The Economic Toll of Terrorism

The Tunisian resort city of Sousse is already suffering the economic impact of a June 26 terrorist attack that killed over 30 tourists. Travel agencies have slashed hotel and flight prices by half as tourists rethink their plans to visit Tunisia. Here, three data points that shed light on how a city like Sousse, whose economy depends on tourism, can expect to recover from a security crisis like this:

34 months

How long it took New York City hotel-occupancy rates to return to pre-9/11 levels after the 2001 attack on the World Trade Center. Madrid’s hotels needed a year to recover from its 2004 train bombing, and London bounced back nine months after the 2005 attacks on public transport.

8%

The reduction in foreign-tourism income in Egypt in 2006, after the 2005 Sharm el-Sheikh attacks and the 2006 attack in the coastal city of Dahab killed and injured tourists from around the world.

37%

The average discount offered by the majority of Bali hotels that slashed prices after bombings in 2002. After attacks in 2005, Bali ran a marketing campaign with the slogan “Our loss is your gain!” It worked; today Bali attracts over 3 million foreign visitors a year, up from 1.39 million in 2005.

–NAINA BAJEKAL

Source for by the numbers: WEF Travel and Tourism Competitiveness Report 2015