The impact of crises on hotel rooms' demand in developing economies: The case of terrorist attacks of 9/11 and the global financial crisis of 2008

The terrorist attacks of 9/11 and the financial crisis of 2008 had a considerable impact on the hospitality industry around the World. Using monthly STR hotel data for Honduras and Costa Rica, this study investigates if differences exist among these two countries and their impacts on the hotel industry. The results indicate that the two crises are not the same, impacting Costa Rica more negatively then Honduras. In addition, the crisis of 2008 had a more negative impact than the 9/11 crisis, highlighting the differences between the crises. The tourists' origin, mode of transportation, hotel segment, the level of tourism development and institutional environment may have some influence on how destinations respond to crises. This study provides numerous managerial and empirical implications.