UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                                450 Fifth Street
                             Washington, D.C. 20549

                                   Form 10-QSB
                                   -----------

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                  For the Quarterly Period Ended June 30, 2003
                                                 -------------

                           Commission File No. 0-3858
                                           ----------

                        INTERNATIONAL LEISURE HOSTS, LTD.
--------------------------------------------------------------------------------

             (Exact name of Registrant as specified in its charter)



            Wyoming                                        86-0224163
--------------------------------               ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)


3207 S. Hardy Drive
--------------------------------
Tempe, AZ                                                    85282
--------------------------------               ---------------------------------
(Address of principal executive                            (Zip Code)
office)

Issuer's telephone number, including area code (480) 829-7600
                                               --------------

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  Exchange  Act  during the 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days:

                          YES   X              NO
                              -----               -----

State the number of shares outstanding of each of the issuer's classes of common
stock as of the close of the latest  practicable date. There were 694,407 shares
of $.01 par value common stock outstanding as of June 30, 2003.



                                  Page 1 of 19
<PAGE>
<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION
 ITEM 1 - Summarized Financial Information

                        INTERNATIONAL LEISURE HOSTS, LTD.
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                                                                           June           March
                                                                                         30, 2003        31, 2003
                                                                                        -----------    -----------
                                                                                        (Unaudited)
<S>                                                                                     <C>            <C>
ASSETS
CURRENT ASSETS:
    Cash and cash equivalents                                                           $   377,622    $    73,263
    Accounts receivable                                                                         148         29,878
    Prepaid income tax                                                                       64,590         36,090
    Deferred tax asset                                                                       44,035         44,035
    Merchandise inventories                                                                 189,865         72,230
    Prepaid expenses and other                                                               41,127         27,059
                                                                                        -----------    -----------
        Total current assets                                                                717,387        282,555
                                                                                        -----------    -----------

PROPERTY AND EQUIPMENT:
    Buildings and improvements                                                            7,525,591      7,525,591
    Equipment                                                                             1,387,871      1,668,896
    Leasehold improvements                                                                  325,600        325,600
                                                                                        -----------    -----------
        Total property and equipment                                                      9,239,062      9,520,087
    Less accumulated depreciation and amortization                                        3,060,272      3,245,804
                                                                                        -----------    -----------
        Property and equipment - net                                                      6,178,790      6,274,283
                                                                                        -----------    -----------
TOTAL                                                                                   $ 6,896,167    $ 6,556,838
                                                                                        ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
   Notes payable under line of credit from related party                                $   575,000    $   585,000
   Note payable under line of credit                                                        500,000        500,000
   Accounts payable:
     Trade                                                                                  208,362         49,326
     Related party                                                                             --           22,123
   Accrued liabilities                                                                       97,674         42,318
   Advance deposits                                                                         326,423        114,014
                                                                                        -----------    -----------
        Total current liabilities                                                         1,707,459      1,312,781
DEFERRED INCOME TAXES                                                                       150,184        150,184
                                                                                        -----------    -----------
        Total liabilities                                                                 1,857,643      1,462,965
                                                                                        -----------    -----------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
    Preferred stock, $5 par value - authorized 100,000 shares: none issued
    Common stock, $.01 par value - authorized 2,000,000 shares: issued 718,373 shares         7,184          7,184
    Additional paid-in capital                                                              656,426        656,426
    Retained earnings                                                                     4,453,886      4,509,225
                                                                                        -----------    -----------
                                                                                          5,117,496      5,172,835
    Less common stock in treasury - at cost, 23,966 shares                                  (78,962)       (78,962)
                                                                                        -----------    -----------
        Shareholders' equity - net                                                        5,038,534      5,093,873
                                                                                        -----------    -----------
TOTAL                                                                                   $ 6,896,167    $ 6,556,838
                                                                                        ===========    ===========

</TABLE>

See notes to condensed consolidated financial statements


                                  Page 2 of 19
<PAGE>

                        INTERNATIONAL LEISURE HOSTS, LTD.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)


                                                 For the three months ended
                                                           June 30,
                                                 --------------------------
                                                      2003         2002
                                                      ----         ----
REVENUES:

 Sales of merchandise                              $ 307,542    $ 335,539

 Room, cabin and trailer space rentals               385,441      354,407

 Other rentals and income                             49,949       39,396

 Gain on asset disposals                              27,314         --

 Interest                                                100          165
                                                   ---------    ---------
    Total revenues                                   770,346      729,507
                                                   ---------    ---------

COSTS AND EXPENSES:

 Cost of merchandise                                 176,679      205,840

 Operating                                           472,841      426,337

 General and administrative                           44,103       42,753

 General and administrative - related party           73,734       73,074

 Loss on asset disposals                                --         29,323

 Depreciation and amortization                        72,450       82,044

 Interest                                              6,206        2,065

 Interest - related party                              8,173        9,185
                                                   ---------    ---------
    Total costs and expenses                         854,186      870,621
                                                   ---------    ---------

