9. Source: U.S. Travel Association

17. U.S. Challenges Government shutdown Shorter meetings, fewer attendees Government meetings & Travel Customs process Transportation infrastructure Pandemics & Emergency Response Public Lands TSA Reform Travel Taxes No-Vacation Nation

19. Copyright © 2013 IHS Inc. All Rights Reserved. Tourism Satellite Accounting The Tourism Satellite Account is the international (UN/WTO, OECD) standard for measuring the contribution of tourism to an economy Measuring the industry “tourism” is difficult: Tourism industry is not measured in standard economic accounting systems. Most industries are accounted via the supply-side: firms are categorized into NAICS codes and asked about jobs, revenues, costs. But tourism is a demand-side activity: the focus is on what the traveler buys before and during a trip. As a result, tourism touches many industries 4Cs: Credibility, Comprehensiveness, Comparability, Consistency 19

20. Copyright © 2013 IHS Inc. All Rights Reserved. Kansas Tourism in 2011: A Top Line View 32 million visitors generated tourism expenditures of $8.0B in 2011 32 million visitors generated tourism expenditures of $8.0B in 2011 In ’11, visitation increased by 3.4% and visitor spending grew by 9.0% In ’11, visitation increased by 3.4% and visitor spending grew by 9.0% Avg. spend-per-visitor was $236 in ‘11 Avg. spend-per-visitor was $236 in ‘11 1 of every 10 Kansas Citizens owes his/her job to tourism 1 of every 10 Kansas Citizens owes his/her job to tourism Avg. Annual Tourism Wages were nearly $23,000 in ’11 Avg. Annual Tourism Wages were nearly $23,000 in ’11 Every 217 visitor/travelers creates a new job in KS Every 217 visitor/travelers creates a new job in KS 32 million visitors generated tourism expenditures of $8.0B in 2011 32 million visitors generated tourism expenditures of $8.0B in 2011 In ’11, visitation increased by 3.4% and visitor spending grew by 9.0% In ’11, visitation increased by 3.4% and visitor spending grew by 9.0% Avg. spend-per-visitor was $236 in ‘11 Avg. spend-per-visitor was $236 in ‘11 1 of every 10 Kansas Citizens owes his/her job to tourism 1 of every 10 Kansas Citizens owes his/her job to tourism Avg. Annual Tourism Wages were nearly $23,000 in ’11 Avg. Annual Tourism Wages were nearly $23,000 in ’11 Every 217 visitor/travelers creates a new job in KS Every 217 visitor/travelers creates a new job in KS

21. Copyright © 2013 IHS Inc. All Rights Reserved. Kansas Tourism: The Impact on KS & the US Tourism is responsible for 4.4% of total KS Gross State Product Tourism is responsible for 4.4% of total KS Gross State Product Tourism is the 3rd largest industry in KS (based upon jobs) Tourism is the 3rd largest industry in KS (based upon jobs) Tourism generated 14.4% of all state & local tax revenue in ’11 Tourism generated 14.4% of all state & local tax revenue in ’11 Tourism’s tax contribution reached $917 per KS Household Tourism’s tax contribution reached $917 per KS Household In ’11, KS’s share of US total tourism jobs grew by 2.0% from ‘10 In ’11, KS’s share of US total tourism jobs grew by 2.0% from ‘10 In ’11, KS’s share of US direct tourism jobs grew by 5.3% from ’10 In ’11, KS’s share of US direct tourism jobs grew by 5.3% from ’10 In ’11, KS’s share of US direct tourism output grew by 0.5% from ‘10 In ’11, KS’s share of US direct tourism output grew by 0.5% from ‘10 Tourism is responsible for 4.4% of total KS Gross State Product Tourism is responsible for 4.4% of total KS Gross State Product Tourism is the 3rd largest industry in KS (based upon jobs) Tourism is the 3rd largest industry in KS (based upon jobs) Tourism generated 14.4% of all state & local tax revenue in ’11 Tourism generated 14.4% of all state & local tax revenue in ’11 Tourism’s tax contribution reached $917 per KS Household Tourism’s tax contribution reached $917 per KS Household In ’11, KS’s share of US total tourism jobs grew by 2.0% from ‘10 In ’11, KS’s share of US total tourism jobs grew by 2.0% from ‘10 In ’11, KS’s share of US direct tourism jobs grew by 5.3% from ’10 In ’11, KS’s share of US direct tourism jobs grew by 5.3% from ’10 In ’11, KS’s share of US direct tourism output grew by 0.5% from ‘10 In ’11, KS’s share of US direct tourism output grew by 0.5% from ‘10

