FOR IMMEDIATE RELEASE:
August 27, 2008

WASHINGTON, DC POSTS 7% INCREASE IN VISITATION IN 2007
AS VISITOR SPENDING TOPS $5.5 BILLION

(WASHINGTON, DC)… Visitor spending surged past $5.5 billion in 2007, thanks to a 7% increase in overall visitation to Washington, DC, according to a study released today by Destination DC, the official convention and tourism corporation for Washington, DC. Significant gains in higher-yielding international visitors and business travelers helped to boost visitor spending from $5.24 billion in 2006 to $5.54 billion in 2007, generating nearly $600 million in tax revenue for the District alone.

"Travel and tourism brought in more than five billion in new dollars for DC for the third year running," said William A. Hanbury, president and CEO, Destination DC. "This translates to powerful benefits for DC residents, who saved almost $2,400 in tax dollars per household because of travel and tourism."

In 2007, DC welcomed 16.2 million visitors, representing a 7% increase from the 15.1 million travelers who visited the city in 2006, according to research and forecasting firm Global Insight. Business travel grew 16.7%, led by a 20 % increase in visitors attending meetings and conventions. With weakened currency exchange rates and increased international flight service, international travel rose 13% to 1.2 million as DC remained the eighth most popular destination for international travelers.

Key Findings: 2007 Visitor Statistics

• Visitor expenditures increased in all categories in 2007, fueling the 6% growth in overall visitor spending:
  • Lodging expenditures grew 5% to $2.0 billion.
  • Food & beverage expenditures grew 2% to $1.4 billion.
  • Entertainment expenditures grew 5% to $887 million.
  • Shopping expenditures grew 3% to $677 million.
  • Transportation expenditures grew 6% to $533 million.
• The increase in spending propelled the DC metro statistical area into the seventh position in Global Insight's annual ranking of the Top 100 U.S. Tourism Destinations by visitor spending, up from 8th position in 2006.
• International travel grew 13% to 1.2 million, and DC remained the eighth-most visited U.S. destination for international travelers. While representing less than 10 % of total visitation, international travelers generated 27% of all spending.
• Hotel occupancy also increased, rising from 71% in 2006 to 74% in 2007. Washington, DC's average daily hotel rate increased 7% from $191 in 2006 to $204 in 2007.
• Attendance increased by 4% at museums in the Smithsonian system, while the National Park Service reported a 5% increase in attendance for all sites on the National Mall.
• Domestic arrivals at all three area airports (DCA, IAD and BWI) grew 3%, while total international arrivals showed gains of 10%.
• DC enjoyed a strong year for meetings and conventions in 2007, showing a 20% increase in visitors attending meetings and conventions.

2008 Year-to-Date Overview
Global Insight projects that visitation to DC will remain relatively flat in 2008. DC is working to maintain its market share by counterbalancing negative economic influences with gains in other areas.

• While domestic arrivals to DCA and IAD have declined 6%, international arrivals have shown a 7% increase through June.
• Hotel occupancy has remained flat at 78% through July despite reaching a record high of 89% in April and 85% in July, an all-time best for the month. Major citywide conventions, leisure travel and major events like the visit of Pope Benedict XVI and the National Cherry Blossom Festival boosted occupancy in April, while strong leisure traffic and three major citywide conventions, the National Education Association, American Association for Clinical Chemistry and Alpha Kappa Alpha Sorority's centennial celebration, buoyed DC's performance during the traditionally slow month of July. The significant gains in these two months offset declines and stagnant performance in other months.
• Declines in corporate travel have been partially offset by a strong convention calendar, with more than 520,000 room nights booked for the Walter E. Washington Convention Center alone in 2008, a 22 percent increase over 2007. Additional citywide conventions taking place through the end of the year include:
  • AARP Life@50 Annual Expo (25,000 attendees, Sep. 4-6)
  • American Society for Microbiology/Infectious Diseases Society of America ICAAC/ IDSA Joint Meeting (15,000 attendees, Oct. 25-28)
  • Society of Neuroscience Annual Convention (35,000 attendees, Nov. 16-19)
• To grow travel to the city, Destination DC introduced a new brand strategy and integrated marketing campaign in April, inviting travelers to "create their own power trips" in DC. The campaign launched with a $2 million print, online and television media buy, targeting family travelers and urban explorers in key markets like New York, Pittsburgh and Raleigh.
• Destination DC re-launched its popular website, Washington.org to coincide with the new brand strategy and posted a 26% increase in unique visits between April and June 2008 over the same period last year; during the same period, both the Smithsonian Institution and the National Park Service reported no change in visitation.
• Metrorail reports a 2% increase in ridership through June.

2009-2010 Outlook
Visitation is expected to decline in 2009, according to Global Insight, due to a softer convention calendar, increasing competition, reduced domestic flight capacities and other factors.

DC will host a smaller number of citywide conventions in 2009 and 2010 due to construction delays with the Marriott Marquis Hotel adjacent to the Walter E. Washington Convention Center and slowing convention traffic on the East Coast.

• Destination DC currently reports 333,349 confirmed hotel room nights for the Walter E. Washington Convention Center in 2009.

The projected decline may be tempered by other factors, including:

• The Presidential election and Inauguration are expected to attract widespread international interest and attention. Past inaugurations have generated a 4% increase in January hotel occupancy over non-Inaugural months and increases of up to 50% in total room revenue for the month.
• The change in administration and the arrival of a new class of Congressional representatives is expected to generate an increase in transient business travel and legislative meetings.
• International travel is expected to increase steadily, returning to pre-9/11 levels by 2011.

The 2007 visitor volume study used data collected by DK Shifflet & Associates. Data is gathered through a mail and online panel with more than 75,000 respondents per year. Visitor profile information was obtained from Longwoods International. For the 2007 travel year, Longwoods collected data on more than 230,000 domestic trips and more than 2,000 trips to DC specifically. Data is collected via an online survey and is weighted on key demographics to correct for any differences between the sample and US population. Global Insight was commissioned to model the visitor volume and spending data to adjust for any discrepancies between current and past methodology. Global Insight also prepared Destination DC's annual citywide tourism impact study and bi-annual forecast updates. The results of the study reflect visitation and economic impact to the city of Washington, DC instead of visitation to the metropolitan region.

For additional visitor statistics, visit destinationdc.com/pressroom.

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About Destination DC: Destination DC, the lead destination marketing organization for the nation's capital, is a private, non-profit membership organization of more than 1,000 businesses committed to marketing the area as a premier global convention, tourism and special events destination with a special emphasis on the arts, cultural and historic communities. Destinationdc.com.