1. Alabama Gulf Coast Convention and Visitors Bureau Vacation Plans Study for the Market February 2009 New South Research 3000 Riverchase Galleria Suite 630 Birmingham, AL 35244 Telephone: (205) 443-5350 Fax: (205) 443-5340 jjager@newsouthresearch.com

2. 22 Introduction  In February 2009, New South Research conducted an online survey on behalf of the Alabama Gulf Coast Convention & Visitors Bureau.  The primary purpose of this project is to examine the vacation plans for the Southeastern market, primarily the market most likely to consider the Alabama Gulf Coast as a viable vacation option, and to see if vacation plans differed in 2009 than from previous years. Specific objectives included: –What vacations were taken in 2008? –What locations are being considered for vacation in 2009?-Aided –What are demographics of the sample?  The respondents for the study were provided from two sources: General Population sample obtained by New South Research (N=588) and Alabama Gulf Coast Convention and Visitors Bureau Inquirers (N=412).  Respondents in the General Public group were required to meet the following criteria in order to participate: –Primary or joint vacation decision maker –Primary residence in target markets (AL, GA, LA, MS, TN, and TX) –Ages 35-64 –Annual household income above $50,000  In total, 1000 respondents participated in the online survey. The statistical margin of error is 3.1 percentage points at the 95% confidence interval. That is, the results will vary by no more than 3.1 percentage points from the results in this report 95 times out of 100.  Some tables presented within this report may not add up to exactly 100% because of rounding or omission of non-pertinent data.

3. 3 Key Points In multiple ways, the respondents conveyed the “big picture” message of this report: they are planning to spend less time on vacation in the Summer of 2009 than they did in 2008. This message was conveyed through these findings:  Among the 832 respondents who took a vacation in 2008: –88% said they definitely or probably would take a vacation in 2009, the remaining 12% may not take one this year. –24% visited only one location in 2008, while 39% plan to visit only one location in 2009 (a +15% increase in 2009).  In a similar survey conducted by NSR in 2008, it was discovered that 23% of respondents planned to take a longer vacation than in the past, while 13% planned a shorter vacation. This same question was asked in this survey. From 2008 to 2009: –The percentage taking a longer vacation decreased by -13% (from 23% to 10%) –The percentage taking a shorter vacation increased by +10% (from 13% to 23%)  Based on mean: –Vacationers in 2008 visited, on average 2.2 destinations, both overall and by each data source (General Population or Gulf Coast Inquirers). –However, in 2009, they plan on visiting 1.8 destinations (both overall and by data source).  Regarding how many nights were spent 9or they plan to spend) at each destination: –2008 Mean: 5 nights, both overall and for Gulf Coast; 5.1 for Gen Pop. –2009 Mean: 4.9 nights, overall; 4.8 for Gen Pop; 5.0 for Gulf Coast.  When asked, unaided, what locations are being considered for a vacation in 2009, 15% of all respondents were still unsure.  While it appears consideration of the AL Gulf Coast has decreased, all vacation locations measured in this report showed a slight decrease in visitation in 2009 as well.

4. 4 Key Points There is still some untapped potential in the market:  Respondents were presented with a list of potential vacation destinations. They were asked which locations they were willing to consider, then asked which ones are being considered for 2009 (see page 28 for further explanation): –70% overall are willing to consider Gulf Shores, while 53% said Gulf Shores is being considered (-17% difference) –54% overall are willing to consider the AL Gulf Coast, while 40% said the ALGC is being considered (-14% difference)  This finding conveys that some of the potential market for the 2 locations remains untapped and presents an opportunity for finding future vacationers. There was some loyalty shown toward the AL Gulf Cost by past visitors to the area (N=251). However, there again might be slight decrease in visitation in Summer 2009, even among these loyal past visitors:  Unaided: among the 251 respondents who vacationed in the AL Gulf Coast in 2008, 75% said they plan on vacationing there again in 2009; 25% did not mention it.  When asked, from a list of potential vacation destinations for Summer 2009, which one location was being considered most: –62% of the past visitors are most considering Gulf Shores/Orange Beach –14% are most considering AL Gulf Coast. –76% combined are considering the two listed locations; 24% of the 2008 visitors chose a different location.

