftheinternationaltradeleadsprovidedto

Georgia companies were generated by GDEcD’s international offices.

COMPANY HIGHLIGHTS•Tradeassisted832companies.•83%ofTrade’sclientshad100employeesorless.•Tradeassistedcompaniesin120Georgiacounties,

52% of which were outside of metro Atlanta.

0

50

100

150

200

250

2006 2007 2008 2009 2010

Number of Deals Done

NUMBER OF DEALS DONE

11

COMPANY SIZE NUMBER OF DEALS 0 - 19 Employees 108 (46%)

20 - 100 Employees 85 (36%)

101+ Employees 42 (18%)

0

100

200

300

400

500

600

700

800

900

2006 2007 2008 2009 2010

Companies Served

COMPANIES SERVED

INTERNATIONAL MISSIONS

During FY10, the Global Commerce division worked closely with the Business Communications team to welcome nearly 50 incoming dignitaries from nations across the globe. Furthermore, these teams traveled abroad to 16 nations on four continents, participating in 23 international business missions.

Georgia hosted public and private figures from countries such as China, Korea, Russia, Ireland, Kenya, Canada, Italy, UK, France, Germany, Panama, and Portugal. These representatives were visiting Georgia for the purpose of business missions, groundbreaking ceremonies, meetings with Governor Perdue, and other business summits.

Out-bound international business missions are what connects the state of Georgia globally and places it on the world map. From the beginning of FY10, the Global Commerce team undertook a variety of inter-national missions.

•July2009 •TradematchmakingtriptoToronto,Canada •SEUS-CanadainNewfoundlandandLabrador,

Canada

•August2009 •Commissioner-ledinvestmentpromotion

mission to China

•September2009 •GeorgiaPortsAuthorityTradeMissionto

Panama •AmericasCompetitivenessForumpromotion

in Chile

•October2009 •GeorgiaAlliesTradeMissiontoFrance

and Italy •SoutheastU.S./JapanAssociation

(SEUS/Japan)meeting

•November2009 •MedicatradeshowinGermany •DubaiAirshowintheUAE •BIO-EuropetradeshowinAustria

•January2010 •DomotextradeshowinGermany

•February2010 •MetroAtlantaChamberMissiontoIndia

(focus on bioscience companies)

•March2010 •ExpoManufacturatradeshowinMexico

•June2010 •TradeMissiontoTurkey •GeorgiaTech-Lorraine20thanniversary

in France •GlobalPetroleumShowinCanada •Governor’sTradeMissiontoCuba •Governor’sTradeMissiontoArgentina

and Uruguay •Commissioner’sMissiontoChina

12

13

ADDITIONAL PROGRAMS WITHIN GLOBAL COMMERCE

The programs of two additional teams of professionals support the work of business recruitment and retention projects and international trade deals. Overall, these teams support the Global Commerce mission to bring jobs and investment to Georgia through a variety of programs and activities.

INTERNATIONAL BUSINESS LIAISONThepositionofInternationalBusinessLiaison(IBL)wascreatedtwoyearsago,withinGDEcD’sInternational Operations team. Georgia is the firststateintheU.S.torecognizethevalueandimportance of the various international executives who move to Georgia in order to manage their business operations and create jobs for Georgians.

This position raises Georgia’s profile among international businesses, and the team member’s international experience is key to helping roll out the welcome mat to companies and executives thatarenewtoGeorgiaandtheU.S.TheIBL,incooperation with project managers, helps business executives surmount challenges in the relocation process. Services include assistance with driver’s licenses, banking options, housing and real estate, schools and cultural opportunities. Also, connections are made with bi-national chambers, diplomatic representatives and other international companies, all to help our newcomers in expanding their personal and professional networks. Since the position was established, over 70 international families have been successfully assisted with their transition into Georgia.

COMMUNITY & EXTERNAL ALLIANCESComprisedoftwoprofessionals,thisteamspecializesin assisting Georgia’s entrepreneurs and small businesses through programs such as: •ThebiannualEntrepreneurSummit,aneducational

and networking opportunity for community leaders and small companies

•Webtoolsandinformation-sharingdesignedtoconnect entrepreneurs to available resources

•Strategicplanningsessionsdevisedtoprovidecommunities with the tools to create an entrepreneur environment

•TheMentorProtégéConnection,aprogramthatpairs small, emerging companies with industry leaders in order to provide support as small businesses grow

The 2010 Entrepreneur Summit was held March 2-3 in Milledgeville. This event serves to highlight Georgia’s successful entrepreneurial climate, offer services and resources for small business owners, provide networking, education, tools, best practices and professional development to local and state leadership and discuss the entrepreneurial climate in today’s economy. It was the fifth of its kind hosted by Governor Sonny Perdue.

