Tourism Risk Mitigation Method

 Tourism is a very sensitive industry. It could be influence by change especially political changes, epidemic
or pandemic, or even natural resources.
 In tourism, there is always an expected event that may or may not influence the confidence of our traveler
towards choosing a certain destination or attraction.
Tourism Crisis
- Are the unexpected events. No one is expecting this type of circumstances.
- An event or set of circumstances that can severely compromise or damage the marketability (because it can
affect the confidence of our traveler in choosing a certain destination or attraction when it comes to safety,
attractiveness, and comfort) and reputation of a tourism business, its brand or an entire tourism destination
region.
- It can interrupt the continuity of the business operations for local or international travel.
- It can reduce tourist arrival and tourist expenditures

 2 category of tourism crisis

1. Crisis events which are beyond the control of management (natural disaster, acts of war
or terrorism, crime, and epidemic or pandemic)

 Natural crisis
- This is happenings that are caused by nature such as storms, hurricane, flood, earthquake
 War or terrorism
- Civil conflicts mostly because of political tension and once this is present to a country, it would
affect the safety image of a certain attraction or destination. Acts of demonstration, strikes,
terrorism, violence, sabotage
 Epidemic or pandemic
- It spreads quickly and widely throughout one or more. Source are food and mouth disease

Tourism Crisis Local International

Natural disaster Mayon Volcano Eruption (January 2018) Hurricane Irma in the Carribean
Terrorism Resorts World Manila Shooting Las Vegas Attack
Crime Laglag Bala Cases Pickpocketing Cases in France
Epidemics Human Immunodeficiency Virus (HIV) Yellow fever in Brazil
- Volcanic eruptions leads to thousands of locals evacuating and as tourist, you avoid visiting this attractions.
- Irma is a categorified hurricane that destroys 90% of the island of Barbuda.
- Stephen Paddock in Las vegas attack. He killed 59 people and 527 injured
- Laglag bala in NAIA, they implant bullets for money
- Pickpocketing modus. Gang that is responsible for theft in Paris. 300 euros per day quota or they will subject
for punishment
- Millenials mostly diagnosed in HIV. Yellow fever is similar to dengue. July 1, 2017 – January 14,
20 confirmed human cases of yellow fever. 20 deaths in total and 145 suspected cases

1. Crisis events which results from a failure of management action, process or lack of contingency
measures taken to deal with predictable risks. These include a business collapse due to
management failure, inappropriate strategic management, financial fraud, loss of data, destruction
of a place of business due to fire or flood without adequate backup procedures or insurance cover,
massive turnover, or loss of management and staff. It can also include service or equipment failures
that compromise the reputation of a business.

Tourism Crisis Local International

Management failure MIASCOR Contract Termination due to Mountain Blue Hotel group
baggage Theft bankruptcy in Florida
Financial fraud Metropolitan Bank and trust Co. 900 million Accountant stole $3.5 million from
Internal Fraud employer in Boston
Loss of data WannaCry Malware National Health Service (NHS) Data
Loss in England
- MIASCOR is an aviation service provider in clark international airport. Theft that includes filling of luggage of
OFW.
- The assets of Mountain Blue hotel is equal to their liability
- Metropolitan Bank is the country second largest bank. Hit by internal fraud by their senior official.
- Accountant is headed in prison and was sentenced for more than 4 years
- It affects 230,000 by a computer known as Wannacry. This Virus hides email messages and attachment that
once you click it, the malware will encrypt your information

Tourism Crisis Management

- This context refers to the planning and performance of processes directed towards managing the bad effects
of crisis and disaster on tourism. In order to mitigate and manage bad effects on destination/attraction.
- It also helps the managers of an organization to have a successful business and to keep his position during
harder times.
- This tourism crisis management also addresses tourism potential opportunity for progress and system
and procedures.

 Four R Concept
- Reduction, Readiness, Response, and Recovery
- This is a tourism crisis management system established by the Pacific Asia Travel Association (PATA) in
2003, which is used by various tourism businesses.
- This is used by various tourism businesses.

