22nd Annual Southern California Visitor Industry Outlook Conference CIC Research, Inc Vickers St. San Diego, CA Hotel Maya Long Beach, CA October 29, 2010

Where Have We Been?

3 And Travel is More Fun?

4 Potential 40% More PAX?

5 A La Carte Airfare Pricing

Southern California Perspective 6

 23.6 Mil. population in SoCal - About 7.5 Mil. Households Unemp - More than 9.7 Mil. Employees12.2%  California: million CA population (SoCal=61%) million CA employees (SoCal=61%)12.4%  United States: million US population (SoCal=8%) million US employees (SoCal=7%) 9.6% 7

2010 SoCal Hotel Room Inventory  301,000 Rooms  Mil. Room Nights Avail.  66.1% Occ. Rate  72.7 Mil. Room Nights Sold Sources: CIC Research, LACVB, AOCVCB, SDCVB, & STR. 8 Room Inventory

SoCal Hotel Rooms Sold Sources: CIC Research, LACVB, AOCVCB, SDCVB, PKF & STR. 9 Millions of Room Nights No change

10 SoCal Hotel Room Revenue Sources: CIC Research, LACVB, AOCVCB, SDCVB, PKF & STR. Peak in 2007

International Visitors to the U.S. Millions Source: U.S. Dept. of Commerce, OTTI/CIC Research, Oct

LAX International Arrivals (monthly percent change to prior year) 2008

LAX Quarterly International Pax Arrivals Millions

SoCal Passenger Arrivals (comparison to prior year same quarter) Primarily domestic air travelers.

Arrivals in Millions Southern California Air Arrivals

Southern California Air Arrivals Arrivals in Millions 16

Overnight Visitors to SoCal 17

Domestic Overnight Visitors to SoCal Millions 18 Source: CIC Research, Inc.

SoCal Overnight International Visitors Millions 19 Source: CIC Research, Inc.

Total Overnight Visitors to SoCal 20 Source: CIC Research, Inc.

Total SoCal Overnight Visitor Spending 21 Source: CIC Research, Inc.

SoCal Overnight Visitor Forecast (2010 & 2011)  Visitors 45.5 M (2010 Preliminary)Up (3.5%-4%) M (2011 Forecast)Up (2.4% to 3.3%)  International Visitors 6.2 M (2010 Preliminary)up (10%-11%) M (2011 Forecast)Up (3% to 8%)  Domestic Visitors 39.3 M (2010 Preliminary)Up (3%) 40.2 – 40.6 M (2011 Forecast)Up (2.3% to 3.3%)  Spending $25.7 B (2010 Preliminary)Up (4.5%-5.5%) $27.3 B - $27.8 B (Forecast 2011)Up (6% to 8%) 22

LAX Monthly International Passenger Arrivals

SoCal Passenger Arrivals - Monthly Percent Change (comparison to same month of prior year)

In 000’s Southern California Air Arrivals

SoCal Ports of Entry- All Overseas Visitor Arrivals Arrivals in Millions Source: CIC Research & Dept. of Homeland Security. 26