TOURISM IS THE

BIGGEST INDUSTRY IN THE WORLD!

BIGGER THAN AUTOMOBILES, DEFENCE, AGRO AND MANUFACTURING

Presentation Overview

* WTTC

* Global Travel & Tourism

* A Changing World

* Summary

WTTC Purpose

‘To raise awareness of the importance of Travel &

Tourism and to work with governments to realise the full

potential of the industry in creating sustainable wealth

and jobs’

In Economic Terms...

Visitor arrivals

vs. Economic

impact

Raising Awareness

WTTC introduction of Travel &

Tourism Economy Concept

Global Travel & Tourism:

Where We Stand

World Economy* GDP

* Travel & Tourism GDP associated with T&T Demand (Direct and Indirect)

* US$ 5.4 Trillion in 2007 (up 9.4% in current terms)

* 10.4% of Total Gross Domestic Product in 2007 (vs. 10.3% in 2006)

2007

Travel & Tourism Economy by Region

North America

European Union

Northeast Asia

Latin America

Central and Eastern Europe

Oceania

Southeast Asia

Middle East

South Asia

North Africa

Caribbean

Sub-Saharan Africa

T&T Economy GDP Growth 2007-2016(Percent Annualized)

2006

T&

T E

cono

my

GD

P(P

erce

nt o

f Tot

al)

Other Western Europe World Average

2007 saw continued broad-

based strength in the

tourism economy, though

generally below 2006

growth rates. In 2008,

growth is expected to

remain healthy despite

economic conditions.

Results in 2007 better than forecast

Revision of 2008 ForecastReal T&T GDP

EconomyLast Year’s 2008

Forecast(annual % growth)

2008 likely forecast Revision

(Direction)

Africa 5.0 Up

Asia/Pacific 5.6 Constant

Europe 3.1 Down

Middle East 5.0 Up

North America 3.3 Down

Latin America 4.3 Up

World 4.2 Down

Source: WTTC/Oxford Economics

International air travel rose at a record 9.3% y-y in November

Encouraging tourism growth - particularly in developing

countries

Most developed economies have also seen a sustained rise in

inbound flows

Total Pipeline: Global Regions

Under Const.

Start Next 12

Mos.

Early Plannin

g

Total Projec

ts

Total Rooms

United States

223,977315,99

5178,4

155,43

8718,38

7

Americas-Other

69,666 44,22830,21

2864

144,106

Europe 74,063 38,24833,32

5854

145,636

Middle East 63,822 46,19235,49

3501

145,507

Africa 15,164 8,009 5,076 142 28,249

Asia Pacific 272,754 80,73672,53

41,833

426,024

Source: Lodging Econometrics

A Relative Picture

United States45%

Americas-Other9%

Europe9%

Middle East9%

Asia Pacific26%

Africa2%

Of total rooms constructed, 45% will be built in the United States

2007 - 2017

A Changing World:

Macro Drivers

* Credit crunch continues to be a worry on outlook

* High oil prices may become a major constraint on global growth

* Fear of US Recession dragging down the world

* Increasing Deficit

* Housing market in trouble

* Weaker dollar

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004 2005 2006 2007Source: Haver

UK Brent oilUS $/Barrel

Source : Oxford Economics/Haver Analytics

Stock Markets Feel the Pressure...

-20

-15

-10

-5

0

5

10

15

20

25

30

Jan 1 2007 Mar 26 2007 Jun 18 2007 Sep 10 2007 Dec 3 2007

S&P 500FTSENikkei

Global stock markets% year

Source : Oxford Economics/Haver Analytics

-4

-2

0

2

4

6

8

10

12

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: Oxford Economics

% year

Japan

US

World: GDP growth

Eurozone

Forecast

China

* Rapidly expanding economic growth in Emerging Markets, create a new and dynamic source of visitors

ChinaIndiaRussiaMiddle East

* Responsive monetary policy – Quick and decisive response by central banks to economic situations

* Strong corporate profitability outside of the financial sector

2008 will see further slowdown but not as sharp as period between 2001 and 2003

0

1

2

3

4

5

6

7

8

1995 1997 1999 2001 2003 2005 2007Source: Haver Analytics

%

Europe

US

UK

World: Short-term interest rates

Summary

Summary

* WTTC forecasts that the United States is and will remain the largest Travel & Tourism industry in the world

* A changing world, requires a new mind frame. A global slowdown is anticipated, sparked by a US recession. However this will be partially offset by today's changing world

* The lodging Industry is still showing great strength and is growing at an impressive pace, despite the anticipated economic slowdown.

It appears that this saying no longer holds:

“When America sneezes, Europe catches a cold and the rest of the

world dies of pneumonia”

“Today, the United States sneezes and the rest of the world goes shopping”

BUT

YOUR FUTURE

IS ASSURED

JUST STEP UP TO CLAIM YOUR PART OF IT!