1. Steamboat Springs Economic Summit 2010 The Changing Tourism Environment RRC Associates, an STR Company May 20, 2010

2. Page 2 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

3. Page 3 Sales and Lodging Tax Mountain town sales tax down 12.3% in 2009 Steamboat Springs taxable sales down 16.7% in 2009 Mountain town lodging tax down 19.1% in 2009 Steamboat Springs lodging tax down 23.4% in 2009

4. Page 4 Taxable Sales Sales tax fell in all mtn. towns in 2009

5. Page 5 Lodging Taxable Sales Lodging tax change more variable

6. Page 6 Share of Sales Tax by Season

7. Page 7 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

8. Page 8 Total United States % Change YTD by Week Most recent data shows US hotel occupancy rising, ADR following

9. Page 9 Total United States % Change 12 Mos Ended March For past 12 months, all US indicators down

10. Page 10 Resort Properties % Change 12 Mos Ended March 2009 generally worse for resort hotels, but over past 12 months, indicators were less down for resort hotels than for total US

11. Page 11 Resort Properties % Change March 2010 YTD Demand and occupancy were up in first three months of 2010 for resort hotels. Rates and RevPAR still negative, but improving.

12. Page 12 Occupancy/ADR % Change 12 Mos Ended March Resort hotels down similar to other location segments

13. Page 13 Occupancy/ADR % Change March 2010 YTD Resort hotel performance mixed compared to other segments over past 3 months

14. Page 14 Mtn. Town vs. US ADR

15. Page 15 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

16. Page 16 MTRiP Data MTRiP collects reservation data from hotels and property managers from 13 western mountain destinations Booking windows continue to shorten, as consumers wait to plan their trips until the last minute Lodging properties need to be increasingly nimble and creative

17. Page 17 MTRiP Data Overall, last winter ADR was down, but looking up for this summer 2008/092009/10Change Occupancy – last 6 months 40.3%40.9%+1.4% Occupancy – next 6 months 12.5%12.6%+0.9% ADR – last 6 months $305$287-5.8% ADR – next 6 months $168$173+3.4%

18. Page 18 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

19. Page 19 Travel Intentions Survey Quarterly survey of business and leisure travelers Nationally representative sample of 3,806 respondents Explores current sentiment, past travel behavior, and future travel intent

20. Page 20 Confidence in Stability of Job

21. Page 21 Outlook on Business

22. Page 22 Anticipated Leisure Travel Spending

23. Page 23 Household Income of Travelers

24. Page 24 Spending on Leisure Travel in Past 12 Months

25. Page 25 Mountain Travelers Mountain travelers take more trips, esp. special event, ocean/beach, touring, golf

26. Page 26 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

27. Page 27 Steamboat Summer Summer visitors have positive impression of amenities/things to do, the town in general, and friendly people Weaknesses include air transportation, shopping/retail mix, prices, and nightlife Stay an average of 5.3 nights 58% have made previous summer visit 42% have made previous winter visit Mainly families and empty nesters

28. Page 28 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

29. Page 29 US Ski Season 2009/10 Total skier visits of 59.7 million, up 4.2% from 2008/09 All regions were up except Northeast; all regions above 10-year average Snowfall down and/or variable Days open declined by 2 days nationally Visitation generally down in the early season, up after New Year’s and up strongly starting President’s Weekend

30. Page 30 US Ski Season 2009/10 Overnight visitation, international visitation, percent paid tickets, and ticket yield all up slightly Lesson volumes increased Snowboarding inched up, to 32.5% Capital expenditures projected to rise Demographics continue to be challenging Overall a positive season by many measures

31. Page 31 Total Visits Total skier visits 2 nd best ever, at 59.7 million

32. Page 32 Total Visits by Region All regions above their 10-year average

33. Page 33 Regional Level Map

34. Page 34 Skier Visits by State Top 5 states account for over half of total US skier visits

35. Page 35 Cumulative Visits by TOS Caught up to prior year by mid-Feb

36. Page 36  Only about a 1% annual rate of growth in participants since 1996/97 Total ACTIVE Domestic Skiers/Snowboarders: 1997/1998 to 2008/2009

37. Page 37 Outline Sales Tax Revenue Hotel Occupancy/Rate MTRiP Travel Intentions Steamboat Summer Ski Resort Industry Observations

38. Page 38 Looking Ahead… Rebound forecast in US travel

39. Page 39 US Hotel Forecast Gradual recovery forecasted (esp. 2011)

40. Page 40 Observations Taxable sales and lodging tax were down in nearly all mountain communities in 2009 Steamboat’s sales tax base is less seasonal than other mountain communities Hotel occupancies and rates are generally improving, with mountain communities showing limited strength Mountain ADRs are predicted to rise over next 6 months

41. Page 41 Observations Skier/snowboarder visits were up despite a decline in days of operation and snowfall Short booking lead time demands creativity, constant monitoring, and pro-active tactics to address anticipated low points Mountain travelers are active and engaged Macro-economic indicators are positive

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