Tourism This is the start of a learning process Establish and - PDF document

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 affect long-term confidence in an • Creates & sustains jobs organisation or a product, or which may • Encourages investment 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 prescribed statutory authorities and which community…..responding organisations requires special mobilization and organisation and resources overwhelmed….inability of resources other than those normally to return to normal without external 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 The • A disaster affects a community • Tourism will be affected by a community disaster Risk Management • Tourism operators are part of the disaster management community Process Tourism Risk Management Tourism Risk Management 9 10 The Tourism Risk The Risk Management Management Process Process A proactive process which enables Provides a generic framework for tourism destinations and organisations to identify, analyse, businesses/organisations to assess, treat and monitor risks to minimise losses and their organisations. 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 Tourism destinations and operators should In the Pacific – CHARM – Comprehensive undertake a tourism risk management Hazard & Risk Management process to identify, analyse, assess, treat and monitor risks to their tourism operations and At ADPC – CBDRM – Community-based business. Disaster Risk Management 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 possible. Tourism Risk Management Tourism Risk Management 17 18 3

The Tourism Risk Management Process The Tourism Risk Management Process 1. Establish the context 2. Identify hazards, vulnerable elements & Step 1 risks 3. Analyze & evaluate risks Establish the 4. Treat risks 5. Monitor & review Context 6. Communicate & Consult 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 Simple, basic statements of what is • Capabilities unacceptable or will not be • Economic constraints tolerated. • Goals & objectives • 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 • It establishes statements of what is • Any preventable crisis which makes unacceptable to tourism destinations or visitors reluctant to visit a destination or operators tourist facility is unacceptable… 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 • Visitors impacting upon a tourist destination or business/organisation ? • Employees • Reputation • Visitors • Employees • Facilities • Services • Economic viability • Facilities • Reputation What elements would be affected if • Economic viability 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 • Identifying the elements at risk from each of businesses/organisations (e.g. Avian Flu). 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 Step 3 business/organisation, you have to analyse 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 Consequences Likelihood Likelihood Insignificant Minor Moderate Major Catastrophic Qualitative 1 2 3 4 5 A (almost certain) H H E E E B (likely) M H H E E and C (possible) L M H E E D (unlikely) L L M H E Quantitative E (rare) L L M H H Note: The number of categories should reflect the needs of the study. Evaluation : Extreme risk; immediate action required E H : High risk; senior management responsibility must be specified M : Moderate risk ; management responsibility must be specified L Tourism Risk Management : Low risk ; manage by routine procedures Tourism Risk Management 35 36 6

Key Points The Tourism Risk Management Process • You need to understand sources of risk and their consequences Step 4 • You must decide which will have the most negative effects on your destination or business/organisation and operations and Evaluate Risk which to address as a priority Tourism Risk Management Tourism Risk Management 37 38 Evaluate Existing Treatments • Is the risk being managed by existing Always monitor & review those you measures? decide not to treat. • What will happen if it’s not treated? • Will it affect other destinations/businesses? Priorities and circumstances may • Is it someone else’s responsibility? change. • What else do we need to know? • What are the values & expectations of visitors? Tourism Risk Management Tourism Risk Management 39 40 Key Points The Tourism Risk Management Process • Evaluate effectiveness of existing control measure • Identify partnerships with relevant agencies Step 5 • Know what visitors will and will not accept Treat Risk Tourism Risk Management Tourism Risk Management 41 42 7