Implications and Reactions in the Tourism

1
Implications and Reactions in the Tourism
Hospitality Industry

• Wesley S. Roehl
• School of Tourism
• Hospitality Management
• Temple University
• 3 October 2003

2
Impact of 9-11 on world tourism

• As reported by the WTO, international arrivals
  declined in 01 for the first time since 82
• Worldwide, 02 showed growth in arrivals over both
  00 and 01
• However, US international arrivals were down in
  both 01 and 02
• International Labour Organization estimated real
  growth loss in travel tourism industry
  employment worldwide of 8.6 in 01-02

3
Short-term response to 9-11 by US consumers

• Responses reported in samples of the US public
• Post traumatic stress disorder (PTSD) observed
  both in those with direct and in those with
  indirect exposure to terrorism
• Changed or canceled trips / travel / vacations
• Reported by 9 to 10 of the public in surveys
  conducted between 9/13/01 and 6/02
• Avoided crowds
• Reported by 8 to 14 of the public in surveys
  conducted 10/01

4
Impact on US tourism industries

• Bureau of Economic Analysis Travel and Tourism
  Satellite Account

5
Tourism-related sales of tourism industries
Source BEA
6
Trends in direct tourism sales vary by industry
7
Trends also vary by region

• Federal Reserve Beige Book
• Variation in overall tourism activity by district
  and
• Variation in trends by industry

8
Support for security changesSource Harris
Interactive for Time / CNN (10/01)
9
Long-term responses to heightened airport
securitySource Dept. of Transportation Omnibus
Survey

• Air travelers confidence in passenger screeners
  ability to keep air travel secure from
  individuals with hostile intentions

10
Long-term responses to heightened airport
security

• Air travelers satisfaction with overall
  experience at passenger screening checkpoint

11
Long-term responses to heightened airport
security

• Effect of passenger screening procedures on air
  travel

12
Acceptance of selected security
proceduresSource TU-STHM survey of internet
travel information seekers (Fall 02)
13
Perceived effectiveness of selected security
procedures
14
Multiple threats to tourismSource TU-STHM
nationwide survey (5/03)

• On a scale of 1 to 5, with 1 being Not Worried At
  All and 5 being Very Worried, please tell me how
  worried you are about each of the following . . .
  
• How worried are you about SARS - Severe Acute
  Respiratory Syndrome?
• How worried are you about terrorism?
• How worried are you about the economy?
• How worried are you about the potential for
  bankruptcy and interruption of service by
  commercial airlines?

15
Multiple threats to tourism
16
Threats and travel plans

• Level of worry about any of these threats varies
  across population subgroups
• For example, the level of worry about terrorism .
  . .
• Varied by age, with older individuals much more
  likely to report they were not at all worried
  than were younger individuals
• Varied by income, with low income individuals
  more likely to respond that they were very
  worried than were others
• Varied by ethnicity, with African-Americans more
  likely to say they were very worried than were
  whites
• Varied by sex, with men less worried then women

17
Issues for the tourism industry

• Consumer impacts and behaviors
• PTSD in those directly and indirectly exposed
• Impact from government and industry adjustments
• Support for travel security enhancement but
  effectiveness and inconvenience are issues
• Shift in transportation modes, destination
  choice, and from travel to other discretionary
  activities

18
Issues for the tourism industry

• Consumer impacts and behaviors
• Impacts vary across population segments
• Need to address concerns of impacted groups
• Industry impacts
• Vary by specific industrial sector
• Vary by location
• Avoid attributing all post 9-11 changes to 9-11