Jack Kyser Chief Economic Advisor October 29, nd Annual Visitor Outlook Conference

2 A Difficult Environment… Southern California Association of Governments o A slow motion economic recovery o Consumers are expecting/looking for deals o A slow motion economic recovery o Consumers are expecting/looking for deals

3 U.S. Economic Growth Southern California Association of Governments

4 Los Angeles County Fundamentals Southern California Association of Governments

5 Orange County Fundamentals Southern California Association of Governments

6 Trends in Top Domestic Feeder Markets Southern California Association of Governments

7 Recent Peak:1,082,100 in 2000 San Francisco Metro Employment Trends Southern California Association of Governments Source:EDD (total nonfarm employment)

8 Recent Peak:1,044,300 in 2000 San Jose Metro Employment Trends Southern California Association of Governments Source:EDD (total nonfarm employment)

9 Recent Peak: 1,308,800 in 2007 San Diego Metro Employment Trends Southern California Association of Governments Source:EDD (total nonfarm employment)

10 Recent Peak: 903,000 in 2007 Sacramento Metro Employment Trends Southern California Association of Governments Source:EDD (total nonfarm employment)

11 Southern California Association of Governments Trends in Top International Feeder Markets

12 Mexico Economic Growth Southern California Association of Governments (change in GDP – Constant price) Source:IMF

13 Canada Economic Growth Southern California Association of Governments (change in GDP – Constant price) Source:IMF

14 U.K. Economic Growth Southern California Association of Governments (change in GDP – Constant price) Source:IMF

15 Japan Economic Growth Southern California Association of Governments (change in GDP – Constant price) Source:IMF

16 Germany Economic Growth Southern California Association of Governments (change in GDP – Constant price) Source:IMF

17 Value of the U.S. Dollar Versus the Yen Southern California Association of Governments (per U.S. Dollars)

18 Value of the U.S. Dollar Versus the Euro Southern California Association of Governments (per U.S. Dollars)

19 Challenges for the Visitor Industry Southern California Association of Governments o A very competitive market o Too many visitor bureaus o Getting transportation agencies to think about tourists o A very competitive market o Too many visitor bureaus o Getting transportation agencies to think about tourists

20 Thank You…Questions? Southern California Association of Governments