THC 2 (Lesson 1 RISK MGT ) Flashcards
Why manage risks in tourism?
*To protect both your customers and your business.
*To be prepared to deal with potential crises.
*To Identify possible risks in the tourist destination
*To determine your risk management strategy/ies
*To set up a plan to manage risk.
*To Train tourism facilities staff and team up with stakeholders to prevent or manage the risks.
*To be clear and honest in communication in case of a crisis
*To provide opportunities to retrieve your business.
Tourism companies are increasingly facing incidents that involve risks for both tourists and the tourism business such as:
*political unrest, terrorist attacks, earthquakes, tsunamis and health-related incidents.
*These can have a tremendous negative impact on tourism destinations.
*In addition, the damage to a destination’s image may have even longer-lasting effects than the actual damage from the crisis.
Importance of risk management
does not start with a crisis, but much earlier. To be prepared for a crisis,
Risk management
The use of available information to estimate the risk to individuals or populations,property, or the environment, from hazards. Risk analysis generally contains the following steps: hazard Identification, hazard assessment, elements at risk/exposure analysis, vulnerability assessment and risk estimation.
RISK ANALYSIS
The stage at which values and judgements enter the decision process, explicitly or implicitly, by including consideration of the importance of the estimated risks and the associated social, environmental, and economic consequences, in order to identify a range of alternatives for managing the risks.
RISK EVALUATION
The process of decision making for managing risks, and the implementation, or enforcement of risk mitigation measures and the re-evaluation of its effectiveness from time to time, using the results of risk assessment as one input.
RISK CONTROL OR RISK TREATMENT
The process of risk analysis and risks evaluation
RISK ASSESSMENT
The complete process of risk assessment and risk control (or risk treatment).
RISK MANAGEMENT
HAZARDS FOR TOURISM DESTINATION
ATMOSPHERIC
EARTH (GEOLOGICAL)
BIOLOGICAL
HUMAN
ATMOSPHERIC
Cyclones
Tornadoes
Storms
Floods
Frosts
EARTH (GEOLOGICAL)
Earthquakes
Tsunamis
Landslides
Volcanoes
Erosion
HUMAN
Industrial accidents
Traffic accidents
Crime Terrorism
Economic
Political conflict
BIOLOGIC
Human epidemics
Plant epidemics
Animal epidemics
Plagues
Fires
Top 10 tips on risk management in tourism
Identify the risks
Determine your risk management strategy
Develop a risk management plan for your tourism business
Team up with stakeholders
Train your staff
Test your plan
Provide clear and honest crisis communication
Keep informed about possible negative travel advice
Revive your business after a crisis
Reposition your business after a crisis
Make an inventory of the potential hazards and risks that could threaten your destination.
This could concern:
natural hazards
technological hazards
biological hazards
civil or political hazards.
Tip 1
Tip 1: Identify the risks
Identify the nature of the potential crisis.
Consider the:
cause
frequency
duration
speed of onset
scope of impact
destructive potential.
Tip 2:
Tip 2: Determine your risk management strategy
There are several strategies for risk management, including
avoiding the risk
reducing the likelihood of the consequences
transferring the risk
retaining the risk.
Learn from previous crises and disasters that have taken place in your area. Also look into similar crises that have occurred in other areas.
This strategy means eliminating the risk by completely avoiding a potentially risky activity.
RISK AVOIDANCE
If you cannot eliminate a risk, try to reduce it. You can do this by increasing precautions or limiting risky activities as much as possible.
Prevention methods include
safety standards (burglary, unwanted visitors, evacuation plan)
fire extinguishers, smoke detectors, sprinkler installations
earthquake proof building, water management
qualified tour guides, (adventure) trek leaders, drivers.
RISK REDUCTION
For example, if part of a particular route is prone to flooding during the rainy season, there are two options for __________
You cancel this tour, or only offer it during the dry season.
You continue to offer this tour in an alternative format, avoiding the flooding-prone part of the route.
RISK AVOIDANCE
This strategy means you transfer the financial risk to a third party, usually an insurance company. In Europe, tour operators increasingly demand that their partners have liability insurance in place. This insurance should cover possible damage and accidents involving customers during their holidays.
Risk transference
Tip 3:
Tip 3: Develop a risk management plan for your tourism business
Every tourism provider should have an emergency/contingency plan ready. You may think your destination is free of risks. Or you may not want to give the impression that there might be risks at your destination. However, European tourists actually increasingly ask tour operators for a risk management plan. This means tour operators may demand you have a plan in place.
