Economic Impact Of 911

5 Pages 1289 Words

The economy’s impact on tourism during the Christmas Season


The events of September 11th have terrified people to the point that is has affected their spending habits. When such an infamous and scary thing like that happens it causes many problems for the economy. One of the major industries that were hit was the tourism industry. The tourism industry is one of the largest money making industries in America so when that was affected so greatly it caused many problems for everyone. After the terrorist attacks of September 11th, the stock market took a large dive and many people thought we were in the midst of a depression. For our sake the stock market took a turn for the better and has been rising slightly since then. Just because the stock market has recovered slightly other parts of the tourism industry haven’t faired so well. The insecurity people have with things such as airlines and spending money are going to have a big effect during the holiday season.
Since the airline industry was the biggest hit, it will have the biggest bearing on this holiday season. Throughout the airline industry these days, red ink is pouring the way champagne once did in first class. United was leading the way down, losing $15 million a day in October and warning that it would perish without a cash infusion. Even with the government’s $15 billion bailout after September 11th, the industry watchers are predicting a shakeout that could ground some big carriers permanently (Cohen 68). “It’s a horrible picture,” says airline analyst Ray Neidl. “And the fourth quarter will be uglier than the third.” When things go bad at this time of year, they go very bad. Airlines depend on the holidays, trudging through cheerless Octobers, waiting for the full planes, and often full fares, of Thanksgiving and Christmas. But this season, Americans are more reluctant to fly than at any time in recent memory (Cohen 69). Would-be flyer...