DuringFY10,the2008-2009MentorProtégéConnection class celebrated its graduation in Septemberwith29protégécompaniessuccessfullycompleting the program. The 2010 class began in February and has coupled 18 high-profile companies such as Coca-Cola and Turner Broadcasting System with 21 small businesses in various industries.

GEORGIA TOURISM DIVISION FY10 RESULTS

MISSION

To market Georgia as a premier travel and tourism destination through the development of unique tourism products and by providing leisure travel marketing programs that increase visitation and tourist expenditures, thereby creating jobs and an improved quality of life for Georgians. Division members are located in the Atlanta headquarters, as well as in nine regional offices and 11 visitor information centers across the state and in targeted international markets.

GOALS •Increasedeconomicimpactonthestatethroughjobcreationandincreasedtouristexpenditures •IncreasedmarketshareforGeorgiacomparedtootherSoutheasternstates •Anincreaseinvisitationandrepeatvisits •PenetrationofnewmarketswithGeorgiatourismproduct •Creationofnewtourismproductsthatengagenewcommunitiesandbusinessesintourismdevelopmentand

that draw additional visitors to Georgia

14

15

MILESTONES OF FY10

INDUSTRY-WIDE PERFORMANCEThe travel industry in Georgia generated $19.4 billion in tourist expenditures and $816 million in state tax revenue last year despite record drops experienced by the national industry due to the economy. Tourism expenditures decreased 7.9% nationally, while in Georgia the decrease was only 6.6%.* The state ranks 8th in the U.S. for tourism, thanks in part to the strong marketing efforts of the GDEcD staff and the state’s community partners.

INTERNATIONAL VISITATION*International visitors tend to stay longer and spend more in Georgia. Every $1 million in spending from overseas visitors creates 11.5 new jobs, generates more than $333,000 in payroll and generates $123,000 in state taxes. This year we began to see results of an aggressive drive GDEcD began in 2008 to tap into international markets. •Georgiawasthesecond-fastestgrowing

destination for international visitors, with a 9% increase

•Georgiaranked8thintheU.S.forinternationalvisitors

•4ofthelargestoutboundoperatorsinChinaandoneofthelargesttouroperatorsinBrazilnowfeature Georgia tourism product. These countries are among several regions strategically targeted as rapidly-growing international travel markets.

DOMESTIC VISITATION*Georgia ranked 8th in the U.S. in 2009 for spending by domestic travelers, despite having a marketing budget that ranked 23rd.

Thisyear,GDEcDcommissionedLongwoodsInternational, a prominent tourism research firm, to help determine the quantity and demographic profile of domestic travelers to Georgia. This approach helps the Tourism division be strategic with its marketing resources and target travel segments capable of ahighreturnoninvestment.AmongLongwoods’findings: •Anestimated114.3milliontripsweretakentoand

within Georgia by domestic travelers in 2009. 45% of these were overnight trips.

•Theaverageovernighttravelerspent$157perdayin Georgia.

•TheGeorgiatripislongerthanthenationalnorm,consisting of 2.5 nights in Georgia and nearly 2 nightstravellingtoand/orfromthedestination.

•OftheSoutheasternstates,Georgiarankssecond(behind Florida) for total spending by visitors.

*based on most recent 2009 calendar year data

ECONOMIC IMPACTThe tourism industry created more than 234,000 jobs in FY10, with a payroll exceeding $6 billion.

Hotel occupancy in Georgia decreased 8.6% in 2009, but has since begun to rebound. Hotel revenues decreased 12.3%, which is less than the national 14.1% decrease.

SALES & MARKETING OVERVIEW

VISITOR INFORMATION CENTERSThe11state-managedVisitorInformationCenters(VICs)servedasthefirstpointofcontactfor11millionvisitors last year, encouraging them to enjoy Georgia as tourists if they had not already planned to do so.30,000hotelreservationsmadeattheVICsinFY10 generated $1,985,362 in room revenue, directly impacting the economy of local communities.

SALESThe department’s sales team works with tour operatorsandgrouptourorganizerstomarketGeorgia tourism product to consumers. During FY10: •Morethan100internationaltouroperators

carried Georgia information and itineraries. 332 domestic operators were carrying these materials in 2009, the latest year for which these figures are available.

