EXHIBIT7

FOUR SEASONSHOTELS INC.

POLICIES AND PROCEDURES REGARDINGSERVICESPROVIDED BY INDEPENDENTAUDITORS

2006

PURPOSE

Four Seasons HotelsInc. and its controlled subsidiaries (together the‘‘**Company**’’) should notobtain services from KPMG LLP or any other audit firm that attests anyfinancial statements or other financial information of the Company orfrom an affiliate of such audit firm (the audit firm, together with itsaffiliates, being an ‘‘**independentauditor**’’) if those services would reasonably beexpected to compromise or impair the independence of the independentauditor. In this context, the Audit Committee is required topre-approve the audit and non-audit services performed by anindependent auditor.

Nothing in these policies andprocedures shall be, or be interpreted as, a delegation to managementof any of the responsibilities of the Audit Committee under applicablelegislation, regulatory requirements and policies of the CanadianSecurities Administrators.

PRE-APPROVALPROCESS

The approval contemplated by this policy may begiven through pre-approval by the Audit Committee of the terms,conditions and fees for specific services. Proposals for an independentauditor to provide services that require specific approval by the AuditCommittee should be submitted to the Audit Committee by the independentauditor and the Chief Financial Officer. Those proposals shoulddescribe the terms and conditions and fees for those services andshould include a statement by the independent auditor and the ChiefFinancial Officer that the provision of those services by theindependent auditor could not reasonably be expected to compromise orimpair the auditor’s independence under the applicablelegislation, regulatory requirements and policies of the CanadianSecurities Administrators and generally accepted auditing standards.Generally, the Audit Committee should not pre-approve a specificservice more than 12 months before the time that it is anticipated thatthe independent auditor will begin to provide thatservice.

As in effect March2006

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The AuditCommittee may delegate to any one or more of its members who are"independent" the authority to pre-approve onbehalf of the Audit Committee the provision of specific services by anindependent auditor (other than pre-approval of the annual auditservice engagement). Any approvals granted under this delegatedauthority that have not otherwise been presented to the Audit Committeeshould be presented to the Committee at its next scheduledmeeting.

The Audit Committee also may pre-approve services(other than the annual audit service engagement) without therequirement to submit a specific proposal (such as services outlined inSchedules ‘‘A’’ through‘‘C’’ attached). Unless otherwisespecifically provided by the Audit Committee, any such pre-approval ona general basis shall be applicable for 12 months. Services that areconsistent with any such pre-approval, that are begun within that 12month period and that do not result in the aggregate fees payable tothe independent auditor for that type of service exceeding an amountpre-approved by the Audit Committee will be deemed to have beenapproved by the Audit Committee. The Audit Committee should be informedin writing promptly of any engagement of an independent auditor toprovide services of a type that have been pre-approved by the AuditCommittee.

RESTRICTED SERVICES

The Audit Committeehas determined that, at this time, an independent auditor should notprovide any of the followingservices:

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|--------------|-------------------------------------------------------------------------------------|
| •  | bookkeeping or other servicesrelated to accounting records or financial statements; |

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|--------------|---------------------------------------------------------|
| •  | financial information systems design andimplementation; |

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|--------------|------------------------------------------------------------------------------------|
| •  | appraisal or valuationservices, fairness opinions or contribution-in-kind reports; |

|              |                    |
|--------------|--------------------|
| •  | actuarialservices; |

|              |                                     |
|--------------|-------------------------------------|
| •  | internal audit outsourcingservices; |

|              |                                         |
|--------------|-----------------------------------------|
| •  | management functions or humanresources; |

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|--------------|------------------------------------------------------------------|
| •  | broker-dealer, investmentadvisor, or investment bankingservices; |

|              |                |
|--------------|----------------|
| •  | legalservices; |

As in effect March2006

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|--------------|----------------------------------------|
| •  | expert services unrelated to audit;and |

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|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| •  | any other service that underapplicable law and generally accepted auditing standards is determinedcannot be provided by an independent auditor. |

The AuditCommittee also has determined that an independent auditor should not beprecluded from providing tax advisory services that do not fall withinany of the categories described above, unless the provision of thoseservices would reasonably be expected to compromise the independence ofthe independent auditor.