Tip 3: Develop a risk management plan for your tourism business
plans for tourism should at least include details on:
*ensuring the safety of visitors and employees
*secure systems to communicate with all persons within the facility and the destination
*security of buildings, facilities and equipment from the effects of the disaster
*contributing trained liaison personnel to the disaster management agencies during response and recovery operations, as required
*supplying resources to support response and recovery operations
*procedures for return to normal business activities after the disaster operations.
Risk management
Tip 4:
Tip 4: Team up with stakeholders
Stakeholders in your region
For most countries, the tourism industry is an important industry. Therefore, national governments must be involved in the ____________ strategy for tourism.
risk management
Other government agencies and tourism industry sectors that should be included in a safety and security committee are:
the national tourism administration/visitor board
the police
counter-terrorism/security agencies
government bodies/departments working in customs, disaster management, foreign affairs, health, immigration, justice, transportation
airlines and transport company associations
hotel associations
tour operators’ associations
other tourism and travel representatives
consumer groups
retail trade organisations
tourism safety and security-oriented research and centres.
Tip 5
Tip 5: Train your staff
Organise training programs for your staff on how to handle crisis situations, including introduction programmes for new staff. For instance, this could be the aforementioned course in Adventure Travel Operator Safety and Risk Management from ATTA. Training is an on-going process, so you should keep monitoring and evaluating plans and procedures.
true po
In a crisis, your staff must step outside their day-to-day roles and carry out tasks that are far less familiar. In addition, they have to perform these tasks in an often highly stressful environment. This means they need to be well prepared and require firm leadership and direction.
true again hehe
Tip 6
Tip 6: Test your plan
Make sure your ________ is ready for action. When implementing it in your tourism business, you should test your plan. For instance with scenario testing, where you simulate a crisis situation with your staff.
PLAN
TIP 7:
Tip 7: Provide clear and honest crisis communication
________ is key in successful crisis management. Communicate directly with the media and keep your website and/or social media channels up-to-date. Your staff also plays an important role in communicating with your customers on site.
Communication
Keep your information neutral and factual. Most importantly: be _______! If you are too positive, people might not believe you.
BE HONEST
Your website should always have up-to-date information on (changes in) the safety situation in your area. Let people know that you work with professional and trained staff.
In case of a crisis, put information about the impact in your region on your website. Communicate clearly and honestly if and how your business has been affected by the crisis. Also do so if your company has not been affected, as your customers need to know this too.
Social media can be a useful tool to provide updates and communicate directly with people.
TRUEE ALL POESS
TIP 8:
Tip 8: Keep informed about possible negative travel advice
If your region is declared ‘unsafe’, commercial tour operators will probably not go there and travel insurances will not cover their clients. If you feel your region is safe to travel to, team up with other stakeholders in your region and start to lobby foreign consulates and embassies to adjust the negative travel advice for your region.
For example, after the earthquake of 2015, many countries issued a negative travel advice for the entire country of Nepal. This led to an enormous drop in tourism arrivals. Tourism companies in Nepal teamed up and started a lobby directed at the consulates and embassies to limit the negative travel advice to the areas that were really hit by the earthquake. Their lobby was successful and the negative travel advice was lifted from unaffected areas.
TRUEE POO
TIP 9:
Tip 9: Revive your business after a crisis
Post-crisis travellers
There are always travellers that seek destinations that have recently suffered from some form of crisis. These are often dedicated travellers, backpackers or high-end surfers. They are not necessarily poor or unwilling to spend much money at your destination. See them as front-runners. They will share their experiences online and in person with friends and family.
HAHA 22O (TRU)
tip 10:
Tip 10: Reposition your business after a crisis
RISK CAN BE REDUCE BY:
Reducing the hazard
Reducing the vulnerability of the elements at risk
Reducing the amount of the elements at risk
Increasing the coping capacity
RISK REDUCTION STRATEGIES
Structural measures:
Non-Structural measures:
refer to any physical construction to reduce or avoid possible impacts of hazards, which include engineering measures and construction of hazard-resistant and protective structures and infrastructure
Structural measures:
refer to policies, awareness, knowledge development, public commitment, and methods and operating practices, including participatory mechanisms and the provision of information, which can reduce risk and related impacts
Non-Structural measures:
Any physical construction to reduce or avoid possible impacts of hazards
*engineering measures
*Construction of hazard-resistant and protective structures and infrastructure
*retrofitting
Structural measures:
