Terrorism as threat to international tourism

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Department of Economics University of Economics in Katowice

TERRORISM AS THREAT TO INTERNATIONAL TOURISM

Anna Kachmarska

The 21st century has been marked by some great achievements and numerous hazards caused by the development of civilization. As a result, a number of areas of socio-economic transformation undergo major changes. Among these is tourism, for there are many factors causing its rapid development. Currently, tourism is one of the most important economic sectors in many countries and all the other sectors take profits from it. Without a doubt, tourism, due to the nature of its service, has great potential for creating new jobs and increasing society's affluence as well as socio-economic development, because it is involved in reduction of unemployment. It is a source of income, it boosts foreign investment in many countries and certainly it is an economic alternative to traditional industries.

Apart from the benefits coming from the evident development of tourism, there are also numerous risks to be taken into account. The cultivation of mass tourism leads to devastation of tourism regions and the increased tourist traffic causes exposure to vandalism, theft, pathologies, accidents, excessive traffic on the roads and other inconveniences for local populations. But these are not the only negative consequences. It is obvious, that in recent years the phenomenon of terrorism has become an important issue in many areas of the economy, although its effects most acutely strike the tourism sector. Tourists fear for their safety, which is why they avoid holidays in places most likely to be attacked by terrorist, causing drop in employment and income in areas affected by these actions.

Countries most likely to be attacked are forced to spend additional outlay on security measures to ensure better safety and care, as well as promotion and advertising in order to encourage visitors to use their offer again. But it does not make tourists more interested in such regions. People planning holidays are less likely to travel in places with a heightened risk of terrorist attacks, despite additional precautions [5].

The aim of this paper is to present the main threat for tourism - terrorism. It can be assumed, that this problem presents a significant barrier to the development of tourism. Terrorism affects the safety of tourists, reduces travel for recreational, leisure, or business purposes and as a result has a negative influence on popularity of resorts, regions or whole countries.

The development of tourism

Tourism is one of the fastest growing economic sectors. As a social phenomenon, it provides the driving force behind many national economies and the entire global economy. This is possible due to the favorable determinants for its development. The extended time off from work during the week, month and year as well as the progress of civilization, the growth of wealth, the massive use of air transport, the excessive urbanization processes and many other factors made the tourism an important economic sector in many countries. The first graph shows the changes in tourism in global terms as well as the impact on the budget.

Graph 1. Tourist in millions traffic and impact on the budget worldwide in years 1950-- 2009 (in billion dollars).

In the second half of the 20th century, the number of travelers has increased more than thirtyfold. However, global revenues from tourism increased more than three hundred times. The diagram shows that the increase in revenues from tourism started in the 70s. Society began to grow rich and the extended leisure time has extended the amount of money used on free time.

The breakthrough for the global tourism industry happened at the beginning of the 21st century. The year 2001 had an negative impact on tourism and the year 2008, widely regarded as the beginning of the global crisis, caused a sharp drop in tourist migration.

Available data shows that global tourism is quite resistant to local events, but in different regions, countries and tourism centers, those events are essentially limiting tourist traffic and income.

Terrorism and its consequences for the tourist market

In the last 25 years terrorism became a big threat for tourism. Terrorism is usually defined as the use of force or violence against people in violation of the law. It is intended to intimidate and force the population or the group as a means of coercion. Terrorism can force even the entire population to specified behavior. The term terrorism derives from the Greek word - fear. It can be concluded that it is a phenomenon that should create fear and cause submission. It is also a phenomenon associated with violence, fear, blackmail and death. Moreover, it is a kind of method of political struggle which, by intimidating individuals, groups, communities and governments, is committed to achieve a particular purpose. Terrorism is characterized by cruelty and lack of moral scruple. It is supposed to spread insecurity, get in the media and develop quickly [9].

Researchers divided terrorist activities into: political or criminal and individual or collective. Most of the observed phenomena in the world of terrorism are based on political terrorism. Its primary purpose is to change the leadership or political systems by force or even secession of a territory to form a new sovereign state or become part of a different state.

A characteristic feature of criminal terrorism is that terrorists act in a less sophisticated way, which is usually guided by financial considerations.

The most common methods of terrorist attack include [1]:

- target a specified person - the oldest form of terrorism, commonly used to this day,

- bombing - the most widely used method of attack,

- kidnapping vehicles or planes - rarely used but more spectacular method of terrorism,

- kidnapping people (kidnapping) - that means keeping the person in an unfamiliar place, so it can be used as «bargaining chips» in negotiations with the police (authority).

