¶ … economy changed in Miami Florida after the terrorist attacks on New York City after 9/11/01?
According to a recent study conducted by the Florida International University College of Business Administration and the Greater Miami Chamber of Commerce, Florida, after the 9/11 terrorist attacks is paying a high price for security for almost two years now, compelling companies to re-evaluate whether to continue doing business in Miami Florida and if so, then how to move about in making it a success (Robert, 2003).
Furthermore, the economic effect of increased Homeland Security measures along with the U.S.A. Patriot Act has been tremendously negative. According to the author of the study, FIU professor David Wernick;
There is a risk that key South Florida industries could be seriously undermined by mandates that drive up business costs, disrupt global supply chains and deter foreigners from vacationing or conducting business here while ultimately doing little to increase national security (Robert, 2003)."
The Initial results consisted of a study of 136 companies, including healthcare, trade, retail, hospitality; international banking and real estate found that the international commerce has been one of the industries that has been hit the most by increased security measures (Robert, 2003). While, the final results of the study released in a white paper and sent to Gov. Jeb Bush, the U.S. Department of Homeland Security along with the Florida congressional delegation suggested that the security policies has been now more economically practicable and business friendly (Robert, 2003).
Economy after 9/11
Cargo-intensive Customs inspections have increased from seventy-five per month before 9/11 to 1,200 in June 2003, which is growing wait times at the Port of Miami, according to survey responses by the Port of Miami Terminal Operating Company (Shannon, 2003). Moreover, ports have increased fees to help cover costs for additional docking time, security and overtime (Shannon, 2003).
While, officials with Tropical...
According to their estimation yearly security fees will cost an additional $2.3 million.
In addition, a number of companies shipping into Port of Miami have reported damaged goods and loss in business due to delays, making them consider taking their business outside the United States (Shannon, 2003).
Some European and Asian exporters that have traditionally used Miami as a trans-shipment hub for goods destined for the Caribbean and Latin America are considering rerouting their cargo through the Bahamas, Panama, the Dominican Republic and Jamaica to avoid the added costs, hassles and delays associated with the new security mandates," said Mr. Wernick.
One-third to one-four of business at Port of Miami, Miami International Airport and Port Everglades consist of trans-shippers, who use South Florida as a stopping point on their way to other countries. Mr. Wernick further added;
Over the past two years, we have spent tens of thousands of dollars on security-related personnel and equipment. Additional user fees at this junction would be a heavy burden, given the industry's slim operating margins (Shannon, 2003)."
According to the study, banks have been hit with costs for increased staff and attorney fees as well as have lost business due to Patriot Act regulations. While, one of the international banks in Miami have reported a loss of approximately $20 million of deposits in the past two years, which it credited to those customers who took their business offshore.
Law firm Shutts and Bowen also reported that the majority of its hundred banks and financial-services clients have sought legal advice for $200 to over $300 hourly. The study also found that a proposed law that would cut down visa holders' stay in the United States from six months…
