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Cornell Hospitality Quarterly, Vol. 49, No. 2, 145-162 (2008)
DOI: 10.1177/1938965508315369

Fear and Managing in Las Vegas

An Analysis of the Effects of September 11, 2001, on Las Vegas Strip Gaming Volume

David Eisendrath

Harrah's Entertainment, deisendrath{at}yahoo.com

BO J. Bernhard

William F. Harrah College of Hotel Administration at the University of Nevada, Las Vegas, bo.bernhard{at}unlv.edu

Anthony F. Lucas

William F. Harrah College of Hotel Administration at the University of Nevada, Las Vegas, afl2{at}cox.net

Dennis J. Murphy

William F. Harrah College of Hotel Administration at the University of Nevada, Las Vegas, afl2{at}cox.net

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.

Key Words: travel and tourism • Las Vegas Strip • terrorism • slot coin-in


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