Ripples of Sept. 11 terrorism reach Springfield

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Terrorism and local travel |ret||ret||tab|

Business and leisure travel is in a slump around the world because people are staying close to home since the terrorist attacks of Sept. 11. Springfield's hospitality industry is no exception. Though the negative economic impact locally is not as severe as in some larger cities, the city faces a serious situation. |ret||ret||tab|

From Sept. 11 to 30, local room revenue was down 12 percent compared to the same period last year, and attendance at most attractions waned. Higher than expected hotel occupancies during the September's 10 days will offset some losses in room revenues after the attacks, but layoffs or wage decreases are possible for local travel industry employees. |ret||ret||tab|

Contrary to what has been experienced in major cities, less than 10 small groups canceled meetings in Springfield, and most of those have rescheduled for later this year. Attendance at conventions likely will be lower than normal but additional cancellations are not anticipated. |ret||ret||tab|

Springfield is experiencing less trauma because it is a destination most visitors reach by auto rather than airplane. A 1998 study by D.K. Shifflet and Asso-ciates shows 89.5 percent of Springfield visitors traveled to the city by automobile and only 3.1 percent traveled by air. |ret||ret||tab|

Though Springfield is faring better than larger cities, the picture is not rosy. Prior to the attacks, the travel industry was feeling the effects of the economic slowdown. Business travel, which ac-counts for at least one-third of overnight stays in Springfield, was down about 10 percent before the attacks. If the economy continues its downturn or a recession occurs, business travel will decline even more. |ret||ret||tab|

Leisure travel is not expected to decline as much, but sluggish room and sales tax revenues are expected. The situation could worsen if hotels reduce room rates in response to lower demand one result being a reduction in the room tax revenue that provides 51.5 percent of the Convention and Visitors Bureau's $1.98 million budget.|ret||ret||tab|

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What the CVB is doing|ret||ret||tab|

In anticipation of potential lodging tax declines, the CVB is reducing as many expenses as possible so marketing efforts can be maintained. This will prove difficult because the CVB budget is tight. |ret||ret||tab|

While the average CVB spends 42.7 percent of its budget for direct promotion, Springfield spends 56.8 percent. The average CVB also spends 42.4 percent of its budget for personnel and 15 percent for other expenses, while Spring-field spends only 33.1 percent on personnel and 10 percent on other expenses. |ret||ret||tab|

To reduce the negative impact of the terrorist attacks on the local travel industry, the CVB is refining this year's marketing campaign to curtail national advertising and focus more on regional markets and Missouri residents. |ret||ret||tab|

Radio campaigns also are being considered. The Missouri Division of Tour-ism is looking at similar changes in its marketing and is asking Gov. Bob Hol-den to return the $1.4 million he withheld from the division's budget this year to offset the economic impact of the attacks. Positioning Springfield as a regional location for conventions and meetings has always been a focus for the bureau, and that effort will continue. |ret||ret||tab|

Groups with national membership will be looking for central locations and the CVB will focus marketing efforts on them, including the Amateur Athletic Union, which manages 52 sports. A tour is planned for the AAU in hopes of bringing more sports events to the city.|ret||ret||tab|

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Global impact|ret||ret||tab|

The negative effects on the Springfield travel industry are serious, but the city is doing better than predictions for the rest of the world. The World Travel & Tourism Council projects a 10-to-20 percent de-crease in travel and tourism in the United States over the next year and a global loss of 8.8 million travel-related jobs. |ret||ret||tab|

James V. Cammisa Jr., a travel industry analyst and publisher of Travel Industry Indicators, predicts dire straits in coming months. Fear of flying has increased, and air travel demand could drop 25 percent in the fourth quarter. All other types of travel will be affected as Americans put travel plans on hold. |ret||ret||tab|

Businesses will make more use of technology and less use of travel. Plea-sure travel to destinations such as Walt Disney World will fall sharply as people plan trips closer to home. Expensive trips will be replaced with visits to destinations with budget or moderate prices. |ret||ret||tab|

If projections prove true, the economic impact on the nation could be profound. Statistics compiled by the Travel Indus-try Association of America in Washing-ton, D.C., show tourism is one of America's largest employers with one in every seven people employed directly or indirectly by the travel industry, generating a $171.5 billion payroll annually. |ret||ret||tab|

Tourism also is the nation's third-largest retail sales industry with $582 billion in total expenditures and $99.6 billion in tax revenue. Each household in the United States would pay $964 more in taxes without tax revenue generated by tourism. Locally, D. K. Shifflet and Associates estimates overnight travel in Springfield generated $526.2 million in expenditures in 1998. |ret||ret||tab|

What will happen to those revenues is difficult to predict. Locally, modified marketing efforts designed will help ensure that negative effects are short-term.|ret||ret||tab|

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The numbers |ret||ret||tab|

Preliminary reports from the Springfield area travel industry for Sept. 11-30 compared to the same period last year showed the following:|ret||ret||tab|

Lodging: Room revenues were down 12 percent. It's estimated that 90 percent to 100 percent of the decrease can be attributed to the attacks versus the downturn in the economy. A majority of the decrease is in business travel caused by flight cancellations, companies cutting trips, and drops in attendance at meetings and conventions. Hoteliers expect a 5 percent to 10 percent decrease in Oc-tober compared to October 2000, and they expect November and December to be flat over last year.|ret||ret||tab|

Attractions: Attendance at Spring-field area attractions was down only 5 percent to 10 percent, again because we are a rubber-tire destination. |ret||ret||tab|

CVB Tourist Information centers: Visitors to the Tourist Information Cen-ter at Battlefield Road and U.S. 65 dropped 29.8 percent from Sept. 11 to 30 compared to a year ago. During the same period, visitors to the Airport Informa-tion Center dropped 38.5 percent. (Airports were closed for 2 1/2 days after the attacks.)|ret||ret||tab|

(Susan Wade is public relations manager for the Springfield Conven-tion & Visitors Bureau.)[[In-content Ad]]