The authors show that the terrorist attacks of September 11, 2001 caused a permanent structural break in New York City’s leisure and hospitality labour market. This structural break is visible from both an interrupted time-series perspective and a comparison with New York City’s overall economic development. Assuming that the labour market dynamics of the leisure and hospitality industry mirror a city’s feel in the hedonism–asceticism spectrum, the authors conclude that the 9/11 terrorist attacks have permanently shifted ‘New York’s state of mind’ from hedonism towards asceticism. These results suggest that greater attention must be given to the formulation of effective industry marketing strategies in response to the legacy of urban terrorism.