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Source: U.S. Travel Association

Source: U.S. Travel Association

Source: U.S. Travel Association

Source: U.S. Travel Association

Source: U.S. Travel Association

Source: U.S. Travel Association

Source: U.S. Travel Association

Source: U.S. Travel AssociationU.S. ChallengesGovernment shutdownShorter meetings, fewer attendeesGovernment meetings & TravelCustoms processTransportation infrastructurePandemics & Emergency ResponsePublic LandsTSA ReformTravel TaxesNo-Vacation Nation

Tourism Satellite AccountingThe Tourism Satellite Account is the international (UN/WTO, OECD) standard for measuring the contribution of tourism to an economy

Measuring the industry tourism is difficult:Tourism industry is not measured in standard economic accounting systems.Most industries are accounted via the supply-side: firms are categorized into NAICS codes and asked about jobs, revenues, costs.But tourism is a demand-side activity: the focus is on what the traveler buys before and during a trip. As a result, tourism touches many industries

4Cs: Credibility, Comprehensiveness, Comparability, Consistency19Copyright 2013 IHS Inc. All Rights Reserved.19Kansas Tourism in 2011: A Top Line View32 million visitors generated tourism expenditures of $8.0B in 2011In 11, visitation increased by 3.4% and visitor spending grew by 9.0%Avg. spend-per-visitor was $236 in 111 of every 10 Kansas Citizens owes his/her job to tourismAvg. Annual Tourism Wages were nearly $23,000 in 11Every 217 visitor/travelers creates a new job in KS

Copyright 2013 IHS Inc. All Rights Reserved.Kansas Tourism: The Impact on KS & the USTourism is responsible for 4.4% of total KS Gross State ProductTourism is the 3rd largest industry in KS (based upon jobs)Tourism generated 14.4% of all state & local tax revenue in 11Tourisms tax contribution reached $917 per KS HouseholdIn 11, KSs share of US total tourism jobs grew by 2.0% from 10In 11, KSs share of US direct tourism jobs grew by 5.3% from 10In 11, KSs share of US direct tourism output grew by 0.5% from 10

Copyright 2013 IHS Inc. All Rights Reserved.

$4.52 billion$1.31 billion$5.83 billion$2.20 billion$8.03 billionTourism ExpendituresAll Visitor Related SpendingTotal ImpactImport LeakageEconomic Value to StateCore Tourism(Direct)Non-Core Tourism(Indirect & Investment)Tourism goods & services from outside of the state e.g. clothing made in ChinaIndustries directly providing goods & services to the visitor, such as restaurantsIndustries directly providing goods & services tocore tourism providers e.g. food distributionIndustry Structure 2011Copyright 2013 IHS Inc. All Rights Reserved.22

Total Tourism ExpendituresTourism expenditures tallied $8.03 billion in 2011Copyright 2013 IHS Inc. All Rights Reserved.23Kansas TSA: Top Line ResultsTourism in Kansas has made a steady recovery since the two-year recessionary driven downturn during 2008 and 2009.While non-core investment eased up in 2011, strong core industry growth led to an overall increase in expenditures.Measurement

2011(billion)2010(billion)2009(billion)Growth Rate 10-11Growth Rate 09-10Total Tourism Expenditures$8.03 $7.79 $7.06 3.1%10.4% Total Impact$5.83 $5.60 $5.17 4.0%8.4% Core Tourism (direct)$4.52 $4.15 $4.02 9.0%3.0% Non-Core Tourism$1.31 $1.46 $1.14 -10.3%27.4% Import Leakage$2.20 $2.19 $1.89 0.6%15.7%Copyright 2013 IHS Inc. All Rights Reserved.24Breaking Down Tourism Expenditures 2011By OriginMillions $$ShareIn State3,54344%Other U.S.4,48256%International80%Total8,034100%By SourceMillions $$ShareVisitor Spending7,23590%Resident Outbound3274%Government Spending1161%Construction & Investment3554%Total8,034100%Visitors from other states represent the largest portion of tourism expenditures in KS Source: IHS Global Insight

Copyright 2013 IHS Inc. All Rights Reserved.25Category Distribution of Expenditures - 20112011($M)10-11GrowthShareEntertainment1,21312.9%16.0%Accommodation1,0095.6%13.3%Transportation1,3816.3%18.3%Food1,8419.4%24.3%Shopping2,1209.9%28.0%Total *7,5649.0%100%* Total Visitor Expenditures (w/o construction, investment, & government spending)Shopping accounts for the largest share of tourism expenditure. Source: IHS Global Insight

