Terrorism Implications for Hospitality Bryan Andrews

Attack on US Is it a watershed event / will it change us profoundly and forever? Is it a watershed event / will it change us profoundly and forever? Will it forever change the way we think and perceive risk? Will it forever change the way we think and perceive risk? Is this an opportunity to eliminate terrorism forever? Is this an opportunity to eliminate terrorism forever?

Terrorism Weapon used by weak against strong Weapon used by weak against strong United States is preeminent target United States is preeminent target Affect diplomatic & economic international ties Affect diplomatic & economic international ties Affects peoples freedom of action Affects peoples freedom of action Sense of security within borders Sense of security within borders

Terrorism Stability of world’s oil supply Stability of world’s oil supply Sense of security of air travel Sense of security of air travel Seeks to kill Seeks to kill Seeks economic disruption Seeks economic disruption Erosion of public confidence Erosion of public confidence

Implications Food & beverage Food & beverage Accomodations Accomodations Transportation Transportation Travel Services Travel Services Special Events & Conferences Government tourist services Attractions

Implications – Increased costs Insurance Insurance Energy Energy Building design & construction Building design & construction Location of hotels Location of hotels Mega Tourism Projects Mega Tourism Projects Airports United Airlines American Airlines and others Private security companies

Implications –Attitudes of traveling tourists (domestic & international) business people visiting friends & relatives

1997 Attack on Tourists in Egypt $1.5 billion lost in $4 billion business $1.5 billion lost in $4 billion business Hotels provided deep discounts,but hotels averaged 10% occupancy Hotels provided deep discounts,but hotels averaged 10% occupancy Hardest hit were those employed directly in tourism jobs and small businesses Hardest hit were those employed directly in tourism jobs and small businesses