Under the Influence with Terry O'Reilly - S7E23 - How Tourism Survives A Tragedy

Episode Date: June 7, 2018

This week, we look at how tourism survives a tragedy. When a city experiences a massive crisis, it must find a way to restore its tourism. All cities rely on tourism – it is often one of the top revenue-generating industries and employs one of the biggest workforces. From Toronto’s SARS outbreak to Hurricane Katrina, it all comes down to a crisis plan, speed and smart marketing. Hosted on Acast. See acast.com/privacy for more information.

Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,

who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please, do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan, you just have to love storytelling.

Subscribe now, and don't miss a single beat. From the Under the Influence digital box set, this episode is from Season 7, 2018. You're so king in it. Your teeth look whiter than noon, noon, noon. You're under the influence with Terry O'Reilly. Golfer Ben Hogan had a nagging problem. He always hooked the ball.

He went broke twice trying to be a pro golfer, so he dug deep and practiced his swing over and over and over. His work ethic was so intense, it was said that he invented practice. From that determination, Ben Hogan developed a legendary ball-striking ability. His precision was only topped by his iron will to win. Soon, Hogan became the PGA's leading money winner in 1940, 41, and 42 before going into the military. After his discharge, he won his first major in 1946 and went on to win an amazing 37 tournaments. Then, tragedy struck.

On February 2nd, 1949, Ben Hogan and his wife Valerie were driving on a foggy night outside El Paso, Texas. A Greyhound bus pulled out to pass a truck and struck Hogan's car head-on. Hogan threw himself across his wife to try and shield her. That move would save his life. The impact drove the car engine into the driver's seat and the steering wheel column into the back seat. Valerie Hogan received only minor injuries. Ben wasn't so lucky.

He suffered a broken collarbone, a smashed rib, a double fracture of the pelvis, and a broken ankle. Doctors worried Ben Hogan would never walk again. Golf seemed out of the question. That summer, Hogan's iron will kicked in again. He rehabilitated himself first by limping, then by walking extensively every day. One year later, Hogan astonished the sports world by entering a tournament and tying for first place. Just 16 months after the tragic accident, he won the U.S. Open. He sinks it and wins. The crowd scrambles wildly for the ball.

Little Ben Hogan, who doctors said would never play again, makes a remarkable comeback. He won even though his legs were wrapped in bandages that went from his ankles to the top of his thighs. He was the PGA Player of the Year in 1948, the year before his near-fatal accident, and, remarkably, in 1950, 51, and 53 immediately after. As the New York Times noted, Hogan never played again without pain, but his greatness only increased. In 1953, he won the Masters, the U.S. Open, and the British Open. By the time he retired, Ben Hogan had won nine majors and 64 PGA championships. Tragedy did not stop Ben Hogan, because he found a way to come back.

The world of marketing often has to wrestle with tragedy. When a city experiences a massive tragedy, it must find a way to come back. It must restore tourism. All cities rely on tourism. It is often one of the top revenue-generating industries and it employs one of the biggest workforces. Yet every tragedy is different and there is no playbook.

It all comes down to a crisis plan, speed, and smart marketing. You're under the influence. This past February, I attended an annual event in Banff, Alberta called The Gathering. It's a remarkable three-day conference where the chief marketing officers of the world's most famous brands gather to give talks and workshops. In the middle of this celebration of smart marketing, there was one talk I attended that was a little different. It was given by Kathy Tull, the chief marketing officer for the Las Vegas Convention and Visitors Authority.

She wasn't talking about her advertising successes. No, she was talking about how tourism survives a tragedy. On Sunday, October 1st, 2017, a gunman sprayed bullets into a crowd of concert goers in Las Vegas. We have an active shooter. We have an active shooter inside the warehouse. Shots fired from Mandalay Bay. 58 people were killed. 851 were injured. All but six of the dead were tourists. It was the deadliest mass shooting by an individual in modern U.S. history.

Kathy Tull wasn't in Las Vegas that night. She was in Italy celebrating her 50th birthday. She got the call about the shooting around 6 a.m. Italy time. It was hard to absorb the news, but she had to make some quick decisions. First, within 45 minutes of the shooting, all Las Vegas advertising was pulled. An astounding feat considering how far and wide Las Vegas advertises. There was a reason that could happen so quickly. In a complete fluke of timing,

Kathy Tull had completely updated the Las Vegas Crisis Communication Protocol just the week before. She did it simply because it hadn't been updated in years. That utter twist of fate allowed her team to spring into action. Tull flew back to Las Vegas immediately. She convened her team to discuss their communication strategy. Second on the Las Vegas crisis communication list was that the right tone had to be struck.

