What is the impact of terrorist attacks on travel?
There are huge economic ramifications to terrorist attacks. Damage to infrastructure, cost to human life, medical bills, and other direct effects of terrorist attacks are actually not the most economically damaging to most countries. While the direct effects of terrorism are horrifying, the monetary damage comes in the form of increased surveillance and security costs and lose of tourism. Those who are worried about terrorism disrupting their travel plans should look into terrorism travel insurance.
Many countries have put France, for example, onto the “exercise a high degree of caution” list due to terrorist attacks. Paris itself has lost nearly $1 billion in revenue because of a loss of tourism due to the terrorist attacks of 2015 and 2016. Many attractions, such as the Grand Palais museum have seen a drop of nearly half their visitors. The effects are major.
Turkey has seen massive hit to tourism revenue as well due to Islamic terrorist attacks. They are expected to suffer a lose of almost 11 billion euros in 2017.
What happens to a country or city that loses tourism revenue due to terrorism?
Hotel revenues are the hardest hit. Staff layoffs start to occur, and people who were relying on a seasonal job may find that it has disappeared.
In addition, it is wealthier tourists and those who have higher levels of education that seem to stay away from areas that have had terrorist attacks in greater numbers. This causes a larger drop in revenue due to the fact that these tourists are the ones that spend a bulk of the money.
Tourists from Japan, while not being a majority of tourists by any degree, are the ones that are most likely to stay away from countries that have terrorist attacks.
People are starting to become more and more used to the idea of terrorism as a regular thing in European countries. While terrorist attacks may occur only once or twice a year, it is viewed as something that occurs in these formerly “safe” countries that hamper the image of a peaceful vacation.
How long does it take for tourism to get back to pre-terror levels?
Generally, it can take between one to three years, with the length of time shortening in our modern world which has more terrorist attacks.