SPECIFIC APPROVAL OF AUDITSERVICES

The terms, conditions and fees of the annualaudit service engagement of an independent auditor, and any materialchange in those terms, conditions and fees, will be subject to thespecific pre-approval of the Audit Committee. The Audit Committee haspre-approved the audit services (which are those services that only theindependent auditor reasonably can provide) listed in ScheduleA.

GENERAL APPROVAL OF AUDIT-RELATEDSERVICES

Audit-related services are assurance and relatedservices that are reasonably related to the performance of the audit orthe review of the Company's financial statements or thattraditionally are performed by the independent auditor. The AuditCommittee believes that the provision of audit-related services doesnot impair the independence of the independent auditor and haspre-approved the audit-related services listed in Schedule B.

GENERAL APPROVAL OF TAX SERVICES

The Audit Committeebelieves that an independent auditor can provide tax services to theCompany (such as tax compliance, tax planning and tax advice) withoutimpairing the independent auditor's independence. In no eventshould an independent auditor be approved to represent the Companybefore a tax or other court or to provide tax services related to atransaction initially recommended by the independent auditor, the solebusiness purpose of which may be tax avoidance and the tax treatment ofwhich may not be supported by applicable legislation. The AuditCommittee has pre-approved the tax services listed in ScheduleC.

As in effect March2006

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GENERAL APPROVALOF ALL OTHER SERVICES

The Audit Committee may grantpre-approval of those non-audit services that are not restrictedservices (as described above) that are routine and recurring servicesand would not reasonably be expected to compromise or impair theindependence of the independent auditor.

ANNUALREVIEW

The Audit Committee shall review and assess thesepolicies and procedures on an annual basis.

As ineffect March 2006

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SCHEDULEA

Pre-Approved Audit Services forFiscal Year 2006

Dated: March  7,  2006

**Service**
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Integratedaudit of Four Seasons Hotels Inc. and services related to theauditors’ consent for the Form 40-F for the year endingDecember  31,2006
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Statutory audits orfinancial statement audits of subsidiaries and/or hotels includingitems listed in KPMG’s audit plan for Four Seasons Hotels Inc.for the year ending December  31,2006
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Audit services associatedwith documents filed with securities regulators, during the year endingDecember  31,  2006 including, prospectus related work
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Consultations by management as tothe accounting or disclosure treatment of transactions or events and/orthe actual or potential impact of final or proposed rules, standards orinterpretations by regulatory or standard setting bodies during theyear ending December  31,2006

As in effect March2006

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SCHEDULE B

Pre-ApprovedAudit-Related Services for Fiscal Year 2006

Dated:March  7,  2006

**Service**
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|--|
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Financialstatement audits of employee benefit plans for the year endingDecember  31,2006
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|--|
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Consultations by managementas to the accounting or disclosure treatment of proposed transactionsor events and/or the actual or potential impact of final or proposedrules, standards or interpretations by the regulatory orstandard-setting bodies during the year ending December31,  2006
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|--|
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Review ofinterim financial statements of Four Seasons Hotels Inc. for the yearending December  31,2006
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|--|
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Assurance engagements thatare not required by statute or regulation for the year endingDecember  31,  2006, including the Special Reports forMarketing, Advertising and WorldwideReservations

As in effect March2006

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SCHEDULE C

Pre-Approved TaxServices for Fiscal Year 2006

Dated: March7,  2006

**Service****(all with respect to services to be provided during the year endingDecember  31,2006)**
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|--|
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Federal, provincialand local tax planning andadvice
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|--|
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Federal, provincial andlocal taxcompliance
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|--|
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International taxplanning andadvice
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|--|
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International taxcompliance
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|--|
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Preparation ofpersonal tax returns and related tax consulting for executives andexpatriate employees of the Company, as permitted under applicable lawand generally accepted auditing standards

Asin effect March 2006

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