So Tull's team listened intently, taking their cues from the public. Almost immediately, a community-driven sentiment appeared on social media. Hashtag Vegas Strong. For any city, tourism is critical for the health of its economy. For many, tourism is the second or third most important revenue generator. For Las Vegas, it was number one. 42 million people had visited Las Vegas the previous year. The entire city is supported by tourism. And the rule is, tourists will only go where they feel safe.

Suddenly, Las Vegas wasn't safe. The Vegas Strong hashtag was gaining momentum. There was a lot of love and support for Las Vegas starting to pour in. So Kathy Tull and her team started posting user-generated messages of support on the city's social media channels. They also determined the city itself needed to hear an emotional message from a trusted voice. A call was made to Vegas resident and tennis star Andre Agassi, who agreed immediately to voice this message. What is strength? Strength isn't anger. Strength isn't

vengeful. Strength isn't rage. Strength is unity. Strength is valet parkers who become medics, mothers who become emergency responders, sisters who shield brothers because they love them with a love that has no bounds. Strength is first responders who tirelessly carry visitors and locals alike to safety until sunrise. It's our medics and surgeons, all of them, who come running to the calls of those in need. It's the police who turned over every stone to make this city safe again. With that, Las Vegas instantly received over three million dollars in media donations. Tull and her team realized that tourists still wanted to come to Las Vegas, but wanted to be respectful.

Billboards were put up with the Vegas Strong hashtag saying, We've been here for you in the good times. Thank you for being there for us now. Kathy Tull's department produced TV commercials starring celebrities welcoming people back to Vegas. In the three weeks after the shooting, bookings to Las Vegas plunged by over 20%. Then, the cancellations began to slow down.

Hashtag Vegas Strong was an important rallying cry for the city. But Las Vegas had to be careful its identity didn't become permanently associated with the tragedy. So Kathy Tull did research to see if the What Happens in Vegas Stays in Vegas campaign could return. Research showed that people wanted their Vegas back. Three months after the tragedy, a new What Happens in Vegas Stays in Vegas television commercial was put on the air. Overseas tourists were the first to come back. Convention traffic wobbled a bit, but tourism to Las Vegas began a steady climb.

By March of 2018, visitor volume was only down 1% year over year. It was the second busiest march on record. As Kathy Tull and her team proved, being prepared is half the battle when tragedy hits. This just in, you are looking at obviously a very disturbing live shot there. That is the World Trade Center and we have unconfirmed reports this morning that a plane has crashed into one of the towers of the World Trade Center. When the tragic events of September 11, 2001 unfolded, no one was prepared. New York City is the most visited city in North America. Understandably, tourism plunged after 9-11.

In the year 2000, a record-setting 37.4 million tourists visited New York, contributing $17 billion to the city. In the first days after 9-11, New York lost $324 million in visitor spending. Broadway lost $5 million in ticket sales that week and five shows closed. Hotels went from 90% capacity to half empty. Restaurants lost an estimated $6 to $10 million a day.

When Mayor Rudolph Giuliani was finally able to turn his attention to his city's economy, he said, the best thing you can do for our city is to take in a Broadway show. So the casts from the top Broadway shows gathered in Times Square to film this commercial. These little town blues are melting away. We'll make a brand new start of it in old New York. The sight of all those actors singing their hearts out in Times Square told the world New York could not be broken.

Come to New York and let's go on with the show. That last line, delivered by Nathan Lane, was a very important message to the world. Just three weeks after the attack, Mayor Giuliani appeared on the season opener of Saturday Night Live. He called SNL a New York institution and said having the city's institutions up and running sends a message that New York is open for business. Then, producer Lorne Michaels asked Giuliani a very important question. Can we be funny?

Why start now? The city's Convention and Visitors Bureau started running print ads saying New York was, quote, stronger than ever. Next, advertising agency BBDO offered to write and produce six television commercials worth more than $10 million for no charge in less than a month. Music companies, film crews, and editors all offered their services for free. The campaign featured well-known New York celebrities who also donated their time. The theme? Everyone has a New York dream. Come find yours.

