1.0 Terms of Reference.

I have been asked to compile a report about the Effects of Terrorism, and submit it to Anthony Jacques.

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The report has asked me to investigate the consequences of terrorism.

2.0 Introduction.

“Terrorism has a major effect on the world economy and in particular on the Travel and Tourism Industry”

The massacre that occurred at the World Trade Centre in New York on Tuesday 11th September at 9.00am (EST) has affected the world in many different ways.

The consequences of these terrorist attacks are:

* The economy -loss of shares value

* People are scared to travel

* Companies loss in revenue

* Job loss

* Population loss

I will discuss these in more detail in my findings of my report.

3.0 Method.

In order to obtain the vital information for this report I adopted the following procedures:

3.1. I visited the Travel weekly website and obtained reports on the effects that the massacre has had on the travel and tourism industry.

3.2. I also visited the library and obtained copies of the travel journals.

3.3. I watched the news and read the newspapers as more and more impacts as happened as time has gone on.

4.0 Findings.

In my opinion I think that the above statement is true, as I will now discuss by presenting facts and figures to support my argument.

4.1. I will now discuss the impact of job loss within the tourism industry.

Many companies have made staff redundant, offered them unpaid leave, and voluntary redundancy. This is the result of the travel agents and tour operators not making any revenue since the terrorist attacks, as there has been a “30% drop in holiday bookings” and flight consolidators “suffering a 60% fall” in bookings.

British Airways “axed 7,000 jobs and slashed its services by 10%” most of the jobs were in “cabin crew and support staff where 5,300” where made redundant.

British Midland has withdrawn “8 of its 62 aircraft and cut its seat capacity by 20% for its winter schedule”; they have also cut 600 jobs.

First Choice has cut 1,100 jobs following the suicide hijackings in the USA, but it is not the only tour operator to cut jobs, Airtours UKLG is making 100 people redundant as well as Thomson who are cutting 300 jobs at its airline Britannia.

4.2. Not only have the tour operators and travel agent been affected but also Worldspan the global distribution and technology company have cut 100 jobs because of the terrorist attacks.

The company Rolls Royce who make the engines for the aircraft have also been affected by the 11th September incident, as the airlines are not introducing any new aircraft into their fleet many jobs have been lost.

4.3. Terrorism has not only affected the tourists that were there that day but it has frightened people all over the world. It is not only tourism in the USA that is suffering it’s the UK’s too and many countries all over the world as passengers are too scared to board an aircraft and travel.

The long-term effect is still unknown and will stay unknown until this terrible atrocity is over.

The infrastructure of New York can be rebuilt, although it will take a long time, but the rebuilding of the peoples confidences when it comes down to air travel is going to take even longer and for some people this may never happen. Meanwhile this is happening the travel and tourism industry is losing out on a lot of revenue.

4.4. This maybe the worst crisis that aviation and the travel and tourism industry has ever suffered.

4.5. The UK’s tourism has also been affected in a large way because people from other countries do not want to travel to the UK for fears that the UK is going to be the next target.

Hotels are being affected by this crisis because of the lack of people travelling to the UK, the number of visitors to local attractions have also been decreasing. As people don’t want to visit countries that are at war or where they are in fear of being attacked by terrorists.

4.6. Some companies have gone bust because of the lack of passenger numbers. For example Sabena and the American cruise company-Classic Voyages.

4.7. As no one wants to invest money into companies because of the crisis the economy is suffering. Many people who have already invested their money in the shares that the have brought are decreasing in value. This is resulting on the economy having a huge slump.

4.8. Since the recent attacks happened many people died instantly or later on through serious injuries, this has had an effect on the world’s population.

Large numbers of the population have died resulting in a population loss.

5.0 Conclusion.

5.1.The Travel and tourism industry has suffered a lot since the recent terrorist attacks these included:

* The economy -loss of shares value

* People are scared to travel

* Companies loss in revenue

* Job loss

* Population loss

5.2.The industry is not going to be restored over night it may take months or even years for it to recover the deterioration that it has had.

The industry may never recover only time will tell.

5.3. This maybe the worst crisis that aviation and the travel and tourism industry has ever suffered.

6.0. Recommendations.

6.1. After this event peoples needs and expectations have changed. The travel and tourism industry needs to change to meet the new standards of the consumers.

6.2. There needs to be more security at airports and especially on the aircraft themselves. For example on flights there should be uncover police officers or some sort of security on board to try and stop these terrible things happening.

6.3. The cockpit needs to be made into a more sustainable material and the entrance needs to be made safer so that access is not easy for terrorist and hijackers.

6.4. The companies should try and keep their costs to a minimum to keep their staff, or at least guarantee them their job back if the industry ever recovers.