1. AIPC 2009 Industry Outlook Survey Presentation to AIPC Annual Conference A Coruna, July 2009

2. Today’s Presentation: Results of the 2009 survey Results of the 2009 survey Comparison with other recent industry research Comparison with other recent industry research Some major issues to watch going forward Some major issues to watch going forward

3. Number of AIPC member centres participating in the survey

4. Has your business increased or decreased over the past year ?

5. More or less confident of business prospects in 2009 than 2008 at this time?

6. Reasons for Reduced Confidence: Bookings down Bookings down Attendance off Attendance off Reduced spending, space, F&B Reduced spending, space, F&B Further anticipated impacts of recession Further anticipated impacts of recession Clients using alternatives Clients using alternatives Multiple impediments to travel Multiple impediments to travel

7. Changes in business attributed to the global economic crisis?

8. Challenges over the next three years: owner’s perspective

9. Challenges over the next three years: market perspective

10. Challenges over the next three years: internal perspective

11. Types of business expected to increase / decrease:

12. Where do you see the best opportunities for revenue growth?

13. Initiated significant new developments in operations / marketing over past year?

14. Planned Actions to Address Challenges? Greater client interaction / servicing Greater client interaction / servicing More intense marketing efforts More intense marketing efforts Price / service flexibility Price / service flexibility Packaging / discounts Packaging / discounts Diversify markets Diversify markets Expense control (including staffing) Expense control (including staffing) Produce own events Produce own events

15. Analysis: Business impacts finally apparent Business impacts finally apparent Confidence has dropped significantly Confidence has dropped significantly Worst is likely yet to come Worst is likely yet to come Corporate business impacts are greatest Corporate business impacts are greatest Revenue, client management bigger issues than outright cancellations Revenue, client management bigger issues than outright cancellations Training need greatest single challenge Training need greatest single challenge No specific growth opportunities No specific growth opportunities

16. Analysis (cont’d): Significant variation (some actually increased business), based on Significant variation (some actually increased business), based on –Different countries –Business mix / diversification –Local business conditions Innovation, diversification key, but… Innovation, diversification key, but… Centre initiatives largely unchanged (sustainability still highest) Centre initiatives largely unchanged (sustainability still highest)

17. Other Industry Surveys are Showing…. Combination of impacts from economic conditions, image concerns Combination of impacts from economic conditions, image concerns Corporate, incentive hit hardest (about half expect decreases in activity) Corporate, incentive hit hardest (about half expect decreases in activity) Associations are struggling, but outright cancellations less frequent Associations are struggling, but outright cancellations less frequent Attendance, event spending reduced Attendance, event spending reduced

18. Other Industry Surveys are Showing…. Exhibitors have cut events, space, participation Exhibitors have cut events, space, participation Renegotiation of contracts anticipated Renegotiation of contracts anticipated Increasing use of meeting alternatives (webinars, teleconferencing) Increasing use of meeting alternatives (webinars, teleconferencing) Competition continues to grow but at reduced levels Competition continues to grow but at reduced levels

19. Government Reactions Typically Counterproductive: “Politics of fear” trump logic “Politics of fear” trump logic Don’t understand the economic development / recovery connection Don’t understand the economic development / recovery connection Meetings cancellations, travel restrictions imposed in many areas Meetings cancellations, travel restrictions imposed in many areas Promotional budgets cut at worst time Promotional budgets cut at worst time Capital projects cancelled even though time right for construction Capital projects cancelled even though time right for construction

20. Looking Ahead: Four issues to keep an eye on: The attendance factor The attendance factor The client relations imperative The client relations imperative Evolving destination roles Evolving destination roles Our new “image problem” Our new “image problem”

21. The Attendance Factor: Attendance threatened by economic, time, sustainability factors Attendance threatened by economic, time, sustainability factors Obscures the real impact of downturn Obscures the real impact of downturn A shared concern / opportunity with clients A shared concern / opportunity with clients Demands action, including: Demands action, including: –Attendance building –More pre / post promo / packaging –Enhanced content and perceived value –Measurability of meeting outcomes

22. The Client Relations Imperative: Clients are challenged by attendance, financial, resource issues Clients are challenged by attendance, financial, resource issues Tougher negotiations, renegotiations Tougher negotiations, renegotiations Price, contract, payment issues at stake Price, contract, payment issues at stake A new “partnership attitude” needed A new “partnership attitude” needed Opportunity to demonstrate shared interest; build stronger relationships for the future Opportunity to demonstrate shared interest; build stronger relationships for the future PCO interface may need greater focus PCO interface may need greater focus

23. Destination Relations Evolving: Hotel equation has shifted Hotel equation has shifted Owner expectations need adjustment Owner expectations need adjustment Need to emphasize broad economic impacts, role in recovery Need to emphasize broad economic impacts, role in recovery CVB relations need re-examination CVB relations need re-examination May have to distance centres from leisure messaging May have to distance centres from leisure messaging

24. The Image Issue: Pharma-codes started the process Pharma-codes started the process Bailout funding accelerated it Bailout funding accelerated it Negative image resonated with public Negative image resonated with public We contributed with leisure messaging We contributed with leisure messaging 50% of US corporations now see “non- financial risks” to holding events 50% of US corporations now see “non- financial risks” to holding events Need to “re-image” meetings Need to “re-image” meetings Also requires enhanced content, better value, measurable outcomes Also requires enhanced content, better value, measurable outcomes

25. AIPC 2009 Industry Outlook Survey Presentation to AIPC Annual Conference A Coruna 2009