Key Points

Tourism • This is the start of a learning process

• Establish and maintain tourism risk
Risk Management management networks
• Share knowledge, lessons & experiences
Adapted from EMA’s
Emergency Risk Management
Process
Tourism Risk Management
1 2

Tourism Definition of Crisis

• Generates incomes Any situation that has the potential to

• Creates & sustains jobs affect long-term confidence in an
• Encourages investment organisation or a product, or which may
interfere with its ability to continue operating
• Facilitates trade
normally.

Tourism Risk Management Tourism Risk Management

3 4

Definitions of Disaster Definition of Disaster

A serious disruption to community life which
Common threads threatens or causes death or injury in that
community and/or damage to property which
…..disruption to the is beyond the day-to-day capacity of the
community…..responding organisations prescribed statutory authorities and which
and resources overwhelmed….inability requires special mobilization and organisation
to return to normal without external of resources other than those normally
available to those authorities.
assistance…...
Tourism Risk Management Tourism Risk Management
5 6

1
Disasters What is needed?

Have a significant impact upon PEOPLE & An integrated disaster management system
infrastructure & thus upon tourism with an active partnership between all
facilities, operations and visitors. agencies, government and the community.

They produce LONG-TERM problems of The tourism industry participate where possible
restoration & rehabilitation and will affect in the integrated system at
the return to normal of tourism activities. local, regional and national levels.
Businesses reliant upon tourism will also
be impacted.
Tourism Risk Management Tourism Risk Management
7 8

Key Points Risk Management

• Crisis affects an organisation or business
• A disaster affects a community
• Tourism will be affected by a community
The
disaster
• Tourism operators are part of the disaster Risk Management
management community
Process
Tourism Risk Management Tourism Risk Management
9 10

The Risk Management The Tourism Risk

Process Management Process

A proactive process which enables

Provides a generic framework for
tourism destinations and
organisations to identify, analyse,
assess, treat and monitor risks to
businesses/organisations to
their organisations. minimise losses and
take advantage of opportunities.

Tourism Risk Management Tourism Risk Management

11 12

2
The Tourism Risk Risk Management……..
Management Process Disaster Risk Management

• Risk Management – an organisational

process
• Disaster Risk Management – a community
based, multi-agency process.

Tourism destinations and

operators should be involved in
both processes.
Tourism Risk Management Tourism Risk Management
13 14

Disaster Risk Tourism Risk

Management Management

In the Pacific – CHARM – Comprehensive Tourism destinations and operators should

Hazard & Risk Management undertake a tourism risk management
process to identify, analyse, assess, treat and
At ADPC – CBDRM – Community-based monitor risks to their tourism operations and
Disaster Risk Management business.

YOU share the responsibility for the safety

and security of visitors.
Tourism Risk Management Tourism Risk Management
15 16

Communication and
Key Points
Consultation
• Risk management provides a generic framework
• There is an organisational process and a
A two-way process of internal and external community process
communication should be established and • Disaster risk management is a community, multi-
maintained with stakeholders so that agency process
different views and expertise are included. • Tourism destinations and operators have a role to
play in both processes
• Communication and consultation are critical
• Tourism destinations should participate in
disaster management committees where
Tourism Risk Management possible. Tourism Risk Management
17 18

3
The Tourism Risk
Management Process
1. Establish the context The Tourism Risk Management Process
2. Identify hazards, vulnerable elements &
risks Step 1
3. Analyze & evaluate risks
4. Treat risks
5. Monitor & review
Establish the
6. Communicate & Consult Context
Tourism Risk Management Tourism Risk Management
19 20

The Context The Context

• Perceptions, values & interests of visitors

Establishes the stakeholders, policies, • Political & legal environment
systems, procedures and relationships • Social influences
which are relevant to risk management for
• Competitors
tourism organisations.
• Financial/economic factors
• Key business drivers

Tourism Risk Management Tourism Risk Management

21 22

Internal organisational
Risk Criteria
factors
• Organisational culture
• Capabilities Simple, basic statements of what is
• Economic constraints unacceptable or will not be
• Goals & objectives tolerated.
• Community support
• Organisational strengths, weaknesses,
opportunities & threats
Tourism Risk Management Tourism Risk Management
23 24

4
Examples of Tourism
Key Points
Risk Criteria
• Any preventable crisis which results in • The context establishes the parameters
negative media reporting is within which tourism risk management
unacceptable… activities take place
• Any preventable crisis which makes • It establishes statements of what is
visitors reluctant to visit a destination or unacceptable to tourism destinations or
tourist facility is unacceptable… operators

Tourism Risk Management Tourism Risk Management

25 26

Ways to Identify Risks to

a Tourism Destination or
Business/Organisation
The Tourism Risk Management Process • Brainstorming
• Checking historical records
Step 2 • Consulting experts
• ‘What if it happened here?’
Identify Risks
Tourism Risk Management Tourism Risk Management

27 28

Example - Poor safety

Elements at Risk
record…..
Which elements could be affected by a crisis
impacting upon a tourist destination or • Visitors
business/organisation ? • Employees
• Visitors • Reputation
• Employees • Facilities
• Services
• Facilities • Economic viability
• Reputation
• Economic viability What elements would be affected if
there was an epidemic?
Tourism Risk Management Tourism Risk Management
29 30

5
Risk doesn’t remain
Key Points
STATIC
• You need to identify all sources of risk to
• New sources of risk (hazards) will occur to
your tourism destination or organisation
tourism destinations and
businesses/organisations (e.g. Avian Flu). • Identifying the elements at risk from each of
the sources of risk helps you identify
• Sources of risk must be monitored and
priorities
reviewed regularly.

