New Orleans’ economy is very dependant on the tourism and lodging industry

In the past couple of years, this industry in New Orleans has declined. In 1996 the city hosted 12 million tourists and conventioneers and they spent close to $4 billion. The average daily room rate was $105. The September 11 attacks had a huge effect on the tourism industry. Although the economy in New Orleans is rising, the number of tourists each year has dropped dramatically.
This past year New Orleans hosted an estimated 7.995 million visitors. This is approximately the same number as they hosted in 1991, meaning the increase in visitors throughout the nineties has been abolished. On the positive side, these 8 million visitors spent approximate $4.5 billion on hotel rooms, food, drinks, entertainment, and shopping. This figure is actually higher than that spent by 12 million visitors in 1996. This $4.5 billion created 2.9 billion in revenue and helped support more than 138,000 are jobs.
New Orleans has done a great job in compensating for the decline in the tourism industry. Because of the lack of visitors they have simply made it more expensive for the guests they do receive. The current average daily room rate for New Orleans’ hotels is about $170. Average airfare from Denver to New Orleans is $400. Even though these prices are so high, the great thing about New Orleans is that no matter what day of the year visitors can always find free events. All of this contributes to what should be a very profitable 2004.
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