1. 22nd Annual Southern California Visitor Industry Outlook Conference CIC Research, Inc. 8361 Vickers St. San Diego, CA 92111 858-637-4000 www.cicresearch.com Hotel Maya Long Beach, CA October 29, 2010

2. Where Have We Been? 2 2008

3. 3 And Travel is More Fun?

4. 4 Potential 40% More PAX?

5. 5 A La Carte Airfare Pricing

6. Southern California Perspective 6

7.  23.6 Mil. population in SoCal - About 7.5 Mil. Households Unemp - More than 9.7 Mil. Employees12.2%  California: - 38.7 million CA population (SoCal=61%) - 16.0 million CA employees (SoCal=61%)12.4%  United States: - 310 million US population (SoCal=8%) - 139 million US employees (SoCal=7%) 9.6% 7

8. 2010 SoCal Hotel Room Inventory  301,000 Rooms  109.9 Mil. Room Nights Avail.  66.1% Occ. Rate  72.7 Mil. Room Nights Sold Sources: CIC Research, LACVB, AOCVCB, SDCVB, & STR. 8 Room Inventory

9. SoCal Hotel Rooms Sold Sources: CIC Research, LACVB, AOCVCB, SDCVB, PKF & STR. 9 Millions of Room Nights No change 2005 - 2007

10. 10 SoCal Hotel Room Revenue Sources: CIC Research, LACVB, AOCVCB, SDCVB, PKF & STR. Peak in 2007

11. International Visitors to the U.S. Millions Source: U.S. Dept. of Commerce, OTTI/CIC Research, Oct. 2010. 11

12. 20092010 12 LAX International Arrivals (monthly percent change to prior year) 2008

13. 20092010 LAX Quarterly International Pax Arrivals 2007 13 Millions

14. 20092010 14 2008 SoCal Passenger Arrivals (comparison to prior year same quarter) Primarily domestic air travelers.

15. 200820092010 Arrivals in Millions Southern California Air Arrivals 2007 15

16. Southern California Air Arrivals Arrivals in Millions 16

17. Overnight Visitors to SoCal 17

18. Domestic Overnight Visitors to SoCal Millions 18 Source: CIC Research, Inc.

19. SoCal Overnight International Visitors Millions 19 Source: CIC Research, Inc.

20. Total Overnight Visitors to SoCal 20 Source: CIC Research, Inc.

21. Total SoCal Overnight Visitor Spending 21 Source: CIC Research, Inc.

22. SoCal Overnight Visitor Forecast (2010 & 2011)  Visitors 45.5 M (2010 Preliminary)Up (3.5%-4%) 46.6 - 47.0 M (2011 Forecast)Up (2.4% to 3.3%)  International Visitors 6.2 M (2010 Preliminary)up (10%-11%) 6.4 - 6.7 M (2011 Forecast)Up (3% to 8%)  Domestic Visitors 39.3 M (2010 Preliminary)Up (3%) 40.2 – 40.6 M (2011 Forecast)Up (2.3% to 3.3%)  Spending $25.7 B (2010 Preliminary)Up (4.5%-5.5%) $27.3 B - $27.8 B (Forecast 2011)Up (6% to 8%) 22

23. 200820092010 23 LAX Monthly International Passenger Arrivals

24. 20092010 24 2008 SoCal Passenger Arrivals - Monthly Percent Change (comparison to same month of prior year)

25. 200820092010 In 000’s Southern California Air Arrivals 2007 25

26. SoCal Ports of Entry- All Overseas Visitor Arrivals Arrivals in Millions Source: CIC Research & Dept. of Homeland Security. 26