"Badly" is what we might call an answer that's not really much of an answer. Yes, of course it's ambiguous, but only to the degree and specifically how tourism has been negatively impacted.
Another example:
Q: How did she take the news? A: Badly
This implies that she did not react well to the news, but other than her negative reaction, the answer gives no detail about the degree or manner of her reaction.
An answer of this sort implies the person answering doesn't want to offer up any details, or is trying to "make light" of the situation. If you want more information, you have to follow up with more questions.