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The Washington, DC Response & Recovery from the 9/11 Attacks. International Destination Risk Management Conference Presented by Bogazici University & The George Washington University June 7, 2004. Dr. Douglas Frechtling , Professor of Tourism Studies. - PowerPoint PPT Presentation
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The Washington, DC Response & Recovery from the 9/11 Attacks
International Destination Risk International Destination Risk Management Conference Management Conference
Presented by Bogazici University &Presented by Bogazici University &The George Washington UniversityThe George Washington University
June 7, 2004June 7, 2004
Dr. Douglas Frechtling, Professor of Tourism Studies
Department of Tourism & Hospitality Mgmt.School of Business
September 11, 2001: The Setting
Residents 4.9 million
Visitors (2000) 19.2 million
Visitor-nights (2000) 51.1 millionVisitor expenditures (2000) $6 billionHotels 437 Hotel rooms 77.4 thousand Hotel demand (room-nights sold, 2000) 20.3 million
Hotel lodging revenue (2000) $2.35 billionSources: Washington Convention and Tourism Corporation, Smith Travel Research
September 11, 2001: The Catastrophe
Airliner crashes into the Pentagon building near the heart of the city, after two struck the World
Trade Center Towers in New York City
Impact on visitors to the Washington, DC area and
its tourism industries• Hotel visitors dropped 400,000
September - November• Downtown hotel room revenue
fell 65% for these 3 months• Nearest major airport closed for
3 weeks • Major attractions closed for up to
5 months• Tourism job losses reached
27,000
The Destination Response
A. Coordinated ResponseB. Reopening Tourist VenuesC. Promoting Business TravelD. Progressive Marketing
Campaign
A. Coordinated Response
Led by Washington, DC Convention and Tourism Corporation (WCTC)
Joined by other regional economic development organizations and industry associationsIdentified needs Provided hospitality to victims & familiesPressured government to extend relief
B. Reopening Tourist Venues
• Pressured government to re-open Reagan National Airport
• Persuaded major public attractions to reopen
C. Promoting Business Travel
• Asked government agencies to declare DC safe for meetings
• Contacted hundreds of convention clients• Urged embassy officials abroad to communicate
actual status• Did not seek financial bailout from government
D. Progressive Marketing Campaign
• Raised $3.37 million for advertising and public relations
• Supplemented by private industry efforts• Focused first on local markets
Bus/Underground Banner
D. Progressive Marketing Campaign
• Launched national campaign: “Come, Be Inspired!”
WCTC Website: www.washington.org
D. Progressive Marketing Campaign
• Initiated public relations campaign to develop positive stories
• Sensitive to audience’s willingness to hear messages
The Results• Hotels lost nearly $300 million compared
to year-earlier levels, with half of loss concentrated in Sept.-Nov. 2001
• Hotel demand returned to near-normal levels by Spring 2002
• Overnight visitor volume grew 7% in 2002• Metro area employment posted
exceptional growth
Similar Recoveries in Hotel Demand in New York City and Washington DC since 9/11
-30%
-20%
-10%
0%
10%
Sep01
Dec01
Mar02
Jun02
Sep02
Dec02
Mar03
Jun03
Sep03
Dec03
Change from Year Prior to 9/11
DC Room demandNYC Room demand
Hotel Revenue Recovery in New York City Has Lagged Washington DC
-50%
-40%
-30%
-20%
-10%
0%
10%
Sep-01
Dec-01
Mar-02
Jun-02
Sep-02
Dec-02
Mar-03
Jun-03
Sep-03
Dec-03
Change from Year Prior to 9/11
DC Room RevenueNYC Room revenue
Contrasting Recoveries In Year Following 9/11
Washington, DC New York CityRoom nights down 8% Room nights down 9%
Room rates cut 9-10% Room rates cut 21-28%
Room revenue fell 14% Room revenue fell 24%
Revenue loss from prior year = $340 million
Revenue loss from prior year = $1.1 billion
The George Washington University Role
• Analyzed impacts
• Developed real time visitor estimates
• Benchmarked against competitors
• Projected magnitude of potential losses
• Planning for future catastrophes
• Documented crisis recovery model
Destination Crisis Recovery Model
Destination
Management
Organization
Crisis or catastrophe
Extraordinary Marketing Campaign
Crisis Plan
Restore Internal Order
External
Emergency
Response
Once order is restored
Coordinate stakeholder activities
External reassurance to customers
When customers are ready to return
Source: Stafford, Yu & Armoo (2002)
Special thanks are due the Washington, DC Convention
and Tourism Corporationand Smith Travel Research