Loss before income taxes                             (83,840)    (141,114)

Benefit for income taxes                             (28,500)     (47,000)
                                                   ---------    ---------

NET LOSS                                           ($ 55,340)   ($ 94,114)
                                                   =========    =========
NET LOSS

     PER COMMON SHARE                              ($   0.08)   ($   0.14)
                                                   =========    =========




See notes to unaudited condensed consolidated financial statements


                                  Page 3 of 19
<PAGE>
<TABLE>
<CAPTION>

                        INTERNATIONAL LEISURE HOSTS, LTD.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


                                                            Three months ended June 30,
                                                            ---------------------------
                                                                 2003         2002
                                                                 ----         ----
<S>                                                           <C>          <C>
OPERATING ACTIVITIES:
  Net loss                                                    ($ 55,340)   ($ 94,114)
  Adjustments to reconcile net loss to net cash
    provided by operating activities:
      Depreciation and amortization                              72,450       82,044
      Net (gain) loss on asset disposals                        (27,314)      29,323
  Changes in assets and liabilities:
      Accounts receivable                                        29,730       26,211
      Income tax refund receivable                              (28,500)     (47,000)
      Merchandise inventories                                  (117,635)    (119,813)
      Prepaid expenses and other                                (14,067)     (12,184)
      Accounts payable - trade                                  159,036      199,638
      Accounts payable - related party                          (22,123)      (5,000)
      Accrued liabilities                                        55,356       51,240
      Advance deposits                                          212,409      197,113
                                                              ---------    ---------
          Net cash provided by operating activities             264,002      307,458
                                                              ---------    ---------

INVESTING ACTIVITIES:
      Purchases of property and equipment                       (20,293)     (59,498)
      Proceeds from sale of property and equipment               70,650       45,817
                                                              ---------    ---------
        Net cash provided by (used in) investing activities      50,357      (13,681)
                                                              ---------    ---------

FINANCING ACTIVITIES:
      Loan proceeds from related party                             --         40,000
      Loan payments to related party                            (10,000)        --
                                                              ---------    ---------
        Net cash (used in) provided by financing activities     (10,000)      40,000
                                                              ---------    ---------

NET INCREASE IN CASH AND CASH EQUIVALENTS                       304,359      333,777

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                     73,263       49,664
                                                              ---------    ---------

CASH AND CASH EQUIVALENTS, END OF PERIOD                      $ 377,622    $ 383,441
                                                              =========    =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION - Cash paid for interest                          $  14,379    $  16,061
                                                              =========    =========

</TABLE>

See notes to unaudited condensed consolidated financial statements


                                  Page 4 of 19
<PAGE>

                        INTERNATIONAL LEISURE HOSTS, LTD.

                    NOTES TO CONDENSED CONSOLIDATED FINANCIAL
                  STATEMENTS For the Three Month Periods Ended
                             June 30, 2003 and 2002
                                   (UNAUDITED)

The accompanying  condensed consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America for interim  financial  information and with the instructions to Form
10-QSB.  Accordingly,  they do not  include  all of the  information  and  notes
required by  accounting  principles  generally  accepted in the United States of
America for complete  financial  statements.  In the opinion of management,  all
adjustments and reclassifications considered necessary for a fair and comparable
presentation  have been  made and are of a normal  recurring  nature.  Operating
results for the three months ended June 30, 2003 are not necessarily  indicative
of the results  that may be expected  for the year ending  March 31,  2004.  The
enclosed   financial   statements   should  be  read  in  conjunction  with  the
consolidated  financial  statements and notes thereto  included in the Company's
Annual Report on Form 10- KSB for the year ended March 31, 2003.

1.       BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

International  Leisure  Hosts,  Ltd.  (the  "Company")  operates in one business
segment,  the ownership and operation of Flagg Ranch Resort ("Flagg  Ranch"),  a
full-service  resort motel and trailer  park located in the John D.  Rockefeller
Jr.  Memorial  Parkway,  approximately  four miles north of Grand Teton National
Park and two miles south of the southern entrance to Yellowstone National Park.