5. 5 What vacations were taken in 2008?

6. 66 Did respondents vacation last summer and are they planning to this summer?  Eight of every 10 respondents took a vacation last summer (no significant difference by respondent group).  Furthermore, roughly 8 of 10 definitely (47%) or probably (37%) will take a vacation in the Summer of 2009. –There was a slight difference by respondent group, as 51% of the Gulf Coast Inquirers will definitely take a vacation in 2009, compared to 44% of the General Population. –The 832 respondents who took a vacation in 2008 were clearly more likely to take a vacation in 2009 (a combined 88% definitely or probably would) than were the 168 who did not take a vacation in 2008 (62% combined; a difference of -26%). However, this finding also means that 12% of those who took a vacation in 2008 may not take one this year.  When compared, the percentage who took a vacation in 2008 (83%) was quite similar to the percentage who definitely or probably would take a vacation in 2009 (84%). There was also minimal difference in the findings per respondent group.  In a similar survey conducted by NSR in 2008, it was discovered that 23% of respondents planned to take a longer vacation than in the past, 52% will take a vacation of similar length and the remaining 23% would either take a shorter vacation (13%) or not take one (10%). –This same question was asked in this survey. From 2008 to 2009: The percentage taking a longer vacation decreased by -13% (from 23% to 10%) The percentage taking a shorter vacation increased by +10% (from 13% to 23%) –The findings were similar regarding the percentage not taking a vacation (10% in 2008; 9% in 2009) or taking the same length vacation (54% in 2008; 58% in 2009).

7. 7 Did you take a vacation last summer?-Yes Reported

8. 88 Did you take a vacation last summer? -Cross-Tabulated By Demos  Overall, 832 respondents took a vacation last summer, while 168 did not. Demographic differences between the two groups were examined. Based on the sample size, differences of at least +/-7% are noteworthy.  The 832 respondents who took a vacation last summer were more likely to: –Have a $100K+ income (36%, compared to 27%) –Be male (33%, compared to 25% who did not take a vacation) –Be Caucasian (90%, compared to 76%) –Have kids in the household (54%, compared to 47%)  The 168 respondents who did NOT take a vacation last summer were more likely to: –Live in Tennessee (29%, compared to 16% of those who took a vacation) –Have an income <$75K (44%, compared to 34%) –Be African-American (21%, compared to 7%)  Differences by age and education were slight, not significant.

9. 9 What are vacation plans for the Summer of 2009?

10. 10 Respondents who took a vacation in 2008 were clearly more likely to also take one in 2009 (compared to those who did not). However, 12% of vacationers might not or will not take one in 2009.

11. 11 The percentage who took a vacation in 2008 was quite similar to the percentage who definitely or probably would take a vacation in 2009.

12. 12 Which BEST DESCRIBES your vacation plans for the Summer of 2009? First bar is from the 2008 image study (the same question was asked in that survey).

13. 13 How many different destinations were visited in 2008? How many planned to visit in 2009?  All respondents were asked how many different destinations they visited in 2008, then asked how many they planned to visit in 2009. When compared, the key findings were as follows: –24% visited one location in 2008, while 39% plan to visit only one location in 2009 (a difference of +15% more in 2009) –There was minimal difference in the percentage who named 2 locations (41% in 2008; 46% plan to visit 2 locations in 2009) –35% visited 3 or more locations in 2008, while 15% plan to visit 3 or more locations in 2009 (a difference of -20% fewer in 2009) –The above trends (one location up in 2009; 3+ locations down) occurred in a similar fashion for both respondent groups as well.

14. 14 How many different destinations were visited in 2008? How many planned to visit in 2009? Visited (2008) Mean: 2.2 destinations, both overall and by each data source. Plan to visit (2009) Mean: 1.8 destinations, both overall and by each data source. TotalGen PopGC Inquirers