22. Copyright © 2013 IHS Inc. All Rights Reserved. $4.52 billion$1.31 billion $5.83 billion$2.20 billion $8.03 billion Tourism Expenditures All Visitor Related Spending Total ImpactImport Leakage Economic Value to State Core Tourism (Direct) Non-Core Tourism (Indirect & Investment) Tourism goods & services from outside of the state – e.g. clothing made in China Industries directly providing goods & services to the visitor, such as restaurants Industries directly providing goods & services to core tourism providers – e.g. food distribution Industry Structure – 2011

23. Copyright © 2013 IHS Inc. All Rights Reserved. Total Tourism Expenditures Tourism expenditures tallied $8.03 billion in 2011

24. Copyright © 2013 IHS Inc. All Rights Reserved. Kansas TSA: Top Line Results Tourism in Kansas has made a steady recovery since the two- year recessionary driven downturn during 2008 and 2009. While non-core investment eased up in 2011, strong core industry growth led to an overall increase in expenditures. Measurement2011 (billion) 2010 (billion) 2009 (billion) Growth Rate ‘10-’11 Growth Rate ‘09-’10 Total Tourism Expenditures$8.03$7.79$7.063.1%10.4% Total Impact$5.83$5.60$5.174.0%8.4% Core Tourism (direct)$4.52$4.15$4.029.0%3.0% Non-Core Tourism$1.31$1.46$1.14-10.3%27.4% Import Leakage$2.20$2.19$1.890.6%15.7%

25. Copyright © 2013 IHS Inc. All Rights Reserved. Breaking Down Tourism Expenditures – 2011 By OriginMillions $$Share In State3,54344% Other U.S.4,48256% International80% Total8,034100% By SourceMillions $$Share Visitor Spending7,23590% Resident Outbound 3274% Government Spending 1161% Construction & Investment 3554% Total8,034100% Visitors from other states represent the largest portion of tourism expenditures in KS Source: IHS Global Insight

26. Copyright © 2013 IHS Inc. All Rights Reserved. Category Distribution of Expenditures - 2011 2011 ($M) ’10-’11 Growth Share Entertainment1,21312.9%16.0% Accommodation1,0095.6%13.3% Transportation1,3816.3%18.3% Food1,8419.4%24.3% Shopping2,1209.9%28.0% Total * 7,5649.0%100% * Total Visitor Expenditures (w/o construction, investment, & government spending) Shopping accounts for the largest share of tourism expenditure. Source: IHS Global Insight

27. Copyright © 2013 IHS Inc. All Rights Reserved. Core Tourism – Gross State Product RankIndustry (NAICS Definitions)Millions $% of State 1 Real Estate and Rental and Leasing12,42110.7% 2 Durables Manufacturing11,0069.5% 3 Health Care and Social Assistance9,9978.6% 4 Wholesale Trade8,4147.3% 5 Retail Trade8,2717.2% 6 Finance and Insurance8,0126.9% 7 Non-Durables Manufacturing7,8066.8% 8 Professional, Scientific, and Technical Services6,8365.9% 9 Information5,8865.1% 10 Transportation & Warehousing4,5543.9% 11 Construction4,0183.5% 12 Admin., Support and Waste Management3,8923.4% 13 Other Services3,2122.8% 14 Accommodation and Food Services3,1452.7% 15 Utilities2,8152.4% Other Industries15,28913.2% Total Private GSP115,573100.0% Core Tourism contributed $4.52 billion in economic value in 2011. Tourism ranked as the 11 th largest private industry in the state. Core Tourism provides 3.9% of KS GSP Core Tourism$4,5223.9% Total Travel & Tourism$5,8305.0%

