HURRICANE KATRINA RECOVERY INFORMATION

TRAVEL AND TOURISM INDUSTRY HURRICANE RELIEF EFFORTS
OVERVIEW
SEPTEMBER 7, 2005

In the Wake of Katrina

The tragedy of the Gulf Coast is unparalleled in our nation’s history. The loss of life, the threat of disease, the destruction of property and the prolonged disruption to everyday life to the residents and businesses of the affected communities is simply staggering. We want to share with you the impact this tragedy will have on our industry and our united voice for steps that can be taken to assist with the response, recovery and rehabilitation of the region.

Local communities, cities, states and the Federal Government will need to marshal significant resources to make sure the relief effort as well as the rebuilding and restoration of this region is completed quickly and successfully. Additionally, the travel and tourism industry, of which we are an integral part, is already playing a significant role in the response effort:

• The Travel Industry Association of America recently announced the creation of a travel industry job bank www.katrinajobs.com to help Hurricane Katrina victims find new employment as soon as possible.
• The National Restaurant Association has announced that it will organize a national “Dine for America” day on October 5th. The event, modeled after a post-9/11 event during which the nation’s restaurants raised more than $20 million for the victims of that tragedy, will be a nation-wide effort.
• Loews Hotels is trying to locate its New Orleans employees for transfer and employment at other Loews hotels around the U.S.
• Harrah’s Casinos has announced that it will keep every affected employee on the payroll for 90 days, paying health care premiums and offering job relocation to one of its operating casinos.
• Marriott International chartered buses with armed guards to evacuate about 2,000 people who sought shelter in its hotels.
• Cendant Corporation, which established a special employee hotline to coordinate distribution of pay and other benefits to employees in the region, is providing housing and rental vehicles to emergency response personnel and is matching employee contributions to hurricane relief agencies.
• LaQuinta Corporation chartered buses to move affected employees and their families to Arlington, Texas where they are providing rooms and meals.

These are but a few examples of the industry’s collective determination to assist in this tragedy.

Importance of Travel and Tourism Industry

When you think of the Gulf Coast region, you think of the miles and miles of beautiful coastline, the nightlife of New Orleans, the casinos and sporting life from professional athletic teams to golf courses to bountiful hunting and fishing. It should be no surprise that the travel and tourism industry accounts for 260,000 jobs and payroll income of $3.7 billion for the affected areas of Louisiana, Mississippi and Alabama. The industry accounted for more than $16 billion in business activity in the region in 2004. In New Orleans alone, travel and tourism accounts for more than 80,000 jobs and $5 billion each year, representing 44 percent of Louisiana’s tourism revenue and contributing to the $158 million generated in state tax revenue. The gaming industry in Gulfport and Biloxi generates about $911.5 million in annual revenues.

In a fashion perhaps unique amongst American businesses, the travel and tourism industry is truly the sum of its component parts. Restaurants, hotels, shopping centers, airlines and airports, convention and visitor bureaus, and so many other segments constitute a $1.3 trillion uniquely American industry known as travel and tourism. The social and economic consequence of this disaster on our industry’s employees and employers is, as yet, unknown. Given that 97.7 percent of employers in this industry are small businesses, recovery will be extremely challenging.

The ripple effect of this storm will likely be felt in every state in the region. Food supplies will be affected as the Gulf Coast is the primary source for the nation’s shrimp and the Port of New Orleans is the largest market for imported coffee. The city of New Orleans, a top destination for conventions and trade shows, has cancelled all events through December 1st.

This natural disaster also struck directly at key energy production, refinery and transmission facilities in the Gulf Coast region. Our country lost 10 percent of our nation’s refining capacity as result of this storm at a time when our refining capacity is already stressed. Some 21 percent of our nation’s natural gas originates under the Gulf, and the Gulf Coast region accounts for 30 percent of domestic crude-oil production. The federal government must work to ensure there is adequate, uninterrupted supply of fairly priced transportation fuels that are essential to national mobility for business and leisure travelers in all modes of travel – highway, air and sea.

Our Message

Once lives are made whole and infrastructure is rebuilt, these important visitor destinations can only truly recover when domestic and international visitors are explicitly invited back to see the unique culture, history and attractions that make these places special. In light of the devastation of Hurricane Katrina in the states of Louisiana, Mississippi and Alabama, and in particular the tourism-intensive areas of New Orleans and the Mississippi Gulf Coast, the federal government should direct funds to help these tourism destinations promote both to domestic and international visitors once the rebuilding is complete and it is appropriate to begin hosting visitors once again.

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