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 September 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 September 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




                                                                                         September         March
                                                                                          30, 2003       31, 2003
                                                                                        -----------    -----------
                                                                                        (Unaudited)
<S>                                                                                     <C>            <C>
ASSETS
CURRENT ASSETS:
    Cash and cash equivalents                                                           $   259,703    $    73,263
    Accounts receivable                                                                       2,226         29,878
    Income tax refund receivable                                                             65,818         36,090
    Deferred tax asset                                                                       24,035         44,035
    Merchandise inventories                                                                  66,567         72,230
    Prepaid expenses and other                                                               39,652         27,059
                                                                                        -----------    -----------
        Total current assets                                                                458,001        282,555
                                                                                        -----------    -----------

PROPERTY AND EQUIPMENT:
    Buildings and improvements                                                            7,525,591      7,525,591
    Equipment                                                                             1,364,172      1,668,896
    Leasehold improvements                                                                  325,600        325,600
                                                                                        -----------    -----------
        Total property and equipment                                                      9,215,363      9,520,087
    Less accumulated depreciation and amortization                                        3,131,233      3,245,804
                                                                                        -----------    -----------
        Property and equipment - net                                                      6,084,130      6,274,283
                                                                                        -----------    -----------
TOTAL                                                                                   $ 6,542,131    $ 6,556,838
                                                                                        ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
   Notes payable under line of credit from related party                                $   500,000    $   585,000
   Note payable under line of credit                                                             --        500,000
   Accounts payable:
     Trade                                                                                   99,962         49,326
     Related party                                                                           71,640         22,123
   Accrued liabilities                                                                      218,606         42,318
   Advance deposits                                                                          53,556        114,014
                                                                                        -----------    -----------
        Total current liabilities                                                           943,764      1,312,781
DEFERRED INCOME TAXES                                                                       150,184        150,184
                                                                                        -----------    -----------
        Total liabilities                                                                 1,093,948      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
issued
    Additional paid-in capital                                                              656,426        656,426
    Retained earnings                                                                     4,863,535      4,509,225
                                                                                        -----------    -----------
                                                                                          5,527,145      5,172,835
    Less common stock in treasury - at cost, 23,966 shares                                  (78,962)       (78,962)
                                                                                        -----------    -----------
        Shareholders' equity - net                                                        5,448,183      5,093,873
                                                                                        -----------    -----------
TOTAL                                                                                   $ 6,542,131    $ 6,556,838
                                                                                        ===========    ===========
</TABLE>

See notes to condensed consolidated financial statements


                                  Page 2 of 19
<PAGE>
<TABLE>
<CAPTION>

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



                                                 Three months ended        Six months ended
                                                   September 30,             September 30,
                                              -------------------------------------------------
                                                 2003         2002         2003         2002
                                                 ----         ----         ----         ----
<S>                                           <C>          <C>          <C>          <C>
REVENUES:

 Sales of merchandise                         $  977,752   $  964,989   $1,285,295   $1,300,528

 Room, cabin and trailer space rentals         1,158,127    1,109,768    1,545,840    1,464,175

 Other rentals and income                         82,952      107,668      130,827      147,064

 Net gain on asset disposals                      14,127          833       41,441           --

 Interest                                            599        1,965          500        2,130
                                              ----------   ----------   ----------   ----------

    Total revenues                             2,233,557    2,185,223    3,003,903    2,913,897
                                              ----------   ----------   ----------   ----------

COSTS AND EXPENSES:

 Cost of merchandise                             601,802      581,079      778,481      786,919

 Operating                                       722,940      702,080    1,195,781    1,128,417

 General and administrative                       43,505       12,218       87,608       54,971

 General and administrative - related party      173,734       73,074      247,468      146,148

 Net loss on asset disposals                          --           --           --       28,490

 Depreciation and amortization                    74,174       80,750      146,625      162,794

 Interest                                          4,313           --       10,518        5,239

 Interest - related party                          7,667       15,206       15,840       21,217
                                              ----------   ----------   ----------   ----------

    Total costs and expenses                   1,628,135    1,464,407    2,482,321    2,334,195
                                              ----------   ----------   ----------   ----------


Income before income taxes                       605,422      720,816      521,582      579,702

Provision for income taxes                       197,272      247,000      167,272      200,000
                                              ----------   ----------   ----------   ----------

NET INCOME                                    $  408,150   $  473,816   $  354,310   $  379,702
                                              ==========   ==========   ==========   ==========
NET INCOME
     PER COMMON SHARE                         $     0.59   $     0.68   $     0.51   $     0.55
                                              ==========   ==========   ==========   ==========

</TABLE>


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)