28. Copyright © 2013 IHS Inc. All Rights Reserved. Core Tourism Impact – Composition – 2011 Composition of Core Tourism $ Value ’11’11-’10% of RankIndustry(Millions)GrowthTotal 1 Food services and drinking places9749.1%21.5% 2 Amusement, Gambling and Recreation industries68411.4%15.1% 3 Automotive equipment rental and leasing5898.5%13.0% 4 Hotels and motels4824.8%10.7% 5 Gasoline stations44421.4%9.8% 6 Food and beverage stores4058.5%9.0% 7 Miscellaneous store retailers3206.9%7.1% 8 General merchandise stores1563.2%3.4% 9 Travel arrangement and reservation services140-0.4%3.1% 10 Clothing and clothing accessories stores979.5%2.1% 11 Real estate792.0%1.7% 12 Sporting goods, hobby, book and music stores5210.0%1.2% 13 Rail transportation491.1% 14 Air transportation209.6%0.5% 15 Performing arts companies1714.9%0.4% All Others1511.9%0.3% Total4,5229.0%100.0%

29. Copyright © 2013 IHS Inc. All Rights Reserved. Region Expenditure RegionEntertainmentAccommodationTransportationFoodShoppingTotalGrowth (Millions) (’10-’11) North Central Kansas55.7116.5173.1226.0262.1833.48.5% North East Kansas831.4390.3533.3723.9841.73,320.79.2% North West Kansas22.967.684.7114.1130.1419.48.7% South Central Kansas234.1305.4405.8524.6591.62,061.58.7% South East Kansas19.260.581.8111.1133.6406.38.6% South West Kansas50.169.0102.8140.7160.5523.19.6% Kansas Total1,213.41,009.41,381.41,840.62,119.67,564.49.0% Regional Summary: Visitor Spending By Category * Visitor spending only, which excludes investment

30. Copyright © 2013 IHS Inc. All Rights Reserved. Tourism Expenditure by County: South West Kansas County Expenditure Counties Tourism Expenditure * (Millions) Tourism Share of Total County Expenditure County Share of Total State Tourism Growth (’10 –’11) Barber 16.92.7%0.2%9.0% Barton 38.61.5%0.5%8.0% Clark 0.70.4%0.0%21.0% Comanche 1.91.3%0.0%5.5% Edwards 3.71.2%0.0%11.8% Finney 124.82.3%1.6%8.9% Ford 104.72.0%1.4%12.2% Grant 2.20.2%0.0%16.5% Gray 0.60.1%0.0%18.5% Greeley 4.72.9%0.1%6.6% Hamilton 6.52.4%0.1%5.4% Haskell 3.40.8%0.0%13.7% Hodgeman 1.00.6%0.0%12.4% Kearny 4.01.0%0.1%5.9% * Visitor spending only, which excludes investment

31. Copyright © 2013 IHS Inc. All Rights Reserved. Tourism Expenditure by County: South West Kansas cont… County Expenditure Counties Tourism Expenditure * (Millions) Tourism Share of Total County Expenditure County Share of Total State Tourism Growth (’10 –’11) Kiowa 31.89.5%0.4%6.3% Lane 2.71.3%0.0%8.2% Meade 4.31.0%0.1%14.3% Morton 9.52.2%0.1%13.1% Ness 16.64.2%0.2%6.2% Pawnee 13.81.6%0.2%17.2% Pratt 21.72.2%0.3%6.6% Rush 7.42.1%0.1%6.6% Scott 9.51.9%0.1%10.2% Seward 67.62.2%0.9%9.7% Stafford 9.72.8%0.1%10.3% Stanton 6.63.2%0.1%14.3% Stevens 5.31.1%0.1%9.4% Wichita 2.50.8%0.0%10.4% * Visitor spending only, which excludes investment

