State of the Industry: 2005 Year to Date Presented to: Alabama Gulf Coast Convention and Visitors Bureau By: Evans - Klages, Inc. November 16, 2005

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Methodology: Actionable Strategies 1.Define, profile, and quantify visitor origin markets and segments. 2.Provide actionable information to Gulf Shores/Orange Beach’s tourism industry. 3.Quantify and document tourism trends. 4.Uncover and explore new markets. 5.Support advertising and promotional efforts. 6.Assess image, motivational, and media factors. 1.Define, profile, and quantify visitor origin markets and segments. 2.Provide actionable information to Gulf Shores/Orange Beach’s tourism industry. 3.Quantify and document tourism trends. 4.Uncover and explore new markets. 5.Support advertising and promotional efforts. 6.Assess image, motivational, and media factors.

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Methodology In-person intercept surveys Post visitation interviews Hand-out/mail-back surveys Visitation intent panel surveys Focus group analysis Secondary statistics -- normative standards In-person intercept surveys Post visitation interviews Hand-out/mail-back surveys Visitation intent panel surveys Focus group analysis Secondary statistics -- normative standards

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB 2005 Visitor Tracking Statistics

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Winter 273,786163, Spring 267,274176, Summer 543, , Total YTD1,084,096714,  % Number of Visitors 2005

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Winter$133,650,608$83,289, Spring 151,416, ,813, Summer 288,471, ,645, Ttl YTD$573,538,439 $400,748,  %  % Total Economic Impact 2005

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Winter +2.5 pts pts. Spring Summer ’04/’05  ’04/’05  CondoHotel/Motel Occupancy Denominator: Available Inventory

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Winter +7.1% +4.9% Spring Summer CondoHotel/Motel Room Rates Denominator: Available Inventory

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Top U.S. Feeder Markets: Winter Season Birmingham 9.1% 2.Mobile/Pensacola Huntsville/Decatur Atlanta Montgomery/Selma Jackson, MS3.9 7.New Orleans Grand Rapids/Kalamazoo3.8 9.Minneapolis/St. Paul Baton Rouge2.5

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Top U.S. Feeder Markets: Spring Season Birmingham 14.4% 2.Mobile/Pensacola New Orleans Jackson, MS Huntsville/Decatur Atlanta Grand Rapids/Kalamazoo Memphis Montgomery/Selma Nashville Columbus, GA3.6

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Top U.S. Feeder Markets: Summer Season Birmingham 16.1% 2.Huntsville/Decatur Atlanta8.9 4.New Orleans Mobile/Pensacola Nashville Montgomery/Selma Baton Rouge Shreveport/Texarkana Memphis 2.9

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB First Time Visitor to Gulf Shores/Orange Beach

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Plan to Return to Gulf Shores/ Orange Beach Next Year

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Winter$70,506$71,270 Spring69,90271,128 Summer74,127 77,000 Median Household Income

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Planning/Reservation Window Days to Arrival 75 Days 85 Days

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB InternetInternet

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Internet Usage Have Access to the Internet 93.7%94.9% Seek Out Travel Information On-Line (BASE: Those with Internet Access) 90.4%88.1% Booked Reservations for this Trip on Net (BASE: Those who Seek Travel Info. On-Line) 24.8%23.4% Sum. ‘04 Sum. ‘05

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Internet Usage (cont.) Used the Internet to Gather Travel Information for this Trip (BASE: Those who Seek Travel Information On-Line) 76.7%80.7% First Time Visitors Repeat Visitors Accessed the Website (BASE: Those who Seek Travel Information On-Line) 38.7%45.1% Sum. ‘04 Sum. ‘05 Sum. ‘04 Sum. ‘05

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Preliminary Alabama Gulf Coast Hurricane Panel Findings

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Hurricane Panel: Methodology Panel Conducted: September and October 2005 AND On-Going Panel Composition: Travelers who previously visited and/or inquired about Alabama’s Gulf Coast Methodology: Follow up surveys Panel Conducted: September and October 2005 AND On-Going Panel Composition: Travelers who previously visited and/or inquired about Alabama’s Gulf Coast Methodology: Follow up surveys

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Results and Findings 59.6% had previous visits to Alabama’s Gulf Coast. 69.8% of these traveled to the destination in 2004 and/or % reported planning a future trip to Gulf Shores/Orange Beach. 85.1% of these will visit the area before the end of % had previous visits to Alabama’s Gulf Coast. 69.8% of these traveled to the destination in 2004 and/or % reported planning a future trip to Gulf Shores/Orange Beach. 85.1% of these will visit the area before the end of 2006.

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Results and Findings Some 17.4% volunteer that hurricanes/weather have had an impact on their future plans to visit Gulf Shores/Orange Beach.

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB On-Going Hurricane Panel Tracking As of October 24, 2005 Likelihood of Visiting Alabama’s Gulf Coast in Wake of Recent Storms More Likely 10.6% As Likely 57.8 Less Likely 24.8 Don’t Know %68.4%

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Perception of Recent Storms’ Impacts As of October 24, 2005 On Gulf Shores Severe Impact 21.7% Minor Impact 45.3 No Impact / Don’t Know 32.9 On Orange Beach Severe Impact 9.9% Minor Impact 41.0 No Impact / Don’t Know 49.1

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Economic Conditions

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Disposable Personal Income Source: Bureau of Economic Analysis

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Total U.S. Tourism Related Sales Source: Bureau of Economic Analysis ‘05

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB U.S. Retail Gas Prices Source: Energy Information Administration

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Consumer Prices Source: Bureau of Labor Statistics CPI September 2005: +4.7%

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Producer Prices Source: Bureau of Labor Statistics PPI October 2005: +5.9%

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB Looking Ahead

Evans - Klages, Inc., 2005 Alabama Gulf Coast CVB