1. 2011 Southern California Visitor Industry Outlook Conference CIC Research, Inc. 8361 Vickers St. San Diego, CA 92111 858-637-4000 www.cicresearch.com The Disneyland Hotel Anaheim, CA November 10, 2011

2. Ten Years After 911 2 The World Trade Center Memorial Fountain

3. What Has Happened Since? ?

4. 4 Wars in Iraq and Afghanistan

5. 5 Wildfires, Hurricanes, Tsunami, Earthquakes, Disease, & Volcanos

6. Financial and Economic Meltdown

7. 7 Heightened Airport Security

8. Southern California Perspective 8

9. Southern California (SoCal) - 22.7 million population - 8.9 million employees California: - 37.2 million CA population (SoCal=61%) - 16.0 million CA employees (SoCal=56%) United States: - 313 million US population (SoCal=7%) - 140 million US employees (SoCal=6%) 9

10. 2011 SoCal Hotel Room Inventory Sources: CIC Research, LACVB, AOCVCB, SDCVB, & STR. 10 303,000 Rooms 110.5 Mil. Room Nights Avail. 68.3% Occ. Rate 75.5 Mil. Room Nights Sold Room Inventory

11. SoCal Hotel Rooms Sold Sources: CIC Research, LACVB, AOCVCB, SDCVB, PKF & STR. 11 Millions of Room Nights No change 2005 - 2007

12. SoCal Hotel Rooms Revenue Sources: CIC Research, LACVB, AOCVCB, SDCVB, PKF & STR. 12 $ Billions Peak

13. International Visitors to the U.S. Millions Source: U.S. Dept. of Commerce, OTTI/CIC Research, October 2011 forecast. 13

14. SoCal Ports of Entry- All Overseas Visitor Arrivals Arrivals in Millions Source: CIC Research & Dept. of Homeland Security. 14

15. Residents of Japan Visiting the U.S. Millions 15 Source: CIC Research & Dept. of Homeland Security.

16. SoCal Ports of Entry - Japan Millions Source: CIC Research & U.S. Dept. of Homeland Security 16

17. Residents of the U.K. to the U.S. Millions 17 Source: CIC Research & Dept. of Homeland Security.

18. SoCal Port of Entry - U.K. Residents Millions Source: CIC Research & U.S. Dept. of Homeland Security 18

19. Residents of Australia to the U.S. Total U.S. Arrivals 19 Source: CIC Research & Dept. of Homeland Security.

20. SoCal Arrivals from Australia 20 Source: CIC Research & Dept. of Homeland Security.

21. Residents of China Visiting the U.S. Total U.S. Arrivals 21 Source: CIC Research & Dept. of Homeland Security.

22. SoCal Arrivals from China 22 Source: CIC Research & Dept. of Homeland Security.

23. Initiated Air Trips to SoCal* Air Trips in Millions 23 *Bought air ticket somewhere outside of SoCal with SoCal as the destination. Source: USDOT, Origin & Destination Survey (OD1a).

24. Overnight Visitors to SoCal 24

25. Domestic Overnight Visitors to SoCal Millions 25 Source: CIC Research, Inc.

26. SoCal Overnight International Visitors Millions 26 Source: CIC Research, Inc.

27. Total Overnight Visitors to SoCal 27 Source: CIC Research, Inc.

28. Total SoCal Overnight Visitor Spending 28 Source: CIC Research, Inc.

29. SoCal Overnight Visitor Forecast (2011 & 2012) Visitors 47.2 M (2011 Preliminary)Up (3.5%) 47.6 - 48.0 M (2012 Forecast)Up (1% to 2%) International Visitors 6.4 M (2011 Preliminary)up (5%) 6.5 - 6.7 M (2012 Forecast)Up (2% to 4%) Domestic Visitors 40.8 M (2011 Preliminary)Up (3%) 41.1 – 41.3 M (2012 Forecast)Up (1% to 1.5%) Spending $27.4 B (2011 Preliminary)Up (5.5%) $28.5 B - $29.0 B (2012 Forecast)Up (4% to 6%) 29