32. Copyright © 2013 IHS Inc. All Rights Reserved. Tourism Expenditure Categories by County: South West Kansas County Expenditure CountiesEntertainmentAccommodationTransportationFoodShoppingTotal (Millions) Barber0.672.533.484.945.2716.90 Barton5.575.487.359.4110.8138.62 Clark0.410.050.070.100.120.75 Comanche0.320.230.350.440.571.91 Edwards2.430.190.270.380.483.74 Finney7.1415.1024.3637.6240.60124.81 Ford19.3311.1016.4327.2730.56104.69 Grant0.540.230.430.470.572.25 Gray0.360.040.050.080.100.63 Greeley0.390.630.931.361.434.73 Hamilton0.271.171.571.621.936.55 Haskell0.720.590.710.70 3.42 Hodgeman0.320.110.150.210.251.04 Kearny0.000.580.791.181.504.05 Kansas Total1,213.391,009.391,381.411,840.582,119.647,564.42 * Visitor spending only, which excludes investment

33. Copyright © 2013 IHS Inc. All Rights Reserved. Tourism Expenditure Categories by County: South West Kansas continued… County Expenditure CountiesEntertainmentAccommodationTransportationFoodShoppingTotal (Millions) Kiowa0.683.378.848.7110.2531.85 Lane1.230.210.310.410.522.68 Meade0.370.590.841.141.354.29 Morton0.371.111.713.003.299.48 Ness0.282.353.484.525.9416.56 Pawnee1.332.222.863.363.9813.75 Pratt0.483.374.615.957.3321.75 Rush0.401.161.721.842.297.42 Scott2.611.241.471.842.369.52 Seward1.9011.8215.3417.9820.5567.59 Stafford0.861.571.942.512.839.71 Stanton0.000.941.361.862.436.59 Stevens0.720.760.931.271.645.31 Wichita0.400.300.450.550.842.55 Kansas Total1,213.391,009.391,381.411,840.582,119.647,564.42 * Visitor spending only, which excludes investment

34. Kansas Lodging Trends

36. Occupancy (%) Year To Date 201120122013 This Year 55.056.955.8 Last Year 53.855.056.9 Percent Change 2.33.3-1.9 ADR Year To Date 201120122013 This Year 71.3374.1275.60 Last Year 69.7871.3374.12 Percent Change 2.23.92.0 RevPAR Year To Date 201120122013 This Year 39.2442.1442.15 Last Year 37.5239.2442.14 Percent Change 4.67.40.0 Kansas Lodging Trends

37. Supply Year To Date 201120122013 This Year 8,862,2229,045,3559,192,325 Last Year 8,763,1378,862,2229,045,355 Percent Change 1.12.11.6 Demand Year To Date 201120122013 This Year 4,876,0915,142,4095,124,997 Last Year 4,712,0954,876,0915,142,409 Percent Change 3.55.5-0.3 Revenue Year To Date 201120122013 This Year 347,791,717381,175,084387,458,742 Last Year 328,787,808347,791,717381,175,084 Percent Change 5.89.61.6 Kansas Lodging Trends

40. Copyright © 2013 IHS Inc. All Rights Reserved. Looking Forward, Employment Growth in the Region Is Expected to Be Strong Employment in Kansas and the surrounding states are expected to show above average annual growth over the next five years. Employment in Leisure and Hospitality in Kansas had been trending down over a three-year period, but grew in 2012 and is forecasted to continue growing in 2013. Employment Growth 2012-2018 Annual Rate Source: IHS Global Insight

41. Copyright © 2013 IHS Inc. All Rights Reserved. Looking Forward, the Leisure and Hospitality Industry is an Actionable Opportunity for Increased GSP Growth in Kansas Left alone, the Leisure and Hospitality industry within Kansas should see slow but steady growth going forward. However, strong economic growth within Kansas could potentially underpin a renewed focus on in-state tourism while continuing to draw visitor from outside the borders. Annual Economic Growth in Kansas Source: IHS Global Insight; based on nominal dollars

42. Opportunities Lodging Shorter / closer trips Authenticity Convention/meeting facilities Sporting venues/support Explore / Experience QOL connection Technology Power of Travel