WHAT’S NEW AT NAJ FOR 2011 RECEPTIVE TRENDS NAJ TRAX SUMMARY FOR 1H 2010 FORECASTS FOR TOP 10 SOURCE

MARKETS FORECASTS FOR EXCHANGE RATE TRENDS POSSIBLE LIST OF COUNTRIES TO RECEIVE

TPA FUNDING

E-TOURISM SUMMIT-October 12-13, 2011, San FranciscoE-TOURISM WORKSHOPS: TBA

3nd ACTIVE AMERICA SUMMIT/CHINA – April 18-20, Venetian

Hotel Las Vegas

RECEPTIVE MARKETPLACE EVENTSNAJ TOUR OPERATOR SUMMIT-WEST : Jan 31-Feb1, Los Angeles

The Inbound Report -16 years The Destination Marketer Tour and Travel Buzz

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INFLUENCING 4 Million Travelers DIY PRODUCT DEVELOPMENT

CAMPAIGN INSTANT E-MAIL ALERTS SENT: (average 40 per client in 7 months)

TOP COUNTRIES Visits ‘10 Visits ‘09 % chg1. Canada 1,192 1053 11.7%2. UK 1,055 997 5.5%3. Germany 481 370 23.1%4. Japan 349 289 17.2%5. Netherlands 293 191 34.8%6. Italy 254 150 40.9%7. Denmark 220 145 34.1%8. India 186 150 19.4%9. Israel 179 127 29.1%10. France 175 137 27.7%Source: Google Analytics

NAJ TraX ™1H 2010

ROOM NIGHT PRODUCTION

147 Receptive Operators in database 14 Mn room nights-all receptives 140 Million Overseas leisure room

Nights: Int’l (by air) RTO’s book 10% of Int’l in 2010) 2.48 million bookings

AMERICAN RING MEETING POINT NEW WORLD CITYTOURS TEAM AMERICA GO WEST BONOTEL

HOTELBEDS TOURICOREGIONAL CITYTOURS MAINE ROCKY MTN

HOLIDAY COLUMBIA

CROSSROADS

SEGMENT ROOM NIGHT PRODUCTION

% Change PY

FIT3,428,010 13.2%

GROUPS 654,759 16.8%

TOTAL 4,082,769 13.9%

DESTINATIONS % CHANGE ‘10 vs ‘09

Las Vegas 24.8%Los Angeles 8.6San Francisco 6.3San Diego 22.8Anaheim 17.0Seattle 25.5Phoenix 13.7 Scottsdale 1.8

DESTINATIONS % CHANGE ’10 vs ‘09

New York 9.0%

Chicago 15.4

Philadelphia 36.2

New Orleans 32.0

Houston 13.7

Atlanta 18.4

Diversification to MICE Groups International Sales Missions More pre-buying rooms US subsidiaries are expanding to new markets Japanese:Up 20% so far, due to exchange rate

and reinstated air; Diversification: JTB & HIS 3 Star properties up 30% Value added: Free breakfast, Wi-fi

DMO’S: MORE $ to international Online Marketing

Role of GSA and Reps will change Reducing Capacity For More Advanced

Sales Contracting with Fewer Properties

Directly More Bankruptcies in UK, Spain, Ireland

2004: Lack of Demand 2005: Hotel rates began climbing 2006: Growing Power of Revenue Managers 2007: Reduced Allotments & Blackouts 2008: Booking outside the industry 2009: Hotels Use OTA’s For Distressed

Rooms 2010: Increase Exchange Rate vs Euro 2011: TSA

$1 = Jan 26 2011

Jan 262010

UK .629 .638 -.037%EUR .733 .735 +.26%JPY 82.4 91.8 -11.4%CAN 1.00 1.23 -18.6%MEX 12.8 12.9 -1.2% Brazil 1.67 1.79 -6.7%

Currency trends similar across key markets Loonie: 6-year increase through 2008. Reached par in Nov 2007,

declined 20% back flirting with par throughout 2010…Steady outlook.

Pound: 6-year increase through 2007. Exceeded $2 in Nov 2007. Down in 2008 and 2009. 2010 and beyond at $1.52-ish.

Euro: 7-year increase through 2008. 2009 down, but 2010 up to $1.41 In the $1.34-ish range through 2015.

Peso: Multi-decade slide continued through 2009. Current $0.08 higher than 2010 and beyond IMF forecast of $0.07-ish

Yen: Above and below $0.0088 average for a decade. Current $0.012 higher than IMF outlook of $0.011 through 2015.