Copyright 2013 IHS Inc. All Rights Reserved.26Core Tourism Gross State ProductRankIndustry (NAICS Definitions)Millions $ % of State1Real Estate and Rental and Leasing12,42110.7%2Durables Manufacturing11,0069.5%3Health Care and Social Assistance9,9978.6%4Wholesale Trade8,4147.3%5Retail Trade8,2717.2%6Finance and Insurance8,0126.9%7Non-Durables Manufacturing7,8066.8%8Professional, Scientific, and Technical Services6,8365.9%9Information5,8865.1%10Transportation & Warehousing4,5543.9%11Construction4,0183.5%12Admin., Support and Waste Management3,8923.4%13Other Services3,2122.8%14Accommodation and Food Services3,1452.7%15Utilities2,8152.4%Other Industries15,28913.2%Total Private GSP115,573100.0%Core Tourism contributed $4.52 billion in economic value in 2011. Tourism ranked as the 11th largest private industry in the state. Core Tourism provides 3.9% of KS GSPCore Tourism$4,5223.9%Total Travel & Tourism$5,8305.0%Copyright 2013 IHS Inc. All Rights Reserved.27Core Tourism Impact Composition 2011Composition of Core Tourism $ Value 11 11-10% ofRankIndustry(Millions)GrowthTotal1Food services and drinking places9749.1%21.5%2Amusement, Gambling and Recreation industries68411.4%15.1%3Automotive equipment rental and leasing5898.5%13.0%4Hotels and motels4824.8%10.7%5Gasoline stations44421.4%9.8%6Food and beverage stores4058.5%9.0%7Miscellaneous store retailers3206.9%7.1%8General merchandise stores1563.2%3.4%9Travel arrangement and reservation services140-0.4%3.1%10Clothing and clothing accessories stores979.5%2.1%11Real estate792.0%1.7%12Sporting goods, hobby, book and music stores5210.0%1.2%13Rail transportation491.1%1.1%14Air transportation209.6%0.5%15Performing arts companies1714.9%0.4%All Others1511.9%0.3%Total4,5229.0%100.0%Copyright 2013 IHS Inc. All Rights Reserved.28Region ExpenditureRegionEntertainmentAccommodationTransportationFoodShoppingTotalGrowth(Millions)(Millions)(Millions)(Millions)(Millions)(Millions)(10-11)North Central Kansas55.7116.5173.1226.0262.1833.48.5%North East Kansas831.4390.3533.3723.9841.73,320.79.2%North West Kansas22.967.684.7114.1130.1419.48.7%South Central Kansas234.1305.4405.8524.6591.62,061.58.7%South East Kansas19.260.581.8111.1133.6406.38.6%South West Kansas50.169.0102.8140.7160.5523.19.6%Kansas Total1,213.41,009.41,381.41,840.62,119.67,564.49.0%Regional Summary: Visitor Spending By Category* Visitor spending only, which excludes investmentCopyright 2013 IHS Inc. All Rights Reserved.Tourism Expenditure by County: South West KansasCounty ExpenditureCountiesTourism Expenditure * (Millions)Tourism Share of Total County ExpenditureCounty Share of Total State TourismGrowth(10 11)Barber16.9 2.7%0.2%9.0%Barton38.6 1.5%0.5%8.0%Clark0.7 0.4%0.0%21.0%Comanche1.9 1.3%0.0%5.5%Edwards3.7 1.2%0.0%11.8%Finney124.8 2.3%1.6%8.9%Ford104.7 2.0%1.4%12.2%Grant2.2 0.2%0.0%16.5%Gray0.6 0.1%0.0%18.5%Greeley4.7 2.9%0.1%6.6%Hamilton6.5 2.4%0.1%5.4%Haskell3.4 0.8%0.0%13.7%Hodgeman1.0 0.6%0.0%12.4%Kearny4.0 1.0%0.1%5.9%* Visitor spending only, which excludes investmentCopyright 2013 IHS Inc. All Rights Reserved.Tourism Expenditure by County: South West Kansas contCounty ExpenditureCountiesTourism Expenditure * (Millions)Tourism Share of Total County ExpenditureCounty Share of Total State TourismGrowth(10 11)Kiowa31.8 9.5%0.4%6.3%Lane2.7 1.3%0.0%8.2%Meade4.3 1.0%0.1%14.3%Morton9.5 2.2%0.1%13.1%Ness16.6 4.2%0.2%6.2%Pawnee13.8 1.6%0.2%17.2%Pratt21.7 2.2%0.3%6.6%Rush7.4 2.1%0.1%6.6%Scott9.5 1.9%0.1%10.2%Seward67.6 2.2%0.9%9.7%Stafford9.7 2.8%0.1%10.3%Stanton6.6 3.2%0.1%14.3%Stevens5.3 1.1%0.1%9.4%Wichita2.5 0.8%0.0%10.4%* Visitor spending