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 Department of Tourism & Hospitality Mgmt. School of Business

September 11, 2001: The Setting Residents4.9 million Visitors (2000)19.2 million Visitor-nights (2000)51.1 million Visitor expenditures (2000)$6 billion Hotels437 Hotel rooms77.4 thousand Hotel demand (room-nights sold, 2000) 20.3 million Hotel lodging revenue (2000)$2.35 billion Sources: 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 Response B.Reopening Tourist Venues C.Promoting Business Travel D.Progressive Marketing Campaign

A. Coordinated Response Led by Washington, DC Convention and Tourism Corporation (WCTC) Joined by other regional economic development organizations and industry associations  Identified needs  Provided hospitality to victims & families  Pressured 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:

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 Hotel demand returned to near-normal levels by Spring 2002 Overnight visitor volume grew 7% in 2002 Metro area employment posted exceptional growth

Contrasting Recoveries In Year Following 9/11 Washington, DCNew York City Room 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 Corporation and Smith Travel Research