Terrorism

A Level Coursework
Sam Reynolds
13 SD
AO1
Coursework
Introduction
Aim:
The broad context of this project is based on the current issues in Travel and Tourism part of my travel and tourism
course. The aim of the project is to study the reasons for the development of the terrorism issue and to determine its
effects on the travel and tourism industry.
Hypothesis:
Acts of terrorism affect the rates of worldwide travel and tourism.
The travel and tourism industry hires over 20 million people. If the industry had a massive collapse due to terrorism this
could have a major effect on economies not only on a local scale but also lobally.
The world is a constantly chanin place! and terrorism affects travel and tourism around the world! and from one day to
the next. Terrorism spreads far and wide and affects people daily! and is viewed differently by different people. There
seems to be no simple solutions or remedies to tac"le the threat of terrorism. A definition of terrorism is #the use of
extreme violence or the threat of violence by states! roups or individuals to enerate fear in individuals and thus
manipulate their behaviour#.
Research Techniques:
I will ather information and data from primary and secondary sources and present the results. $or example for my
primary data I will hand out %uestionnaires to students to determine whether terrorism has a constant impact on people&s
lives. There will be no budet limitations as %uestionnaires will be handed out to a random survey throuhout the local
community so there is no need to pay for postae. 'econdary data that I will collect will be from internet sources!
newspaper articles! news reports! and overnment census.
Objectives:
1 To see over the last (0 years! what effects terrorism has had on peoples) lives.
! To identify travelers) opinions of the issue
" To find out if terrorism affects their travelin decisions
# To determine the impact terrorism has had on the aviation industry and the tourism industry.
$arameters:
*lobal terrorist events over the last (0 years will be compared! and the effect that these events have had on the travel
and tourism industry will be determined.
$or example how did the +,+ bombins in -ondon in 200. affect inward tourism to the /0.
The research will be conducted around terrorist events in the last ten years and how they have affected travel around the
world. In addition it will evaluate whether there was a sudden drop or rise in the amount of tourists not only to the areas
that have been tareted but lobally.
$or example followin the attac"s on public transport in -ondon! did they reduce the amount of tourists who
used public transport durin the next couple of months.
The number of flihts ta"en from America from 1,(( 200( to the present day will be analysed to see if there has
been a sinificant chane in the number of people travelin across the /'A.
There is a constant threat of terrorism everyday. 2ow does this impact on people throuhout the world.
3ther places that have been reatly affected by terrorism are 4ali! 5ypt and 0enya.
The rowth of terrorism in the 6iddle 5ast and Asia will be determined.
%ethodo&o'y:
Research (esi'n
The research desins that will be used are the %uestionnaires. 'everal %uestions in the %uestionnaire will be as"ed about
the affects of terrorism and what effect it has had on peoples choices of travel destinations and when they travel. The
survey will be carried out randomly. 7uestionnaires will be iven to a rane of students from different cultural
bac"rounds as well as to a diverse roup within local businesses. The results will enable me to find out peoples)
opinions on terrorism and the effect that it has had on their travel.
'econdary articles will be used to ain statistics and information about terrorism. The news will also be important as it
ives information about terrorist events and how they affect the travel and tourism industry.
$&an
The plan that will be used for this project is that information will be collected from a variety of sources and relate them to
terrorism. The information that will be collected will relate to recent terrorist events on a lobal scale.

The Issue
A8 Terrorism and the method of attac"s used has been evolvin over the last ten years. It has moved away from
5uropean based roups such as the I9A! 5TA and 4ader:6einhof and become a lobal issue! particularly in extremist
Islamic roups. $ollowin the two invasions of Ira% in (11( and 200; certain Islamic roups see this as a justified
retaliation aainst the west and countries who are seen to support western interests. Terrorist attac"s and plots have
increased in the last couple of years! especially in the 6iddle 5ast and the west.
Terrorism is reconi<ed as a lobal evil and people)s fear of travelin has affected the travel and tourism industry.
=espite an increase in anti terrorism measures around the world! the threat of terrorism persists. Attac"s include terrorist
operations! hijac"ins! bombins! "idnappins! shootins and attac"s on commercial aircraft or shippin. Terrorism may
also use chemical! bioloical! radioloical and nuclear materials. The context of this section is to examine the process of
chane that miht have lead to the issue of the impact of terrorism on travel and tourism.
>auses of terrorism need to be examined in different cateories and to this purpose economic! technoloical! social and
democratic factors will be analysed.
) Techno&o'y
Attac"s on transport have become increasinly common as it is often seen as an easy taret. $or example the +,+
bombins in -ondon were on the on underround and buses and the attac" on 6adrid in 200? was aainst the rail
networ". Althouh used by terrorists for many years! the biest and most effective attac" usin aircraft as weapons were
the 1,(( attac"s in 200( in the /'A. These attac"s increased the lobal scale of terrorism and showed that anythin can
be used as a weapon for terrorism. @ith more people usin air travel as a form of transport the threat of another terrorist
attac" occurrin on a plane is hih. This has reatly affected the travel and tourism industry! and put many people off
travelin by air transport. 2owever! when the new Airbus A;A0 is introduced this may have a short:term positive impact
on the aviation business as people want to experience travelin on such a lare aircraft.
The rise of fortress hubs dominated by national carriers Bsuch as 2eathrow airport8 often presents tarets too secure for
terrorists. 2owever! as frine city airports increasinly are used by budet and no frills airlines costs are often cut in an
effort to ain a comparative advantae. It is competition such as this that an lead to decreased viilance and an
increased ris" of terrorism.
The issue of terrorism in travel and tourism must b e examined as an issue that is hihly interconnected and that #we can
only understand tourism if we reconise the inter relationships between the various elements in the system#. B4oniface
and >ooper 200. @orldwide destinations8.
Althouh airport security has increased worldwide! new advancements in weapon technoloy have made it easier for
terrorists to smule weapons and may lead to the li"elihood of terrorism increasin. The si<e and scale of airports also
leads to concerns. The openin of 2eathrow)s terminal . hihlihted the inade%uacies of airports with thins as basic as
baae handlin failin with many concerned about security at airports.
The internet has iven rise to the amount of propaanda for terrorism in the world. There are even sites where people an
access instructions on how to ma"e bombs from household substances. Cideos publici<e and often lorify the attac"s!
and with e:mail technoloy terrorism is spreadin with little or no detection. The Al Da<eera networ" based in the 6iddle
5ast has a hue followin. It is a ood propaanda tool for terrorists and often show videos of terrorists from a more
Islamic viewpoint.
C *conomic
The price of oil has risen steadily since 200; when it stood at just under E2. a barrel! In April 200A the price of a barrel of
oil was E((.. This increase has severely impacted on airlines who have had to increase fare prices and transport costs
for food. There have been attac"s on oil fields Bmostly in Ira%8 which aain has driven up the price of oil. This is a main
aim to harm the west and force their economies to suffer.

B$iure (8 3il prices 200? to 200AF source @i"ipedia
The raph above shows how oil prices have enerally increased durin the last decade! from a low point of E(G a barrel to
a hih point of E((. currently.
B$iure 28F oil prices 200G to 200AF source @i"ipedia
A major source of income for terrorist roups is from the sale of narcotics mainly from Afhanistan.
6ore developed nations are under threat as terrorism is spreadin lobally. The developin world and the world)s most
developed countries are e%ually under threat from terrorist attac"s. 6any developin countries attract western tourists
and are therefore seen as a taret. 2owever! attac"s on the developin world have disastrous conse%uences on their
fraile economies which in the most cases rely on tourism as their main source of income.
*lobali<ation of countries is also a factor associated with tourism. 3ne issue is that more and more countries are
dependant upon tourism for revenue and the other is that as countries bein to develop and their citi<ens have more
money to spend they in turn become tourists.
( $o&itica&
Terrorism occurs worldwide and many terrorist attac"s are carried out because of political issues. These attac"s are done
as a statement to the overnment to tell them that they don&t li"e their policies. There are also instances of terrorist attac"s
occurrin in countries where there is civil unrest with the aim of destabilisin the overnment in power or the economy of
the country. 5xamples of politically motivated terrorist attac"s areF
the +,+ bombins in -ondon in 200.. The war in Ira% was cited as the reason for this attac".
