World tourism braces for slump

Some say the tourist industry is set for the worst crisis ever

By CNN's Tom Bogdanowicz

LONDON, England -- The world tourist industry is bracing itself for a substantial slowdown in business after last week's terrorist attack on the United States.

Reservations through leading booking network Amadeus were down 28 percent worldwide in the four days following the attack.

Busy London agency Crystal Travel also says business has slumped since last Tuesday's attack.

They said customers were cancelling travel plans, changing holiday destinations from the U.S. to elsewhere, and some simply cutting short their trips and heading straight home.

People on the streets of London and the French capital Paris have voiced their caution. One resident told CNN: "I wouldn't want to fly, not to America, I'm scared."

CNN.COM SPECIAL REPORT  CNN NewsPass Video  Agencies reportedly got hijack tips in 1998  MORE STORIES Intelligence intercept led to Buffalo suspects Report cites warnings before 9/11  EXTRA INFORMATION Timeline: Who Knew What and When? Interactive: Terror Investigation Terror Warnings System Most wanted terrorists What looks suspicious? In-Depth: America Remembers In-Depth: Terror on Tape In-Depth: How prepared is your city?  RESOURCES On the Scene: Barbara Starr: Al Qaeda hunt expands? On the Scene: Peter Bergen: Getting al Qaeda to talk

Others said they would consider flying again but certainly not at the moment. Another resident told CNN: "If it all goes off I'd rather be at home."

The World Tourist Organisation has reduced its forecast for this year's growth in tourism by a third.

Demand from U.S. customers is down by three quarters worldwide -- a major blow to the tourist industry: Travellers from the United States are the world's biggest spenders, accounting for about 13 percent of the trillion dollars international tourists spend every year.

Head of the British Tourist Authority, Jeff Hamblin, told CNN that roughly one in every five dollars spent in Britain by overseas visitors was spent by Americans.

Last year, 4.1 million U.S. tourists visited Britain and spent a total of almost four billion dollars.

Jean Claude Baumgarten, head of the world travel and tourist council, told CNN the psychological effect of the attacks was likely to be greater than that of 1991 Persian Gulf War.

The year after the conflict in the Gulf saw the number of U.S. tourists travelling to Europe fall by more than 20 percent, a figure which took three years to recover.

Though some travellers say they are now scared to fly, and others say they are not, most make it clear they want to be at home when the U.S. responds to last week's attacks.

International travel is unlikely to revive until that response is complete.