The Effect of Terrorism on the Hospitality Industry - Term Paper Example

The effect of terrorism since September 11, 2001 to the present day on the hospitality industry The relationship between terrorism and hospitality is undeniable because of the strength of the fact that hospitality sites are ideal targets for terrorist attacks causing social and economic disruption. Terrorism has generally greatly affected the hospitality industry and it is feared that the acts may worsen. This has seen a great decrease in hotel occupancy and average hospitality rates. Terrorism brings about havoc in business, travel patterns, and travel safety (Lin). Terrorism in the United States took place in September 11, 2001 shaking the country severely (Morrison 468). The hospitality industry felt the impacts more than any other sector or industry in the country. The attacks posed long-term repercussions that continue to reflect in hospitality industry. This essay will give scrutiny on the effects felt in the law, economic and tourism sectors. Tourism activities are reported to have decreased majorly owing to the fact that many passengers reduced travels to the USA. This is because when tourists visit the country they rely on the hotels and restaurant for accommodation, food and general upkeep. The image of the nation having been damaged by terrorist attacks caused visitors to fear for their security at the hotels since they are aware they are being targeted by the terrorists. For instance, cities like the USA as well as New York suffered10-27 % decline in revenue with regards to hotel room occupancy (Lin, 7). This was enhanced by media-led concerns about the terrorist attack that was heard all over and received worldwide attention making governments of other nations to givetravel advisory to their citizens. The tourism sector has been damaged by terrorism since even hotels situate at the airports faced economic recession by 20% for fear of terror attacks (Lin, 7). Moreover, the hotel industry has suffered deeply and severely from the 9/11 attack. Owing to the fact that hotels are usually one of the main targets of terrorists, this has resulted to decrease in hotel occupancy and average daily rate. Therefore, the hotel industry as pertaining to restaurants, lodging facilities, and guest houses experienced more negative effects as the bookings have greatly reduced (Prideaux 117). This is because the visitors avoid residing in the hotels in fear of terror attacks and hence they prefer remaining at their homes because they fear about their own security and safety. This has caused a significant negative impact on the country’s economy due to reduced revenues from guests’ room facilities. Terrorists often attack people who are not protected and have less security and hence tourists fit as their prey. This has immediate repercussions in the world public opinion of the country hence destroying the nation’s image. Tourists fear insecurity touring a nation that has previously endured terrorist attacks. This has resulted in a drawback in the growth of the tourism sector in the country as seen earlier in the decrease in tourism numbers. Tourism industry has also been on the loose following reduction of tourists at major parks. In fact, many people at the wake of the attack feared getting time away to pass time in the parks for fear that they may be terror attack victims (Lin, 11). This is after the citizens safety was noted to be at stake in major public places. This in addition, caused a major decline in returns from parks in the tourism sector. The tour guides also increasingly lost their occupations since there was no work for them as before. This also led to a lot of unemployment among many people due to the awful aftermath of the terror attack. There has also been increased economic recession following the terror (Yerger). Tourism is one of the main incomes for many countries in the world and is the fastest growing economic sectors. Terrorism has affected tourism revenue negatively and hence caused a decrease in the state’s foreign exchange. Tourists fear travelling into the country due to previous terror attacks and therefore no foreign exchange from them is acquired. As the image of the tourism sector is destroyed, the economy of the country is destroyed as well. Tourism also caters for employment of people including, Tour operators Tour guides Travel agencies Hoteliers Airport and airline personnel The 9/11 attack saw many people lose their jobs in the tourism segment and this has in return cost the economy negatively (Robertson & Ellis 8). In addition, the economy continues to suffer owing to reduction of air travels into the country. Regulations were as well enhanced following the terror beefing the civilians’ security (Green). These legislations were legislated by the federal government to heighten security and protect citizens as well as foreigners from terror attacks through various homeland legislations (Lee, 5). These regulations have proven stressing and cumbersome since they require lengthy procedures of screening before entering the hotels as well as lengthy procedures of identification and registration, which involve producing visas and passports. These laws were not there before and have discouraged many tourists who end up opting to remain in their countries instead of undergoing through the processes affecting the tourism sector. The Patriot Act has also been formulated following the repercussions of terrorisms on September 11, 2001(Stacy). The Act calls for security enhancement in order to curb terrorist actions. For instance, it calls for enhanced reporting with the Intelligence service. The Act has also extended its scope to even private seizures by security personnel at this has caused a major controversy in the USA. This is because citizens contend that such seizures are against the language of the Fourth Amendment where a citizen’s privacy is actually an inalienable endowment that they should have freely. Airports and airlines have experienced a significant reduction in passenger numbers, as they fear flying into the country due to terrorism threats. These passengers opt to skip air travel to the USA and therefore business in the airports is greatly adversely affected and has since endured $55 million decline in its revenue (Goldschein). There has also been regulations requiring beefing through setting up of CCTV cameras as well as screening to ensure that no persons carry terrorism materials. Airlines and airports work hand