Tourism Risk Management Tourism Risk Management

31 32

The Tourism Risk Management Process • Once you’ve identified the sources of risk
to your tourism destination or
business/organisation, you have to analyse
Step 3 their likelihood and consequences.

Analyse Risk • You need to know which will have the most
negative effects in order to prioritise your
actions.
Tourism Risk Management Tourism Risk Management

33 34

Determining Likelihood
Risk Rating Matrix
& Consequence
Consequences
Likelihood Insignificant Minor Moderate Major Catastrophic
1 2 3 4 5

Qualitative A (almost certain)

B (likely)
H

M
H

H
E

H
E

E
E

and C (possible)

D (unlikely)
L

L
M

L
H

M
E

H
E

E (rare) L L M H H
Quantitative Note: The number of categories should reflect the needs of the study.

Evaluation E

H
: Extreme risk; immediate action required

: High risk; senior management responsibility must be specified

M : Moderate risk; management responsibility must be specified

Tourism Risk Management L : Low risk; manage by routine procedures Tourism Risk Management
35 36

6
Key Points

• You need to understand sources of risk and The Tourism Risk Management Process
their consequences
• You must decide which will have the most
negative effects on your destination or
Step 4
business/organisation and operations and
which to address as a priority Evaluate Risk
Tourism Risk Management Tourism Risk Management
37 38

Evaluate Existing
Treatments
• Is the risk being managed by existing
Always monitor & review those you
measures?
• What will happen if it’s not treated?
decide not to treat.
• Will it affect other destinations/businesses?
• Is it someone else’s responsibility? Priorities and circumstances may
• What else do we need to know? change.
• What are the values & expectations of
visitors?
Tourism Risk Management Tourism Risk Management
39 40

Key Points

• Evaluate effectiveness of existing control The Tourism Risk Management Process

measure
• Identify partnerships with relevant agencies
• Know what visitors will and will not accept Step 5
Treat Risk
Tourism Risk Management Tourism Risk Management
41 42

7
 Standard Risk
Steps to Treat Risk
Treatment Options

• Consider risk treatment options • Avoid the risk

• Assessment criteria • Reduce (likelihood & consequences)
• Select most appropriate options • Transfer the risk (share responsibility)
• Prepare risk treatment plan • Retain the risk and plan to manage the
consequences.

Tourism Risk Management Tourism Risk Management

43 44

Risk Treatment Options Risk Treatment Options

Prevention/mitigation examples: Can the costs be shared between

• Compliance programs tourism destinations and operators,
• Inspection & process controls the community or government?
• Security devices, alarms and
processes Who will benefit if the risk is managed?
• Preventive maintenance
• Training & education.
Tourism Risk Management Tourism Risk Management
45 46

Selecting Risk
Risk Treatment Plans
Treatment Options

• Will it be acceptable to stakeholders • Allocate responsibilities

(visitors)? • Identify timelines
• Is it too complicated/difficult? • Decide methods of implementation
• Long-term benefits? • Establish expected outcomes
• How long will it take? • Allocate budget
• Will it adversely affect tourism? • Identify performance indicators & milestones
• Should others share the costs?
• Will it create new risks to tourism?
Tourism Risk Management Tourism Risk Management
47 48

8
Residual Risk Key Points

Crises will still occur, so you • Identify the best risk treatment options
need to plan to respond to
• Establish partnerships for risk treatment
and recover from crises.
• Develop plans to implement risk treatments
• Develop tourism crisis response and
recovery plans for residual risk

Tourism Risk Management Tourism Risk Management

49 50

Monitoring & Review

The Tourism Risk Management Process Essential to ensure continual

improvement and the currency and
Monitor & relevance of the tourism risk
management process.
Review
Tourism Risk Management Tourism Risk Management

51 52

Monitoring & Review Monitoring & Review

• Repeat the tourism risk management cycle

regularly (annual basis) Risk doesn’t remain
• Measure the progress of risk treatments
• Learn from your organisation's crises and
static…..nothing
those of other destinations and tourism
operators
remains the same…..

Tourism Risk Management Tourism Risk Management

53 54

9
Regular Monitoring &
Key Points
Review of:
• Decisions and processes • Regular monitoring & review is essential
• Visitors’ expectations & attitudes • Tourism risk management is an on-going
• New sources of risk process
• Risk ratings/priorities • Learn from others’ experiences
• Share your experiences with other tourism
• Elements at risk
destinations and businesses/organisations
• Efficacy of existing risk treatment measures
• New/additional risk treatment measures
Tourism Risk Management Tourism Risk Management
55 56

Tourism Risk
Key Points
Management
• This is the start of a tourism risk
management learning process

Summary • We all need to share information and learn

from the experiences of others
• The tourism industry is vital to the
economic viability of all countries
• Tourism operators share the responsibility
for the safety & security of visitors
Tourism Risk Management Tourism Risk Management
57 58

Tourism
Risk Management
Adapted from EMA’s
Emergency Risk Management
Process
59

10