SE European Markets GREECE – CROATIA - MONTENEGRO Dr. Aris Ikkos

Macro data FutureBrand ranks Greece as No. 5 Country Brand in Tourism CROATIA MONTE-NEGRO Currency € HRK (EU: 2011) Rank (arrivals/revenue) 15 / 10 18/ n/a Top-growing tourism destination WTTC competitiveness 24 38 61 Per Capita 2007 ($) 27,360 15,355 4.189 Arrivals 2006 16 mn 10 mn 1 mn Rev/tourist ($) 1,073 881 n/a Tourism Economy ($) 51.8 mn 13.7 mn 0.7 mn 10-yr growth forecast 4% 8% 11% Coast (km)/Blue Flags 16,000 / 404 5,000 / 98 253 / 15 FutureBrand ranks Greece as No. 5 Country Brand in Tourism

Greece, Croatia, Cyprus, Turkey First IPO participants have seen shares appreciate by 100% since Dec. 2005 So far raised € 400 mn (100 + 300) – to be invested by end of 2007 Indicators Spain, Portugal Greece, Croatia, Cyprus, Turkey Tourist arrivals (2004) 65 million 43 million Tourist arrivals 2003 - 2005 + 3% + 10% Area 597,000 m2 978,000 m2 Shoreline 6,757 km 27,359 km International airports (2004) 18 17 Number of Blue Flag beaches 669 699 Golf courses (2004) 333 20 Completed Golf Resorts (2004) 200+ (estimated) 1

Greece Holiday Homes The Case for Athens 5* Hotels and Resorts

Athens airport traffic Consistently ranked among top airports worldwide

The case of Athens : a modern city with things to do In excess of € 1 bn invested in hotel renovations for 2004 Olympics Planned Conference Centre main auditorium : ~ 3.000 pax - can be split into 2 of 2.000 and 1.000 pax 2 auxiliary auditoria : 450 pax each break out rooms : total capacity 2.100 pax covered lobby / exhibition area : 10.500 sq. m.

Athens 5* hotels

Athens 5* hotels – 2007 vs 2006

5* Hotels in Greece Total 2002 : 92 with 39.337 beds

Major Investments CAVO SIDERO NAVARINO RESORT ATALANTI HILLS Budget (€ mn) 1,200 325 + 575 2,000 Investor Minoan TEMES British-American Interests Lokros Scale (ha) 2,600 395 1,250 Project - Hotels - Housing - Golf - holes - Other 5 1,000 45 retail, marinas, theaters 4 + 4 320 + 160 36 + 18 Conference center, spas 3 5,000 54 100 ha biological plantations

Latent Golf Tourism Demand Main Countries (2005) Players per ‘000 population Incoming tourists to Greece (2005) Latent demand for golf tourism UK 20.6 2.718.721 56.105 Sweden 59.3 316.042 18.732 Germany 5.2 2.241.942 11.634 Netherlands 12.1 666.287 8.048 Denmark 21.1 288.858 6.107 Norway 22.0 210.847 4.645 Other 25.581 Subtotal Europe 130.852 USA 95.0 205.656 19.537 Canada 168.0 69.532 11.681 Japan 80.0 79.276 6.342 Subtotal Long Haul 37.561 Total 168.413

Greece can support, on latent demand alone, 22 – 45 golf courses How many golf courses? Latent demand: 170.000 players Assume 4-5 rounds each (1 week) => 680.000 - 850.000 rounds With 20.000 - 30.000 rounds required per course to make it viable Greece can support, on latent demand alone, 22 – 45 golf courses

Significant niche markets Main Countries (2005) Ranking Latent demand Incoming tourists UK 1 USA 2 12 Sweden 3 8 Canada 4 17 Germany 5

The Brands Existing Entering

Greece - Investment considerations Mature Destination - € currency risk - Long Term A Corporate tax rate : 25% Government / EU subsidies Cash Grants : 35% or higher Wage subsidy for employment created Tax allowance of up to 100% Biggest obstacle: Red Tape, but … … new Master Plan for Tourism & Real Estate Development is expected to cut through a lot of it

Croatia Trends

Hotels Performance 5* Hotels in Croatia 2001 : 7 with 3,093 beds Source: Horwath Croatia Hotel Study

AB Maris & Jack Nicklaus DCI & Virtus Investments Major Investments Port Maricio Luxury resort Kempinski Porto Maricio Livka Bay Resort Budget (€ mn) 200 207 40 Investor AB Maris & Jack Nicklaus AB Maris LTD DCI & Virtus Investments Scale (ha) n/a 56 Project - Hotel -rooms - Housing - Golf - holes - Other 460 18 350 berth marina 250 462 units 18 holes 38 berth marina 80 160 berth marina

Montenegro Trends

Hotels Performance Source: Horwath Croatia Hotel Study

Number of Hotels *Since 1989 categorization of hotels (especially 1* and 2*)

Seasonality

Montenegro stars hotel group Imobila- Iberostar(German-Spanish) Major Investments Splendid Hotel Bellevue Hotel Budget (€ mn) 50 30 100 Investor Montenegro stars hotel group Imobila- Iberostar(German-Spanish) VEK - ZAO Scale (ha) n/a 60 Project - Hotels - Housing - Golf - Other 322 rooms 22 apartments spa 232 rooms

Dr. Aris Ikkos a.ikkos@gbrconsulting.gr Voukourestiou 31 106 73 Athens www.gbrconsulting.gr/tourism