The Tamil tiers have carried out many attac"s since the (1A0s. The two to have the most impact on tourism
were the destruction of an Air -an"a aircraft at >olombo airport and the bombin of the *aladari hotel in
>olombo.
9epeated attac"s aainst Han American airlines eventually led to the airline closin.
The main area for terrorism at the present time is Ira%! with daily attac"s occurrin throuhout the country. 6ost
of these attac"s are carried out by Al 7aeda based roups. This is a cause for concern as the main aim of
these incidents is to create instability within the country. The results of this is that /' and /0 forces have to
remain in the country thus causin a further drain on both their economies.

Indirect political causes of terrorism include the adoption of free trade areements that remove barriers to international
transactions includin e:commerce and retailin that are also increased by the prevalence of computers and
communications technoloy. 3ften these chanes at a political level allow a faster! easier flow of information which is
ood for the consumer and the industry but also helpful to terrorists.
9eional and national policies can lead to the rise of reionalism and the search for cultural identity Bparticularly amon
ethnic minorities8. This has lead to conflict in some parts of the world and a rise in terrorism! for example 4ritish 6uslims
who too" part in the +,+ bombins of -ondon were ethnic minorities who felt separate from a national identify and felt they
would be martyred by their actions. The /0 has since had mass debate on the need for a chane in national policy
towards immiration and how to reduce radicalism in some communities.
+ocioeconomic
* +ocia& and (emo'raphic
'ocioeconomic is the term used to describe all the factors to do with people and their economic circumstances. It can be
split into three cateoriesF Time! *reater @ealth and reater mobility.
Time is the amount of leisure time that tourists have available! that has dramatically increased in the last ;0 years. This is
because more jobs have more holiday entitlement available! ivin travelers more time available to o on vacation. 6ost
office wor"ers now wor" ?0 hours a wee" which ives them more time to o on a holiday and use transport! especially to
a short haul destination.
*reater wealth is increasin as more developed nation)s populations are becomin increasinly wealthy. 6ost people in
wealthier countries have fewer children which would mean that they would have a larer disposable income. It also means
that if they do not have children and can travel durin low periods in demand ma"in travel cheaper on transport.
*reater mobility has lead to an increase in car ownership which means that more people can choose where they o on
holiday. The development of air travel has increased access to forein countries.
>hanin household si<e has lead to an increase in the demand for holidays! as there are less children bein born in
developed countries. This means that there is more disposable income for families. There is also an increase in the rate of
divorces which could mean that these people may o on holiday separately increasin the amount of travelers. This is
also affected by chanin fashions and lifestyles. It is popular to o on holiday more often and this will therefore increase
the demand for services from the industry.
>hanes in consumer demand have seen a rise in tourist travel by non:family roups! this would see a rowth in the
demand for transport and services offered by travel and tourism businesses. To meet this chane in demand there is a
reater variety of destinations available. This will therefore lead to an increase in the demand of these destinations and
help the sta"eholders within that economy and destination. This increase is also affected by hiher standards of %uality
bein offered by the different sectors at better value for money. This will see an increase in consumer demand. This will
also lead to more independent travelers as they can afford to use the transport available to them.
In many countries the youth have been radicali<ed by Islamic clerics and terrorism is seen as the way forward in the fiht
aainst the western world. The west has developed a fear of terrorism and it is seen as a threat on social liberties and
daily lives. This can restrict their wish to travel as it has made many people wary of foreiners and different cultures.
6any 4ritish tourists see" to remain either in the /0 for their holiday or restrict their travel to 5urope. In many countries
the eneral population are livin loner and many wish to travel extensively after retirement. Terrorism is a social
extremity that is seen by certain societies as a way of life and survival! thouh it is also seen as a threat to travel and
tourism and the destinations that tourists visit.
Terrorism as an issue cannot be ta"en in isolation as the social! economic and political climate all interconnect to create
suppressed demand in travel and tourism. It is this interconnectedness however that leads to more and more people
travelin as the lobal economy expands.
+ectors: the a,,ect o, terrorism on the di,,erent sectors o, trave& and tourism
The main sectors of the travel and tourism industry are affected by terrorism and all are interlin"ed. Airlines suffer as
many people refuse to fly for a while after an incidentI tour operators and travel aents lose businessI hotels and
restaurants lose customers and visitor attractions includin museums! theme par"s and national par"s lose revenue.
A Tour Operators
Tour operators will be affected by terrorism in different ways. $or example if a terrorist attac" occurs in 4ali all the tour
operators who wor" in 4ali will be affected and may lose their jobs if people choose not to travel to that destination. In
addition if customers decide to cancel their holidays,travel plans as a direct result of a terrorist attac" this can cause the
tour operator financial distress as the tour operator)s main function is orani<in tailor:made holidays and travel. If tourists
are already in a destination that has been tareted by terrorist attac"s! then the tour operators may have to lay on
additional means of transport to et the tourists bac" home for their safety. 'o if a terrorist event occurs it can have a
serious effect on the business of a tour operator.
) Trave& A'ents
Travel aents primarily boo" holidays and,or travel boo"ins for customers. Their businesses are reatly affected by the
threat of or acts of terrorism. Any terrorist action can lead to tourists cancelin their holidays and the travel aent
therefore loses income as a direct result as they will lose their commission from the tour operator or transport provider. In
extreme circumstances travel aents may also have to refund fees tourists if holidays are cancelled often leadin to
ban"ruptcy of small domestic travel aents. As travel aents are interrelated with other sectors includin transport! if a
terrorist attac" occurs abroad then the amount of tourists usin transport will drop dramatically affectin all sectors
includin accommodation providers as an example.
CTransport $roviders
Transport providers are reatly affected by terrorism. The 1,(( attac"s in 200( affected the business of the two airlines
used in the attac"s : /nited and American! as people chose to use other airlines as they saw these airlines as unsafe.
These attac"s also lead to many tourists developin a fear of flyin. As a conse%uence there was an overall decline in the
demand in the travel and tourism industry.
Transport providers have had to increase advertisin methods and try to convince that methods of transport are still safe
from the threat of terrorism. Jot only are international transport services affected so are local transport services. If a
terrorist attac" tarets local transport not only will it scare off locals it also means that tourists will not use the service due
to a fear of bein attac"ed aain. In -5=>)s the local transport services are heavily reliant on tourist money to help
provide income for the local economies. 2owever if tourists are afraid to visit -5=>)s or use local transport this can create
a major problem for the economy as well as the transport providers.
'ince 200? the demand for transport lobally has increased! with the hihest demand bein in 5urope.
( Accommodation $roviders
Accommodation providers are the larest roup of sta"eholders and comprise a considerable percentae of the travel and
tourism mar"et. They are reatly affected by terrorism especially as they are stronly interlin"ed with the different sectors
of the industry. If one sector of the travel and tourism industry is affected by terrorist activities then it is li"ely that
accommodation providers will be e%ually affected as the other industries.
Accommodation providers rely on a constant demand for their services from business travelers and tourists. A fall in
demand for accommodation has an adverse affect on the local economy! e.. bars! restaurants! taxis! therefore leadin to
a lower multiplier effect. In extreme circumstances accommodation providers are forced to close down and have to fire
staff due to this lac" of demand. 6any hotels in 4ali had to close followin the second bombin and this sector has never
fully recovered.
* +ervice providers
Terrorism has an adverse affect on the service industry. $or example followin the terrorist attac"s in Jew Kor" all the
service providers in the area were affected. This was due to a lac" of demand from business visitors and tourists who
shied away from the /'A fearin further attac"s.
'ervice providers are often seen as an easy taret e.. two attractions in 4ali : the nihtclub in 0uta and the restaurant in
Dimbaran 4ay. These types of attac"s on service providers receive world wide press and TC coverae and this in turn
leads to a decrease in the number of tourists as they are scared of another terrorist event occurrin aain. These attac"s
mean less profits for the service providers as a whole! but the lac" of tourists for the whole destination can have a
devastatin affect on the industry in that area as well as the economy as there will be no income from forein exchane.
