Like the 1991 Gulf War and Sept. 11 terrorist attacks, the war in Iraq is certain to hurt the state's tourism industry and could, depending on the duration of the conflict, have a prolonged effect on consumer confidence and spending among residents. Mary Phillips, owner of the Flags Flying store in Ward Warehouse, said her business immediately picked up after the attack on Iraq Wednesday, and a line of customers had formed 15 minutes after the store opened yesterday at 10 a.m. Phillips said many customers were replacing flags they bought after the terrorist attacks on Sept. 11 and she suspects that sales of T-shirts, mugs, purses, earrings, watches, shorts and stickers adorned with American flags won't be as brisk as after Sept. 11.