1. Hospitality Outlook Pieces of the Puzzle

2. THANK YOU FOR THE OPPORTUNITY TO SHARE SOME IDEAS WITH YOU TODAY 2

3. Topics General economic outlookGeneral economic outlook Travel specific informationTravel specific information Legislative updateLegislative update Your questions, comments and discussionYour questions, comments and discussion 3

4. Economic Outlook I am not an economist Employment situation Unemployment is low Wages – slow recovery 4

5. Economic Outlook Consumer confidence Risk issues Strong currency High airfares 5

6. Economic Outlook Leading Indicators Interest rates Inflation Ag market 6

7. 7

8. Travel Specific Outlook US Travel Association Forecast CPI+1.9% TPI+2.4% Travel spend +4.1% Int visitors+4.1% Domestic trips +1.6% 8

9. Travel Specific Outlook STR data shows great 2014 RPI = Restaurant Performance Index AAA – Memorial Day travel up 5.3% - highest level in 10 years Gas prices predicted stable 9

10. Who is the Guest? Traditionals (Builders) 1925-1945 Boomers1946-1964 Generation X1965-1979 Generation Y 1980- 1994 Interest rates will help retired or near retired travelers 10

11. Legislative Update Tipped employee minimum wage Preemption of local wages & mandates Rochester lodging definition addition Bloomington – local lodging tax bill regarding on-line travel agencies 11

12. Legislative Update Labor Day school start – Traditional Summer Coalition Camper cabins AIS boat trailer decals State property tax reduction 12

13. And In Conclusion Optimistic for 2015 Proud of the industry Concerned about labor shortages for the future Intrigued by the prospects for further changes 13

14. Thank You !!! And now