in hand with the tourism sector since tourists majorly come into the country by air. The tourism sector suffers a great deal because the number of tourists entering the state is negatively reduced (Damico & Quay 15). We have seen that governments were forced to impose travel bans on their citizens into the country due to the terror attacks. In addition, since the attack, there have been about 160,000 layoffs in its workforce (Goldschein). People prefer staying in their own countries for security purposes and safety. This has adversely affected the tourism sector, as the country is deemed unsafe. It is a requirement that the airlines avail passenger lists prior to flying and some travelers get rejected thereon. In addition, non-citizens have to provide finger prints as well as photos before their visas become accepted. Moreover, the terror has seen many big airlines go underground as well as many airlines merging up (Goldschein). Bureaucratic procedures have been adopted in immigration offices. The federal government requires very strict observance and adherence to these laws by everyone involved to heighten security in the country to protect both the citizens as well as the foreigners. These laws require strict requirements and long procedures to gain passports and visas in order to obtain entry into the country (Green). This has made many tourists wishing to tour the country give up since it is stressing to obtain the passports and visas .They would rather remain at their home countries and hence affecting the tourism sector. It is also reported that deportations in USA have since doubled following the attack (Green). There has in addition being an increased screening to unveil illegal immigrants following the USA’S 2011 terrorism (Steedman & Taylor). Travel has not been affected only in the airline industry but also in the cruise industry. Over the years, the cruise industry has contributed greatly to the country’s economic growth. The cruise industry offers job opportunities to many people at the ports as well as offering the transportation of goods, services, and passengers. They have also been established as terrorist hot points leading to a major reduction of passengers in the sector (Lee, 20). Passengers opt to use other means of transport due to fear of being hijacked when travelling. The cruise industry works hand in hand with the tourism sector since Cruise vacations attract tourists from all over the world. They are an interesting experience that anyone would like to encounter. However, due to terrorist attacks on cruise ships; fear has been implanted on people to take on such vacations (Alter 18). Tourists who enjoy touring the country by sea fear coming because of terror threats as the sea is believed to be unsafe. They also fear being hijacked on the ships due to the terrifying experience one undergoes in the hands of the terrorists according to previous attacks. This is a great limitation to the growth of the tourism sector that suffers great losses. Regulations governing the cruise industry after the terrorist attacks have been stiffened accordingly. These comprehensive set of laws have been put in place to protect cruise ship passengers and goods. For instance, there, there has since been formulation of International Ship and Port Security Code which stipulates severe cruise measures. The cruise industry observes very strict crime reporting regulations in the hospitality and travel sector. The industry is also required to adhere to robust national and international security regulations that must outperform all international regulations on security, crime prevention, and reporting. Access to port facilities and ships are tightly controlled for instance the U.S. Maritime Transportation Safety Act. These laws require screening of passengers and their luggages, strict packing instruction as well as having to wait for hours at the ports for clearance. This is not only stressing but also discouraging to the passengers though it is meant for security purposes. Casinos have suffered a great deal due to terrorism owing to the 9/11 aftermath. For instance, Las Vegas which stands as the most lucrative in Casino ventures suffers to date. This is because, most of its customers fly in via air and they fear to travel because of security issues. Since Casinos are cash intensive businesses with high volumes of large cash transactions taking place they have been pinpointed as a target for terrorism attacks. Many tourists visit casinos but these terror attacks have discouraged them from going there hence affecting the business. The casino owners have ended up with reduced sources of income affecting the economy. Casinos need to observe and follow federal policies aimed to prevent money laundering by terrorists. After the attack, the FBI had power bestowed upon them to check into the records of casinos. Severe legal actions are taken against casino owners found to have broken these laws. The casino sector had to dismiss most of its work force and others ended up working for slesser hours, this is according to a Nevada operator in the sector (Lin, 11). In fact, he further noted that if travel by air continued declining, then Nevada would actually stop casino operations. Conclusion The September 11, 2001 terror attack on the country has seen tremendous effects to the present day on the hospitality industry, economy, law and related sectors. Additionally, these effects have been greatly felt in the hotel, airline and airport, tour operation, cruise, tourism and casino industries in the country. New laws have been stipulated as well as the existing ones changed in a move to tighten security. The country however, has moved a great deal towards the recovery process to see the country doing better. Work Cited Alter, Judy. Passenger Ships. North Mankato: Cherry Lake Publishing, 2008. Print. Damico, Amy, M. & Quay, Sara, E. September 11 in Popular Culture: A Guide. Santa Barbara, California: Greenwood, 2010. Print. Goldschein, Eric. 13 Ways The U.S. Airline Industry Has Changed Since 9/11. Business Insider. 8Th September 2011. Web. 8Th May 2015. http://www.businessinsider.com/how-the-us-airline-industry-has-changed-since- 911- 2011-9?op=1 Green, Matthew. “How 9/11 Changed America: Four Major Lasting Impacts.” KQED Inc. 10Th September 2010. Web. 8Th May 2015. Lee, Elsa. Homeland Security and Private Sector Business: Corporations Role in Critical Infrastructure Protection. New York. 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