Significant  Accounting Policies - The Company prepares its financial statements
in accordance with accounting principles generally accepted in the United States
of America. A summary of significant accounting policies is as follows:

a.       Basis of Consolidation - The consolidated  financial statements include
         the accounts of the Company and its subsidiary after elimination of all
         significant intercompany transactions and accounts.

b.       Revenue  Recognition - The Company  recognizes  lodging  revenue at the
         completion  of a room  night and for  other  ancillary  revenue  as the
         services are provided.

c.       Cash and cash equivalents - Cash and cash equivalents represent cash in
         banks,  money market funds,  and  certificates  of deposit with initial
         maturities of three months or less.

d.       Merchandise  inventories  are  stated  at the lower of  aggregate  cost
         (first-in, first-out basis) or market.

e.       Property and equipment are stated at cost.  Depreciation is computed by
         straight-line and accelerated  methods over the estimated useful lives,
         which range from 5 to 40 years.  Leasehold  improvements  are amortized
         using the straight-line  method over the lesser of the estimated useful
         life of the related asset or the term of the lease.



                                  Page 5 of 19
<PAGE>

         The Company  reviews the carrying  value of its  long-lived  assets for
         possible   impairment  whenever  events  or  changes  in  circumstances
         indicate that the carrying amounts may not be recoverable in accordance
         with the  provisions  of  Statement of  Financial  Accounting  Standard
         ("SFAS")  No.  144,  "Accounting  for the  Impairment  or  Disposal  of
         Long-Lived  Assets."  Impairment  losses,  if any,  are  recorded  as a
         component of earnings from operations.

f.       Income taxes - Income taxes are accounted  for under the  provisions of
         SFAS  No.  109,  "Accounting  for  Income  Taxes."  SFAS  109  requires
         recognition  of deferred tax assets and  liabilities  for the estimated
         future tax consequences of events  attributable to differences  between
         the  financial  statement  carrying  amounts  of  existing  assets  and
         liabilities  and their  respective tax bases and operating loss and tax
         credit carryforwards.  Deferred tax assets and liabilities are measured
         using enacted tax rates in effect for the year in which the differences
         are expected to be  recovered  or settled.  Net deferred tax assets are
         reduced through the establishment of a valuation allowance at such time
         as, based upon available evidence,  it is more likely than not that the
         deferred tax assets will not be  realized.  The Company  believes  that
         there is sufficient  positive evidence to support the conclusion not to
         record a valuation allowance.

g.       Use  of  Estimates  -  The  preparation  of  financial   statements  in
         conformity with accounting  principles generally accepted in the United
         States of America requires management to make estimates and assumptions
         that  affect  the  reported  amounts  of  assets  and  liabilities  and
         disclosure  of  contingent  assets and  liabilities  at the date of the
         financial  statements and the reported amounts of revenues and expenses
         during the  reporting  period.  Actual  results could differ from those
         estimates.

h.       Net  Income per  Common  Share - Basic net  income per common  share is
         computed  by  dividing  net income by the  weighted  average  number of
         common shares outstanding. The weighted average number of common shares
         outstanding was 694,407 for both 2003 and 2002.  Diluted net income per
         share reflects  potential  dilution that could occur from common shares
         issuable   through  stock  options,   warrants  or  other   convertible
         securities; however, the Company has no dilutive securities.

i.       Estimated  Fair  Value  of  Financial  Instruments  - The  Company  has
         estimated the fair value of its financial  instruments  using available
         market data. However, considerable judgment is required in interpreting
         market data to develop  estimates  of fair value.  The use of different
         market  assumptions or methodologies  may have a material effect on the
         estimates of fair values.  The  carrying  values of cash,  receivables,
         lines of credit,  accounts  payable,  and accrued expenses  approximate
         fair  values  due to the  short-term  maturities  or  market  rates  of
         interest.

j.       New  Accounting  Pronouncements  - In  November  2002,  the FASB issued
         Interpretation No. 45 (FIN 45), "Guarantor's  Accounting and Disclosure
         Requirements   for  Guarantees,   Including   Indirect   Guarantees  of
         Indebtedness of Others." This Interpretation  addresses the disclosures
         to  be  made  by a  guarantor  in  its  financial  statements  and  its
         obligations under  guarantees.  The  Interpretation  also clarifies the
         requirements related to the recognition of a liability by the guarantor
         at the  inception of a guarantee.  Initial  recognition  of a liability
         shall be applied only on a prospective  basis to  guarantees  issued or
         modified after December 31, 2002.  This  interpretation  did not have a
         material impact on the Company.