Tourist uides who are another service provider! are also badly affected by terrorism. If no tourists visit a country as a
result of terrorism! then the tourist uide may find himself with no income at all. Therefore terrorist events affect a tour
uide in many ways but especially their livelihood. An example of this is in 'harm 5l 'hei" where due to the bombins
over .000 customers cancelled trips with tour uides and divin operators facin ban"ruptcy.
This loss of tourism in turn will affect the entire local economy and industry and rule out the li"elihood of the multiplier
effect.
Connections between sectors
All the sectors in the travel and tourism industry are interrelated. All of them rely on each other! for example they often
pass business on to each other and if a terrorist event occurs it can disrupt this balance. $or example terrorism can scare
off tourists from usin any of the services available in the travel and tourism industry. If a hotel is attac"ed by terrorists!
many people choose not to travel to the affected country. In turn hotels lose business as do local transport providers
Bbuses! taxis! rail networ"s8 and finally the service providers includin restaurants! tour uides and shops. As all of the
services are interlin"ed travel aents and tour operators also lose business due to a lac" of demand. This means that no
sector in the travel and tourism industry can reach profit maximi<ation. As this interrelationship is so fraile it is important
that all of the sectors support each other to ensure that the demand and supply in the travel and tourism industry stays
stable.
>onnections between sectors can also be examined across time and the attac"s of 1,(( are a useful case study to show
these connections.
9eal time media in 1,(( meant people had unlimited access to the events unfoldin and conse%uently the airlines! hotel
and industry revenues plummeted. The 'ecretary *eneral of the @orld tourism 3ranisation! $rancesco $ranialli! called
the attac"s a #terrible blow# to the tourism orani<ation. Tourism revenues dropped by +.?L within a year. 4y 200?
however! tourism revenues in the /'A rew by nearly (GL B'ource @T3 200?8 suestin that consumer confidence
had returned. 3ften contrary to what is expected the various sectors do better in the lon term after an attac" as they are
so interconnected. Increases in security and media exposure focuses attention on recovery.. The end result is often a
sure in tourism and boo"ins.
In conclusion a decline in tourist demand to a destination not only has serious affects on all sectors of the travel and
tourism industry but can also impact on the local economy and overnment. Therefore it is of reatest priority that
services are supported not only by overnments but also by tourists to ensure that the demand for a destination stays
stable.
AO!
+takeho&ders
+takeho&der (e,inition: 'ta"eholders are people and orani<ations who are affected by or have an interest in chane
and who may also invest in companies.
As a result of terrorist attac"s sta"eholders can be severely affected. $or example when a terrorist attac" occurs any
sta"eholders who have invested in that area will be affected.
The attac"s on 'eptember ((
th
cost the /' mar"ets millions of dollars and stoc" shares plummeted. A lac" of trade and
development in the travel industry meant that sta"eholders lost jobs or income because of these events. Heople were too
afraid to fly after the attac"s which lead to a decrease in the level of tourism and business in the /'A. This in turn
affected the jobs of tour operators! transport providers! travel aents and accommodation providers as no:one wanted to
travel to the /'A especially Jew Kor" which was the worst affected area.
'ta"eholders can be affected by acts of or threats of terrorism and if one sector is affected it may a "noc" on impact on
other sectors of the industry. If an attac" occurs in a popular tourist area the travel and tourism industry for that country
and the reion will be affected hamperin profits. =ependin on the severity of the attac"! the effects could be felt
lobally.
Tour Operators
Tour operators can be affected by terrorism in a variety of situations or ways. In the short term the most li"ely situation is
that tourists will cancel their vacation to the area affected! which means that tour operators lose business therefore
reducin their income and profits. If the tour operators employ staff they may have to sac" them due to a loss of income
and decline in the demand for tourism.
In the medium term! tour operators may see a shift in the type of business sold to clients. 'ome customers may see"
holidays nearer to home! either sourcin the domestic mar"et or short:haul destinations! especially those which offer
surface transport to and from the destination.
In the loner term! tour operators may see a sure in lon haul tourism as travelers feel more secure with increased
aviation and airport security.
Trave& A'ents
The averae travel aent can be affected vastly by terrorism as their main roles are sellin holidays! airline tic"ets! car
hire and hotel accommodation. 'ome also offer currency exchane and travel insurance. Their main source of income is
from commission paid to them by tour operators and transport and accommodation providers. If people chose not to
travel or cancel their plans! then the travel aent is left with no income which in turn can lead to job losses.
3ften for periods of ( to 2 years followin a major terrorist event! people prefer to remain closer to home where they feel
secure. 4y choosin to ta"e domestic holidays or travel to short haul destinations a travel aent will find that their source
of income is diminished as the cost of this type of holiday if usually lower than a lon haul destination.
4y the time the industry has pic"ed up travel aents will face increased competition from the internet as many people
prefer to #ta"e chare# of their holidays and boo" on line.
Accommodation $roviders
The accommodation providers are often the taret of terrorist attac"s. If a property is a taret it will either Bafter
refurbishment8 be seen as a safe place to stay or it will ta"e a lon period of time before customers are confident enouh
to return. The initial impact on a hotel followin a terrorist attac" is how it affects its wor"force as many may have to be
laid off until the property is in a fit state to be occupied aain.
'ometimes a whole destination can be affected by a terrorist stri"e. If there are no tourists then there is no need for
hotels and their related services which will have a serious neative impact on the local economy.
It is not only the larer properties and chains who are affected by a lac" of tourists! 4 and 4)s will see a loss of profit if
tourists do not travel to that destination. This could be due a terrorist attac" or if tourists refuse to travel abroad due to a
fear of flyin. 'ome 4 and 4)s may have to be closed due to this lac" of demand or the business may fail.
The world trade
centers during the
terrorist attacks.
2owever if the terrorist attac" is overseas! the demand for 4ritish 4 and 4&s will probably increase as more /0 tourists et
scared of oin abroad or travelin by plane. They may attract not only domestic tourists but visitors from short haul
destinations.
+upport +ervices
The support services include insurance providers! local tour uides at destinations includin representatives of tour
operators. Their services are usually seen as optional extras to a standard holiday and are only ta"en when customers
see the #extra# addin special value to their holiday. It therefore follows that terrorist events can have a serious effect on
tourists demands both before departure and at the destination. 6any insurance companies may see a rise in the demand
for insurance from would:be travelers! whilst tour uides at destinations may suffer as some tourists will prefer to remain
the relative security of their hotel,resort! rather than visit local sites and attractions. -ocal uides may find themselves
without a source of income for a considerable time followin a terrorist attac". A ood example of this is 4ali! where
many tourists too" local uides around the sihts! hired drivers for a day or loner! bouht from local souvenir sellers or
had massaes on the beach. $ollowin the second attac" on the island! the tourist industry there has not recovered and
the local people are strulin to ma"e ends meet.
Transport $roviders
If a terrorist attac" occurs on a type of transport then the amount of tourists who will use that mode of transport may
decline. If a destination is reliant upon that form of transport as a means of brinin tourists there! then the travel and
tourism industry as a whole may be affected. A ood example of this is the 1,(( attac"s which instilled a fear of flyin in
many. As the /'A relies on air transport for both business and tourism it saw a sinificant decline in the level of visitors
followin the events.
It is not only the type of transport which has been #hit# that may suffer! but some travelers also see the >hannel Tunnel as
a taret for terrorists. $ollowin 1,(( there was a shift to usin ferries between =over and >alais for several months
before people reained their confidence in the security measures in the Tunnel.
-ocal transport providers includin buses and taxis can be affected by other sectors in the travel and tourism industry! e..
if a terrorist event occurs and occupancy rates in hotels fall. The local transport companies may have deals with the
accommodation providers which would ive them a reular client base. If this is removed then the business may suffer. If
the number of tourists continues to decline sta"eholders who have shares in the company may be forced to sell shares
leadin to a loss of income and reducin the companies spendin power. 2ire car companies may also be badly affected
if tourists do numbers decline. This could have a serious effect on the local economy.
In some destinations where there has been an attac" aainst a public transport system! car hire firms may see an
increase in business. 'ome visitors may feel in the short term that public transport is not safe. They feel that by havin a
hire car their ris" of bein involved in a terrorist incident is reduced.
-isitor Attractions
Cisitor attractions can be affected by terrorism severely! if tourists are scared away from a destination! then few people
will visit the attractions. The attractions are also tareted by terrorists as they are popular with tourists. If terrorists can
scare tourists away then their aim of instillin fear has succeeded. Cisitor attractions are interlin"ed with all the sectors of
the travel and tourism industry. If accommodation providers have less custom due to a terrorist attac" then the visitor
attractions will et fewer tourists over a set period of time. If terrorism affects the amount of visitors it will create a
neative multiplier leadin to less jobs and employment rates throuhout the area and the travel and tourism industry.
6an made attractions are usually the larest tarets for terrorists and are that main threats to security especially as most
of them are major tourist attractions. The Trade >entre buildins in Jew Kor" were a prime example of this. 6useums
are also popular attractions! both with tourist and the local population. If a terrorist attac" occurs near a museum then it is
li"ely that tourist numbers will fall leadin to a loss of income. If this trend continues it may affect the local economy and
also led to job losses. 'ynthetic attractions and locations li"e -as Ceas and =ubai which have a ood trac" record or an
absence of terrorism are li"ely to see their incomes and popularity increase as they are perceived to be safer locations for
many tourists.
Other +takeho&ders
Terrorism can seriously influence what tourists do and where they o on holiday. 4usiness in areas that are affected by
terrorism will see a dramatic decrease in the amount of revenue due to a lac" of customers and tourists as a whole. An
example of where this occurred was 4ali where tourism dropped after the bombins by G+L.
2owever one benefit of terrorism in forein countries is that domestic tourism will increase due to tourists becomin afraid
of travelin abroad. This increase will benefit the local economy. In the short term due to tourists fears! travel aents will
offer more domestic tourism and short haul pac"aes until demand chanes.
+ecurity ,irms
'ecurity providers have seen a dramatic increase in the demand for their services due to the increase of terrorist related
incidents. 6ost accommodation providers in the travel and tourism industry ac%uire security systems to ensure the safety
of staff and clientele ali"e. Jearly every hotel has security staff and measures in place if a terrorist attac" occurs within the
area. >>TC systems are becomin more and more widely used throuhout the industry and airports have installed even
more cameras to ensure the safety of customers and staff. After the 1,(( attac"s security firms had increased demand
from airlines to provide them with protection e. s"y marshalls! to try and reduce the li"elihood of terrorist related events
occurrin aain and to once aain instill confidence in the mar"et.
Re&i'ious 'roups
6any reliious roups have now become major tarets by terrorist orani<ations. In the Islamic world )Dihads) B2oly @ars8
have been started aainst >hristian Bmainly seen as the western world8! Islamic and Dewish roups. An example of
attac"s on Islamic and Dewish roups is Israel and Halestine! where terrorist attac"s are fre%uent. All of the attac"s in that
area are politically or reliiously motivated.
Attac"s aainst the >hristian reliion or western world are more difficult to predict and can literally occur anywhere in the
world. /ntil a ceasefire was areed between Ireland and Jorthern Ireland there were often atrocities occurrin in the
name of reliion.
.overnment
*overnments may be one of the hardest hit sta"eholders in any terrorist event. If tourism decreases in their country then
income falls therefore reducin revenue. In -ower 5conomically =eveloped >ountries where income from tourism is the
main earner for the economy! any lon term decrease in tourism can have disastrous results on the country)s economic
stability. It also creates a rise in unemployment and can cause unrest as many suffer a lower standard of livin.
+hops at destinations
'hops in tourist destinations can be severely affected by a terrorist attac". 'ome are seen as a viable taret by terrorists
as they are extremely popular with tourists. 3nce a terrorist attac" occurs at a destination it is li"ely that the shops in that
destination will suffer for %uite some time and see a reduction in profits.
Insurance companies
Insurance companies may see an immediate increase in the demand for travel insurance on holidays and business trips!
especially if terrorist attac"s continue. 2owever! some insurance companies have a disclaimer in their policies absolvin
them from payment in the events of a terrorist attac". 6any refuse to offer insurance when people choose to travel to
destinations which are seen as danerous as coverin any claims could see a heavy loss of profit for the insurance
companies. 2owever the overall outloo" for the insurance industry loo"s positive.
$rivate Airport car park providers
6any companies provide lon term par"in cheaper to that offered at the airport. 4usiness can be dramatically affected if
a terrorist attac" occurs on an airline or at the airport. This event would cause a reduction in the number of travellers
therefore leadin to a decrease in demand for this service. If the situation draed on it could cause a smaller business to
become ban"rupt and larer businesses may have to let employees o.
Tourists
Tourists may be affected by terrorist attac"s in many ways. $or some! it can have life alterin conse%uences. 'ome
people can be so devastated after a terrorist attac" that they are afraid to travel at all and only holiday in their country of
residence. 3thers may simply cancel their holidays! whilst others! mainly the youner eneration! carry on as normal and
travel as planned.
$ressure .roups
Hressure roups can have difference influcences on the travel and tourism mar"et. 'ome! li"e 2e<bollah! actively
encourae and support terrorist attac"s! and many affect the travel and tourism industry! especially in Israel and -ebanon.
In both of these countries the travel industry has been severely damaed over the years! and in -ebanon in particular has
been slow to recover.
Another example of a pressure roup is *reenpeace who claim that emissions from aircraft are severely affectin the
planet. @hilst some travelers are now usin alternative methods of transport on short haul destinations! the lon haul
traveler is still primarily usin air travel as the main form of transport. *reenpeace famously demonstrated outside
2eathrow airport! lobbyin for the closure of the terminal used for lon haul flihts. 'ome travelers may be influenced by
*reenpeace and decide to either ta"e domestic or short haul holidays and some staff in the travel and tourism industry
may lose their jobs or be made redundant as a result.
/on trave& and tourism or'ani0ations
'ome of these orani<ations may benefit from acts of terror. $or example! the Jational Trust! may see its profits increase
as many tourists now prefer to vacation in their home country. Also! many 5uropeans now holiday in the /nited 0indom
and aain the Jational Trust benefits from this inward tourism.
Overa&& e,,ects
The effects of terrorism on the travel and tourism industry can be severe. It can even cripple economies and lead to a loss
of tourism. 0enya and 4ali have suffered twice from terrorist attac"s. 4ali has still not recovered. Althouh 0enya did
once aain attract tourists! many are now shyin away because of civil unrest within the country.
Any terrorist event affects a country in some way but the main impact is felt throuhout the travel and tourism industry. In
lare events! no sector is seen as secure. 'maller incidents usually impact on travel aents and transport providers! and
this can mean that businesses close and tourists have a lac" of resources. *iven the ease with which customers can
boo" holidays etc on the internet! many smaller travel aents) businesses do not recover.
-are terrorist attac"s have almost brouht lare! international airlines to their "nees. Two American airlines had to be
supported by overnments and financial institutions as a result of the 1,(( attac"s. 2owever! in contrast! attac"s on the
rail services in the /0 and 'pain did not have lon lastin effects on the transport system. After a couple of days the local
populace were usin the trains and as a result! tourists followed suit.
Accommodation providers are occasionally the tarets of terrorism. If part of a hotel chain many tourists avoid these
properties around the world for %uite some time. The effect of the terrorist attac" therefore has lobal implications for the
travel and tourism mar"et.
6any hoteliers and accommodation providers across the board! may suffer irrespective of their location in a destination. If
the attac" has been lare then many tourists will choose another destination for their holiday. This in turn affects all of the
associated services throuhout the industry.
@ith any issue there are always winners. Insurance companies on the whole stand to ain from uncertainty! and
domestic travel mar"ets will be stron in the short term followin terrorist activities overseas. In fact some travelers may
never travel abroad aain if the threat of terrorism and an attac" are seen as real.
AO3
Responses and Actions o, +takeho&ders
Introduction
'ta"eholders in the issue of Terrorism have varyin attitudes and values towards the chosen issue. The rane of
sta"eholders that will be examined will includeF travel and tourism orani<ations! tourists! individuals who are not tourists!
pressure roups! and non:travel and tourism oranisations includin overnments. This section will examine the attitudes!
values! responses and actions.