Terrorism is not a new phenomenon. It was already present in ancient Greece, when the whole idea of government could be described as tyranny. In the 19th and 20th century it was common for the assassins to attack the heads of state. Then there were suicide bombers and tourism is threatened mostly by their actions. Civil aviation and scheduled air transport are very vulnerable to terrorism. In this areas, the terrorists have the greatest opportunities, because airplanes became one of the most popular mode of transportation [2].

For bombers, the place of attack is crucial, because the richer the tourists are, the more publicity and fame a terrorist organization gets. They realize that some countries live off tourism, so the suicide bombings are held in places that are attractive to tourists. Sometimes many organizations claim credit for one attack in order to obtain publicity. This can lead to some serious problems in the tourism industry. The most common forms of attacks are all kinds of kidnappings of transport, airplanes, buses, ships, etc., as well as bombings and killings.

September 11, 2001 is a historical date. Probably the biggest and most spectacular terrorist attack ever took place on that day. The first airplane hit one of the towers of World Trade Center in New York and after about 20 minutes another plane hit the other. The third one hit the building of the Pentagon in Washington and the last one crashed into a field in Pennsylvania. The Islamic terrorist organization Al-Qaeda claimed credit for the attacks.

Its leader, Saudi Osama bin-Laden, became the most wanted man in the world. Those attacks affected the global tourism greatly [17].

In October 12, 2002 two explosions have killed 202 people in Bali. Terrorists affiliated with Al-Qaeda and an organization called Dzemaja Islamija, were responsible for those attacks [17].

In Mumbai, 26-29 November 2008, 10 attacks killed about 195 people and nearly 300 were injured. Guests of the two big hotels and a center of Jewish culture were held hostage by bombers. Another attack happened in 2001 in India, when four people have been killed and 50 wounded [16].

It is worth mentioning countries such as Spain and the United Kingdom. March 11,

2004 in Madrid, two people have been killed and fourteen hundred have been injured. The bombs were hidden in backpacks and exploded in trains during traffic peaks [3,7]. July 7,

2005 in London, also on peak times, three bombs exploded in subway [4].

Bombers from the group Al-Qaeda Jihad in Europe killed 52 people and injured about 700. Such attacks have been pointed against the civilians, but because of the attractiveness of these areas, they were also indirectly related to tourists [9].

When it comes to water transport, the most famous attack is the kidnapping of Italian cruise liner Achille Lauro MS in 1985. The kidnappers demanded the release of Palestinians who were in prisons in Israel [18]. Because those demands had not been met, the terrorists killed an American tourist, who was also in a wheelchair. One of the well-known terrorist attacks is the abduction of the Turkish passenger ferry on the Black Sea, when the rebels were holding 255 passengers hostage. In the year 1998, unidentified terrorists hijacked a cruise ship City of Poros. 89 people have been injured, not only as a result of shots, but also the panic that started on the ship.

In the year 2000, the famous suicide attack on the USS Cole occurred. 19 sailors from the United States died and nearly 40 were injured. Al-Qaeda claimed credit for that attack. Another famous attack is a suicide attack in Ashdod in Israel. Ten people were killed back then [9].

Analyzing the terrorist attacks in their relation to tourism, we can categorize them into several groups. The attacks may be aimed at the popular destinations or a point somewhere in between the destination and the place of residence. Sometimes, tourists can be killed by accident. It also happens, that the places, where the attacks occurred, became less popular among the tourists afterwards. Terrorist acts have then a political purpose and people choose not to go to places where bloody fights has taken place.

The most shocking terrorist attack was not deliberately and directly aimed at tourists. It should be noted, that these were suicide attacks and the hijackers have flown the aircraft themselves. That made many people reluctant to use planes as a mode of transport. Graph 2 shows the amount of arrivals to the United States before 2001 and after the attack. You can see the drop after 2001 and then a growth in 2004, due to better organization of transport, reduction of operating costs and a bigger demand among tourists.

Moreover, the whole industry reacts negatively to terrorists attack (graph 3). It should be noted that the tourism industry is very flexible to the general economy condition.

Graph 2. Arrivals to the United States in the years 1995-2012. Source: World Tourism Organization

Graph 3: Income from tourism in millions of dollars in the United States from 1995 to 2011.Source: World Tourism Organization

Some of the attacks were clearly aimed at tourists, i.e.: Bali, 2002. Everything happened in a very attractive tourist destination. That sums up to casualties from almost 20 different countries, which obviously resulted in a drop of tourist interest in this area. Chart 4 shows the change in income from tourism in the region of Indonesia before and after 2002. The decrease in revenues from tourism by 2003 come out at 1,248 million dollars.

