Notes

It is not easy for an New Orleans hotelier to forecast the consequences of a disaster like Hurricane Katrina. Based on past experience catastrophes such as earthquakes, tornadoes and floods can significantly impact the revenue generated by tourism. In the event that a major disaster resulted in property damage amounting to millions of dollars, revenues from hotels could be affected.
The same events can affect hotel revenues as other industries. Research suggests that recovery from the pre-existing issues could be as long as twenty-three months or more. Investors are also expressing similar views about the future for hotel companies, which is evident in the recent underperformance of a number of hotels real estate investment trusts (REITs.) Revenues from hotels could be affected by small shifts in economic forecasts. So, any changes to the hotel's sales could impact your bottom line, which can ultimately affect the bottom line of your business.

Storms like Hurricane Katrina caused the sharp decline in revenue from hotels in the city as a result of an increasing number of tourists from different countries. Businessmen often assume that the decline in revenue from hotel rooms could result in a drop in room rates. It is an logical belief since increased demand has resulted in higher prices for accommodations. But what few businessmen realize is that a drop in room prices at a hotel may have an indirect yet very real influence on New Orleans economy. A direct impact occurs that a drop in room rates lowers the number of visitors who go to New Orleans on an everyday basis.


Like I mentioned that Hurricane Katrina had a devastating impact on New Orleans. Slidell, New Orleans' biggest city, was the most severely affected. Nearly everyone living in or near Slidell knows the true story of the huge destruction and damage wrought by the full-service disaster response. Everyone knows that New Orleans was the hardest-hit city in terms of destruction or damage during the hurricane. So, did the city's hoteliers. Owners of New Orleans' hotel businesses are taking steps to limit negative effects for the city.

In the past, hotel owners in particular, those who have several hotels spread across different areas of New Orleans, are already taking proactive steps to protect the New Orleans market. One of the ways they do so is by laying off certain portions of their workforce. Another method is cutting off some of their hotel facilities. As an example, they may be cutting down on the amount of hotel workers who are full-time and then transferring that responsibility into part-time staff. Still another way is through the use of digital key locks as well as other security measures that aim to reduce the amount of unauthorized entry into hotel rooms. https://www.gyeongseongop.com/incheon All of these are measures that have the potential to have a significant impact on the New Orleans economy, even prior to the devastation of a magnitude that Katrina caused. Katrina caused.

In addition to protecting hotel facilities from the negative effects of Hurricane Katrina affected hotels' occupancy rates as well as revenues, different types of New Orleans-based business organizations are also taking steps to combat the recession that followed Hurricane Katrina. Local manufacturers and retailers have announced closing of shops, programs for retraining as well as the closing of warehouses. Although the economy overall remains slow, at the moment, certain parts in New Orleans are feeling the benefits of increased store circulation and lower limits on travel. These local businesses were able to profit from lower prices and increased consumer trust in the aftermath of Hurricane Katrina in order to boost the sales.

The slow recovery of New Orleans will mean that the adverse impact on hotel sales won't be noticed until later in the year, as New Orleans hopes for a record Christmas season. The economic downturn has affected the hotel industry like no other, and the economic impact which is experienced by hotel owners is unimaginable. The impact of the recession on larger chains has not been significantly, if any.

At the end of the day, both business cycles will play a large part in determining the impact of the pre-pandemic demands on the occupancy rate. But to the extent that New Orleans experiences a period that is above the average, it's a promising sign for both the market for commercial real estate as well as New Orleans itself. The natural effects of Hurricane Irma are likely to be reversed once occupancy rates increase and taxable income starts to increase. If nothing else an extended period of higher than average occupancy could be a solid foundation for an economic boom in tourism that could help to boost the city's struggling businesses long after the water recedes.

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