Research
There are two types of research that were usedI they were primary and secondary data research. 6y research will include
in:depth investiation of the values and attitudes of the sta"eholders. Terrorism can have several effects on sta"eholders!
however people believe that there is a way to solve the problems of the terrorist activities throuhout the travel and
tourism industry.
$rimary
1uestionnaire
+econdary
Internet
/ewspapers
%edia
)ooks
+tatistics
The %uestionnaire will primarily focus on how people and the industry are affected by acts of and threats of terrorism. It
will be randomly distributed and as" A %uestions. The results will ive me an idea of how terrorism has affected the
industry and tourists decisions to travel throuhout the world.
Internet sources! newspapers and the media have a wide rane of information about lobal terrorism and its effects on the
primary sta"eholders. $rom these sources it should be possible to evaluate the attitudes of the sta"eholders and their
responses to terrorism.

1uestionnaire
(. 2ow many times a year do you o on holidayM
( 2:; ?:. 0ver G
2. @hich ae cateory are youM

(+:2( 22: ;0 ;(:?0 ?(:.0 .(N
;. @hat type of wor" do you doM
?. =o terrorist events affect your decisions on holiday destinationsM
Always 3ften 3ccasionally Jever
.. =o terrorist events affect the time of the year that you visit a destination for example after 1,((M
Kes Jo
G. Are you afraid to o to areas that have been affected by a terrorist attac"M
Cery 7uite A little Jo
+. 2as terrorism affected how you feel about air travelM
Kes Jo
A. Are there any areas that you would li"e to o to but are afraid to o to due to terrorist threatsM
Kes Jo
+amp&in' %ethod
Althouh there are several samplin methods available! the method used for this investiation was convenience samplin.
This where I as"ed the nearest person approachin me at school to assist in the research and also approached business
ac%uaintances of my family to as" them %uestions from my %uestionnaire. 20 %uestionnaires have been filled out and will
be used to compare and analy<e the data collected.
+econdary Research
The tas" is to Ofind up to date information on the attitudes! values! actions and responses of the sta"eholders&. The areas
and services used for findin secondary information were boo"s! newspapers! the media! internet and statistics. There are
several types of information that can be selected from a variety of easily accessible sources. The internet is the most
useful source as there are a variety of sites that have valuable information about terrorist events around the world! even
includin related lin"s! includin videos! from terrorist roups. The information must be reliable and from a well trusted
source : for example the 44> website. 'hareholders may be reatly affected by neative press reports followin a
terrorist attac". Jewspaper articles should be well balanced.
(ata $resentation
A) $rimary (ata
There are several ways in which the data can be presented. It can be presented in tables! raphs! words or statistics.
6ost of the information presented in maa<ines or the internet is in tables or statistics. Any data collected needs to be
sorted and presented in tables and be annotated usin line! bar chart and pie chart raphs. This should ma"e it easy to
read and understand so that the data can be compared and evaluated. The data will also be compared to my oriinal aim
and objectives.
(o terrorist events a,,ect your decisions on ho&iday destinations2
0
2
?
G
A
Always 3ften
'ometimes Jever
34i'ure "
The raph at fiure ; above shows how terrorism has influenced participants) decisions when decidin on holiday
destinations. ;.L of those as"ed stated that terrorism did not influence their decisions at all! ;0L stated that it
sometimes did! 2.L found that terrorism often influenced their choice of travel and finally (0L claimed that it always did.
The research showed that terrorist events do not always influence people)s decisions! althouh many of those
approached said that they now refer to the $orein and >ommonwealth 3ffice)s Travel Advice paes before finally
decidin on a holiday or underta"in business travel.
34i'ure #
$iure ? as"s participants if #terrorist events affect the time of the year that you visit a destination for example 1,((#. The
results show that the A.L of the participants did not feel at all threatened or affected by terrorist activities and that they
did not avoid any dates when visitin a destination. 3nly (.L of those as"ed said that for the year followin 1,(( they
(o terrorist events a,,ect the time o, the year that
you visit a destination ,or e5amp&e 6711
0 . (0 (. 20
Kes
Jo
A
n
s
w
e
r
s
/umber o, participants
avoided travel to the /'A in 'eptember. This suests that even thouh terrorism may affect sta"eholders in the short:
term it is less li"ely to be a lon term issue as on the whole! tourists are not allowin terrorism to influence when they
underta"e a journey.
Are you a,raid to 'o to areas that have been a,,ected by a terrorist attack2
0
(
2
;
?
.
G
+
A
1
Cery 7uite A little Jo
34i'ure 8
$iure . as"s participants if #they are afraid to o to areas that have been affected by a terrorist attac"#. (.L of those
as"ed said that they were not afraid to travel to an area that had previously been a terrorist taret! ?.L said they were a
little afraid Bbut that this fear usually disappeared after arrival8! ;0L said they were %uite afraid Band probably would not
travel to that destination for %uite some time8 and (0L were very afraid and said they would never o to a place which
had been hit by terrorists.
3f those tourists who said that they were either not afraid or only a little afraid some said that they felt safer as they
thouht that lihtenin would not stri"e twiceP This ives an indication that terrorist attac"s have a minimal affect on
tourists) decisions or actions durin their holidays.
'ta"eholders in the destination may be affected by terrorist activities! but fiure . suests that the majority of tourists will
continue to use the services provided throuhout the industry even if a terrorist attac" occurs. 'o terrorist events seem to
have very little impact in the lon term on a tourists) decision on what activities or destinations they will choose.
Has terrorism a,,ected how you ,ee& about air
trave&2
Kes
Jo
34i'ure 9
$iure G suests that tourists are relatively not affected by terrorism especially where air travel is concerned. 3nly ?
tourists said that they were still affected by terrorist events and that they would still avoid flyin where possible. 6any
said that they had avoided air travel for a few months followin 1,(( but that their travel habits had then returned to
normal. This proves that followin the events of 'eptember ((
th
even thouh there was a decline in air travel this was a
short:term phase. This means the overall effect on air transport providers and the travel and tourism industry as a whole
due to terrorist events may not be so severe in the lon term! thouh there is li"ely to be a decline in travel in the period
immediately followin an attac".
34i'ure :
$iure + suests that G0L of tourists were not afraid to visit some destinations due to terrorist threats. This shows that
terrorist threats do have an impact on some individuals or how they feel about security in some destinations. This may
indicate that terrorist events can have a serious effect on some destinations! especially if several terrorist attac"s occur at
one time or within a small timeframe.
6any tourists are still afraid of travelin to 4ali which suffered from two terrorist attac"s in a short period of time and as a
conse%uence the island)s economy has faltered as tourism is one of the main sources of income.
Are there any areas that you wou&d &ike to 'o to
but are a,raid to 'o to due to terrorist threats2
0 . (0 (. 20 2.
;
e
s

o
r

/
o
/umber o, $articipants
Kes
Jo
How many times a year do you 'o on ho&iday2
0
.
(0
one
two:three
four:five
six
34i'ure <
$iure A as"s tourists #2ow many times a year do you o on holidayM# ..L of the tourists stated they o on holiday two to
three times a year. This suests that terrorism is havin no impact on the amount of times that tourists o on holiday or
that it is affectin people)s desire to travel. Althouh the amount of terrorist attac"s and plannin is seen to be on the
increase! evidence shows that the amount of tourists travelin each year is also on the rise. This bac"s up my hypothesis
suestin that terrorism is havin a limited impact on the amount of times that tourists o on holiday.
The statistics above are also encourain for sta"eholder! especially tourist operators! transport and accommodation
providers.
)+econdary data
$ollowin 1,(( most of the travel and tourism industry was in decline. In an effort to attract customers most tour operators
had to slash their prices. 5conomies faltered in those countries where their revenue was dependant upon the tourism
industry. 'ome overnments wor"ed toether with airlines to support them and
prevent ban"ruptcy. 4y strenthenin security measures in major airports around the world! the public slowly bean to
reain confidence in air travel and as a result the whole of the travel and tourism industry bean to feel some hope.
In 200+ the >53 of $are>ompare produced a report on the /' Travel and Tourism industry. 2e said that fiures
produced in 200G showed that across the board! the /' Travel industry had fully recovered from the slump followin 1,((
and that experts thouht the demand for travel would continue to rise in 200+.
