WTC Records Folder 0139 label, 2001

NYC 9/11 Public Portal Document

NOT FOR GENERAL EXTERNAL DISTRIBUTION Tourism Industry Talking Points -- Facts & Figures (UPDATED 10/19/01) Note: All 200.1 and 2002 activity forecasts were issued before the actions in Afghanistan on Sunday. October 7

United States (con't.) • Domestic Travel Forecasts [TIA] ➢ 3rdQ 2001 volume: 5% decline over same period 2000 > 4thQ 2001 volume: 10% decline over same period 2000 > 2001 volume: 5% decrease over 2000 ➢ 2002 volume: 1% increase over 2001 > 2002 will remain below 2000 levels > domestic travel may outperform outbound travel ➢ more interest in VFR travel along with interest inn short-haul destinations > recession will impact recovery just'as much, if not more that 9/11 • US Economy > General consensus is the US economy is in a recession [DRI-WEFA] 3rdQ2001 GDP(f) (gross domestic product -- economic activity): -0.2% •• 4thQ2001 GDP(f): 1.8% decline 1 s1Q2002 GDP(1): 1.6% increase 2ndQ2002 GDP(f): 3.6% increase ➢ Unemployment is expected to rise to 5.9% in 2002 -- can significantly impact decision to travel

• US Hotels [Smith Travel Research] > Occupancy: 63.7% in 2000 (actual), 60.7% in 2001(1), 60.3% in 2002(f) ➢ Room nights filled: 2.4% decline in 2001(t) over 2000; 1.2% increase in 2002(1) over 2001 ➢ Average daily rate: no growth in 2001 or 2002 ($86.50) ➢ RevPAR (revenue per available room): 4.7% decline in 2001(1) over 2000; 0.5% decline in 2002(f) over 2001 > Revenues: $22.5 billion in 2000; $16.7 billion in 2001(f); no 2002 forecast ➢ In general, 2002 and 2003 will see recovery to 1998 and 1999 performance levels ➢ The last four months of 2001 will see a monthly decline of 6% in demand, 8% in occupancy and a 10% decline in RevPAR

• US Airlines [Air Transport Association - ATA] ➢ Approximately 92,000 layoffs/furloughs — represents 16% of workforce — unprecedented level ➢ $5 billion estimated losses in September 2001. $24 billion estimated losses from September 2001- June 2002 ➢ Load factors (% of seats filled): 67% in 2001 and 71% in 2002 ➢ Traffic declines of 39% in 4thQ2001, 23% in lstQ2002, 13% in 2ndQ2002

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