The New York Miracle. Be a part of it. First, the city began to enjoy what has been termed patriotic tourism. Fellow Americans started showing their support by visiting New York again. It would take two years of marketing to attract international tourism back again. The turning point was 2003. New York saw its first spike in tourists. 38 million people visited. Then, in 2010, a record 48 million people came.

Last year, 17 years after the worst terrorist tragedy on American soil, over 60 million people visited New York City. It was the eighth consecutive year of record tourism. Across the ocean, the most visited city in Europe would find itself facing tragedy. And we'll be right back. If you're looking for flexible workouts, Peloton's got you covered. Summer runs or playoff season meditations, whatever your vibe, Peloton has thousands of classes built to push you.

We know how life goes. New father, new routines, new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power. Peloton. Visit Peloton at onepeloton.ca. If you're enjoying this episode, why not dip into our archives?

Available wherever you download your pods. Go to terryoreilly.ca for a master episode list. In January 2015, terrorist attacks across Paris and surrounding areas saw 17 people killed. In mid-November of that same year, another series of terror attacks took place in Paris at a concert hall, stadium, cafes and bars simultaneously. 130 people were killed and hundreds more wounded. A state of emergency was declared in France. Safety became a top priority. 10,000 soldiers and nearly 5,000 police were deployed to patrol public spaces.

France hosts around 80 million international tourists a year, with Paris being the top destination in Europe. After the attacks, the number of tourists immediately dropped by 3 million. Hotel revenues were down 15% and major attractions dropped nearly 50%. Donald Trump announced that Paris is no longer Paris because of the attacks. So, the French government met with the tourism industry to formulate a plan. Over the next two years, a multi-million euro campaign was produced to reassure foreign tourists. The city created five events around must-see key moments throughout the year,

including Romantic Paris for Valentine's Day, Paris Outdoors and Family in the summer, and Fairy Winter in December. They targeted all markets, including the LGBTQ community, families, foodies, fashion lovers, history buffs and sports fans. They encouraged movie and television producers to keep filming in Paris, as movies were the first point of contact Paris had with 39% of its tourists. In a savvy move, French President Emmanuel Macron brought Donald Trump to Paris to show him that Paris was still Paris.

By the end of 2017, Paris tourism had reached a 10-year high, with a 20% increase in American tourists over the previous year. France tourism was able to overcome tragedy. And Donald Trump. On March 5, 2003, the first victim of SARS died in Toronto. Over the next month and a half, 10,000 Torontonians were placed in voluntary or supervised quarantine. More people died. On March 26th, SARS was declared a provincial health emergency. Then, on April 23rd, the World Health Organization urged people to avoid travel to Toronto.

That travel advisory had a devastating economic and social impact on the city. Worth $3.4 billion annually, tourism is the city's second largest revenue generator. With that advisory, Toronto tourism sustained a $350 million loss instantly. The travel advisory was also controversial. The actions of the WHO are wrong and they're irresponsible. One week later, the advisory was lifted when the last presumed SARS case was diagnosed. Then, on May 23rd, officials announced five more individuals were under observation for SARS,

resulting in a second outbreak. Meanwhile, the Mayor's Task Force on SARS Recovery met with tourism and business representatives to plan how Toronto's image and economy could make a fast rebound. Speed was critical, because the economic fallout was rolling across the city like a wave. Over one-third of the 95,000 tourism workers in Toronto had been laid off.

Many more were reduced to part-time work. Revenue for downtown merchants dropped 70%. Hotel occupancy rates plummeted 50%. At least five major conventions canceled, a loss of 20,000 attendees. First, the three levels of government earmarked $25 million for an advertising and marketing campaign on television, radio, and newspaper. The advertising didn't only target U.S. border cities and states, but also tourism influencers, including tour operators,

convention organizers, and travel writers. The provincial government committed itself to an additional $118 million SARS recovery plan, earmarking $66.8 million to rebuild global confidence in Toronto. They also targeted people living within a two-hour radius who were commuting into the city. The task was to turn Torontonians into tourists in their own town. Toronto ad agency BBDO quickly created a $3 million ad campaign with the theme,

You Belong Here, starring Canadian celebrities like Jason Priestley and the Barenaked Ladies. Wanna feel everyone under the morning sun I wanna do it now, I wanna shout it out I directed the radio component of that campaign starring Leslie Nielsen. Soon, it appeared the downturn was mostly concentrated in the second quarter of 2003. Then, the marketing started to kick in. The Carabana Festival sold more tickets to certain events than it did the year before.

