1. After the Crisis: Global Industry Status and Prospects North America James E. Rooney Executive Director MCCA

2. Business Recovery – Uncertainty Economic Growth U.S. Economy had strong momentum coming into 2011, but has slowed down through the first quarter. U.S. Bureau of Economic Analysis June 21, 2011

3. Business Recovery – Uncertainty Watch List Oil Prices Housing Market Lack of Corporate Spending City & State Financial Struggles Continue Federal Debt and Spending Debate Double-Dip discussion returns

4. Current Situation As government entities, meeting facilities feel the pressure of budget cuts 40% of AIPC survey respondents feel that currently the government is less inclined to invest in the convention and congress centre industry, especially in terms of facilities and infrastructure. In North America, this figure jumps to 47.1% When operating funds are exhausted, capital projects are postponed New supply growth was tremendous through the 80’s and 90’s 41.2% of facilities in North America have “No development plans currently”, with only 17.6% planning a renovation Clients whispering concerns about building’s physical conditions Operating budgets cut or level for 3 years

5. North America is a mature market No organic growth Total Gross Revenues increased by 2.2% from 2009 to 2010 The growth rate in 2011 is expected to continue at an industry average of 3.3% Evaluation of Overall Business Model Current conditions lend to additional pressures on convention center managers.

6. Investment and the Future Technology Competitive advantage Providing enough flexible infrastructure Free WiFi Is free wired next? Re-thinking business model U.S. Cities quietly looking at European model Show production/partnership Equity position in show creation Re-use of real estate assets to maximize revenue Cities/Convention Center operators as hotel developers

7. Industry Response Industry organizations collaborating to demonstrate value of face-to-face meetings Benefits of meetings & conferences "beyond tourism" being discussed