2e predicted that travel to the /'A would also increase as the dollar was still wea" aainst many currencies and that
would attract more inward tourism.
It was also expected that business travel to the /'A would continue to increase. This in part is due to the state of the /'
economy.
The accommodation industry suffered post 1,((. In order to survive many of them had to slash their prices! offerin deals
both in the media and on internet sites. Accordin to 'mith Travel 9esearch accommodation providers in the /'A had
shown profits of /'E 2G.G billion in 200G. The main winners were hotels. 3ccupancy rates were at an all time hih. The
number of business visitors was hih and tourists were both domestic and international. $rom these fiures it is evident
that the visitors,tourists are willin to spend more money than ever on hih standards of accommodation. This trend will
also help the construction industry as there are plans in the /'A to increase the number of hotel rooms available.
Althouh airlines were still losin money in 200G! the industry finally saw a chane in their fortunes in 200+ when! for the
first time since 1,((! many of them returned profits. Althouh passener numbers continue to increase profits are not as
hih as they could be as the price of fuel has risen by over (.L since 200;. In an effort to attract custom! many airlines
have become %uite competitive. In some sectors there is the added competition from budet airlines. 'ome of the bier
companies have released their hold on some routes and handed these to the budet airlines! whereas others have simply
reduced the fares and some have succeeded in lurin customers away from the budet companies.
It is clear that confidence in the travel and tourism industry has returned. It is also evident that new trends are emerin
with new mar"ets openin up in the $ar 5ast. The rise in visitors to >hina has sinificantly increased! especially with the
elder type of tourist and those who have a lare disposable income.
;ear /umber o, Terrorist Attacks
!==1 !#
!==! <#
!==" "!
!==# !:
!==8 "6
!==9 #6
!==: 1!<
!==< 3>an to Apri& inc& #6
The table above with fiures sourced from @i"ipedia! shows major terrorist attac"s since 200(. It does not! however!
record individual attac"s in Ira% since 200; as there are at least one a day. Individual attac"s in -ebanon in 200. and
200G are also not included as accurate fiures are not available.
The raph below coverin the period 200( to 200A shows the three countries which have suffered the most from terrorist
activities each year. It also shows the number of attac"s per country. Aain fiures for Ira% and -ebanon have not been
included.
0
.
(0
(.
20
2.
;0
;.
?0
?.
200( 2002 200; 200? 200. 200G 200+ 200A
The table beneath details the countries with the number of attac"s.
;ear Country /o o, attacks
200( >olombia A
Israel ?
/'A ?
2002 Israel ?.
>olombia (.
India ;
200; >olombia ((
9ussia +
Israel 2
200? 9ussia ?
'audi Arabia ?
Israel ;
200. Thailand (0
Indonesia ?
India ?
200G India .
Ha"istan .
>olombia ?
200+ Ha"istan ((
>olombia +
Israel G
200A Ha"istan +
Afhanistan G
Israel ?
The raph and tables above show the levels of terrorist activities coverin the period 200( to April 200A. The two most
constantly affected countries are >olombia and Israel. It is interestin to note that in the last two years the number of
terrorist attac"s has risen substantially but yet so has the number of tourists travelin the world. Therefore the increase in
terrorist attac"s does not seem to impact on travel today. This could be because overnments around the world are
becomin better in the developed world at brea"in terrorist cells and foilin attac"s. As a result all the major
sta"eholders in the travel and tourism industry are seein an improvement in their fortunes. The only exception to this are
certain pressure roups li"e 2e<bollah who set out to instill fear in the world)s travelin population.
In the last five years the /0 overnment has actively souht to arm tourists travelin from the /0 with as much
information about their proposed destination overseas. There is a dedicated website www.fco.ov.u" which has
information on all countries. Included are details on terrorist threats in each country! the internal security situation! culture!
laws! visa re%uirements etc. It also runs a #0now before you o# campain in co:operation with /0 tour operators! airlines
and travel aents who pass on information to would be tourists and business visitors. This has enabled tourist,visitors to
ma"e informed decisions about their holiday choices.
In addition countries li"e the /A5 have ained a sinificant foothold in the tourist industry over the last ?:. years. =ubai is
becomin one of the most popular holiday destinations for all ae roups and tourist types. It is sellin itself as a world
class location! tryin to project an imae which will attract people who until now had been unfamiliar with the 6iddle 5ast
and the Arabic culture. @ith the success of this as a destination! many travelers are losin their fear of travelin to the
6iddle 5ast and are seein the reion in a new liht! althouh it has to be said that the environment in =ubai is not typical
of the Arabic world.
%y attitudes and va&ues
Terrorism has had little affect on my family)s choice of holidays and the destinations we visit. I have traveled around the
world as my parents wor" for the $orein and >ommonwealth 3ffice. I have lived in countries that have been affected by
terrorist actions includin 9ussia and India. This I feel ives me a reater insiht to the impacts that terrorism has had on
the travel and tourism industry. 2avin witnessed an attac" on the metro in 6oscow in 200?! I "now that terrorism had a
serious impact on the industry as 9ussia)s levels of tourism declined dramatically durin the ten months immediately
followin this event! and continued to do so when two other incidents occurred the followin year. The overall effect lead
to the national *=H in 9ussia declinin. Terrorism in 9ussia also meant that locals were afraid to use public transport as
that was where the majority of attac"s occurred.
6y parents jobs have iven me an understandin of how the travel and tourism mar"et plays a vital part in the mass
movement of people and how various parts of the industry are seen as easy tarets by terrorists.
The >hristmas followin 'eptember ((
th
I went on holiday to $lorida. I was nervous! however my family thouht that it
would be safe to fly to the /nited 'tates. 3n arrival in the /'A I was struc" by the increased security in the airport! but
also sensed a fear amonst the airline staff which was almost borderin on paranoia. Their attitude towards foreiners
was not welcomin and althouh terrorism did have a small effect on my decision to travel! the attitude of American
officials had a reater impact on my family and we did not travel aain to that country for two years.
The overall effects of terrorism on my travel decisions are not normally that serious. 4ein members of the $>3! as a
family we update ourselves with the $>3 Travel Advice on our proposed destination. Dust after the attempted attac"s on
-ondon 2eathrow I traveled throuh the airport alone and was not nervous at all. 6aybe this was because I was travelin
throuh my country and I felt more secure there.
=urin my time in India I did not feel threatened as I was used to the surroundins as I had lived there for four years. I
"new my parents would not ta"e ris"s and that they were well aware of places to avoid. Thouh there was a hih amount
of terrorism occurrin throuhout the country! it did not seem to have a lare affect on the country)s popularity as a tourist
destination. 6ost of the attac"s occurred on public transport. India has a hue rail networ" which is used by the local
population and tourists ali"e. *iven the fact that tourist continued to use this mode of transport! I believe that terrorism
had little impact on the demand on the travel and tourism industry there. This could have been because the majority of
tourists are youn and on a budet.
$rob&ems
3ne of the problems with usin %uestionnaires as a source of information is that the total process is time consumin.
7uestions had to be thouht throuh so that any answers iven would provide the information needed. The %uestionnaire
was drafted several times until all the %uestions related to my chosen issue. Time had to be spent with each volunteer to
ensure they fully understood what was re%uired of them. 3nce the %uestionnaires were completed they needed to be
sorted and orani<ed into a set order so that the raphs could be formed. $rom the %uestionnaires handed out! all of them
were returned but some were returned late. This ave less time to evaluate the data! create the raphs and therefore less
time to analyse the response.
3nce the data was collected it became evident that maybe a larer sample si<e was needed to et the best results and a
ood overview of the impact of terrorism on people)s use of travel and tourism. 6y sample si<e was twenty however fifty
would have been the optimum amount of replies. A larer sample si<e would also have iven reater validity to the
research and would have achieved my aims and objectives more soundly! due to havin a larer amount of evidence
available.
'ome of the information from secondary sources was hard to collect and much of it was far too complicated for the
information needed for this project. Accessin data on the internet can be time consumin as there are often several lin"s
to follow before appropriate information is displayed. 6any of the articles found on the internet on terrorism and its impact
on the travel and tourism industry were often not from reliable or well "nown sources or extremely biased in their views. It
was also difficult to find data from overnment archives.