15. 15 How many nights spent at destinations in 2008? How many nights do respondents plan to spend on vacation in 2009?  In an unaided question, the respondents were asked how many nights they spent at their vacation destinations in 2008, then asked how many nights they planned to spend while on vacation in 2009. The findings when compared were quite similar: –13% spent 1-2 nights at each location in 2008; 12% planned 1-2 nights in 2009 –54% spent 3-5 nights at each location in 2008; 58% planned 3-5 nights in 2009 –33% spent 6+ nights at each location in 2008; 30% planned 6+ nights in 2009  When examined by respondent group, again, the findings were quite similar. The only notable finding was that, among Gulf Coast Inquirers, 53% spent 3-5 nights at each location in 2008, while 58% plan on 3-5 nights in 2009.  These questions were also examined among the 251 respondents in the total sample who vacationed at the Alabama Gulf Coast in 2008. Their findings were quite similar to the overall findings of the sample. Among the 251 AL Gulf Coast visitors: –14% spent 1-2 nights at each location in 2008; 10% planned 1-2 nights in 2009 –56% spent 3-5 nights at each location in 2008; 60% planned 3-5 nights in 2009 –30% spent 6+ nights at each location in 2008; 30% planned 6+ nights in 2009

16. 16 How many nights were spent at each destination? 2008 Mean: 5 nights, both overall and for Gulf Coast; 5.1 for Gen Pop. 2009 Mean: 4.9 nights, overall; 4.8 for Gen Pop; 5.0 for Gulf Coast. Total Gen Pop GC Inquirers

17. 17 How many nights were spent at each destination? -Compared to the 251 who went to the AL Gulf Coast in 2008 2008 Mean: 5 nights overall; 4.9 for ALGC vacationers. 2009 Mean; 4.9 nights, overall; 5.1 for ALGC vacationers. Total Sample (N=832) Among Those Who Vacationed on the ALGC in 2008 (N=251)

18. 18 What locations are being considered for vacation in 2009? (Aided)-Section Introduction  The charts on the pages to follow concentrate on the AL Gulf Coast market and primary Gulf Coast competitors. Some points to keep in mind when examining the charts: –The responses are grouped by similarity and included various destinations (particularly for the FL Gulf Coast) named by sometimes only a few respondents. –Numerous other vacation destinations outside of the Gulf Coast were mentioned, but are not included on the chart. –The response “Florida” is included, but separated from Florida Gulf Coast. This rather ambiguous response could or could not be referring to the Gulf Coast. –Understandably, some respondents were less specific about their future vacation plans than about where they went in 2008. Thus, the 2009 responses Don’t Know/Unsure and the general response Gulf Coast/the Beach are found only in response to where they are considering or planning to go. –Perhaps most important: while it appears consideration of the AL Gulf Coast has decreased, all locations measured showed a higher percentage visiting in 2008 than considering the location in 2009.

19. 19 Where did respondents vacation in 2008 and what locations are being considered in 2009?  Overall, 470 respondents in 2008 vacationed in the Gulf Coast area in 2008 (defined as the area stretching from Texas through the Florida Panhandle). Furthermore, 692 respondents are considering a vacation in the area in 2009. Again, numerous other vacation destinations throughout the country and world were mentioned by the respondents, but are not included in this section. Overall, when compared to vacation destinations being considered in 2009, the key findings are as follows: –58% visited the AL Gulf Coast in 2008; 42% are considering it in 2009 (-16%) –52% visited the FL Gulf Coast in 2008; 41% are considering it in 2009 (-11%) –15% said they are unsure where they will vacation in 2009 –6% offered the general responses Gulf Coast or The Beach (which may or may not include the AL Gulf Coast) in 2009 –No more than 8% mentioned other Gulf Coast locations (Mississippi, Texas or Louisiana) and there was minimal difference between 2008 and 2009 findings.  The same trends or themes noted above were found among each respondent group as well. Among the General Population group: –52% visited the AL Gulf Coast in 2008; 34% are considering it in 2009 (-18%) –53% visited the FL Gulf Coast in 2008; 46% are considering it in 2009 (-7%)  Among the Gulf Coast Inquirers group: –65% visited the AL Gulf Coast in 2008; 51% are considering it in 2009 (-14%) –51% visited the FL Gulf Coast in 2008; 37% are considering it in 2009 (-14%)  Please note from the above findings that a higher percentage in the Gulf Coast Inquirers group visited the AL Gulf Coast (+13%) and are considering it in 2009 (+17%) than in the General Population group.

