The Indicator from Planet Money: How Tourist Destinations Recover After Terrorism

Release Date: March 3, 2025

Hosts: Darian Woods & Stephen Bisaha, NPR

Introduction: Mardi Gras and New Orleans’ Economic Significance

In the episode titled "How Tourist Destinations Recover After Terrorism," hosts Darian Woods and Stephen Bisaha delve into the resilience of tourist hotspots in the face of terrorist attacks. The conversation begins amidst the vibrant backdrop of Mardi Gras in New Orleans, a festival not only renowned for its parades and colorful attire but also for its pivotal role in the city’s economy.

Darian Woods [00:25]:
“We are officially deep into Mardi Gras and for New Orleans, it's a time for parades and putting together your best purple, green and gold outfit. It's also a really important time for the city's economy, right?”

Stephen Bisaha [00:37]:
“For retail. Across most of the country, the Christmas shopping season is king. But in New Orleans, that crown goes to Mardi Gras.”

Lauren Haydell [00:53]:
“I would say not even close.”

Lauren Haydell, owner of the New Orleans-based T-shirt company Florida, underscores Mardi Gras as the most significant economic driver, surpassing even major retail seasons like Christmas.

The Impact of Terrorism on Tourism: The New Year's Tragedy

The discussion takes a somber turn as the hosts address the recent terrorist attack on New Year's Day in New Orleans. A man drove a truck through the French Quarter, resulting in 14 deaths and numerous injuries. This tragedy not only devastated the community but also posed a significant threat to the city's tourism-dependent economy.

Darian Woods [01:17]:
“New Orleans is still reeling from a terrorist attack on New Year's Day. When a man drove a truck through a crowd in the French Quarter. He killed 14 people and injured dozens more. It was an awful tragedy and the city is still mourning. It also had people there worried that the tourists the city's economy relies on would stay away.”

Stephen Bisaha [01:51]:
“We get it could sound callous to talk about business after a tragedy like that, but the livelihoods of so many people rely on tourism. A sharp drop in visitors can be devastating for both business owners and workers.”

Expert Insights: Semiha Sharmali on Terrorism's Effects on Tourism

To unpack the complexities of recovery, the hosts consult Semiha Sharmali, a professor of tourism from the University of Dewusto in Spain. Sharmali provides a comparative analysis of how different crises impact tourism and outlines factors influencing the speed of recovery.

Semiha Sharmali [03:22]:
“It's one of the worst crises that could face the tourism industry.”

She emphasizes that while natural disasters like tsunamis and earthquakes cause immediate chaos, terrorist attacks can have a more prolonged impact on a destination’s reputation and tourist confidence.

Semiha Sharmali [03:55]:
“It's one of the worst crises that could face the tourism industry.”

Semiha Sharmali [04:13]:
“Are we going to keep ourselves from seeing certain destinations? No. So the beautiful experience of jazz, of food that I will do in the, in New Orleans, the pyramids that I will see in Egypt, it's the London Bridge that I want to stand on and have a picture. So we are going to go anyway.”

Sharmali points out that iconic destinations with unique attractions tend to bounce back faster due to their unique appeal and established reputation.

Recovery Patterns: Iconic vs. Less-Famous Destinations

Using Las Vegas as a case study, the hosts illustrate the differing recovery timelines based on a destination’s iconic status.

Darian Woods [04:36]:
“Lets take Las Vegas as an example here. A mass shooting in the city in 2017 killed 60 people and injured hundreds. Three weeks after the attack, domestic flight bookings were down more than 20%.”

Stephen Bisaha [04:48]:
“Still, a year later, the number of people visiting the city was basically back to normal.”

Sharmali elaborates that iconic destinations like Las Vegas often recover within months to a year, while less-renowned locations may take several years to regain their tourist influx.

Semiha Sharmali [05:00]:
“An iconic destination in few months, maximum one year they recover, sometimes even few days. But in a destination with less iconic places would recover in three, four years.”

Case Study: Tunisia's Struggle and Recovery

Sharmali draws parallels to Tunisia's experience following terrorist attacks in 2015. The initial attack at the Bardot Museum severely impacted tourism, but recovery was impeded by a subsequent beach resort attack, prolonging the economic downturn.

Semiha Sharmali [06:35]:
“It took us four years to recover. Three to four years to recover.”

This example underscores how repeated attacks can significantly delay recovery efforts, leading to sustained economic challenges for the tourism sector.

