1. AIPC 2007 Industry Outlook Survey Presentation to AIPC Annual Conference Graz 2007

2. Purpose of the Survey: Take the pulse of the industry Take the pulse of the industry Identify any common issues Identify any common issues Identify areas where further surveys might be useful Identify areas where further surveys might be useful Compare with other industry members / partners Compare with other industry members / partners Establish a baseline for future surveys (trend analysis) Establish a baseline for future surveys (trend analysis)

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 for 2007?

6. Reasons for Greater Confidence: Improved economy Improved economy More bookings More bookings Increased attendance Increased attendance More short term business More short term business

7. Reasons for Less Confidence: Not sure they can meet same level of performance as 2007 Not sure they can meet same level of performance as 2007 Political / management / logistical issues Political / management / logistical issues

8. Types of Business Expected to Increase / Decrease:

9. Other Business Categories: Banqueting business Banqueting business Government meetings Government meetings

10. Challenges Over the Next Three Years: Owner’s Perspective

11. Challenges Over the Next Three Years: Market Perspective

12. Challenges Over the Next Three Years: Internal Perspective

13. Additional Challenges: Skills shortages Skills shortages Impacts of emerging markets Impacts of emerging markets Need for certification Need for certification Political changes Political changes

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

15. Other Revenue Opportunities: Packaging Packaging Re-thinking government subsidies Re-thinking government subsidies Attaching hotels Attaching hotels Event partnerships Event partnerships

16. Responding to Challenges / Opportunities

17. Demand Side Survey Results: Increasing demand (number / size of events, attendance, spending) Increasing demand (number / size of events, attendance, spending) Growing concern re: costs (i.e., hotels) Growing concern re: costs (i.e., hotels) Cost, access, security remain big decision factors Cost, access, security remain big decision factors

18. In Summary: Business is good; confidence high Business is good; confidence high Driven largely by external factors (i.e., the economy) Driven largely by external factors (i.e., the economy) Primary driving forces are traditional business / revenue areas Primary driving forces are traditional business / revenue areas Response to challenges is “more of the same”: S&M, service, facility enhancements Response to challenges is “more of the same”: S&M, service, facility enhancements Little interest in new revenue sources and/or new product development Little interest in new revenue sources and/or new product development

19. This Means….. Owner expectations will increase Owner expectations will increase Success will attract new investment Success will attract new investment Competition will continue to increase Competition will continue to increase Client negotiations will get tougher (supply, third party issues) Client negotiations will get tougher (supply, third party issues) Revenues will come under pressure Revenues will come under pressure Internal issues will increase (i.e., cost control, labour supply) Internal issues will increase (i.e., cost control, labour supply) Partner challenges (i.e., hotels rates and availability) will emerge Partner challenges (i.e., hotels rates and availability) will emerge

20. Planning Ahead: A good time to look at: Market diversification Market diversification New revenue sources New revenue sources New ways to manage external / partner relationships New ways to manage external / partner relationships Developing community support Developing community support Documenting benefits (i.e., economic) Documenting benefits (i.e., economic) Investing in education, succession, certification Investing in education, succession, certification

21. AIPC 2007 Industry Outlook Survey Presentation to AIPC Annual Conference Graz 2007