Graph 4: Income from tourism in the years 1995-2011 (in millions of dollars). Source: World Tourism Organization

The phenomenon of terrorism concerns practically every country and almost all sectors of the economy, including tourism. Tourism is an important industry that provides large income for many countries. Tourism is linked to spatial development, infrastructure development, professional activation, foreign investments and many others. Terrorism is therefore a phenomenon that can effectively reduce all those activities. For that reason it threatens all the incomes. If one place was targeted by terrorists, the whole country has to bear the additional costs: advertising the place to attract tourists again or reconstructing destroyed facilities. Any effort made to improve the safety of tourists involve additional financial outlay as seen in Spain and Egypt.

Egypt is a country of fascinating civilization. Tourism is its primary source of income. It is visited by many tourists from different countries, who are attracted by particular monuments, beaches, underwater world, the magic of the desert and a cruise on the Nile. Tourists often visit Giza, Cairo, Alexandria and Luxor, where among others, you can visit the Valley of the Kings. Additionally you can visit the Nubian Desert and other places of worship around Lake Nasser. You can dive in the Red Sea and see the beautiful coral reef. Visitors can also see the mountain of Sinai. On the shores of the Red Sea and the Mediterranean Sea, there are numerous tourist resorts that attract visitors. In Alexandria, you can visit the famous Library and see the numerous shipwrecks left there after World War II.

The tourism in Egypt had to deal with the problem of terrorism. In July 2005, explosions occurred at three locations that are frequented visited by tourists. For example, in Sharm el Sheik on the Sinai Peninsula, 64 people were killed and over 200 were injured. The government tries to provide safety, which is why a special police, whose members speak foreign languages and are helping when the situation requires it, has been established. It is significant, that some tours in Egypt require a special protection and even a police convoy assistance, i.e.: trips to the deserts. Thus, the Egyptian authorities are trying to ensure the safety of tourists. They inspect almost all the tourist attractions and the places where immigrants are allowed. About eight million tourists come to Egypt every year. This means a huge income, but it also requires a large investments, especially when it comes to safety. Furthermore, the local population is very kind toward tourists, because they realize that they profit from tourism. However, tourists staying in Egypt should comply with the requirements, since the Ministry of Foreign Affairs indicates, that the country is particularly vulnerable to terrorist attacks. Although the country is still very popular among tourists, the terrorist attacks, in particular those caused by Egyptian terrorist group Dzemaja Islamija, provoked various reactions among visitors. Some communities in rich countries reduced their trips to Egypt, but the place is still filled with visitors from poorer countries. For them, the broad range of the Egyptian market is more important, than the possible hazards [6].

Direct attacks on tourists can be explained in several ways. Attacks on tourists who usually come from the so-called developed countries, provide great publicity and media are usually very interested in such situations. Media exposure may be a primary goal of those carrying out terrorism, to expose issues that would otherwise be ignored worldwide. It also affects economy which causes civil unrest and is perceived as tactic to achieve political goals. Furthermore, attacking foreign tourists doesn't lead to losing the support of the local population, which could be an important factor in justifying the terrorist activities. Hostility toward tourists may be particularly strong in underdeveloped countries, where tourism represents inequality and social disparities between the so-called Rich North and Poor South. Moreover, sometimes tourists behave in a way that is considered as difficult to accept for religious or cultural reasons. Finally, the tourism sector is a relatively easy target because of its size, diversity and range. Through their clothes, language and way of life, tourists are easy to identify and since they gather in specific historical and entertaining places, they become an easy target for terrorists.

Global Initiatives to Combat and Prevent Terrorism in Tourism

There are many counterterrorism laws and regulations. There are also numerous separate regulations on issues such as aircraft hijacking, bombing and terrorist financing. It seems that relatively little has been told about terrorism in tourism. As a result, international standards and laws are inadequate and unsuitable to the situation. terrorism travel international tourism

The most important organization working in the field of international tourism, including dealing with the issue of terrorism, is the World Tourism Organization (called the United Nations World Tourism Organization, UNWTO), a specialized agency responsible for tourism, that includes 156 countries [19].

