Business and tourism leaders worried Wednesday that voters' rejection of a citywide anti-discrimination ordinance has hurt what had been one of their best recruiting tools: Houston's emerging reputation as a diverse metropolis that supported an openly gay mayor and welcomes young talent looking to launch careers in a progressive environment.

Suddenly at risk, they say, are corporate relocations, nationally prominent sporting events and the lucrative convention business that generate millions of dollars and help the region thrive.

"In recent years, we have done a remarkable job of changing the perception and attracting people to Houston," said Bob Harvey, president and CEO of the Greater Houston Partnership. " ... We have to quickly re-establish that this is a modern, open city."

Voters on Tuesday rejected the Houston Equal Rights Ordinance, or HERO, by a 2-to-1 margin, setting up what supporters of the law warn could be repercussions, from business boycotts to the loss of high-profile sporting events.

"I absolutely fear there will be a direct economic backlash," Mayor Annise Parker said.

Such arguments were quickly dismissed by HERO's foes in the aftermath of the ordinance's defeat. And sponsors of the Super Bowl, which is coming to Houston in 2017, and the Final Four scheduled here next year, announced they have no plans to take away Houston's awards.

Steve Hotze, a vocal opponent of HERO who also led a 1985 effort to kill an ordinance to ban discrimination based on sexual orientation, said people were coming to Houston for decades before either item was considered.

"I beat this in 1985, and Houston was fine," Hotze said. "Houston will be fine."

Hotze said HERO was being pushed by "fringe radical groups." But an analysis by the Washington, D.C.-based Human Rights Campaign found that 89 percent of Fortune magazine's 500 largest publicly traded companies have policies prohibiting discrimination.

Mike Waterman, president of the Greater Houston Convention and Visitors Bureau, the group that recruits conventions that draw tens of thousands of people here annually, said many of those top organizers hope the new mayoral administration will pass an alternative measure quickly.

"We can't go on as a city without a non-discrimination ordinance forever," Waterman said. "It's a differentiator, and one we do not have today."

'The true Houston'

The Greater Houston Hotel & Lodging Association, which like the other booster group was vocal in its support of HERO, echoed that concern.

"I think the issue we face is we want people outside our city to know the true Houston, that we are very open and welcoming to all visitors," association president Stephanie Haynes said.

Some of the biggest draws in recent years have been sporting events. Houston is gearing up now for its third turn hosting the Super Bowl, in 2017. Chad Griffin, president of the Human Rights Campaign, immediately asked NFL Commissioner Roger Goodell for an emergency meeting "to discuss the future of nondiscrimination protections" in Houston.

The NFL, which moved the location of the 1993 Super Bowl from Arizona because the state had rejected making Martin Luther King Jr. Day an official state holiday, issued a statement on Wednesday assuring that the 2017 game will not be moved from Houston, although it said it would work closely with the local host committee "to make sure all fans feel welcomed at our events."

Likewise, the NCAA said it does not intend to move next year's Final Four from Houston, although it would consider Tuesday's vote when looking at future bids.

And although organizers of the College Football Playoff did not award Houston any of the three games it was seeking in 2018-2020, executive director Bill Hancock said Tuesday's vote had nothing to do with it.

"Political considerations did not enter into this discussion in any way," he said.

Predicts it won't be an issue

Houston Texans owner Bob McNair, who gave $10,000 to the anti-HERO campaign but later withdrew his donation after it became public, predicted the ordinance's failure to pass "won't be an issue" when the city bids for future Super Bowls.

He also addressed HERO itself.

"I was opposed to it because I thought it was unreasonable, and apparently, a large majority of the voters felt the same way," McNair said. "If we can come up with something reasonable, I'd be supportive of it."

There also was concern Wednesday that the defeat of HERO could make the city unattractive to diverse job candidates, including the increasingly sought-after millennial workers, said Keith Wolf, managing director of Murray Resources, a recruiting and staffing firm in Houston.

"I think the larger concern is that it feeds into the misperception by some that Houston and Texas, in general, is an intolerant, unwelcoming place," Wolf said.

"If you've been on Facebook and Twitter in the last 24 hours, you've probably seen millennials expressing their embarrassment that the ordinance did not pass," he added.

Millennials and social issues

Harvey, of the Greater Houston Partnership, said it will be hard to know how many companies might avoid Houston because of the vote, but he said he agreed that major companies are eager for young professional workers. Those recruits, he said, care about social issues.

States and cities that have passed measures seen as discriminatory have experienced economic backlash, said Stacey Long Simmons, director of public policy and government at the National LGBTQ Task Force.

"Companies recognize that discrimination will affect their bottom line," she said.

Long Simmons called the vote a black mark on Houston's reputation.

"Houston was known as a place intolerant of discrimination, truly embracing diversity and inclusion," she said. "Now it will have to fight hard to convince people otherwise."

After the polls closed Tuesday, Texas Lt. Gov. Dan Patrick repeated the assertion that the ordinance would permit men to enter women's restrooms, and said any businesses that wanted to boycott Houston "were on the wrong side of the issue."

"We have 600 to 700 people a day moving to Texas," Patrick said. "You know why? Because they see Texas as the America that all America used to be. We stand for God. We stand for guns. Guess what, we also stand up for the privacy of women in the bathroom. If I'm a business guy somewhere else, that's the kind of place I want to be."

Outsiders' views of Texas

Phillip Jones, president and CEO of the Dallas Convention & Visitors Bureau, sees things differently. He said he already faces an uphill battle explaining Texas to outsiders and called Tuesday's rejection of HERO a "black eye" for the whole state.

"From an image perspective, it hurts the Texas image of being a tolerant, inclusive state," Jones said. "From a selfish meeting-planner perspective, it could hurt Houston and Dallas for recruiting for those who want to bring business to an inclusive place."

But he also sees opportunity, pointing out that Dallas County and the city of Dallas have anti-discrimination ordinances and require domestic partner benefits.

"I feel bad for Houston from an economic perspective and a message perspective," Jones said. "If you hear about anyone wanting to leave Houston, send them my way."

David Barron, Jenny Dial Creech, John McClain and Monica Rhor contributed.