"The first month or so I was a little bit scared of traveling," Mr. Bhatt said. "But then I said, 'If I have to travel, I have to travel."'

That's why Mr. Bhatt had no problem last month boarding a flight in Columbia with his wife for a vacation trip to Los Angeles. He said he wasn't going to let the terrorists who flew planes into the World Trade Center and the Pentagon dictate where and how he travels.

"That's for sure," the Martinez resident said.

Unfortunately for the travel industry, Mr. Bhatt's attitude is not typical. Since the horrific events of Sept. 11, many people have decided to stay close to home or avoid traveling altogether, according to a leading travel industry group.

The Travel Industry Association of America said nearly every performance indicator was down, compared with the previous year, in its June survey. For instance, domestic air travel was down 9 percent, and international flying dropped by 12.2 percent. Even auto travel was down by nearly 7 percent, based on receipts from gasoline stations.

Madhusudan Bhatt holds tickets for a flight to Los Angeles. He and his wife, Minaxi, got over their fear of flying quickly. They flew from Columbia in late August for their vacation. ANDREW DAVIS TUCKER/STAFF

That meant fewer people staying at hotels and motels. Occupancy rates nationwide dipped by 3.6 percent.

"The hotel and airport markets will continue to be depressed until the end of the year and until early 2003," said Cathy Keefe, a spokeswoman for the travel association, adding that the industry has lost $40 billion in revenue since last year. "It won't be until the first part of 2004 when the industry recovers in terms of revenue generated."

In Georgia, hotel revenue is down by more than 7 percent, according to the state Department of Industry, Trade and Tourism. Most of that downturn can be blamed on the Atlanta metro area, which experienced a nearly 13 percent decrease in hotel revenue. The state's other three tourism regions - including the Historic South, of which Augusta is a part - showed small increases.

"When Atlanta suffers, the rest of the state suffers," said Nicole Lampkin, market research manager for the state agency, adding that Atlanta represents 60 percent of the state's economic impact from tourism.

The nation's economic downturn has also played havoc with the travel industry. Business travel especially has been slowed by the recession.

"Business travel is hurting," said Ms. Keefe. "It was the economy that had the biggest effect."

Many of those who did travel, particularly on vacations, decided to take shorter trips and changed the way they got to their destinations. For instance, the recreational vehicle industry is expecting a 35 percent increase in rentals over last year.

"It's been a very, very busy summer for these folks," said Phil Ingrassia, the communications director for the RV Dealers Association in Fairfax, Va.

Ms. Keefe added: "What changed was the structure of the trips. You see more people traveling by car, staying closer to home. You see more 400-mile round trips instead of the usual 800-mile round trip."

Judy Reville, the Augusta division manager for AAA Auto Club South, said the company saw a huge increase in the number of people using AAA to plan car trips this summer.

Patty Burch, of Augusta's Aladdin Travel, said a lot of local people took cruises because the area's proximity to Florida allowed them to drive there to board ships. She said the travel agency business was shaky immediately after the attacks but has since regained its footing.

"We're going wide open as far as travel now," Ms. Burch said. "We didn't eat in December, but we did in January."

Reach Mike Wynn at (706) 823-3218 or mwynn@augustachronicle.com.