                                                          Six months ended September 30,
                                                       ------------------------------------
                                                                2003         2002
                                                                ----         ----
<S>                                                           <C>          <C>
OPERATING ACTIVITIES:
  Net income                                                  $ 354,310    $ 379,702
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Depreciation and amortization                             146,625      162,794
      Net (gain) loss on asset disposals                        (41,441)      28,490
  Changes in assets and liabilities:
      Accounts receivable                                        27,652       26,149
      Income tax refund receivable                              (29,728)          --
      Merchandise inventories                                     5,663      (17,120)
      Deferred income tax benefit                                20,000           --
      Prepaid expenses and other                                (12,593)     (15,896)
      Accounts payable - trade                                   50,636       (8,769)
      Accounts payable - related party                           49,517       (5,000)
      Income taxes payable                                      177,000      150,000
      Accrued liabilities                                          (712)      41,184
      Advance deposits                                          (60,458)     (45,952)
                                                              ---------    ---------
          Net cash provided by operating activities             686,471      690,632
                                                              ---------    ---------

INVESTING ACTIVITIES:
      Purchases of property and equipment                       (28,181)    (110,131)
      Proceeds from sale of property and equipment              113,150       49,617
                                                              ---------    ---------
        Net cash provided by (used in) investing activities      84,969      (60,514)
                                                              ---------    ---------

FINANCING ACTIVITIES:
      Loan (payments to) proceeds from bank                    (500,000)     325,000
      Loan payments to related party                            (85,000)    (350,000)
                                                              ---------    ---------
        Net cash used in financing activities                  (585,000)     (25,000)
                                                              ---------    ---------

NET INCREASE IN CASH AND CASH EQUIVALENTS                       186,440      605,118

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                      $ 259,703    $ 654,782
                                                              =========    =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION - Cash paid for interest                          $  26,358    $  34,281
                                                              =========    =========
                          - Cash paid for income tax          $       0    $  50,000
                                                              =========    =========
</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 Six Month Periods Ended
                           September 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  six  months  ended  September  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  method 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 currently
       has a stock  option plan in place but no options have been  granted.  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 adoption of SFAS 149 did not
       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. In October
       2003, FASB deferred the application of paragraphs 9 and 10 to mandatorily
       redeemable  non-controlling interests in subsidiaries.  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.


                                  Page 7 of 19
<PAGE>


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  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 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
six months ended  September 30, 2003 and 2002,  this fee amounted to $56,600 and
$55,843, 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 BAT.

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. 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 six months ended  September  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 decreased to $500,000,
the first  $100,000 bonus was earned in the current  quarter,  of which half has
been paid and half has been recorded as a liability.

The Company is researching  alternatives  for  repurchasing  outstanding  common
shares in anticipation of taking the Company private.

3.     TRANSACTIONS WITH RELATED PARTIES

General and  administrative  - related  party  expenses for the six months ended
September  30,  2003  and 2002  represent  management  fees  and  administrative
expenses   paid  to  related   parties  and  totaled   $247,000  and   $146,000,
respectively.  These  amounts are broken out in further  detail  below.  Related
parties during the six months ended September 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 six months ended  September  30, 2003 and 2002,  the Company  charged to
operations $85,968 and $84,648,  respectively,  for management  services to PNI,
Inc. and Walker  Consulting,  Inc.,  companies  owned by the Company's  majority
owner, Robert L. Walker.

For the six months ended  September  30, 2003 and 2002,  the Company  charged to
operations  $131,500 and $31,500,  respectively,  for management services to KCH
Enterprises,  Inc., a company owned by the Company's current President,  Michael
P.  Perikly.  During the six months  ended  September  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 decreased to
$500,000, the first $100,000 bonus was earned in the current quarter,  resulting
in the increase noted above.

For the six months ended  September  30, 2003 and 2002,  the Company  charged to
operations  $30,000  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 six months ended September 30, 2003
and 2002 was  $15,840  and  $27,491,  respectively.  For fiscal  year 2002,  the
Company capitalized $6,274 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,  2004,  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  $500,000 on this line of credit as of
September 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 September
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  had a line of credit  agreement  with  Jackson  State  Bank  ("JSB
Agreement") which was paid off during the 2nd quarter. Interest incurred for the
six  months  ended   September  30,  2003  and  2002  was  $10,518  and  $6,789,
respectively.  For fiscal year 2002, the Company  capitalized $1,550 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"


                                  Page 10 of 19
<PAGE>

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.

The  Company's  net income  for the six  months  ended  September  30,  2003 was
$354,000  ($.51 per share).  This compares to a net income of $380,000 ($.55 per
share) for the six months ended  September  30, 2002.  Changes in the  Company's
revenues and expenses for the six months and quarters  ended  September 30, 2003
and 2002 are summarized below. All references to years, represent the six months
ended September 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.

The Company has recently  entered into  preliminary  discussions with the NPS to
amend the terms of the Contract and accelerate  the expiration  date of December
31,  2009.  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,  not to exceed fair market  value,  as well as the
personal property at its fair value.