Positives: Exchg rate at par and expected to

remain so Impacts of WHTI legislation likely over GDP nearly identical to USANegatives: Border delays

Forecast Growth 2011:6%. 6yr: 47%

2010 may break 2007 record- air accts for 11%POSITIVES Annual growth at 4-5% similar to Canada Air portion of 11% is quite dispersedNEGATIVEArrival growth continued despite long term

exchange rate decline may not be sustainable 2011: + 5% 6yr forecast + 49% -'

15% decline in 2009; flat in 2010 2000 was the high for arrivals to USA GDP improving but slowly POSITIVES Interest at state levels Improving GDP fro 1.7 to 2.5 in 2015 Xchg rate down from 2007 when it was $2:1, but same as

‘00 NEGATIVES US share of total outbound is down

High unemployment, but improvingFORECAST: 2011: 2%. 6 yr forecast+21%

Rebound of 13% in 2010 Moderate growth next three hrs 3-5%

Higher growth expected in 2014/2015 from TPA fundiing

POSITIVES Robust growth for 10 consecutive months Increased air capacity recovering from 2008-09 losses

NEGATIVES: Long term decline since 1995 Population declining Huge public debt to GDP ratio Geo equity index of 7 lowest of top ten

FORECAST: 2011 4 % 6 yr forecast 47%  

2010 should break record of 780kPOSITIVES Outbound to USA growing for decadeNEGATIVES: Low growth through 2015 Geo Equity index of 14 is average, NY

59%FORECAST: 2011: 3% 6 Yr: 23%

#Up and Down since 1996, record yr of 2.0 mnPOSITIVESUnemployment high but improving from 2005 GEO Equity Index of 17- (2nd highest)NEGATIVESTotal Outbound flat over last decadeGDP Growth declining from 3.3% to 1.3% in 2015IMF expects Euro to remain at current level for next 5

yrsFORECAST: 2011:+3% 6 Yr: 35%

Shows wild swings in volumePOSITIVESStrong growth for 2010- 9.4%CAC-40 down from 2007, but improvingNEGATIVESGDP growth low, but gradually improving

to 2.1% in 2015Unemployment at 8-10% levelsFORECAST: 2011:2% 6 yr Growth: 30%

2010 volume of 1.2 mn shatters 1997 record US outbound share fluctuates widely: 33% in ‘95,

10% in ‘04, 16% in 2010 POSITIVES Strong GDP linked to exports to Asia, Open skies agreement negotiated NEGATIVES; High unemployment of 7.5% Xchg rate could decline from $.55 80% to FL and NYFORECAST: 2011: 17%, 6 Year: 198%

Growth in 2010-35% Due to visa waiverPOSITIVES Strong outbound growth to USA GDP Growth Strong through 2015 Visa Waiver as of 2008NEGATIVES: Population Growth is small Tourism concentrated on West coast FORECAST: 2011:18% 6-Yr: 171%

End 2010 up 20%, Firing on all cylindersPOSITIVES Total outbound and USA Share growing Positive sentiment toward USA Increase Air CapacityNEGATIVE Visits concentrated in NY, CA, NV, HIFORECAST: 2011:12% 6 Yr: 78%

2010: 632,000 +15%POSITIVES High growth rate for USA but from low base US Spending/visitor $6,500, High Population growth of Middle Class NEGATIVES: GDP/capita is only $1,000, largest “travel possible”

population from HHI Few receptives service market

Low vacation/leisure %FORECAST: 2011:13% 6 Yr: 123%

2010: 40% increase; POSITIVES: US Spend $6,800/visitor GEO Equity-17-above average Positive sentiment toward USA NTA Grant to identify agencies capable of handling

groups to US NEGATIVES: Low GDP/Cap $4k (large “travel possible” HHFORECAST: 2011: +24% 6 Yr: 346%

SOURCE COUNTRY

% Change 2010 vs 09*

(thru November

2009)

% Change 2011/2010

% Change ‘2015/2009

Forecast

UK -0.5% 1% 21%

Japan 17.5 4% 47%

Germany 3.1 3% 35%

France 10.6 2% 30%

Brazil 35.8 17% 198%

Italy 11.3 3% 23%

S.Korea 52.2 18% 171%

Australia 25.7 12% 78%

India 19.4 13% 123%

China 55.2 24% 346^

Spain 7.1 2% 18%

Canada 11.4 6% 47%

Mexico 8.8 5% 49%

Travel Promotion Act

Canada UK Germany Japan Brazil Australia