20. 20 Where did respondents vacation in 2008 and what locations are being considered in 2009?  As noted previously in the report, there were 251 respondents who visited the Alabama Gulf Coast in 2008. Their 2009 vacation plans were compared with those of the overall sample. The most notable findings are as follows: –75% of the ALGC vacationers plan to visit the AL Gulf Coast in 2009, compared to 42% of the overall sample (+33%) –30% of the ALGC vacationers plan to visit the FL Gulf Coast in 2009, compared to 41% of the overall sample (-11%) –7% of the ALGC vacationers were unsure where they would visit in 2009, compared to 15% of the overall sample (-8%) –A combined 9% of the ALGC vacationers named any other Gulf Coast location in 2009, compared to 21% of the overall sample (-12%)  When demographics were split between the 251 respondents who visited the Alabama Gulf Coast in 2008 and the 749 who went elsewhere, the key findings were as follows: –ALGC visitors were more likely to: Live in Alabama Be age 45-54 Have kids age 7-10 Be Caucasian –Those who did not visit ALGC in 2008 were more likely to: Live in Georgia or Tennessee Be age 35-44 Have kids age 14-18 Be college graduates Be African-American

21. 21 *Where did respondents vacation in 2008 and what locations are being considered in 2009?-Overall *See page 18.

22. 22 *Where did respondents vacation in 2008 and what locations are being considered in 2009?-Gen Pop *See page 18.

23. 23 *Where did respondents vacation in 2008 and what locations are being considered in 2009?-Gulf Coast Inquirers *See page 18.

24. 24 Comparison: Comparison of AL Gulf Coast and FL Gulf Coast: Went in 2008 and are being considered in 2009

25. 25 *Out of 251 respondents who visited the AL Gulf Coast in 2008, 75% plan to vacation there again in Summer 2009. *The yellow bars concern the 251 respondents who said they visited the AL Gulf Coast in 2008.

26. 26 Demographics Split by if they Visited ALGC in 2008

27. 27 What locations are being considered for vacation in 2009? (Aided)

28. 28 What locations are being considered for vacation in 2009? (Aided)-Section Introduction  The charts on the pages to follow concern aided questions regarding vacation destinations in the primary market that respondents would likely consider. Some points to keep in mind when examining the charts: –As part of the participation screener, respondents were presented with a list of vacation options and were asked to select which locations they were willing to consider for a vacation. It is important to note that, in order to get the proper mix of respondents, each respondent had to consider at least one beach destination. –In a similar question, the respondents were offered a list of locations and were asked to select which of the listed locations they are considering for vacation in Summer 2009. –There were then asked, from the list, which one location they were most considering for the Summer of 2009.

29. 29 What locations are being considered for vacation in 2009? (Aided) Willing to consider for a vacation  Overall, 70% would consider Gulf Shores/Orange Beach for vacation and 54% would consider AL Gulf Coast (over 100% combined). However, while selected by high percentages in each group, the 2 Alabama locations were more likely to be selected by the Gulf Coast Inquirers Group than by the General Pop group: –Gulf Shores/Orange Beach: 80% among Gulf Coast Inquirers; 62% among the General Population (-18% difference) –AL Gulf Coast: 61% among Gulf Coast Inquirers; 49% among the General Population (- 12% difference)  Among the other listed locations, 67% would consider Destin, 50% the Caribbean and no higher than 46% any other location. –When split by group, slightly higher percentages of the General Population group considered each location. However, there was minimal difference between the groups regarding consideration of 3 Florida Panhandle locations (Destin, Panama City, Fort Walton) or Georgia’s Atlantic Coast. Being considered for Summer 2009  Overall, 53% are considering Gulf Shores/Orange Beach for vacation and 40% are considering AL Gulf Coast (93% combined). Again, however, the 2 Alabama locations were more likely to be selected by the Gulf Coast Inquirers Group than by the General Pop group: –Gulf Shores/Orange Beach: 63% among Gulf Coast Inquirers; 47% among the General Population (-16% difference). –AL Gulf Coast: 50% among Gulf Coast Inquirers; 34% among the General Population (- 16% difference).

