PRESS RELEASE

For Immediate Release

The Travel Business Roundtable/World Travel And Tourism Council (TBR/WTTC) Index Of Leading Economic Indicators Advanced Modestly In June

The Travel and Tourism Industry Outperformed the Overall US Economy

WASHINGTON, D.C. - August 15, 2002 - While the June increase in the TBR/WTTC Index of Leading Economic Indicators for the travel and tourism industry appears to be somewhat modest, there is also evidence that suggests that the fundamentals underlying this increase were much stronger than the actual increase itself.

Reviewing the performance of the individual indicators that make up the index shows that there was a decline in only one sector 3Ñ4 consumer confidence. In recent months, changes in this indicator have been quite irregular, reflecting the consumers’ reaction to changing domestic and international affairs and the volatility in the equity market. If the effects of the decline in confidence were removed from the Index, the June increase would have been nearly 1.0 percent.

According to Dr. James Howell, economist and president of the Boston-based Howell Group, there is an expectation that as the economy’s growth rate stabilizes around the 2.5 percent range, the relatively sharp month-to-month swings in consumer confidence will flatten out.

The brief table below shows the relevant rates of change in the TBR/WTTC and U.S. Indexes of Leading Economic Indicators.

With specific regard to the June TBR/WTTC Index, four of the nine individual indicators were up, four unchanged, and one, consumer confidence, declined.

Increases took place in the following indicators:

	ARC sales
	Retail sales at eating and drinking establishments
	Hotel/motel occupancy rates
	Hotel/motel revenue

The following sectors were unchanged from the previous month:

	ATA Revenue Passenger Miles
	Personal consumption expenditures for travel and related items
	Rental car revenue
	Travel and tourism employment

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The World Travel & Tourism Council (WTTC) is the global business leaders' forum for Travel & Tourism in January 2002. Its members are chief executives from all sectors of industry, including accommodation, catering, entertainment, recreation, transportation and other travel-related services.

Founded in April 1990, WTTC policies are set and implemented by a Member Executive Committee, a President and a small staff in London, with representative offices in North & South America, Asia/Pacific and Europe.

The Travel Business Roundtable is a CEO-based organization representing all sectors of the travel and tourism industry. In addition to the major airlines, car rental companies, travel management agencies, hotel chains, TBR’s membership roster also includes companies such as The Coca-Cola Company, USA Today, the Taubman Company, and the International Council of Shopping Centers, demonstrating the broad scope and diversity the industry represents. In 2000, travel and tourism was the nation’s third largest retail industry and second largest employer with more than 18 million Americans employed directly or indirectly in travel and tourism.

CONTACT:
Debra Kelman
212-794-DKPR (3577)
dkelman@dkpr.com

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