Mayor Villaraigosa Announces 2005 A Record-Breaking for Tourism in Los Angeles

LOS ANGELES – Mayor Antonio R. Villaraigosa, Los Angeles City
Councilmembers, L.A. INC., and hotel, business and labor leaders
gathered at Grauman’s Chinese Theatre in Hollywood to announce that
2005 was a record-breaking year for tourism in Los Angeles. 24.9 million
tourists visited Los Angeles in 2005, making a fiscal impact of $12.7
billion on the economy.

“The tourism industry makes a major impact on the economy of the City
of Los Angeles, employing thousands of Angelenos and contributing
revenue to the City,” said Mayor Villaraigosa. “I will continue to actively
promote tourism in this great City so that more and more Angelenos can
benefit directly and indirectly.”

Villaraigosa has taken an active role in promoting tourism in Los
Angeles since before he took office as Mayor.

In June of last year, he brokered a deal between hotel operators and
union leaders narrowly averting a lockout of union workers at seven
major Los Angeles hotels right before the busy summer tourist season.

He also worked to ensure that the LA Live! project became a reality for
downtown Los Angeles. This multi-billion dollar project in South Park will
provide more than 25,000 jobs to Angelenos and offer 1,100 guest
rooms to tourists as well as meeting, ballroom, and amenity space. The
project is expected to draw 10 million visitors a year.

The Mayor also worked with LA Inc., the Convention and Visitors Bureau,
to secure convention and hotel business for the City for upcoming years.
Most recently, as a result of his active participation, the AARP agreed to
host its 2011 convention in Los Angeles, estimated to make a $12.4
million impact on the economy.

In fact, December was a record-breaking month for convention bookings
in Los Angeles. In the last month of 2005, more than $65 million in
convention business was secured for upcoming years.

“The unprecedented cooperation of city government, hotel and labor has
contributed to the success of LA’s visitor industry this past year,” said
Mark Liberman, President and CEO of LA INC., the Convention and
Visitors Bureau. “The mayor has helped form new alliances that have
allowed LA put its best foot forward.”

The Mayor has also worked to build community support for the
modernization of LAX while continuing to develop a regional solution to
airport congestion.

Other statistics from 2005 indicate that tourism is healthy in Los Angeles.
Occupancy rates in hotels were at 75.8%, a 4.3% increase over 2004,
making Los Angeles the city with the fourth highest occupancy rate in the
U.S. (following Las Vegas, Oahu, and New York).

Cruise traffic also continued to grow at the Port of Los Angeles. In 2005,
there was a 40% increase in the number of cruise passengers
compared to 2004.

Total numbers of tourists from European markets including France,
Germany, and Italy and Asian markets including South Korea, China, and
Hong Kong have also experienced significant gains over the last year.

In an effort to increase tourism, LA INC., the Convention and Visitors
Bureau, has restructured its sales organization and continues to expand
its marketing efforts worldwide, including working to open a tourist office
in China and increasing celebrity participation in its SeeMyLA campaign.

Forecasts for 2006 expect a 2.5% increase in total visitors to Los
Angeles to 25.6 million visitors and total visitor spending is expected to
increase 5.1% to $13.3 billion.

“I look forward to announcing another record-breaking year 12 months
from now,” said Villaraigosa.


Hollywood Hotel Occupancy Rates

*Information provided courtesy of PKF Consulting.