This organization is responsible for the promotion of tourism as well as introduction of norms and regulations fostering sustainable development. UNWTO encourages their members to implement the «Global Code of Ethics for Tourism». The code of ethics is a non-binding and voluntary agreement, that defines tourism as a factor contributing to the sustainable growth and socio-economic development. Since June 2003, three times a year, the World Tourism Organization publishes the World Tourism Barometer, which provides information on issues related to the development of tourism worldwide. Some of the editions published informations about terrorist attacks and their impact on the global and the local tourism industry. Since the very beginning, Barometer specialists from the Tourism Trends and Marketing Strategies Programme of UNWTO addressed the topic of every major terrorist attack affecting the tourism industry worldwide. The problem of terrorism in tourism seems overhelving, especially since terrorists seem to be unmoved by any standards and rules of international law. The issue of terrorism in tourism must be discussed by international community as soon as possible and it should be regulated by international law. All countries should strive to define the concept of terrorism in tourism. To achieve this goal a «Global Code of Ethics for Tourism» should be introduced [12].

These concepts should be integrated with national law and their failure should imply financial penalties and prison sentences. It is crucial for the international community to support the development of a large non-governmental organization, which will focus on the tourism industry. Such organization should offer leadership and support to the sector in advancing knowledge and tourism policies worldwide. The development of such agency would encourage tourists to make deliberate decisions in choosing destinations among the countries that would have provided information on how they are perceived in the global tourism market. Such an organization could also be used to make tourism an effective tool for development through technical assistance projects [9].

Summary

The beginning of the 21st century was full of events associated with terrorism and tourism. The sequence of terrorist attacks, that started with in the September 2001 in the United States, had a profound impact on the world tourism industry. The phenomenon of terrorism affects many aspects of the economy: foreign investments, stock market or foreign trade, but the tourism sector is the most vulnerable to those acts. Terrorism causes not only a sharp drop in numbers of tourists, but also severely reduces the amount of investments. This way it influences future economic growth, employment and general income in countries affected by terrorism. In addition to short-term costs such as limiting the number of tourists and the general economic slowdown, terrorism involves many other costs. These costs include: increased expenses on promotion and advertising in order to attract more visitors, the costs of reconstruction and renovation of damaged facilities, not to mention the increased expenses on safety measures to reduce the threat. It should be noted, that most insurance companies will no longer cover for damage resulting from acts of terrorism, which leads to additional costs of insurance in case of death or personal injury in case of terrorist attack. Obviously, as a result of those attacks, some countries bear costs, while other can use them to their advantage.

Usually, the substitution effect balances the unwillingness to travel to neighboring countries. Thus, the global tourism market does not feel significant changes as a result of terrorist attacks. While the tourist market quickly regenerates, local tourism industry suffers trouble all the time.

List of references

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Abstract

Tourism is an important sector of economy and it reacts to economic trends and various types of risks, for example, such as terrorist attacks. Travelers do not want to be exposed to any risk, so safety is a priority. The paper presents some of the most spectacular terrorist attacks from the 21st century and their impact on tourism market. The analysis shows that terrorism reduces people's tendency to travel and has a negative impact on international tourism and tourists. As a result of the terrorist attacks, people tend to lose interest in some destinations and airlines notice a decrease of income in short term, which causes some adverse effects on the economy.

Key words: Terrorist attacks, the tourism industry, the effects of terrorism.

Туризм є важливим сектором економіки і він реагує на економічні тенденції та різні види ризиків, наприклад, такі як терористичні акти. Мандрівники не хочуть піддаватися будь-якому ризику, отож безпека є пріоритетом. У статті представлено деякі з найбільш видовищних терактів 21-го століття та їхній вплив на ринок туризму. Аналіз показує, що тероризм знижує схильності людей подорожувати і негативно впливає на міжнародний туризм і туристів. В результаті терактів люди, зазвичай, втрачають інтерес до деяких напрямів і авіакомпаній, можна помітити зниження доходів у короткостроковій перспективі, що спричиняє до деяких побічних ефектів в економіці.

Ключові слова: терористичні акти, індустрія туризму, наслідки тероризму.

Туризм является важным сектором экономики и реагирует на экономические тенденции и различные виды рисков, например, такие как террористические акты. Путешественники не хотят подвергаться какому-либо риску, так что безопасность является приоритетом. В статье представлены некоторые из самых зрелищных терактов 21-го века и их влияние на рынок туризма. Анализ показывает, что терроризм снижает склонности людей путешествовать и оказывает негативное влияние на международный туризм и туристов. В результате терактов люди, как правило, теряют интерес к некоторым направлениям и авиакомпаниям, заметно снижение доходов в краткосрочной перспективе, что вызывает некоторые побочные эффекты в экономике.

Ключевые слова: террористические акты, индустрия туризма, последствия терроризма.

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