1. USA Tourism Trends & Statistics April 2013

2. Did You Know? In US …the travel and tourism industry generates nearly $1.3 trillion in economic output each year?... supports more than 8.2 million jobs?... accounts for 24% of services exports and 8% of all exports?

3. 2009:A Difficult Year Inbound Passenger fare receipts* 16 % decline ($26.4 billion) Travel receipts** 15% decline ($93.9 billion) Total International visitor spend 15% decline ($21.0 billion) Outbound 3% decline; Spending down 12 %

4. 2010:Rise In Tourism Inbound Passenger fare receipts More than 18 % rise ($30.9 billion) Travel receipts $103.5 billion (nearly 10% increase) Total International visitor spend More than $134 billion Outbound 2% decline; Spending up 4%

5. 2011:Record In Receipts Inbound Passenger fare receipts More than 18 % rise ($36.6 billion) Travel receipts More than 12% rise ($116.1 billion) Total International visitor spend 14% rise ($152.7 billion) Outbound 3% decline Increase in travel from non-traditional states Increase in women travel

6. Travel & Tourism Contribution, 2011 2.7% of GDP 7.5 million jobs - 5.36 million direct; 2.15 million indirect - 1.2 million total jobs supported by international travellers $1.4 trillion in travel & tourism total sales - $814 billion direct; $555 billion indirect

7. Market Share 6.4% of world travelers 11.3% of world traveler spending Advanced economies losing market share of global arrivals to emerging economies, especially China, Hong Kong, Malaysia, and Thailand.

8. Busiest Airports, Aircraft Movements Rank Airport City Aircraft Movements 1Atlanta GA,US930250 2Chicago IL,US878108 3Dallas/Fortworth TX, US650124 4Denver Co, US612557 5Los Angeles, CA, US605480 6Beijing, CN557167 7Charlotte NC,US552093 8Las Vegas NV, US527739 9Houston TX, US510242 10Paris, FR497763 8 of Worlds Top Ten Busiest Airports are in US

9. Busiest Airports, Passenger Traffic Rank Airport City Passengers 1Atlanta GA,US95462867 2Beijing, CN81929359 3London, GB 70037417 4Tokyo, JP66795178 5Chicago IL,US 66633503 6Los Angeles, CA, US 63688121 7Paris, FR 61611934 8Dallas/Fortworth TX, US 58591842 9Jakarta, ID 57772762 10Dubai, AE 57684550 4 of Worlds Top Ten Busiest Airports are in US

10. Low Cost Carrier Penetration Highest in the traditional European and North American markets. Europe has the highest concentration - 38% of total air travel in 2012. The South West Pacific and North America regions also have significant LCC penetration, with 37% and 30% respectively. Source: Amadeus

11. Top Hotel Groups RankGroups Hotels Rooms 2013 20132013 1 IHGGB 4602 675982 2 Hilton HotelsUSA 3992652378 3 Marriott InternationalUSA 3672638793 4 Wyndham Hotel GroupUSA 7342 627437 5 ChoiceUSA 6198497023 6 AccorFRA 3515450199 7 Starwood Hotels & ResortsUSA 1121328055 8 Best WesternUSA 4024311611 9 Home InnsCHI 1772214070 10 Carlson Rezidor Hotel Group USA 1077166245 Source: MKG Hospitality 7 of Worlds Top 10 Hotel Groups are in US

12. Top Hotel Brands Rank Brands Group 2013 1.Holiday Inn + Hi Express IHGGB 2.Best Western Best Western USA 3.Marriott Hotels Resorts Marriott InternationalUSA 4.Comfort Inn & Suites Choice Hotels InternationalUSA 5.Hilton Hotels & Resorts Hilton WorldwideUSA 6.Hampton Inn by Hilton Hilton WorldwideUSA 7.Ibis (Megabrand*) AccorFRA 8.Home Inns Home InnsCHI 9.Sheraton Hotels & Resorts Starwood HotelsUSA 10.Days Inn of America Wyndham Hotel GroupUSA *Ibis Hotels, Etap Hotel, All Seasons Source: MKG Hospitality 7 of Worlds Top 10 Hotel Brands are in US

13. US Outbound

14. Outbound: 2007- 2011 Outbound market was down 3% in 2011 Totaled 58.7 mn Travel to overseas regions (excluding Canada and Mexico) declined 5 %.

