1. AMCHAM LUXURY RESORT MARKETS PHUKET AND SAMUI April 21, 2010

2. Phuket Trends and Outlook: 2009 at a Glance Q1 2010 Performance Snapshot Going Forward: Key Challenges Samui Trends and Outlook: 2009 at a Glance Going Forward: Key Challenges Resort Island Property: Updates and Trends What’s ahead?

3. Trends and Outlook

4. Annual visitor arrivals bounced back to 2007 level of 2.9 million. Visitors were more price sensitive due to a global economic crisis exploding in H2 2008. Discounting rates became a strategic tool to draw guests. Signs of a travel rebound emerged in the final months of the year as economies around the world strengthened. Phuket 2009 at a Glance

5. Phuket 2009 at a Glance

6. Phuket Q1 10 Performance Snapshot Hotel occupancy and RevPAR ahead of 2009 created a strong base for performance pick up. Q1 2010 market wide occupancy was closed at 85% reflecting a tremendous improvement of 25% from Q1 2009 and 20% from YTD 2009. Example of uplift Patong average room rates closed at THB 4,590 (about USD 145) showing 17% increase versus YTD 2009.

7. Phuket Going Forward: Key Challenges Potential for oversupply in midscale and upscale. Low season to impact annualized figures with political unrest hitting China market and MICE rebound. Airlift growth has created strong volume fundamentals but key concerns on Thai airways pricing increase and flight reductions. Branded properties will penetrate markets and create destination promotion benefits but new openings to set back rate growth to 2011.

8. Trends and Outlook

9. Samui 2009 at a Glance A domino effect with an occupancy decline of 5%, average room rates 13% and RevPAR 20%. Inverse growth trends between increased Asian visitors and a decrease in European’s. Airlift limitation created a major reliance on market as 91% of arrivals were from domestic flights.

10. Samui 2009 at a Glance

11. Samui Going Forward: Key Challenges Environmental control over Samui airport limiting a maximum of 36 daily flights constrains sustainable visitor growth. Lack of developed tourism demand generators and attractions inhibit shift into mass tourism model. International branded hotels create induced demand for the destination. With incoming supply the market could see supply outstrip demand.

12. Updates and Trends Resort Island Property

13. Updates and Trends 2009 was the year “failure to launch” said it all. Resales became a significant segment. Sharp shift in developer profile from foreign to Thai. Limited distress but some banner failed projects. Domestic buyers on rise creating low end products but increasing market share. Off plan branded residential sluggish, while urban demand up. Property funds to become key equity drivers.

14. 2010? Keep the Faith