The Molson Indy came close to breaking a previous record. Area restaurants and hotels reported substantial increases during the summer events. Then came the July SARS Relief Concert, starring bands like Blue Rodeo and ACDC to the Guess Who and the Rolling Stones, all who performed for free. Hey, how you doing? Welcome, this is the biggest party in Toronto's history, right? Correct. That concert would become the largest in Canadian history, attracting a crowd of over 450,000.

With CNN covering the event, it was a way to show the world Toronto was open for business. During the first nine months of 2004, hotel occupancy rose to 70%. Businesses were almost back to normal. Miraculously, the GTA's 2004 revenues actually topped pre-SARS levels. The city had responded quickly and creatively to an almost unprecedented tragedy. life goes. New father, new routines, new locations. What matters is that you have something there to adapt with you, whether you need a challenge or rest. And Peloton has everything you need, whenever you need it. Find your push. Find your power. Peloton. Visit Peloton at onepel a.m. on August 29, 2005, Hurricane Katrina struck the Gulf Coast of the U.S. New Orleans was at particular risk because it's surrounded by water and much of its land lies below sea level.

Flooding covered 80% of the city, leaving over 100,000 homes destroyed. In Louisiana alone, the death toll was over 1,500. In 2004, New Orleans attracted a record 10 million tourists. But in 2006, the year after the hurricane, tourism took a steep dive to just 3.7 million, a drop of 63%. It took several years for New Orleans to approach what might be called normalcy, because Katrina was the single most catastrophic natural disaster in the U.S. to date. Then, the city launched a game-changing national tourism campaign to turn the city around.

They called it Follow Your NOLA, the word locals use for New Orleans, Louisiana. NOLA. The key to a successful recovery was not to focus on Mardi Gras. New Orleans needed to attract more people than a single celebration could muster. So, Follow Your NOLA was designed to open the curtain to the city's lesser-known year-round draws, like its rich cuisine, music, and museums. The strategy?

If you aren't interested in festivals, you can follow your NOLA and explore the city your way. New Orleans created a brand new website, TV and radio ads, hired social media influencers and put on events targeting 20 different markets. Then they created three clever commercials. Each used the exact same voiceover script but showed different scenes and characters to appeal to different demographics. For example, when the script said, you're going to want to do this alligator thing, one commercial

showed a family taking the kids to see alligators at the zoo, while another ad showed a group of 30-somethings nibbling deep fried alligator cuisine. The Follow Your NOLA campaign received over 600 million impressions. Travel and Leisure and TripAdvisor named New Orleans a top travel destination. In 2012, with just a fraction of the budget of other major cities,

New Orleans hosted a record-breaking 10.4 million tourists, proving, as with all of our stories today, that tourism could triumph over tragedy. It seems like we now live in an era of tragedy. They happen with heartbreaking frequency, everyone unique in its devastation, each taking an extreme human and economic toll. Although each of the tragedies mentioned today differed greatly from the other,

they all shared critical responses. First, reacting quickly dictated success. It's difficult to be prepared for the unexpected, but as we saw in the case of Las Vegas, having an updated crisis plan in place allowed Kathy Tull and her team to respond in an effective and timely manner. Second, you may have also noticed that the marketing relied heavily

on the donation of time and services. Advertising agencies offered powerful commercial ideas pro bono. Production communities stepped up to offer free services. Performers appeared in the commercials at no cost and major bands rushed to lend a helping hand. A city has to come together in a tragedy, because tourism is not just your average industry. It is the number one or two revenue generator for cities, employing a huge percentage of a workforce.

So, when tragedy strikes, the stakes are big. That's why a city must be able to develop a marketing plan to restore confidence. Then, just as Ben Hogan showed the world all those years ago, a remarkable comeback is possible when you're under the influence.

I'm Terry O'Reilly. Under the Influence was recorded in the Terrestrial. Producer, Debbie O'Reilly. Sound engineer, Keith Ullman. Theme music by Ari Posner and Ian Lefevre. Research, Allison Pinches. Co-writer, Sydney O'Reilly. Follow us on Instagram at Terry O'Influence. See you next week.

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