                                  Page 6 of 19
<PAGE>

         In  December  2002,  the FASB  issued  SFAS No.  148,  "Accounting  for
         Stock-Based  Compensation-- Transition and Disclosure".  This Statement
         amends SFAS No. 123 to provide  alternative methods of transition for a
         voluntary change to the fair value method of accounting for stock-based
         employee compensation.  Specifically,  SFAS No. 148 prohibits companies
         from utilizing the  prospective  method of transition,  the only method
         offered  under the  original  SFAS No. 123, in fiscal  years  beginning
         after December 15, 2003. However,  the statement permits two additional
         transition  methods for  companies  that adopt the fair value method of
         accounting  for  stock-based  compensation,  which include the modified
         prospective and retroactive  restatement methods. Under the prospective
         method,   expense  is  recognized  for  all  employee  awards  granted,
         modified,  or settled  after the  beginning of the fiscal year in which
         the recognition  provisions are first applied. The modified prospective
         method  recognizes  stock-based  employee  compensation  cost  from the
         beginning of the fiscal year in which the provisions are first applied,
         as if the fair value  method had been used to account for all  employee
         awards  granted,  modified,  or settled in fiscal years beginning after
         December  15,  1994.  Under the  retroactive  restatement  method,  all
         periods  presented  are  restated  to  reflect   stock-based   employee
         compensation  cost under the fair value method for all employee  awards
         granted,  modified, or settled in fiscal years beginning after December
         15,  1994.  In  addition,   this   Statement   amends  the   disclosure
         requirements of SFAS No. 123 to require  prominent  disclosures in both
         annual and interim financial  statements about the method of accounting
         for stock-based employee compensation and the effect of the method used
         on reported  results  using a prescribed  specific  tabular  format and
         requiring   disclosure  in  the  "Summary  of  Significant   Accounting
         Policies" or its  equivalent.  The Company is currently  evaluating the
         impact if it were to adopt the fair  value  method  of  accounting  for
         stock-based employee compensation under all three methods.

         In April  2003,  the FASB  issued  Statement  of  Financial  Accounting
         Standards   No.  149,   "Amendment   of  Statement  133  on  Derivative
         Instruments and Hedging  Activities"  (SFAS 149). SFAS 149 is effective
         for the Company for contracts  entered into or modified  after June 30,
         2003,  and for hedging  relationships  designated  after June 30, 2003.
         SFAS 149  amends  and  clarifies  financial  accounting  and report for
         derivative   instruments,   including  certain  derivative  instruments
         embedded in other contracts and for hedging  activities under SFAS 133.
         The Company  has not yet  determined  if the  adoption of SFAS 149 will
         have a  material  impact  on  its  financial  position  or  results  of
         operation.

         In  May  2003,  the  FASB  issued  Statement  of  Financial  Accounting
         Standards No. 150,  "Accounting for Certain Financial  Instruments with
         Characteristics of both Liabilities and Equity" (SFAS 150). SFAS 150 is
         effective  for the Company for  financial  instruments  entered into or
         modified  after  May  31,  2003,  and  otherwise  is  effective  at the
         beginning of the first interim  period  beginning  after June 15, 2003.
         SFAS 150 requires that an issuer classify a financial instrument within
         its scope as a  liability  or in some  circumstances  an asset that was
         previously classified as equity. This standard will not have any effect
         on the Company.


2.       COMMITMENTS AND CONTINGENCIES

The Company receives its operating  authorization from the National Park Service
("NPS").  The NPS Contract (the "Contract") which became effective on January 1,
1990, will expire on December 31, 2009.  Under the terms of the Contract,  prior
to December 31, 2002, the Company was required to move its existing


                                  Page 7 of 19
<PAGE>

54-unit  riverside motel from its current  location to the high ground above the
Snake  River,  to  provide  for new  employee  housing  and make  certain  other
improvements.  The Company has met these  requirements  by moving the  riverside
motel and converting it into employee housing, plus building additional employee
support facilities.

The extensive  capital  investments which were required by the Company's current
Contract,  were made based on the Park  providing  road access in the winter and
full winter services (i.e. snowmobile rentals) for the duration of the Contract.
These  services are  necessary  to allow the Company to recover its  substantial
investment and provide a reasonable  opportunity to realize a profit  consistent
with the Contract and applicable law.

The Contract  fee to the NPS is  calculated  at 2 percent of gross  receipts (as
defined),  subject to review and possible  adjustment  every five years. For the
three  months  ended June 30,  2003 and 2002,  this fee  amounted to $14,050 and
$13,693, respectively, which has been recorded as operating expense.

Flagg Ranch faces competition from hotels,  camping areas and trailer facilities
in Yellowstone and Grand Teton National Parks, as well as from a large number of
hotels and motels in Wyoming,  Montana and Idaho, offering some facilities which
are similar to those offered by Flagg Ranch. In addition,  the business of Flagg
Ranch is susceptible to weather conditions and unfavorable trends in the economy
as a whole.  Business  could be  significantly  affected  depending upon actions
which might be taken by the NPS if cutbacks are made to their  budget.  On March
24, 2003, the National Park Service approved the Record of Decision on the Final
Supplement   Environmental  Impact  Statement  for  the  Winter  Use  Plans  for
Yellowstone  and Grand Teton  National  Parks and the John D.  Rockefeller,  Jr.
Memorial Parkway.