Revenues
--------

Total  revenues  for 2003  increased  by  $90,000  or 3.1%  from  2002.  Of this
increase,  $75,000 was from cabin rentals, $7,000 from RV park rentals,  $20,000
from grocery store sales,  $1,000 from guided fishing trip revenue,  $5,000 from
float trip revenue,  $5,000 from gasoline sales and $41,000 from gain on sale of
assets.  Decreases  of $36,000 in food and beverage  sales,  $4,000 in gift shop
sales,  $2,000 in trail ride  revenue  and  $22,000 in other  revenue  partially
offset the above increases.

Total  revenues  for the three  months  ended  September  30, 2003  increased by
$48,000 or 2.2% from 2002.  Of this  increase,  $49,000 was from cabin  rentals,
$18,000  from  grocery  store  sales,  $2,000 from gift shop sales,  $8,000 from
gasoline  sales and $13,000 from gain on sale of assets.  Decreases of $1,000 in
RV park  rentals,  $15,000  in food and  beverage  sales,  $9,000 in float  trip
revenue,  $2,000 in trail ride  revenue and $15,000 in other  revenue  partially
offset the above increases.


                                  Page 11 of 19
<PAGE>

Expenses
--------

The ratio of cost of merchandise  sold to sales of merchandise  was 61% for 2003
and 2002.  The ratio of  operating  expenses  to total  revenue was 40% and 39%,
respectively,  in 2003 and 2002. Operating expenses increased by $67,000 in 2003
as  compared  to  2002.  Of this  increase,  $34,000  was in  labor,  $5,000  in
utilities,  $20,000 in operating supplies, $1,000 in equipment rental, $4,000 in
snowmobile parts/gas, $18,000 in commissions, $1,000 in travel, $3,000 in credit
card fees,  $1,000 in licenses,  $14,000 in insurance and $3,000 in other items.
Offsetting these increases were decreases of $4,000 in office supplies,  $14,000
in advertising,  $7,000 in telephone,  $9,000 in postage and freight,  $1,000 in
property taxes and $2,000 in other items.  General and  administrative  expenses
increased  $33,000 or 59.4% in 2003 as compared to 2002 primarily as a result of
legal  expenses  relating to the winter issue plan.  General and  administrative
expenses - related  party  increased by $101,000 or 69.3% in 2003 as compared to
2002 as a result of the bonus  earned by the  Company's  President  for  meeting
certain debt reduction benchmarks.

Operating  expenses for the three months ended  September 30, 2003  increased by
$21,000 from 2002. Of this increase,  $13,000 was in labor,  $6,000 in operating
supplies, $3,000 in office supplies,  $7,000 in repairs and maintenance,  $1,000
in  equipment  rental,  $18,000  in  commissions,  $1,000 in  travel,  $7,000 in
insurance, and $1,000 in miscellaneous expenses. Offsetting these increases were
decreases of $5,000 in  utilities,  $3,000 in  snowmobile  parts/gas,  $2,000 in
outside  services,  $4,000  in  advertising,  $4,000  in  telephone,  $2,000  in
printing,  $6,000 in credit card fees, and $10,000 in postage  expense.  General
and  administrative  expenses increased $31,000 or 256.1% in 2003 as compared to
2002 as a result of legal expenses relating to the winter use plan.  General and
administrative  expenses - related party increased by $101,000 or 137.8% in 2003
as compared to 2002 as a result of the bonus earned by the  Company's  President
for meeting certain debt reduction benchmarks.

The  Company  had a gain on sale of assets of $41,000  for 2003 versus a loss of
$28,000 in 2002.

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  $486,000  at  September  30, 2003 from
$1,030,000 at March 31, 2003. Current assets increased by $175,000 primarily due
to increases in cash. Current liabilities decreased by $369,000 primarily due to
a decrease in note payable under line of credit.

The  Company has a line of credit  agreement  ("Agreement")  with an  affiliated
company  expiring   September  30,  2004,  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  $500,000 on this line of credit as of
September 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 September
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.



                                  Page 12 of 19
<PAGE>

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  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.  The Company has
written  down its winter use assets to their fair value at March 31,  2003.  The
Company has not made any  adjustments to the value of its facilities  under FASB
144 as the NPS  contract  allows it to recover the value of its  facilities  and
facility improvements at the end of the contract period.

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 as
of September  30,  2003,  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  during the
quarterly  period  ended  September  30,  2003,  subsequent  to the date of that
evaluation.


                                  Page 13 of 19
<PAGE>

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.

                           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 - September 30, 2003
              (Unaudited) and March 31, 2003                                2

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

              Condensed Consolidated Statements of Cash Flows (Unaudited)
              - Six months ended September 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


                                  Page 14 of 19
<PAGE>

       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
       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:     November 14, 2003           BY:    ROBERT L. WALKER
                                      Chairman and Chief Executive Officer


                                        /s/ MICHAEL P. PERIKLY
                                      ------------------------------------------
DATE:     November 14, 2003           BY:    MICHAEL P. PERIKLY
                                      President and Principal Financial Officer










                                  Page 15 of 19