15. Top Outbound Destinations Most of the top destinations have witnessed a decline in US visitor numbers. UK, France have had marginal increases in US arrivals, compared to 2010. Of the top 15, India (+23%) and Aruba(+20%) witnessed highest growth in US arrivals. 2011 Country 2011 Change Rank (000) 1 Mexico 20,084 0% 2 Canada 11,595 -1% 3 United Kingdom 2,405 2% 4 France 1,756 1% 5 Italy 1,702 -2% 6 Dominican Rep - na 7 Germany 1,594 -8% 8 Jamaica 1,486 0% 9 China 1,108 -12% 10 Spain 1,081 12% 11 India 946 23% 12 Costa Rica 757 na 13 Hong Kong 676 -5% 14 Netherlands 649 -5% 14 Israel 649 -5% 14 Aruba 649 20%

16. Top US Airports For Outbound John F Kennedy airport of New York tops the list. New York (JFK), Miami(MIA), Atlanta(ATL), Newark (EWR), Los Angeles (LAX) and Chicago (ORD) accounted for almost 60% of U.S. departures 2011 Airport Overseas* Market Rank Share 1 New York(JFK) 4,665,776 17.3% 2 Miami(MIA) 2,828,430 10.5% 3 Atlanta(ATL) 2,338,847 8.7% 4 Newark(EWR) 2,210,502 8.2% 5 Los Angeles(LAX) 2,019,626 7.5% 6 Chicago (ORD) 1,853,990 6.9% 7 Washington Dulles (IAD) 1,505,135 5.6% 8 San Francisco (SFO) 1,330,702 4.9% 9 Houston(IAH) 1,202,064 4.4% 10 Philadephia (PHL) 920,917 3.4% * Excludes Canada and Mexico

17. Top Source Regions Top source region was the Middle Atlantic States: New York, New Jersey and Pennsylvania (27%)

18. Modes Of Inter - city Transportation Top modes of inter-city transportation used between destinations were: Airline : 33 % Railroad: 16 % Bus:14% Top modes of intra-city transit were : Taxicab/limo : 41% Subway/tram/bus : 18%

19. Top Leisure Activities Dining in restaurants Shopping Visiting historical places Visiting small towns and villages Sightseeing in cities Touring the countryside Visiting cultural heritage sites.

20. Spending Abroad Spending by US residents travelling abroad: $109.8 billion; up 7% Spending within foreign countries: $78.7 billion, up 3 %. Spending on transportation, via foreign carriers: $31.1 billion, up 5%. Top countries for U.S. spending: Mexico ($9.3 bn) The United Kingdom ($8.7 bn) Canada ($7.7 bn) Germany ($5.6 bn) Japan ($5.0 bn)

21. Profile Of Overseas Travellers Advance trip decision time: 95 days, in 2011 Airline reservation time: 63 days, in 2011 Pre paid package usage: grew to 13% of US travellers in 2011. Percentage visiting one destination: 65% in 2011. Percentage visiting three or more destinations:16% in 2011. Percentage on their first international trip: 7%, up one point from 2010. The average length of trip (number of nights) outside US: increased to 19.6 nights in 2010, up one night. Average number of international trips taken: 2.4, same as in 2010.

22. US Inbound

23. Top 10 Source Countries, 2011 Canada21.3 million Mexico13.5 million U.K. 3.8 million Japan 3.3 million Germany 1.8 million Brazil 1.5 million France 1.5 million S. Korea 1.2 million China 1.1 million Australia 1.0 million Highest Increase in arrivals was from China (+36%), Brazil (+ 26%) and Australia (+15%)

24. Top 10 Cities Of North America By International Visitor Spend, 2012 New York Leads (US$19.4 bn) Apart from Toronto and Vancouver, all the others are US cities. Source: MasterCard Wordwide Insights

25. Top 10 Spenders, 2011 Canada (+15%) $24.0 billion Japan (+2%) $14.8 billion United Kingdom (+6%) $12.0 billion Mexico (+6%) $9.2 billion Brazil (+36%) $8.5 billion

26. Top 10 Spenders, 2011 China (+47%) $7.7 billion Germany (+12%) $6.3 billion France (+18%) $5.0 billion Australia (+22%) $5.0 billion India (+10%) $4.4 billion

