MICHAEL MEISINGER

Media arts senior Lorie Lee, right, enjoys a meal with her friend Michelle Hale, a fourth-year doctoral student in comparative cultural and literary studies, in the lobby of the Marriot University Park hotel, 880 E. Second St. Occupancy at the hotel dwindled to 30 percent last week, down from its normal September average of 75 percent to 80 percent.

Friday September 21, 2001

Economic implications of terror attacks can be seen on campus

Campus sentiment concerning the economic future of the nation remains uncertain as markets continue to tumble and memories of last week's terrorist attacks remain clear.

Some students - particularly seniors expecting to graduate in December and May - are concerned with the shift the job market is likely to see in the coming months.

Accounting senior Talitha Woods said she planned to take time off from school after earning her degree, then get a job in her field. But she is now apprehensive about the fate of those plans.

"I'm thinking I'll earn my master's first," Woods said.

Bill Ruggirello, UA Career Services assistant director, said job growth already declined slightly, but students should remain optimistic about their chances.

"There are still going to be jobs for students - just not as many as in past years," he said.

Ruggirello said the events of the past week will continue to impact the number of jobs available, especially coming out of a two-year period in which graduates had a number of job options.

"Things are definitely changing," he said. "A student is going to have to explore more options."

He encourages students to be flexible, brush up on interviewing skills and open themselves to career options they may not have previously considered.

Ruggirello said students may have to consider starting at a lower position and working their way up.

Brian Kohl, a business administration senior, will face the job market in May, yet he remains hopeful.

"I don't have any concerns with the recent decline," he said. "The market can only go so far down before it has to rebound."

Economics professor Stanley Reynolds said the nation was already caught in an economic slowdown, and many economists predicted a recession.

Eventually, he said, the market will correct itself, particularly if the government steps in to aid companies or increases production of military equipment.

Reynolds said the events of last week had an immeasurable effect on the nation's economy.

"It's probably too soon to tell or to make any clear forecast," he said. "But it certainly looks like we're headed into a recession."

Reynolds said the biggest effect has been to the airline industry, which cut flights and faces dramatic security alterations. The tightened procedures could cost the industry more than $1 billion. The industry already expects a net loss of $24 billion by next summer, although it hopes for aid through government dollars.

Sebastian Tonazzi, a travel adviser for STA Travel situated in the Student Union Memorial Center, said airlines now run just 80 percent of normal flights, which helped increase student business.

He said that Tuesday and Wednesday, the agency saw no business as flights were grounded across the nation.

This week, however, sales began to recover as students booked tickets for trips home over Thanksgiving and winter breaks.

"Domestic travelers seem to be somewhat comfortable flying again," he said. "But international travelers are still asking a lot of questions about safety."

But the losses affect more than just the airline industry, Reynolds explained.

Rich Byrd, general manager of the Marriott University Park hotel, 880 East Second St., said declines in the hospitality industry's sales have not been as publicized as other industries' even though hotels rely heavily on airline travelers.

The absence of travelers, he said, has had devastating effects on hotels and resorts in Tucson - a $1.8 billion-a-year hospitality market that caters to both corporate and transient business.

"The impact has been pretty bad," Byrd said. "The past week, several groups have cancelled because clients have been afraid to travel."

Normally, he said, the Marriott's occupancy rate hovers between 75 percent to 80 percent in September. But the hotel's current rate is only 30 percent - a gain of several percentage points from last week.

The current season - known in the industry as the "shoulder season" - precludes the coveted "high season" western states experience that begins in January. Byrd said low sales now bring the Marriott's yearly sales to average rather than "extraordinary" like he expected just two weeks ago.

The retail industry also suffered, as most Americans stayed out of malls and remained glued to their television sets last week.

Vitae Felix, an ecology and evolutionary biology sophomore, said her spending habits remained the same, but she noticed her friends were more frugal than normal.

"I think the tragedy mostly affected people in New York and around the World Trade Center," she said. "But I have noticed that stores have not been as crowded."

Many large shopping malls - including those in Tucson -closed down Sept. 11.