+o&utions to prob&ems
2avin assessed my first attempt at formin a %uestionnaire it became evident that any %uestions as"ed would have to be
more relevant to my chosen issue. *uidance was souht from my teacher to determine whether the %uestions were
relevant enouh to the issue. 3nce this was done %uestions were revised to ensure that the %uestionnaire would ive me
the best analysis to satisfy the aims and hypothesis. Harticipants were as"ed to complete and return the %uestionnaires
by the (G
th
of April. 2owever! some people did not meet the deadline and had to be reminded that the time limit for
returnin forms had passed.
Information sourced from newspapers and the internet was ta"en only from trusted and well "nown websites to ensure
accuracy.

AO4
AO#
*va&uation
Introduction
The issue of terrorism is li"ely to continue to be of sinificance in the future. The A3? section provides an evaluation of
the current and future impacts of the issue! and of responses to it! in the travel and tourism industry. This includes the
extent to why my own values and attitudes have influenced my view of the future impacts on the industry.
The current impact o, the issue
Terrorism is an onoin threat to the travel and tourism industry. Jot only is it a serious threat to most economies it can
have a devastatin effect on the lobal demand for holidays and tourism as a whole. An example of the horrendous
effects can be shown by 4ali which has been tareted and suffered two terrorist bombins in the last . years. Tourism in
the reion has decreased by AGL! and as most of 4ali relies heavily on forein income from tourism! the island and its
inhabitants are sufferin.
6y research and %uestionnaire data showed some interestin results. $rom my %uestionnaires it seems that terrorism
does not seem to have a serious effect on the decisions and locations of tourists) destinations of choice. 5ven thouh the
amount of terrorist attac"s and plots are on the increase! the number of travelers continues to rise rapidly! especially in
the developin world includin >hina. Thouh this is not to say that terrorism does not have an impact on people. @hen
the twin towers were attac"ed! /nited Airlines) passeners loads decreased in the space of a month by G(L. This shows
that terrorist activities do have an immediate impact on lobal trends on the travel and tourism mar"et.
As the threat of terrorism has risen considerably over the past ten years! it is no surprise that countries are steppin up
security in tourist destinations to protect the fraile industry from a lobal collapse. This is especially common in -5=>)s
which are heavily dependant on the income of tourism and cannot afford the same loss of tourism that 4ali has suffered. It
is now common place for service providers and countries to have hih security systems across tourist areas to try and
reduce the threat that terrorism poses.
/nfortunately terrorist acts will always affect the travel and tourism industry. 2owever! trends seem to suest that the
travel and tourism industry will remain unaffected by threats! as there will always be consumer demand for the services
offered by the industry.
The &ike&y ,uture impacts o, the issue
The travel and tourism industry is evolvin everyday. This is to "eep up with consumers) demands. The increase in
demand for tourism is due to a number of reasonsI
many people have more leisure time!
more newly developed countries) populations are accumulatin disposable income and
many travelers are ettin paid hiher waes thus enablin them to travel more often and therefore increasin
the demand for services throuhout the industry.
It is estimated that by 20(0 over ( billion travelers will use the services provided by the travel and tourism industry. This
means that more services will have to expand and row to meet this demand. An example of this is hotels. Airlines will
need more or larer aircraft to transport travelers from one destination to another. The Airbus ;A0 can carry more
passeners and travel further than any other commercial airliner. @ith the increased demand for air travel! more airports
will be needed or airports will need to et bierI an example of this is the proposed Debel Ali Airport in the /A5! which is
oin to have . terminals and be larer than 2eathrow airport. 2owever any terrorist attac"s on the transport sector!
especially air transport! will have a serious effect on the industry as people will once aain be afraid to travel. If airlines
have invested heavily expandin their fleet! many could face financial ruin! especially if tourists move away from
international travel and chane to domestic tourism.
As the amount of travelers increases the mar"et may have to diversify and add new routes as the demand for different
holidays and services increases. Thouh this demand can swiftly chane if a terrorist attac" occurs. If tour operators!
transport and accommodation providers have invested heavily in these new destinations then they may stand to lose
considerably on their investment.
Holitical instability can also badly affect the travel and tourism industry. 'ince the end of 200+ 0enya has been sufferin
from a period of political instability which has led to continued violence. As a conse%uence their tourist industry has
suffered very seriously. 5thnic strife and civil war has had a neative impact on tourism to 'ri -an"an since the (1A0s.
=urin %uiet periods tourim improves! but the north of the island has not had any benefit from tourist revenue since the
(1A0s when the -iberation Tiers of Tamil 5lam made that part of the island their stronhold.
>hina and 2on 0on)s tourist industry suffered in from Jovember 2002 to the middle of 200; as a result of an outbrea"
of 'evere Acute 9espiratory 'yndrome B'A9'8. If there is a major outbrea" of bird flu this would cause similar panic
amon would be travelers.
Traditionally 5urope has been one of the main mar"ets for /0 tourists! but iven the pound)s wea"ness aainst the 5uro
and strenth aainst the /' dollar! this may chane! unless there are further stri"es on aircraft which will rule out the
option of lon haul travel for many. In addition to /0 travelers see"in lon haul destinations in the /'A and Asia! many
Asian tourists will focus their attention on the /0 and 5urope as their disposable income increases. This will see a rowth
in Asian airlines and the routes that they offer. In addition! Asian economies will benefit from tourist revenue and there will
be increased demand for their service providers. Any terrorist attac"s in Asia could damae the industry and ruin
economies! especially -5=>)s that are heavily reliant on travel and tourism.
If there are sinificant developments in technoloy! particularly in security screenin! this could lead to an increase in
confidence in the travel industry. =evelopments in technoloy can also have a neative impact on some sta"eholders
such as travel aents! who may see a decline in demand for their services as many customers prefer the convenience of
bein able to boo" a holiday in the comfort of their own home usin the internet.
=evelopments in video conferencin will mean that not all businessmen will need to travel for meetins savin the
companies money. This will become popular in the future as the business companies want to reach profit maximi<ation.
Also as less businessmen travel this will mean that the travel and tourism industry will see profits decrease. This could
have a catastrophic effect on the industry especially if the service providers are unable to et more travelers to use their
services once business tourism declines.
Chan'in' market demands
There is no doubt that socio:economic trends will encourae the rowth of tourism. 2owever terrorism can easily chane
the demands of consumers.
if an attac" tarets several destinations in a country or reion! it can have a devastatin impact on not only the
companies and travel and tourism industry but also the countries economies. Tourists in the short to medium
term will loo" for other destinations until they feel confident that there is no loner a threat in those specific
areas.
In the western world particularly! more people are livin loner. The number of tourists travelin aed G0N is
rowin. The demands of the older traveler are %uite different from those re%uired by youner visitors. The
older traveler will probably be loo"in at the upper end of the accommodation mar"et and many will travel to
and from lon haul destinations in business class. They will therefore not be loo"in at budet airlines as
transport providers. Increased security measures at airports means loner %ueues and many older travelers
who are not so mobile may find this difficult.
The low end pac"ae holidays do not attract the same number of tourists today. 6any are see"in a hih level
of service that that will be able to meet their every need. 6any are also see"in adventure type holidays.
Therefore service providers will need to speciali<e in the services that they offer and attempt to provide a better
overall service for their customers. 2owever! attac"s on buses ta"in holidayma"ers to thrill see"in
attractions would seriously impact on this type of tourism and the destinations.
The rise of tourists from developin nations will rise vastly in the next ten years! as their populations incomes
start to increase! ivin them a larer li%uidity enablin them to travel. This will mean that airlines may have to
expand their routes! accommodation providers may have to build new properties focusin on the needs of the
Asian traveler includin dietary re%uirements. Terrorist activity in Asia will have an impact on those countries)
economies and ultimately people)s income will suffer. 6any may find that they no loner have the income to
travel to lon haul destinations and will have to move to short haul destinations within the Asian reion.
6ore tourists may become environmentally aware and demand that services offered by the industry are in line
with the ethics of sustainable tourism. An example of this is that some travelers may only use airlines who
have the new environmentally friendly Airbus ;A0 in service or those who are ma"in an effort to ma"e air
travel carbon neutral. This could see more companies offerin similar holidays to meet this risin demand.
