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Tourism Industry Reeling as Travelers Cancel Plans; Grim Reports Coming in from Around the World
The Dallas Morning News
Knight Ridder/Tribune Business News 

Sep. 19--Mass cancellations by travelers after the terror attacks in New York and Washington have the tourism industry worried that it's headed for its worst crisis ever. 

Travel agents called the attacks "catastrophic" for the $455 billion-a-year global business and say the crisis could surpass the worst previous blow -- the Gulf War in 1991. 

"There is a veil of uncertainty hanging over their heads and when visitors feel that way, they change their travel plans," said Rob Powers, a spokesman for the Las Vegas Convention and Visitors Authority. 

In the eight days since the attacks, Las Vegas received nearly 200 cancellations for meetings and conventions scheduled over the next three months. The cancellations mean 45,000 fewer visitors and a $55 million loss, Mr. Powers said. 

The attacks are expected to permeate the industry, discouraging Americans from traveling domestically and internationally and overseas visitors from coming here. 

Grim reports are coming in from around the world. 

The Tourism Authority of Thailand is projecting a sharp drop from what had been strong growth over the last 18 months. 

One of Italy's largest tour operators for the United States said hundreds of U.S. tours had already been canceled. 

Japan's largest tour agency, Japan Travel Bureau, said 9,500 people had already called off trips to the United States and Canada, causing the company to lose $13 million. 

Australian officials are projecting tourism-related losses as high as $2.5 billion in the next 12 months. 

Tourism is the lifeblood for many countries, especially less developed nations that have no other major industries. The World Tourism Organization says the money spent by vacationers is the main source of income for almost 40 percent of the world's countries. 

Americans are the world's biggest-spending tourists, shelling out $60.1 billion in 1999. Germans were second at $48.2 billion, and Japanese spent $32.8 billion that year, according to the World Tourism Organization, an industry group based in Madrid, Spain. 

The Travel Industry Association of America projected spending by travelers in the United States would reach $582 billion for 2001, though the group is revising its estimate to take the Sept. 11 attacks into account, spokeswoman Cathy Keefe said. 

"We're going to face challenges, but we're confident we'll get through it," Ms. Keefe. 

Richard Copland, president and chief executive officer for the American Society of Travel Agents said business "will be off a significant amount over the next four to six weeks." He said the industry is seeing about 40 percent to 50 percent cancellations. 

"There are a lot of changes being made," Mr. Copland said. "People who were traveling in October are changing their trips to January." 

A key factor is whether the United States is attacked again, said John Keeling, a hospitality industry consultant with PKF Consulting in Houston. 

"If we can keep the fighting off our shores, confidence will return," he said. 

The tourism destinations that will fare best are those that depend on tourists who drive there, Mr. Keeling said. 

"A lot of people who might fly from Dallas to Cancun or Aspen may drive to San Antonio instead." 

That prospect bodes well for Dallas, most of whose visitors come by car already. Still, the city's Convention & Visitors Bureau decided after last week's attacks to beef up marketing programs to other Texans and Oklahoma and Louisiana residents. 

"Fifty-five percent of our nearly 13 million visitors come to Dallas by car," bureau spokesman Greg Elam said. "We are developing a special marketing plan to promote the drive-in market." 

Dallas-based Hollywood Casino Corp. -- which owns Hollywood Casino in Shreveport and others in Tunica, Ill., and Aurora, Ill. -- also is "not projecting that the market will be severely hurt," spokesman Jim Wise said. 

"We've found that a lot of people said, `I need some sort of mental diversion.' People will want to do things to allow them to break away." 

Other U.S. tourism officials are more pessimistic: 

San Francisco closed the Golden Gate Bridge to pedestrian traffic until Sunday due to security reasons. San Francisco officials also are worried because 81 percent of its visitors travel there by plane. 

Walt Disney World in Orlando, Fla., has had some "near-term cancellations, but not much long-term," company officials said. 

"Right now, it's just too soon to say," spokeswoman Rena Callahan said. "From historical perspective, in time of recession and the Gulf War, we've seen a strong resurgence at the end of each." 

-- By Suzanne Marta and Steve Quinn 

-----To see more of The Dallas Morning News, or to subscribe to the newspaper, go to http://www.dallasnews.com/ 

(c) 2001, The Dallas Morning News. Distributed by Knight Ridder/Tribune Business News. DIS, HWD, 


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