Reputation and Security: Keys to Swift Recovery

A central theme in the conversation is the role of a destination’s reputation and the implementation of enhanced security measures in facilitating quicker recoveries.

Stephen Bisaha [05:22]:
“By targeting other markets, she means trying to bring in tourists that are closest to that country, both close physically and culturally, too.”

Semiha Sharmali [05:31]:
“You know the language. You know the country. You've been there or not before. You are closed geographically or not. So you have already an idea about the country. So if something happens in Barcelona, people from North Africa will still continue go to Barcelona.”

Stephen Bisaha [07:04]:
“Semiha says there's also another really important lesson to take here, and it's that a lot of countries do recover. Yes, terrorist attacks can cause real harm to a country's economy, but it's often not lasting harm. Tourists do eventually come back.”

Current Status: New Orleans’ Path to Recovery

Returning focus to New Orleans, the hosts provide an update on the city’s recovery efforts and the current economic climate post-attack. Lauren Haydell, the owner of Florida T-shirts, shares her firsthand experience.

Lauren Haydell [07:33]:
“We have not seen a difference. So it's just been Mardi Gras business as usual for us here in New Orleans. It has not affected us one bit.”
Timestamp: [08:10]

Despite the tragedy, Haydell reports that her business remains steady, indicating a positive sign of economic resilience.

However, a broader measure of recovery is highlighted through the Super Bowl event hosted in New Orleans. The attendance was slightly below capacity, but city leaders still hailed it as a success, showcasing ongoing confidence in the city's safety and appeal.

Darian Woods [08:19]:
“One way to measure New Orleans recovery is the Super Bowl. New Orleans was the host city and about 65,000 fans still gathered in the Superdome for the game was not exactly a sold out crowd. The Superdome could have still held 10,000 more fans, but the city leaders still claimed the event as a success.”

Stephen Bisaha [08:39]:
“National Guard troops were a significant presence in the French Quarter ahead of the game, and Semiha said this is the kind of thing that could help a city bring visitors back. You know, step up that security.”

While increased security measures provide reassurance, Lauren Haydell reflects on the changes.

Lauren Haydell [08:50]:
“It didn't feel like the New Orleans I grew up with, but I also did appreciate that the troops were there and the message it sent to visitors that New Orleans is still safe.”

Conclusion: Resilience and Hope for the Future

The episode wraps up with a hopeful outlook, emphasizing that while terrorist attacks pose significant challenges, destinations with strong reputations and effective recovery strategies can overcome crises and restore their status as beloved tourist hubs.

Semiha Sharmali [07:26]:
“Barcelona is perfectly filled up of tourists. They had a terrorist attack. One in 2017, London in 2017, in June, they had one. They are perfectly beautiful destination and filled up with tourists. Even for the case of Tunisia, they recovered. Why? Because in the history, it has been always a safe country. So they recovered, but they take more time to recover.”

This resilience is bolstered by effective communication and visible security enhancements, fostering a safe environment that encourages tourists to return.

Takeaways:

• Iconic Destinations Recover Faster: Unique attractions and established reputations aid swift recovery following terrorist attacks.

• Repeated Attacks Prolong Recovery: Multiple incidents can severely impede economic restoration efforts.

• Target Diverse Markets: Diversifying tourist demographics can help stabilize visitor numbers post-crisis.

• Enhanced Security Boosts Confidence: Visible security measures reassure visitors and facilitate tourism resurgence.

• Long-Term Resilience: Despite setbacks, destinations with a history of safety and positive reputation often bounce back effectively.

This episode underscores the delicate balance between mourning and economic resilience, illustrating that while terrorism can inflict immediate and profound damage, strategic recovery efforts grounded in reputation and security can ultimately restore a destination’s vibrancy and appeal.

Notable Quotes:

• Lauren Haydell [08:10]:
  “We have not seen a difference. So it's just been Mardi Gras business as usual for us here in New Orleans. It has not affected us one bit.”

• Semiha Sharmali [05:00]:
  “An iconic destination in few months, maximum one year they recover, sometimes even few days. But in a destination with less iconic places would recover in three, four years.”

• Semiha Sharmali [07:04]:
  “Tourists do eventually come back.”

Produced by: Koopa Katzpakim
Engineering by: Sina Lofredo
Fact-Checked by: Sierra Juarez
Edited by: Cake and Cannon
Production: The Indicator is a production of NPR