only, which excludes investmentCopyright 2013 IHS Inc. All Rights Reserved.Tourism Expenditure Categories by County: South West KansasCounty ExpenditureCountiesEntertainmentAccommodationTransportationFoodShoppingTotal(Millions)(Millions)(Millions)(Millions)(Millions)(Millions)Barber0.672.533.484.945.2716.90Barton5.575.487.359.4110.8138.62Clark0.410.050.070.100.120.75Comanche0.320.230.350.440.571.91Edwards2.430.190.270.380.483.74Finney7.1415.1024.3637.6240.60124.81Ford19.3311.1016.4327.2730.56104.69Grant0.540.230.430.470.572.25Gray0.360.040.050.080.100.63Greeley0.390.630.931.361.434.73Hamilton0.271.171.571.621.936.55Haskell0.720.590.710.700.703.42Hodgeman0.320.110.150.210.251.04Kearny0.000.580.791.181.504.05Kansas Total1,213.391,009.391,381.411,840.582,119.647,564.42* Visitor spending only, which excludes investmentCopyright 2013 IHS Inc. All Rights Reserved.Tourism Expenditure Categories by County: South West Kansas continuedCounty ExpenditureCountiesEntertainmentAccommodationTransportationFoodShoppingTotal(Millions)(Millions)(Millions)(Millions)(Millions)(Millions)Kiowa0.683.378.848.7110.2531.85Lane1.230.210.310.410.522.68Meade0.370.590.841.141.354.29Morton0.371.111.713.003.299.48Ness0.282.353.484.525.9416.56Pawnee1.332.222.863.363.9813.75Pratt0.483.374.615.957.3321.75Rush0.401.161.721.842.297.42Scott2.611.241.471.842.369.52Seward1.9011.8215.3417.9820.5567.59Stafford0.861.571.942.512.839.71Stanton0.000.941.361.862.436.59Stevens0.720.760.931.271.645.31Wichita0.400.300.450.550.842.55Kansas Total1,213.391,009.391,381.411,840.582,119.647,564.42* Visitor spending only, which excludes investmentCopyright 2013 IHS Inc. All Rights Reserved.Kansas Lodging TrendsKansas Lodging TrendsOccupancy (%)Year To Date201120122013This Year55.056.955.8Last Year53.855.056.9Percent Change2.33.3-1.9ADRYear To Date201120122013This Year71.3374.1275.60Last Year69.7871.3374.12Percent Change2.23.92.0RevPARYear To Date201120122013This Year39.2442.1442.15Last Year37.5239.2442.14Percent Change4.67.40.0Kansas Lodging TrendsSupplyYear To Date201120122013This Year8,862,2229,045,3559,192,325Last Year8,763,1378,862,2229,045,355Percent Change1.12.11.6DemandYear To Date201120122013This Year4,876,0915,142,4095,124,997Last Year4,712,0954,876,0915,142,409Percent Change3.55.5-0.3RevenueYear To Date201120122013This Year347,791,717381,175,084387,458,742Last Year328,787,808347,791,717381,175,084Percent Change5.89.61.6Kansas Lodging Trends

Looking Forward, Employment Growth in the Region Is Expected to Be StrongEmployment in Kansas and the surrounding states are expected to show above average annual growth over the next five years.Employment in Leisure and Hospitality in Kansas had been trending down over a three-year period, but grew in 2012 and is forecasted to continue growing in 2013.Employment Growth 2012-2018 Annual RateSource: IHS Global Insight

Copyright 2013 IHS Inc. All Rights Reserved.Looking Forward, the Leisure and Hospitality Industry is an Actionable Opportunity for Increased GSP Growth in KansasLeft alone, the Leisure and Hospitality industry within Kansas should see slow but steady growth going forward.However, strong economic growth within Kansas could potentially underpin a renewed focus on in-state tourism while continuing to draw visitor from outside the borders.Annual Economic Growth in KansasSource: IHS Global Insight; based on nominal dollars

Copyright 2013 IHS Inc. All Rights Reserved.OpportunitiesLodgingShorter / closer tripsAuthenticityConvention/meeting facilitiesSporting venues/supportExplore / ExperienceQOL connectionTechnologyPower of Travel