30. 30 What locations are being considered for vacation in 2009? (Aided) Being considered for Summer 2009 (Continued)  Among the other listed locations, 48% would consider Destin; 35% Panama City; 28% the Caribbean and no higher than 27% any other location. –When split by group, slightly higher percentages of the General Population group considered the Caribbean or chose “none of the above.” There was minimal difference by group otherwise.  When “are being considered” percentages by the total sample were combined: –Well over 100% (152% combined) considered the North FL Gulf Coast locations (Destin, Panama City, Fort Walton, Beaches at South Walton, North FL) –93% combined would consider the AL Gulf Coast and/or Gulf Shores/Orange Beach –48% would consider other FL locations (Central and South FL, Atlantic side) –35% would consider the beaches in the Carolinas (North and South Carolina) –31% would consider the MS locations (MS Gulf Coast; Biloxi) –28% would consider the Caribbean –14% would consider the Georgia coast –8% would consider the Texas Gulf Coast  When compared: –70% overall are willing to consider Gulf Shores, while 53% said Gulf Shores is being considered (-17% difference) –54% overall are willing to consider the AL Gulf Coast, while 40% said the ALGC is being considered (-14% difference)  This finding conveys that some of the potential market for the 2 locations remains untapped and presents an opportunity for finding future vacationers.

31. 31 What locations are being considered for vacation in 2009? (Aided) Which one location was being considered most  Overall, 28% are most considering Gulf Shores/Orange Beach for vacation and 7% are most considering AL Gulf Coast (35% combined). Again, however, the 2 Alabama locations were more likely to be selected by the Gulf Coast Inquirers Group than by the General Pop group: –Gulf Shores/Orange Beach: 36% among Gulf Coast Inquirers; 23% among the General Population (-13% difference). –AL Gulf Coast: 9% among Gulf Coast Inquirers; 5% among the General Population (-4% difference).  Among the other listed locations, 16% are most considering Destin; 8% Panama City and no higher than 6% any other location (minimal difference by group).  The one location being considered most was examined among the 251 respondents who vacationed in the AL Gulf Coast in 2008. The key findings: –62% are most considering Gulf Shores/Orange Beach for vacation in 2009 and 14% are most considering AL Gulf Coast (76% combined, compared to 35% combined for the overall sample-a difference of +41%). –A combined 14% are most considering the FL Gulf Coast locations, compared to 32% combined among the overall sample (a difference of -18%). –A combined 10% are most considering the remaining listed locations, compared to 36% combined among the overall sample (a difference of -26%). –Thus, there was some loyalty shown, as a high percentage of those who vacationed in the AL Gulf Coast are considering retuning to the area for vacation in 2009.

32. 32 *What locations are respondents willing to consider for a vacation? *To participate, respondents had to consider at least one beach destination: The Caribbean, the Gulf Coast, South FL, Texas Beaches. **Combined, well over 100% were willing to consider Gulf Shores, Orange Beach and/or the AL Gulf Coast.

33. 33 *What locations are respondents willing to consider for a vacation? (Cont’d) *To participate, respondents had to consider at least one beach destination: The Caribbean, the Gulf Coast, South FL, Texas Beaches.

34. 34 What locations are being considered for their next vacation (Summer 2009-Aided)? *Combined, 93% are considering Gulf Shores, Orange Beach and/or the AL Gulf Coast (over 100% of Gulf Coast Inquirers; 81% of the Gen Pop).

35. 35 What locations are being considered for their next vacation (Summer 2009-Aided)?(Continued)

36. 36 Comparison: Willing to consider Gulf Shores or AL Gulf Coast compared to locations that are being considered for a vacation destination in 2009.

37. 37 Which ONE location are you most likely to visit in Summer 2009? *Combined, 35% were most likely to visit Gulf Shores, Orange Beach and/or the AL Gulf Coast (45% of Gulf Coast Inquirers; 30% of the Gen Pop).

38. 38 Which ONE location are you most likely to visit in Summer 2009? (Continued)

39. 39 Regarding which ONE location they pay to visit in 2009, out of 251 respondents who visited the AL Gulf Coast in 2008, 76% named either Gulf Shores (62%) or ALGC (14%). Combined, 35% overall were most likely to visit Gulf Shores, Orange Beach and/or the AL Gulf Coast, but this percentage was 76% combined among those who visited the AL Gulf Coast in 2008 (+41%).

40. 40 What are the demographics of the sample?

41. 41 Demographics