Hotel Terrorism Case Study

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International hospitality industry has witnessed several terrorist attacks in the last twenty years in which some of these attacks were particularly directed at tourists to at least hinder their inflow to a particular touristic center (Melih, Michael & Francis, 2007). The attack on the world trade center (though not directly on hospitality industry but have a negative impact on international hotel investment and inflow of tourist not only to the United States but to other parts of the world ) on September 11, 2001 in the United States of America which claim several lives and property to the terrorist attack in Pakistan on Islamabad Marriot hotel on September 20, 2008 among many several attacks has demonstrated the repeated and
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Businesses including hotel investments are facing difficult situations in the world today (Rohan, 2008). Terrorism has both direct and indirect effects on businesses; losses of life and property, decrease in foreign investment, disruption in supply chain, among many other effects were examples of direct impact of terrorism (Czinkota, Knight, Liesch & Steen, 2010). Terrorist attacks also have an indirect effect on the hotel investment which is mainly psychological effect on people (Greenbaum, Dugan & Lafree, 2007). There are other impacts of terrorism on international hotel investment which cannot be overlooked which includes loss of employment, cost of rescue, cleaning and rebuilding the facility, loss of confidence and sense of insecurity in the region where the attack occur (Greenbaum et al,2007; Paul, Bugnar & Mester…show more content…
The research carried out by Sanchez-Rivero and Cardenes-Garcia (2012) also regards tourism effect as a strong tool for economic development even from a theoretical point of view. Tourism is linked to international hotel investment, any attack of whatever form on any hotel chain will definitely have effect on tourism which will in turn affect the economic situation of a region (Rapin, 2011). Paul et al (2015) reveals that hospitality industry will remain the center of attraction for the terrorist because it is believed to attract media attention and also a significant sector of a nation’s
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