•12,249leadsaboutpotentialGeorgiavisitorsweregenerated at domestic consumer shows.

COOPERATIVE MARKETING GRANTS This program assists communities in reaching a larger audience through marketing projects they may not be able to fund on their own.

GDEcD’s Tourism Division awarded $513,684 in co-operative tourism marketing grants to 41 Georgia communities, convention & visitor bureaus, regional travel associations and other non-profit tourism entities. These grants have a matching component thatenablesrecipientstomaximizethevalueofthegrant. Total state and local investment in the program is estimated at $1.5 million, generating an estimated $6.5 million in economic impact.

PRODUCT DEVELOPMENT The Tourism Product Development team collaborates with communities, other state agencies and industry stakeholders to jointly create new tourism products: either new “bricks and mortar” projects such as attractions or resorts, or new packages that combine existing assets to better reach the marketplace. Regional and product development staff assisted 156 Georgia communities in FY10.

1Those marked * are based on most recent 2009 calendar year data

16

TOTAL VISITOR EXPENDITURES (in billions)

0

$5

$10

$15

$20

$25

TOTAL VISITOR EXPENDITURES

(in billions)

2006 2007 2008 2009

STATE AND LOCAL TAX REVENUE(in billions)

0

$0.2

$0.4

$0.6

$0.8

$1

$1.2

$1.4

$1.6

$1.8

STATE AND LOCAL TAX REVENUE

(in billions)

2006 2007 2008 2009

HOTEL DATA

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

% c

han

ge

FY 2010 HOTEL DATA

Occupancy

Revenue

TOURISM DIVISION

17

EXPLOREGEORGIA.ORG & SOCIAL MEDIA ExploreGeorgia.org, the state’s consumer web site, observed its second anniversary in May 2010. The site has proved a rousing success, with traffic increasing 45% since its launch in 2009. The Tourism division is also actively leveraging the use of social media such as Facebook, Twitter and blogging to reach potential travelers. •ExploreGeorgia.orgwasvisitedmorethan

1 million times in FY10. •Pageviewsdoubled,reaching5,578,908. •Visitsincreased45%inFY10cmparedtoFY09. •Almost70millionbrandimpressionswere

delivered through online media. •Tourism’sfirst-everFacebookcontest,the

“Grand Slam Getaway,” was launched in June 2010 to promote the state’s tourism assets and resulted in doubling Facebook fans in 30 days.

MARKETING INITIATIVES •Thedepartmentdistributed750,000Georgia

Travel Guides. •Tourismlaunchedanewconsumeradvertising

campaign with new creative art that provided greater industry and private sector involvement.

•Onlinemediastrategiesdroveadditionalvisitsduring off-peak seasons and reached last minute travelers.

•Non-webmediadelivered178,344,500brandimpressions -- more impressions than the last 3 years and on a smaller budget.

•Onlinemediadelivered165,321,600brandimpressions through a combination of leading siteslikeAOL,YahooandTripAdvisor,enhancedwith women’s interest and travel sites and Facebook.

•The2010TravelMediaMarketplaceeventbroughtmorethan30travelwriterstoLaGrangeandCoweta County, resulting in comprehensive media coverage for the area and Georgia.

GEORGIA TOURISM FOUNDATION

The Georgia Tourism Foundation provides a vehicle for the public and private sectors to join together in marketing programs neither could attempt on its own, which will attract more visitors and increase the industry’s economic impact throughout the state. This non-profit,public-privateorganizationbringstogetherleaders of the state’s premier tourism destinations to consolidate marketing efforts, pool resources and more effectively promote to vacationers Georgia’s natural beauty, cultural heritage and rich attractions.

In FY10, the Foundation completed the drafting of amarketing/mediaplanofapproximately$15-$18million each year of a combination of public and private funding that would drive an incremental increase of $1 billion in tourist expenditures. The plan would also: •Deliverinexcessof1.4billionconsumer

impressions (current reach is about 100 million+). •Bringanadditional2.1milliontouristsperyear •Generateanadditional$60–65millioninstate

and local tax revenues •Havethepotentialtocreatemorethan12,000jobs

To help facilitate this goal the Foundation will negotiate media buys with Tourism partners (DMOs, CVBs,attractions,lodgingproperties,eventsand festivals and state parks). The goals of this cooperative advertising program are to: •Providemeasurableeconomicimpactto

Georgia by increasing visitation to the state and encouraging tourists to stay longer and spend more

•Leveragetheadvertisingofthemorethan5,000in-state tourism partners, creating opportunities that will either increase their presence in the marketand/orcreatemarketingefficienciesfortheir members