27. Travel Trends

28. The Americas: Most Open A verage 31% of the worlds population do not need a Visa to visit Americas. 8.0% could obtain a Visa on arrival. 1.0% an eVisa. (UNWTO, 28 January 2013)

29. Outbound, Long Haul Increases North American outbound travel increased by 3% Long haul travel grows by 6%. The US outbound market expected to stabilise in 2013. (World Travel Monitor)

30. Likely To Cross New Borders With improved diplomatic relations, American Holiday-makers likely to visit North Korea, Cuba, Myanmar. (WTM Global Trends Report, 2012)

31. Rise in Family Travel 83% of survey respondents plan to take at least one vacation with family members in 2011, up 79%. (TripAdvisor) 37% plan to take a multi- generational family trip in 2011. (Hotelmarketing.com, 2011)

32. Women Travellers Increase Females comprised 51% of US travellers; 39% in 2000. Up from 2010 Averaged 44.2 years

33. The Next Generation Travellers Generation born between 1980 and 1999 Known as Gen Y, The Millenials, Gen Next. Population: 76mn Baby Boomers vs 79 mn Millenials now By 2030: 58mn Baby Boomers vs 78 mn Millenials The Millenials

34. The Millenials - Profile Instant Service & Flexibility Need real time information Shorter booking window of 75 days to 93 days Could prefer hostels with a clean bed, hot shower and Wifi Looks for that something extra in a hotel Demand to be integrated with authentic local experience Wish to promote social responsibility Lovers of pod hotel concept – limited room size, unique luxury design and high-tech gadget features. Peer Review – a powerful tool, social creatures online and offline

35. Online Trends

36. Online Population Total Online Population(000's),2012: 245,203 (78.1%) US Internet Users - 2010: 221.0 million (71.2%) - 2011: 229.2 million (73.2%) - 2012: 236.9 million (74.9%) - 2013: 244.1 million (76.5%) - 2014: 250.7 million (77.8%)

37. Top OTAs

38. Internet, Leading Travel Planning Source Internet Family, friends Information brochures Magazine TV Internet 85% among personal travellers 78% among business travellers Family, friends, or colleagues 60% / 38% Information brochures 32% / 28% Magazines 24% / 25% TV 22% / 26% Source: Google Study

39. Smart Phone Penetration Gen Z (18-23): 95% have mobile phone 64% have smartphone Gen Y Millennials (24-32): 97% ; 72% Gen X (33-46): 95% ; 61% Younger boomers (47-56) 92% ; 39% Older boomers (57-67): 89% ; 28% Golden generation (68-88): 85% ; 16%

40. Increase In Travel Bookings By Smartphones Travel bookings made through mobiles to reach $25 Billion by 2014 Mobile revenue will be 18% of the online market and 8% of the total travel market. In 2012, 22% of the total travel bookings/purchases are from mobile websites, 12% from native apps and the rest from non-mobile sources.

41. Forecast, Outbound Outbound market expected to stabilise in 2013 after declining in 2012 IPK forecasts zero growth for US outbound travel next year. The key trend in the North American outbound market is more travel within the region Source: IPK International

42. Forecast, Inbound Inbound forecast to grow over the period, 2011 – 2017 From the Caribbean (+3%), Asia (+64%), South America (+60 %), Oceania (+41%). Countries with the largest total growth percentages: China (+259%), Brazil (+83%), Argentina (+67%), South Korea (+51 %), India (+47%), Australia (+46%), Venezuela (+45%). North America world region will account for largest proportion of the total visitor growth of nearly 18 million visitors (42%).

43. References U.S. Department of Commerce, International Trade Administration, Manufacturing and Services Office of Travel and Tourism Industries U.S. Department of Commerce, Bureau of Economic Analysis Statistics Canada Banco de Mexico U.N. World Tourism Organization MKG Hospitality Courtesy for images www.123rf.com;, Wikipedia, www.sxc.hu, www.telegraph.co.uk, www.123rf.comwww.sxc.hu www.telegraph.co.uk www.womenbizlife.com

44. Disclaimer The report is based on the information from the published sources and References mentioned and inferences drawn are from them. Stark Tourism Associates and its parent organization, The Stark Group and the Group Companies - Stark Communications, Stark Expo, Stark World Publications are not responsible for errors/omissions that could have crept in knowingly or unwittingly.