Fear and Managing in Las Vegas

Abstract

This article provides an analysis of the impacts of the events of September 11, 2001, on certain gaming business volume on the Las Vegas Strip. Almost immediately after these events, management teams commenced with layoffs and project postponements, in anticipation of a long and painful recovery period. The authors' intervention analysis, however, reveals an abrupt decline lasting five months, indicating a relatively rapid recovery. Interestingly, this type of recovery appears to be similar to that which has been observed in other literature examining previous terrorist attacks. In the concluding discussion, the authors highlight the lessons of both history and empirical inquiry in hopes of helping managers understand the dynamics of terrorism impacts on the hospitality industry in general and on the gaming industry in particular.