Beginning in the winter of 2003-2004,  the National Park Service will  implement
this  Record of  Decision  although  certain  provisions  will not  apply  until
implementing  regulations  are  promulgated.  This  Record  of  Decision  adopts
alternative  4  of  the  alternatives   considered  for  winter  use  management
alternatives for Yellowstone and Grand Teton National Parks.

Under  alternative  4, the use of  snowmobiles  in the  parks and on the John D.
Rockefeller,  Jr. Memorial Parkway will be permitted  provided all machines meet
best  available  technology  (BAT)  standards for sound and air  emissions.  All
snowmobile  users will be required to be  accompanied  by National  Park Service
approved guides.

Since the NPS'  adoption of the Record of  Decision,  the NPS has  informed  the
Company that the  Company's  allocation  of  snowmobile  trips into  Yellowstone
National Park will be severely  restricted.  Before the Record of Decision,  the
NPS had authorized  the Company to rent a maximum of 85  snowmobiles  for use in
Yellowstone National Park. Under the new Record of Decision,  the NPS will allow
the  Company an  entrance  allocation  of only 20  snowmobiles  per day with NPS
guides provided the snowmobiles use the best available technology.

The Company believes this limited  entrance  allocation will severely impact the
Company's financial viability of operation during the winter season.



                                  Page 8 of 19
<PAGE>

Proprietary rights to certain facility  improvements  constructed by the Company
(including  the new lodge and new cabin  units) have been granted to the Company
under the terms of the Contract; however, the NPS may terminate the Contract and
purchase  the  Company's  improvements,  upon a  determination  that the  public
interest  requires Federal  Government  ownership of the  improvements.  In such
event, the Federal  Government is required to pay a price for said  improvements
equal to the cost of reconstruction less depreciation.  If, however the Contract
is  terminated  by  the  Federal  Government  for  default  by the  Company  for
unsatisfactory  performance  as  defined  in  the  Contract,  then  the  Federal
Government  is  required  to  pay  a  price  equal  to  the  tax  basis  of  the
improvements.  At the end of the Contract,  if the Company is not the successful
bidder on a new  contract  for the  property,  then the  Federal  Government  is
required to purchase from the Company the improvements  (including the new lodge
and new  cabin  units)  made to the  property  at a price  equal  to the cost of
reconstruction less depreciation.

The Company has recently  entered into  preliminary  discussions with the NPS to
amend  the  terms of the  Contract  and  accelerate  the  termination  date from
December 31, 2009 to October 31, 2003.  If this occurs the NPS would then select
an interim  operator to operate the resort  until such time as a  prospectus  is
issued, a bidding process takes place and a permanent operator is selected.  The
interim  operator  will be  required  to pay to the  Company  a fee equal to its
annual  depreciation  plus an amount equal to the book value of its fixed assets
times the current  prime  lending  rate.  While there is no  assurance  that the
discussions  will  be  successful,  if a  prospectus  is  issued  it is not  the
Company's  intention  to  enter a bid for the  operation  of  Flagg  Ranch.  The
successor  concessioner,  and/or the  Federal  Government  will be  required  to
purchase from the Company the improvements made to the property at a price equal
to the cost of reconstruction less physical depreciation as well as the personal
property at its fair value.

At the  Company's  Annual  Meeting  held on  January  21,  2003,  the  Company's
Shareholders  ratified and adopted the 2002 Stock  Option  Plan.  The 2002 Stock
Option Plan allows the Compensation Committee of the Board of Directors to grant
stock options to officers,  directors and employees of the Company.  The Company
has 100,000 stock options available for issuance. The Company has not issued any
stock  options  under the 2002 Stock  Option  Plan.  Under the 2002 Stock Option
Plan,  options  are  granted at a price  equal to the fair  market  value of the
Company's common stock on the date of grant.

During the quarter ended June 30, 2003, the Company's President was eligible for
a bonus, based on reduction in the debt of the corporation.  A bonus of $100,000
is  payable  when the debt of the  Company  has been  reduced  to  $500,000.  An
additional  bonus of $100,000  is payable  when the debt of the Company has been
eliminated.  As the Company's  debt has not  decreased to the above  levels,  no
bonus was earned or paid in the current quarter.

3.       TRANSACTIONS WITH RELATED PARTIES

General and  administrative  - related party expenses for the three months ended
June 30, 2003 and 2002 represent  management  fees and  administrative  expenses
paid to related  parties and totaled  $73,734 and $73,074,  respectively.  These
amounts are broken out in further detail below. Related parties during the three
months  ended June 30, 2003 and 2002  include  entities  owned by the  Company's
current majority owner, Robert Walker, or family members, and a company owned by
the Company's current President, Michael P. Perikly.


                                  Page 9 of 19
<PAGE>

For the three  months  ended  June 30,  2003 and 2002,  the  Company  charged to
operations $42,984 and $42,324,  respectively,  for management  services to PNI,
Inc. and Walker  Consulting,  Inc.,  companies  owned by the Company's  majority
owner, Robert L. Walker.

