The Future of Travel & Tourismin Light of September 11, 2001

Graham Wason

Vice President, Strategy & Development

Agenda

Overview of the Impacts Implications on the Future Role of Industry and Government

35% Reduction in US Revenue Passenger Kilometers (IATA)

20 - 25% Reduction in Rest of the World Traffic (IATA)

40 - 50% Empty Capacity US Airlines Cut 97,000 Jobs

Impact on Demand

“September was the worst month in the history of the business….. …..occupancies and room rates

drastically reduced, as muchas 50% to 60%”

Bill MarriottChairman & CEO

Marriott International, Inc. & Member of WTTC

Corp. Travel Demand: Expected 50% Decline to January 2002 (TBR)

Global Air Traffic: Expected 10% Decline in 2002 (Merrill Lynch)

1.5% Decline in 1991 Due to Gulf War & Weak Economy (Merrill

Lynch)

Impact on Demand

Worldwide Airlines: 131,190 Jobs Postponed Airport / Infrastructure

Development Projects in 2002 Demand for New Aircraft

Evaporated for 2003 and 2004

Impacts on Industry

WTTC Benchmark

10% Reduction in Travel & Tourism Demand

United States: - 1.8% of total GDP

- 1.1 Million Jobs

European Union: - 1.9% of total GDP

- 1.2 Million Jobs

World: - 1.7% of total GDP

- 8.8 Million Jobs

Increased Costs US Government Rescue Package Psychological Damage to Traveller Structural Changes to Infrastructure Effective Communication of Safety

and Security Enhancements

Implications for the Industry

Improve Measurement Tools Unite Industry Participants Harmonise International Safety

and Security Measures Co-ordinate our Messages

Need for Action

Leading International Travel & Tourism Associations

Calling on Governments to: Harmonize International Safety

and Security Restore Consumer Confidence Join Public/Private Partnerships

Global Coalition

Travel & Tourism

Global Economic Impact of Travel & Tourism

Year 2001: 10% GDP

207 million jobs

Year 2011: 11% GDP

260 million jobs

Bulgaria

Economic Impact of Travel & Tourism by 2011

BGN4,852 Million 9.7% total GDP

220,000 jobs 7.6% total Employment

If travel & tourism in Bulgaria grows at the same rate of growth

as the European Union

182,000 additional jobs will be created by 2011.

WTTC

A political engine A supportive regulatory

framework Public Private Partnerships

Long Term Planning

Vision the future for travel and tourism - a future for everyone

Measure and promote the economic importance of travel and tourism

Communicate a positive image of the industry as a provider of jobs and career opportunities

Seven Strategic Priorities

Encourage free access, open markets, open skies and the removal of barriers to growth

Match infrastructure development and customer demand

Seven Strategic Priorities

Facilitate access to capital resources and technological advancement

Promote responsibility in natural, social and cultural environments.

Seven Strategic Priorities