•ProvideGeorgiatourismpartnersopportunitiestoadvertise with GDEcD that they would otherwise not be able to implement

•GeneratequalifiedleadsforGeorgiatourismpartners

GEORGIA FILM, MUSIC & DIGITAL ENTERTAINMENT OFFICE FY10 RESULTS

MISSION

To strategically deliver economic development throughout the state by: •Attractingnewentertainmentprojectsandrelocations •Marketingthestatetoprospectsandcustomers •Encouragingcompetitiveincentivesandprivateinvestment •Supportingthegrowthofindigenousbusinessesandinfrastructure •PromotingGeorgiaasanentertainmentindustrydestinationandpermanentbusinesslocation

18

MILESTONES OF FY10

•EconomicimpactofproductionactivityinGeorgiain FY10 was $1.4 billion, a 28% increase from FY09 and a 440% increase from FY07.

• The2008GeorgiaEntertainmentInvestmentAct (HB 1100) has spawned a tremendous surge in new entertainment productions, relocations and business expansions in the state. Georgia’s entertainment industries are among the state’s fastest-growing industries, employing over 25,000 workers.

• Investmentsinthestatebyentertainmentcompanies have surpassed all previous highs: more than $759 million was invested in FY10 by 335 productions. This is an increase of 440% over FY07. These numbers include only a small portion (music video production) of the total investment and revenue generated by Georgia’s recorded music industry (now #4 in the nation), which is a $1.2 billion dollar per year segment. The music industry has a payroll of over $90 million dollars, employs 9,500 workers in over 900 companies and pays over $54 million in state taxes.

• Georgiahostedfourtelevisionpilotsthathavedeveloped into long-term television series based in the state. These new series include AMC’s highest-ranked show, The Walking Dead,MTV’srebootofthe popular Teen Wolf,VH1’shour-longscriptedseries Single Ladies, and the Discovery Channel’s popular Auction Kings. Georgia continues to be the setting for The CW’s top-rated show Vampire Diaries,Lifetime’stop-ratedshowDrop Dead Diva and BET’s very successful The Mo’nique Show.

• Georgia’svideogameindustryisthrivingandhas developed strong clusters of companies throughout the state. The industry employs over 1500 workers in over 60 companies. More than 1,800 students statewide are enrolled in video game courses or full curriculums. Fifteen Georgia colleges and universities offer some form of video game instruction, with the Savannah College of Art & Design and Georgia Tech offering full-blown graduate degree programs. Investment by the game industry has totaled over $300 million dollars since 2005, with an economic impact of $535 million dollars.

• OnJanuary21,2010,theFilm,Music&DigitalEntertainment Office was awarded the Governor’s Commendation for Excellence in Customer Service.

0

50

100

150

200

250

300

350

400

450

500

FY07 FY08 FY09 FY10

Combined # of productions

COMBINED NO. OF PRODUCTIONS

In FY10, 335 projects located in Georgia, with an aggregate economic impact of $1.4 billion in the state. Just three years prior in 2007, the economic impact was $241 million.

0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

FY07 FY08 FY09 FY10

Economic Impact

ECONOMIC IMPACT(in millions)

19

INFRASTRUCTURE GROWTH

Georgia is particularly positioned for growth in allentertainmentandtechnologysectors.Newinfrastructuredevelopmentismovingforward:EUE/Screen Gems has entered into a 50-year lease with the City of Atlanta (with an option to renew) to developtheLakewoodFairgroundspropertyandisin the process of building additional studios on the site, including the construction of a 37,000-square-foot dividable stage that will be one of the largest in the United State. A new facility, Meddin Studios, has come online in Savannah, with an additional development being considered there. Riverwood Studios in Senoia has recently partnered with Raleigh Studios and Hollywood Rentals to form Raleigh StudiosAtlantaatRiverwood.BoththeSonyTVseries Drop Dead Diva and Warner Bros.’ The Vampire Diaries series have developed significant studio and backlot infrastructure in Peachtree City and Decatur, indicating that they are planning to be in Georgia for the long term.