For the three  months  ended  June 30,  2003 and 2002,  the  Company  charged to
operations $15,750 each period for management services to KCH Enterprises, Inc.,
a company owned by the Company's current President, Michael P. Perikly.

For the three  months  ended  June 30,  2003 and 2002,  the  Company  charged to
operations  $15,000  each  period for  building  rent to RLW & BJW  Enterprises,
L.L.C.,  a company  owned by the Company's  current  majority  owner,  Robert L.
Walker.

The Company  incurred  borrowings  under line of credit  agreements with related
parties (Note 4). Interest incurred for the three months ended June 30, 2003 and
2002 was $8,173 and  $13,112,  respectively.  For fiscal year 2002,  the Company
capitalized $3,927 of interest from related party agreements.

4.       NOTES PAYABLE UNDER LINES OF CREDIT

The  Company has a line of credit  agreement  ("Agreement")  with an  affiliated
company  expiring   September  30,  2003,  which  provides  for   collateralized
borrowings  of up to  $1,500,000 at an interest rate of prime plus .875 percent.
Borrowings under the Agreement are collateralized by the assets and improvements
of Flagg Ranch.  The Company has borrowed  $575,000 on this line of credit as of
June 30,  2003.  The terms of the  Agreement  contain,  among other  provisions,
requirements  for  maintaining  minimum cash flows (as defined in the Agreement)
and place  limitations  on the Company's  ability to make loans.  As of June 30,
2003, the Company was not in compliance with the minimum cash flow  requirement.
Management of the  affiliated  company has executed a waiver of compliance  with
the loan covenants.

The  Company  has a line of credit  agreement  with  Jackson  State  Bank  ("JSB
Agreement")  expiring  September  12, 2003,  which  provides for  collateralized
borrowings  of up to $500,000 at an  interest  rate of prime plus .875  percent.
Borrowings  under  the  JSB  Agreement  are  collateralized  by the  assets  and
improvements  of Flagg  Ranch.  The  Company  has  borrowed  $500,000 on the JSB
Agreement as of June 30, 2003. Interest incurred for the three months ended June
30, 2003 and 2002 was $6,206 and $2,948, respectively. For fiscal year 2002, the
Company capitalized $883 of interest from the bank line of credit agreement.

ITEM 2.          Management's Discussion and Analysis of Financial Condition and
                 Results of Operations

The  statements  contained in this Report  regarding  the  Company's  quality of
facilities,  consumer response to marketing efforts, ability to offset inflation
and adequacy of financing,  constitute  "forward looking"  statements within the
meaning of the Private  Securities  Litigation Reform Act of 1995.  Management's
anticipation  is based upon  assumptions  regarding  acceptance of facilities by
consumers,  favorable  weather  conditions,  the  market  in which  the  Company
operates,  the  stability  of  the  economy  and  stability  of  the  regulatory
environment.  Any of these  assumptions  could prove  inaccurate,  and therefore
there can be no assurance that the forward-looking  information will prove to be
accurate.


                                  Page 10 of 19
<PAGE>

The  Company's  net loss for the first  quarter  ended June 30, 2003 was $55,000
($.08 per share).  This  compares to a net loss of $94,000  ($.14 per share) for
the quarter ended June 30, 2002.  Changes in the Company's revenues and expenses
for the  quarters  ended  June  30,  2003 and 2002  are  summarized  below.  All
references to years, represent the quarter ended June 30 of the stated year.

Flagg Ranch,  the principal  business of the Company,  is operated as a seasonal
resort.  The two  seasons  coincide  with  the  opening  and  closing  dates  of
Yellowstone  and  Grand  Teton  National  Parks.  The  summer  season  runs from
approximately  May 23 through  September 30 and the winter season runs from late
December  through early March,  therefore,  the first quarter ended June 30,2003
consists of only thirty-nine days of operations.

The Company has recently  entered into  preliminary  discussions with the NPS to
amend  the  terms of the  Contract  and  accelerate  the  termination  date from
December 31, 2009 to October 31, 2003.  If this occurs the NPS would then select
an interim  operator to operate the resort  until such time as a  prospectus  is
issued, a bidding process takes place and a permanent operator is selected.  The
interim  operator  will be  required  to pay to the  Company  a fee equal to its
annual  depreciation  plus an amount equal to the book value of its fixed assets
times the current  prime  lending  rate.  While there is no  assurance  that the
discussions  will  be  successful,  if a  prospectus  is  issued  it is not  the
Company's  intention  to  enter a bid for the  operation  of  Flagg  Ranch.  The
successor  concessioner,  and/or the  Federal  Government  will be  required  to
purchase from the Company the improvements made to the property at a price equal
to the cost of reconstruction less physical depreciation as well as the personal
property at its fair value.

