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How does USCIS view guest expenditure jobs?

We have heard mixed stories about counting visitor spending jobs for EB-5 hotel projects. What exactly are guest expenditure jobs in terms of EB-5 job calculation? Should we even consider including such jobs in our hotel project job count? How does USCIS view guest expenditure jobs?

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Like any other input-multiplier model, guest expenditure numbers are only as good as the verifiable data which supports them. You will need feasibility studies, and industry data to support your business plan assumptions. Then those inputs can be used for your job report. An experienced EB-5 economist can evaluate your project and determine the proper econometric model to use for your industry, and what inputs and multipliers should be used to get the results you need in terms of indirect/induced job creation.

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    J Bruce Weinman

    Immigration Attorney
    Answered on

    Is this a regional center project? Or a direct investment? You need an economist experienced with EB-5 to prepare your job study if this is a regional center project. If this is a direct investment, then you cannot include any induced jobs.

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    Ed Beshara

    Immigration Attorney
    Answered on

    An experienced EB-5 economist will be able to advise you on these matters. Depending on the economic model used, guest expenditures accordingly will have to be spent on certain category items in order for the required number of jobs to be created.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    "Model-derived jobs" describes jobs that are indirect or induced and are established through the creation of a model, which can involve direct jobs as an input. If the model were based on revenue, then evidence of revenue would need to be provided. In instances where the model-derived "direct" jobs are not specifically identifiable, and are based solely on an output of the model, USCIS will review all evidence submitted by the petitioner pertaining to the input (e.g. revenues, expenditures, construction timeline) used in the I/O model to estimate qualifying job creation to determine if the evidence has shown by a preponderance that the requisite jobs have been created - USCIS Teleconference February 26, 2014. Thus, USCIS really does not have a preference one way or another, but insists that the jobs numbers be proven by preponderance of evidence whichever model is used. If the guest spending or revenue model is being used for the regional center hotel project, then you need to look at where the hotel is being built and whether the market demand for that kind of hotel exists and whether the occupancy projection for that project is realistic.

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