Some say they're happy with the legislative fix to the Religious Freedom Restoration Act, but they worry the damage to Indiana's reputation is already done.
The timing of the controversy couldn't be worse – specifically for the city of Indianapolis.
Indy will host the NCAA Final Four tournament this weekend, bringing tens of thousands of people into town.
But Chris Gahl with Visit Indy says the tournament provides a unique opportunity to take the national spotlight and show the rest of the world what Indiana is really about.
"We firmly believe there's a hunger to prove the critics wrong and to showcase that Hoosier hospitality is alive and well," Gahl says. "The timing of the Final Four we think is perfect. It gives us an opportunity to proudly proclaim we are welcoming to all."
Just one week after Gov. Mike Pence signed the original Religious Freedom Restoration Act into law, his hometown of Columbus is already feeling its impact.
"We are concerned about the perception of Indiana and visiting Indiana and our community," says Lynn Lucas, Executive Director of the Columbus Area Visitors Center.
The city's heard from more than a dozen groups or individuals who are cancelling trips to Columbus because of the legislation – or vowing never to come to Indiana.
"The first one was the day after the bill had been signed," Lucas say. "We received notice from Palm Springs, California. A group of 30 people were coming to see the architecture in Columbus, they were going to spend a week, spend some real money, affect jobs by that cancellation."
If more cancellations come in, they could put a dent in the $260 million Columbus makes on tourism every year. The city's hoping the legislative fix that was signed into law Thursday will help repair the state's reputation.
But, even more concerning for businesses like La Mode salon are the potential long-term effects of the RFRA backlash.
"It's scary for our state," says stylist Kristen Pearson. "I feel like our economy is going to suffer because of it."