Revenues
--------

Total  revenues  for 2003  increased  by  $41,000  or 5.6%  from  2002.  Of this
increase,  $24,000 was from cabin rentals,  $7,000 from RV park rentals,  $2,000
from grocery store sales, $1,000 from guided fishing trip revenue,  $14,000 from
float trip revenue and $27,000 from gain on sale of assets. Decreases of $21,000
in food and beverage sales, $6,000 in gift shop sales, $3,000 in gasoline sales,
$1,000 in trail ride revenue and $3,000 in other  revenue  partially  offset the
above increases.

Expenses
--------

The ratio of cost of merchandise  sold to sales of merchandise  was 57% and 61%,
respectively, for 2003 and 2002. Cost of merchandise decreased in 2003 over 2002
due to higher  margins on gasoline  sales.  The ratio of  operating  expenses to
total  revenue  was 61% and  58%,  respectively,  in 2003  and  2002.  Operating
expenses  increased  by $46,000 in 2003 as compared to 2002.  Of this  increase,
$21,000  was in labor,  $10,000 in  utilities,  $15,000 in  operating  supplies,
$6,000 in  snowmobile  parts,  $2,000 in  printing,  $8,000 in credit card fees,
$1,000 in postage and freight,  $1,000 in licenses and fees, $7,000 in insurance
and $4,000 in other items.  Offsetting theses increases were decreases of $7,000
in office supplies,  $8,000 in repairs and maintenance,  $10,000 in advertising,
$3,000 in telephone  and $1,000 in property  taxes.  General and  administrative
expenses  increased  $1,000 or 3.2% in 2003 as  compared  to 2002.  General  and
administrative  expenses - related party  increased by $1,000 or 0.9% in 2003 as
compared to 2002.

The  Company  had a gain on sale of assets of $27,000  for 2003 versus a loss of
$29,000 in 2002.


                                  Page 11 of 19
<PAGE>

Inflation
---------

The  Company  expects  that it will be able to  offset  increases  in costs  and
expenses, caused by inflation, by increasing prices on its services with minimal
effect on operations.

Liquidity and Capital Resources
-------------------------------

Working capital  deficit  decreased to $990,000 at June 30, 2003 from $1,030,000
at March 31,  2003.  Current  assets  increased  by  $435,000  primarily  due to
increases in cash and merchandise inventories.  Current liabilities increased by
$395,000 primarily due to increases in accounts payable and customer deposits.

The  Company has a line of credit  agreement  ("Agreement")  with an  affiliated
company  expiring   September  30,  2003,  which  provides  for   collateralized
borrowings  of up to  $1,500,000 at an interest rate of prime plus .875 percent.
Borrowings under the Agreement are collateralized by the assets and improvements
of Flagg Ranch.  The Company has borrowed  $575,000 on this line of credit as of
June 30,  2003.  The terms of the  Agreement  contain,  among other  provisions,
requirements  for  maintaining  minimum cash flows (as defined in the Agreement)
and place  limitations  on the Company's  ability to make loans.  As of June 30,
2003, the Company was not in compliance with the minimum cash flow  requirement.
Management of the  affiliated  company has executed a waiver of compliance  with
the loan covenants.

The  Company  has a line of credit  agreement  with  Jackson  State  Bank  ("JSB
Agreement")  expiring  September  12, 2003,  which  provides for  collateralized
borrowings  of up to $500,000 at an  interest  rate of prime plus .875  percent.
Borrowings  under  the  JSB  Agreement  are  collateralized  by the  assets  and
improvements  of Flagg  Ranch.  The  Company  has  borrowed  $500,000 on the JSB
Agreement as of June 30, 2003.

Critical Accounting Policies and Estimates
------------------------------------------

Our discussion and analysis of our financial condition and results of operations
are based upon our financial statements,  which have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
(GAAP).  During  preparation of these financial  statements,  we are required to
make  estimates  and  judgements  that  affect the  reported  amounts of assets,
liabilities  revenue and expenses,  and related  disclosure of contingent assets
and  liabilities.  On an on-going  basis,  we evaluate our estimates,  including
those related to  inventories,  fixed assets,  income taxes,  contingencies  and
litigation.  We base our estimates on historical experience and on various other
assumptions that we believe are reasonable under the circumstances.  The results
form the basis for  making  judgments  about the  carrying  values of assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions.

We  believe  the  following  critical   accounting   policies  affect  our  more
significant  judgments and estimates  used in the  preparation  of our financial
statements.

We recognize sales when evidence of a sale exists;  that is, for lodging revenue
at the end of each day; for other retail sales,  when the actual sale occurs and
possession of the product is transferred to the customer.