InFY10,morethanadozencompaniesopenedfacilities in Georgia, expanded in Georgia, or relocated to Georgia. Here is a sampling of the recent infrastructure growth:

STUDIO •EUE/ScreenGems •MeddinStudios,LLC •RaleighStudiosAtlanta@Riverwood •AtlantaFilmStudios

LIGHTING/GRIP/CAMERA •PanavisionCameras •PaskalLighting&GripEquipment •HollywoodRentals •AcmeFilm&Tape •CineproPictures

SUPPORT •IndependentStudioServices(ISS) •TransportationResources •Cinelease

CASTING •FincannonCasting •CorriganJohnstonCasting •MartyCherrixCasting

FINANCIAL SERVICES •GeorgiaFilmTaxCreditsConsultants •EntertainmentPartners,LLC •Cast&Crew

CATERING •CinemaCatering •LaurentsCateringLLC •RoadtownEnterprises

FY10 PRODUCTIONS

More than 50 Georgia counties have experienced the benefits of film & television production in their communities since 2008. Communities that have hostedfilm&televisionprojectsincludeFortValley,Perry,Macon,WarnerRobins,Savannah,Valdosta,Carrollton,Douglasville,Alpharetta,Newnan,Bowersville, Crawfordville, Clarkesville, Griffin, Acworth,VillaRica,Decatur,Norcross,BlueRidge,Atlanta, Dallas, Peachtree City, Senoia, Tybee Island, Blakely,Colquitt,Albany,WestPoint,Lawrenceville,Conyers, Mansfield, Bostwick and many, many more.

20

MOVIES: FEATURE/INDIEThe Last Song PianoPictures/WaltDisneyMy Super Psycho Sweet 16 PsychoSweet16LLC/PopFilmsLife As We Know It S&KPictures/WarnerBrothers The Conspirator AmericanFilmCompany/WildwoodEnterprisesLottery Ticket Sweepstakes/AlconThe Greening of Whitney Brown MagicGypsyLLC Stomp the Yard 2 GottaStep2Productions/RainforestProdDue Date

Classic Films Homecoming Queen

J2 FilmsHall Pass S&KPictures/NewLineBig Mommas: Like Father Like Son ThirdHouseProductions/FoxFor Colored Girls FCGProductions/Lionsgate 96 Minutes NISIMITerminal

Third Street PicturesPanama City

Total Bun ProductionsCourageous

Sherwood PicturesFast & Furious 5

FF5 ProductionsMean Girls 2 ParamountFamousProd/ParamountPicturesMy Super Psycho Sweet 16 II SuperSweet2LLC/PopFilms

TV: SERIES, PILOTS, MOVIESPast Life (4 episodes) BonanzaProductionsPay It Off (21 episodes)

Five BinksHouse of Payne (46 episodes)

House of Payne-TPSIt’s Me or the Dog (16 episodes)

IMOTD IncThe Tyler Perry Show TheTylerPerryShowLLCTime to Laugh

BETThe Mo’Nique Show (150 episodes)

BETChili Project (8 episodes) LittleProductions

Hip Hop AwardsBET

Get Married (45 episodes)Get Married Media

Macy’s Tree Lighting TV SpecialMacy’s

TNT (12 episodes)Black Box

Pit Masters (series)CCM Projects

Sugarloaf(TVpilot) TVMProductionsSoul Train Awards

SunseekerGood Eats (22 episodes)

Be Squared ProductionsVampire Diaries (22 episodes) BonanzaProductionsMeet the Browns (60 episodes) MeettheBrownsLLCAuction Kings(TVpilot)

Authentic Entertainment1-8-7 Detroit(TVpilot)

FTP ProductionsTeen Wolf (TVpilot) NewRemoteProductionsDrop Dead Diva (13 episodes)

Woodridge ProductionsCurb Appeal (13 episodes)

Deliver or Die ProductionsArcher (13 episodes)

Floyd Co. ProductionsReal Housewives of Atlanta (18 episodes) True Entertainment

Franklin & Bash(TVpilot)Woodridge Productions

Almost MarriedBET

Designed to Sell NewParadigmProductionsSwift Justice (220 episodes)

Swift Justice ProductionsThe Walking Dead(TVpilot+5episodes)

TWD ProductionsSingle Ladies(TVpilot) VFU/PopFilmsAuction Kings (12 episodes)

Authentic EntertainmentLet’s Stay Together (11 episodes) BreakdownProductions/BETEx-Mas Carol

Crawfish ProductionsFloyd’s Place(TVpilot) Floyd’sPlaceLLC/TPSFor Better or Worse(TVpilot)

For Better or Worse

ENTERTAINMENT PRODUCTION PROJECTS HOSTED IN GEORGIA IN FY10 (excluding music videos and commercials)

Georgia Department of Economic Development75FifthStreet,N.W.,Suite1200,Atlanta,GA30308-USA

404.962.4000 I georgia.org