Terrorists may taret this as it is relatively new and its demand is risin.
Tourists today are aware of the threat from terrorism and ta"e insurance on holidays to protect them.
2owever! with the rise in terrorist incidents worldwide! premiums may increase and firms may include an
exception clause relatin to terrorism in their policies.
'ome tourists now want to move away from domestic tourism and visit other cultures and cities abroad. This will increase
the demand for outbound tourism but may not offer additional income for travel aents due to technoloical advances with
the internet. This means that more people can boo" holidays and travel online and they no loner have to see" assistance
from a third party
$ollowin the slump in the industry travel services are havin to use advertisin to try and lure customers to o on
holidays or ta"e a short Qhaul trip abroad. The amount of advertisin may have to increase after terrorist attac"s to
convince customers that a country that has recently been tareted is now safe. The travel companies may do surveys to
find out what customers want so that they can provide the services and hih %uality products that tourists demand.
There has been substantial miration to the /nited 0indom since the (1A0s and the /0 is now a multi:cultural society.
5ach ethnic roup has different travel needs and tour operators need to be culturally diverse in order to meet the needs of
their customers. 6any 4ritish citi<ens especially in inner cities are feelin threatened by what they perceive as a
substantially larer 6uslim population in the country which is producin #home rown# terrorists. The bombers in the +,+
attac"s on -ondon were mostly /0:born 6uslims. In reality the numbers are still relatively small but throuh media
coverae of this problem! some would be visitors to the /0 may see" alternative destinations.
Chan'in' (estinations
Toether with mar"et chanes is the reali<ation by tourism developers that destinations are uni%ue! special! and fraile
places that have to be carefully manaed to ensure that they are sustainable and retain their appeal from customers.
The travel and tourism industry are wor"in with overnments to try to disrupt,prevent terrorist attac"s to ensure that
tourists and customers are safe from this issue and threat. The travel industry is tryin to convince customers that travel is
still safe and that terrorist events rare! however this is becomin harder as these events! no matter how small! are now a
reular occurrence. Terrorism has had a severe impact on mass tourism and this has therefore seen a decrease in the
demand from tourists as they feel that this type of tourism is the most widely tareted due to its mass appeal.
-5=>&s are heavily reliant on tourism as it provides a massive percentae of their income. If terrorists attac" an -5=>
and tourism decreases it is li"ely that the entire industry will suffer as a whole and lead to a loss of jobs and economic
prosperity for several low income countries. @hereas 65=>&s have a smaller percentae of their income from tourism!
and if a terrorist attac" occurs it is less li"ely that the country)s economy will be vastly affected.
The rise of synthetic holidays and tourist destinations has been on the increase since the early (110&s. In addition newly
developed countries are buildin synthetic attractions and cities to try and increase the level of tourism in their country. An
example of a synthetic city is =ubai which was built in a desert and is a similar attraction to -as Ceas Bwithout the
amblin8. =ubai has recently built a s"i dome to compliment its vast water them par"! and has the larest shoppin mall
in the world the 6all of the 5mirates. It is developin an underwater hotel! =ubailand which will be a /niversal theme
par"! Atlantis resort based on the one in the 4ahamas! The @orld! The Halms! all of which will obviously attract a vast
amount of tourists and will ma"e =ubai a real terrorist taret. Tourism is already the larest income for the city of =ubai.
The next major development in tourism is travel into space. Dourneys will soon o be offered by Cirin! althouh at the
moment it is only the rich who can afford the fare. Thouh in the future it could become possible that this type of tourism
may become a popular as more and more people have hiher disposable incomes and are loo"in for an experience of a
lifetime.
(eve&opments in transport and how they a,,ect the issue
There has been substantial development in the technoloy available to customers in the travel and tourism industry and
there are many sites now available to customers. This had led to a rise in boo"in holidays on the internet! instead of
usin a travel aent! which cuts out commission fees! ivin the consumer more money to spend. Aircraft technoloy has
developed! for example the new Airbus A;A0 can travel over +.00 miles and can carry up to ..0 passeners. This is an
example of mass tourism as this type of transport can ta"e travelers to nearly anywhere in the world in one stop. It is a
new comfortable form of transport and many hope that as it can carry an increased passener load! prices will come
down. The aircraft itself at present is a tourist attraction in that many want to try it out.
'cientists and enineers are continuin to try to develop an airliner which will use space. This would mean that lon:haul
travel would ta"e on a completely new dimension as a (0!000 mile journey could be completed in under ; hours. This
would be perfect for businessmen as it would et them there in a short period of time for a meetin! with the option of
comin bac" home that day.
-ow cost airlines are now offerin more lon:haul flihts in an effort to tempt travelers away from the larer airlines and to
use their services. This could enable more people to travel to lon:haul destinations as they could afford to travel cheaply!
and still have a fairly hih level of service. Airports thouh may have to be increased in si<e to meet the increased
demand from tourists and also to accommodate the new larer aircraft. Their efficiency of course will always be hampered
by the number of runways available to handle the increased air traffic. An example of airport expansion is the new
terminal in 2eathrow which will enable more planes to be used! meanin more tourists can travel each day.
Any advances in technoloy! new airports etc! unfortunately always find themselves as new tarets for terrorists. $or
these new measures to be effective! overnments,companies will have to invest additional funds for additional security.
+ur,ace transport
*iven that the world)s population is steadily increasin and therefore the number of travelers increases there will be a
need for mass surface transport. This could lead to the development of even bier cruise liners which could transport
over .000 tourists. Aain thouh! these new lare forms of transport would be seen as potential terrorist tarets.
There have been sinificant increases in hih speed train travel in 5urope. 6any travelers see this as a convenient mode
of travel and if travel times can be decreased then this may become a popular alternative to air travel. The world)s train
systems are all too fre%uently seen as easy tarets by terrorists! 6adrid! /0! India etc. Aain many overnments have
stepped up security on this mode of transport but as yet more wor" still needs to be done in this area to increase
confidence in the travelin public.
As some travelers become more environmentally aware! many car hire companies may have to thin" about introducin
hybrid or ethanol cars in their fleets. Terrorists may want to disrupt consumer)s interest in eco:tourism,travel.
.&oba&i0ation and the new wor&d order
This would mean a reduction in red tape and free trade areements. Also tourists would see a reduction in the need for
visas for travel to many countries. This would encourae more travel! and as a result be favourable to the industry as
demand for its services across the board would increase.
In today)s society more and more people rely on computers and various other forms of technoloy as modes of
communication. As systems become more sophisticated more business is done by computer and the need for business
travel in some sectors is decreasin. 2owever! reliance on computers puts companies at ris" from hac"ers.
The emerence of new destinations may compel more tourists to travel and visit these places! therefore increasin
demand for travel and tourism services. In addition people from these new destinations will become tourists themselves
as their incomes increase. 2owever if fuel prices continue to rise! this could mean that tourism may become too
expensive for some or new fuel technoloies may have to be invented to ensure that the price of transport stabili<es
throuhout the industry. 2owever terrorists may start to taret these new destinations to try and reduce their popularity
with tourists! and damae the worldwide economy of the travel and tourism industry.
The impact o, the issue on trave& and tourism
In conclusion! all sta"eholders in the travel and tourism industry need to be proactive in their efforts aainst terrorism.
6any overnments have already started doin this! for example the $>3 in the /0 has introduced travel advice and
information for would be travelers. *overnments in association with airport authorities have made sinificant strides to
improve the security of travelers and ain their confidence.
Tourist themselves are more proactively ta"in control of their travel and tourism needs and their own security.
Tour operators are wor"in toether with transport and accommodation providers on all aspects of customer satisfaction.
This also includes security and projections on the needs of the travel and tourism industry five years down the line.
Terrorism on a rand scale can have a sinificant impact on travel and tourism industry in the short term. 5ven in a
relatively short time the decline in any of these services can have a major impact on lobal economies. 2owever as was
shown post 1,(( the industry will revive. Heople are wor"in increasinly harder and therefore the demand for the tourism
industry will continue to rise! irrespective of the terrorist threat. >ustomers may see" to chane their holiday destinations
and choose a different method of transport! but travel will continue.