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FORUM: Economic and Social Council ISSUE: Concerning Economic Failures that Rely on Tourism Due to Destruction of the Tour Sight STUDENT OFFICER: Nam Hyun Soo

POSITION: Deputy President of Economic and Social Council

Introduction Motivated by ideological, religious, or political purposes, often results in an unprecedented number of deaths. Indeed, the terrorism not only claims innocent lives but also spawns negative effects on international economy. Since 2001, terrorism has been one of the biggest threats of the world, killing millions of innocent people. Al-Qaeda’s 9/11 attack resulted in an unparalleled number of deaths and destruction of private property and the city’s infrastructure—the total cost of 9/11 attack is estimated to be approximately $65 billion. This excludes indirect costs to the U.S. economy. Another example happened in 2007 which was driven by increases in terrorism in Iraq. One The Global Economic Impact of Terrorism of the significant one would be the terror that happened in , which Glasgow International Airport was attacked. The third peak, which starts from 2013 to present, is the increased levels of violence from an ISIS in Syria and Iraq. Terrorism has effects on economy in various ways, and one of the aspects would be the suffering of tourism. Tourism has become an important source of income for many regions and even entire countries. Tourism brings large amounts of income into a local economy in the form of payment for goods and services needed by tourists, accounting as of 2011 for 30% of the world's trade in services, and for 6% of overall exports of goods and services. It also generates opportunities for employment in the service sector of the economy associated with tourism. The hospitality industries which benefit from tourism include transportation services， hospitality service, and entertainment venues. This is in addition to goods bought by tourists, including souvenirs. Tourism has become a significant contributor to various countries and it became a source to economic growth and development. However, there is a threat to this tourism industries, and it is

TIANMUN 2019 Economic and Social Council – 2 terrorism. Terrorism has affected the tourists' perception with regard to travelling and the risk associated with it. Statistics showed that the travelers were more threatened by the terrorist attacks than the natural disasters. This means that it is going to bring cancellations of the flights. For example, because of the 9/11 attack, the airline industry lost $5 billion specifically, the four-day shutdown cost $1.4 billion alone.

Background Perhaps the most commonly held belief today is that terrorism is caused by religion. Though it is not the main cause for terrorism, religion does play a significant role in driving some forms of it. Today religion as a part of terrorism has been mainly attributed to Islamic fundamentalism. As Sageman describes. As a driver of terrorism, the true danger that religious doctrine poses is its encouragement of attacks that are more violent in nature than other types of terrorism. By being promised rewards in the afterlife, terrorists are more likely to carry out suicide bombings and other such “all in” tactics that are harder to defend against. Basically, terrorism can hurt a countries economy in two major ways. The economy of the part where terrorist-hit is immediately affected by the building repairs and infrastructure damage. In addition, the financial market is going slowly recover from the impact of the attack, which is going to be a long-term effect. But the biggest impact on the economy is the rise in spending on security and defense and the impact on the supply chain of enhanced security at land, sea and air border crossings. As a country takes steps to make its borders safer, spending on defense and national security tends to increase significantly in the months following the terrorist attacks. Such enhanced security at borders and checkpoints could cost much more to move products and goods abroad. In order to calculate the costs of an attack there are 3 main factors that people need to account of. First one would be the decline in revenues to travel and tourism industry. This can be calculated by comparing the demands before the terror and the demands after it. Then it would be the psychological cost, which includes the pain, emotional suffering and trauma. This is the one that is hard to calculate, but it mostly is about the earning potentials of the victims, and medications. Then it would be the government emergency funds, which is the costs that is used to enhance the security, rebuild the buildings and infrastructures.

Problems Raised

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Problems to the airline industries As profits for most major European airlines began to be released following the November 2015 Paris attacks, most reports cited about the weakening demand. The impact has worsened since the Brussels bombings in 2016, most likely because it took place at airport terminals and subway stations. An attack in mid-2010 across Europe had a tremendous impact on airline stock prices, but it is nothing like the Sept. 11 attacks the following year, when American Airlines' stock prices fell more than 90 percent.

Problems to the tourism industries The impact of terrorism on the travel and tourism industry can be enormous. That could lead to unemployment, homelessness, deflation and many other social and economic ills.

International Actions Enforcing laws In recent years, a lot of countries introduced legislative reforms to deter growing terrorist threats or respond directly to attacks on their territory. France, as an example, they have banned anyone believed to be travelling to join a terrorist group abroad. This kind of laws are all being made by countries like Australia, Britain, and etc.

Improving the boarders In April 2017, European Union introduced a new check system on the borders of EU countries in order to increase national security.,. To record the movements of non-EU citizens across the Schengen area and speed up control, EU is going to operate a new entry and exit registration system staring 2020.

EU's new entry and exit registration system Key Players Tourism is one of the main source of national budget of Egypt. However, Egypt has been subject to terrorism for the consecutive years. For example, Egypt experienced the . Currently, the number of tourists is dropping until 2017. Egyptian terrorism specifically targets the Egyptian tourists.

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These attacks often end with death and injuries, and have immediate and lasting effects on the tourism industries. There are a variety of forms, like the bombing of an airplane that carries tourists, shooting at tourists directly, knife attacks on tourists and suicide bombings at places where tourists are gathered.

Belgium The terrorist attacks at Brussels Airport and the Malbec subway station in March 2016 had a major impact on tourism in Flanders. The number of British visitors was down 20%, while Americans were down by 25%. Japanese tourists were down by 45%.

Possible Solutions Education Education can be a solution to prevent further terrorist attacks. If the government offers those in lower social class—in terms of economic situation—with opportunity, education, or pensions they will likely pursue jobs or other career paths. According to a research, it is clear that many people in the Middle East choose to be terrorists: because they need enough money to support their families Therefore, education could be a feasible solution to reduce the number of terrorists in the Middle East and save more Christians who are living in the Middle East.

Reinforcing public safety Many terrorists attack public places, in order to prevent it, the governments should reinforce public safety. By increasing the number of armed policemen or troops in public places in the Middle East, it would be hard for terrorists to cause terrorist attacks.

Glossary Luxor massacre It was an event that 62 people got killed, mostly tourists, on 17 November 1997, at Deir el-Bahari, an archaeological site and major tourist attraction across the from Luxor, Egypt. ISIS They are the ones that caused most of the terror globally, and the full name is Islamic State of Iraq and Syria.

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