The domestic travel industry is seeing major losses in the aftermath of Tuesday's tragic terrorist attacks on New York and Washington, even with the Chuseok, or Korean Thanksgiving holiday just ten days away. According to industry sources Wednesday, many locals are calling off their plans to fly abroad during the peak travel season and carriers have taken cancellations for more than 50% of reservations made for flights to the US and Canada.

The sources add they don't expect the situation to improve as long as the possibility of a war remains. Meanwhile local hotels and travel agencies specializing in inbound tourism are also feeling the heat. The Grand Hyatt and Shilla hotels say they've seen a drop in the number of new reservations and cancellation rates have topped 10% this week.

(Arirang TV)