Property and equipment are recorded at cost.  Expenditures  for major  additions
and improvements are


                                  Page 12 of 19
<PAGE>

capitalized,  and minor  replacements,  maintenance  and  repairs are charged to
expense as incurred. Depreciation is provided over the estimated useful lives of
the  related  assets  using the  straight-line  method for  financial  statement
purposes.  The Company uses other depreciation  methods (generally  accelerated)
for tax purposes where appropriate.

We write down our inventory for estimated obsolescence or unmarketable inventory
equal to the difference  between the cost of inventory and the estimated  market
value based upon  assumptions  about  future  demand and market  conditions.  If
actual  market  conditions  are  less  favorable  than  those  projected  by us,
additional inventory write-downs may be required.

We  estimate  our  actual  current  tax  exposure  together  with the  temporary
differences that have resulted from the differing treatment of items dictated by
GAAP versus U.S. tax laws.  These temporary  differences  result in deferred tax
assets and liabilities.

ITEM 3.          Controls and Procedures

Under the supervision and with the  participation  of management,  including the
Chief Executive  Officer and Chief Financial  Officer,  the effectiveness of the
design and operation of disclosure  controls and  procedures  has been evaluated
within 90 days of the filing date of this quarterly  report,  and, based on that
evaluation,  the Chief  Executive  Officer  and  Chief  Financial  Officer  have
concluded  that these  controls  and  procedures  are  effective.  There were no
significant  changes  in  internal  controls  or in  other  factors  that  could
significantly affect these controls subsequent to the date of that evaluation.

Disclosure  controls and procedures are controls and other  procedures  that are
designed to ensure that  information  required  to be  disclosed  in the reports
filed or submitted under the Securities Exchange Act of 1934 ("Exchange Act") is
recorded, processed,  summarized and reported, within the time periods specified
in the Securities and Exchange Commission's rules and forms. Disclosure controls
and procedures include, without limitation,  controls and procedures designed to
ensure  that  information  required  to be  disclosed  in  and  communicated  to
management,  including the Chief Executive Officer and Chief Financial  Officer,
as appropriate to allow timely decisions regarding required disclosure.












                                  Page 13 of 19
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.          Legal Proceedings
                 None.

ITEM 2.          Changes in Securities
                 None.

ITEM 3.          Defaults upon Senior Securities
                 None.

ITEM 4.          Submission of Matters to a Vote of Securities Holders
                 None
..
ITEM 5.          Other Information
                 None

ITEM 6.          Exhibits and Reports on Form 8-K

                 (a)      1.       Financial Statements                     Page

The following  financial  statements of  International  Leisure Hosts,  Ltd. are
included in Part I, Item 1:

                 Condensed Consolidated Balance Sheets - June 30, 2003
                 (Unaudited) and March 31, 2003                              2

                 Condensed   Consolidated   Statements  of  Operations
                 (Unaudited)  - Three  months  ended June 30, 2003 and
                 2002                                                        3

                 Condensed  Consolidated   Statements  of  Cash  Flows
                 (Unaudited)  - Three  months  ended June 30, 2003 and
                 2002                                                        4

                 Notes to Condensed Consolidated Financial Statements        5

     3.          The following  exhibits are incorporated by reference
                 as indicated:
     3.1         By-Laws-Adopted  June 22,  1992  filed with Form 10-K
                 dated March 31, 1992
     3.2         Articles of Incorporation-filed  with Form 10-K dated
                 March 31, 1986, pages 32-41
     10.1        United  States  Department  of the Interior  National
                 Park  Service  Contract-filed  with Form  10-Q  dated
                 December 31, 1989
     99.1        Certification  pursuant to 18 U.S.C. Section 1350, as
                 adopted pursuant to Section 906 of the Sarbanes-Oxley
                 Act of 2002
     99.2        Certification  pursuant to 18 U.S.C. Section 1350, as
                 adopted pursuant to Section 906 of the Sarbanes-Oxley
                 Act of 2002

                                  Page 14 of 19
<PAGE>

     99.3        Chief Executive Officer - 302 Certification
     99.4        Chief Financial Officer - 302 Certification

In accordance with the  requirements of the Exchange Act, the registrant  caused
this report to be signed by the undersigned, thereunto duly authorized.

                        INTERNATIONAL LEISURE HOSTS, LTD.
                                  (REGISTRANT)


                                          /s/ ROBERT L. WALKER
                                      ------------------------------------------
DATE:  August 4, 2003                 BY:     ROBERT L. WALKER
                                      Chairman and Chief Executive Officer


                                          /s/ MICHAEL P. PERIKLY
                                      ------------------------------------------
DATE:  August 4, 2003                 BY:    MICHAEL P. PERIKLY
                                      President and Principal Financial Officer
















                                  Page 15 of 19