 Reduction
- It is the identification of a potential crisis and seeking ways and means to reduce its impact. This is
closely aligned with risk management.
- It is the beginning of the process in which an enterprise resumes functioning after a crisis has
occurred.
- This is the stage in which there has been a full assessment of damage or loss and there is a
need to put in place a recovery alliance.
- At this stage, it is important to advise potential visitors or customers that a destination or
business is operating and welcomes visitors and clients. It is common, especially after a natural
disaster, for prospective travelers to avoid a destination because they believe that they may be
unwelcomed by locals.
- Many in the business may look at this stage as a soft re-launch. Focus items may include: o
Positive focus reports on reconstruction and rehabilitation.
o Announcements of business resumption
o Business continuity plans while repair is undertaken.
o A proposed timeline for recovery.
o Plans for new initiatives that may avert or minimize the impact on a repetition of the
crisis event.
o Prepare a full recovery campaign in key source markets.
o Avoid actions deemed to be insensitive to victims.
o Engage local community in the process of recovery.
 Readiness
- Readiness or risk preparedness.
- Concept of contingency plan (Contingency plans are well-prepared documents dealing with the
most likely risks and threats to a tourism business or destination. It should be written up in a
manual available to all relevant staff. Back – up plan. Course of action that designed to help an
organization to respond actively to a significant future event or situation that may or may not
happen)
o Assessment of the likely nature of a threat/risk.
o Assignment of staff and management roles and recording of their emergency
contact details for dealing with a risk or threat.
o Training in expertise and duties required to deal with specific roles.
o Scenario for managing the first hour of a crisis event.
o Scenario for handling each stage of a crisis process.
o Spokesperson and key crisis communication messages.
 oStrengths-Weaknesses-Opportunities-Threats (SWOT) analysis of the enterprise in terms of
the risk/threat.
o Backing-up procedures and personnel.
o Emergency contacts with police and emergency services.
o Sources and contacts for outside and emergency assistance.
 Response
- Timing is the key element
o A consistent message ideally with a single spokesperson.
o Brief key stakeholders and staff.
o Primary concern for victims and their welfare.
o Avoiding blame.
o Assessing damage and loss and being honest about it.
o Telling the truth but stressing the positive facts.
o Contextualizing the crisis in terms of impact and time taken to recover.
o Maintaining regular communication with stakeholders, victims, victims’ families, and the
media.
o Ensuring that the organization’s website is fully updated and publicize the fact that it is
available.
o Establishing phone hotline contact numbers.
o Activating social media communication.
o Understanding that recovery is more important than price.
o Seeking and welcoming help and offering support to other companies that have been
similarly affected.
o Planning and developing a timetable for recovery.
o Maintaining contact with relevant rescue, medical and police authorities.
 Recovery
- The worst is over and the business is ready to resume normal operation or close to
normal operation.
o Establishing recovery objectives and timeline.
o Involving stakeholders and local community in a recovery alliance.
o Stratifying and prioritizing target markets, stalwarts, waverers, and discretionary.
o Ensuring that key prospective customers and the media are witnesses to the recovery
process and that the enterprise/destination is open for tourism.
o Co-operating with government and emergency services.
o Establishing negative and false perceptions and target them.
o Ensuring visitors from source markets, especially hosted visitors
o Providing testimonials and report.
o Hosting people who have clout on source markets.
o Offering incentives for customers to return to the destination or business but doing so
based on a financially sustainable strategy.
o Being positive and honest and communicating positive developments.
o Treating the media as a prospective ally rather than an enemy.
o Demonstrating appreciation to supporters.
o Rebuilding and developing an improved infrastructure.
o Re-imaging a business and a destination.
o Consulting, monitoring, and reviewing progress with staff and key stakeholders.
o Understanding that recovery is a team effort.

Debriefing can occur as part of the monitoring process of a crisis situation but once the recovery process is well in train,
this should be an essential activity

Tourism crisis: Earthquake in Cebu

Reduction Readiness
Assess the damages caused by the earthquake Acquire training for earthquake drills and evacuation
Response Recovery
Inform the people of the real situation Form a group of locals as a recovery team
Business Market Crisis Recovery

10 step Guide on Business Market Crisis Recovery

- Assume to resume the business operation

1) Create Prime Messages

- Identify your prime messages, such as:
o Our tour programs are open for business.
o Tourists are welcome and wanted.
- Incentives for coming on board. Value-adding in preference to deep discounting.
- Solidarity messages especially for the stalwart market.
- Principals need to form a working alliance to spread the benefit of returning tourism to the businesses in
the destination.
2) Set out the facts
- Inform the public of facts of the situation.
o Explain what clients/visitors can do.
o Outline restrictions and limitations.
o Benefits of visiting the area now.
o Outline improvements, enhancements, and changes.
3) Develop complementary Alliances with Principals
- Create affiliations. You need to have your alliance or your partners,
o Joint arrangements with hoteliers, resorts, restaurants, attractions, and air links.
o Joint or club advertising and promotion.
o Value-added arrangements in concerts between complementary principals.
o Joint ventures between tourist authority and principals.
4) Restore Confidence in the Source Markets
- By choosing opinion leaders, spokeperson who can market your business on a positive note,
witness testimonials from the source market
- Familiarization tours
o Conducting travel agents and travel writers’ familiarization trips.
o Choosing opinion leaders.
o Seeking eyewitness testimonials from opinion leaders in source markets.
o Using Google images and YouTube to show the situation in real time.
o Ensuring travel industry stakeholders are fully briefed.
o Demonstrating flexibility to travelers who cancel or postpone because of concerns.
o Ensuring representatives in source markets are fully briefed.
5) Research on Alliance Marketing Models to Emulate
- Copy or make as our guide or basis
o TAG Tourism Action Group Fiji, an alliance of tourism industry leaders activated during crisis situations in Fiji.
o Pacific Asia Travel Association (PATA) Project Phoenix, post Severe Acute Respiratory Syndrome
(SARS) recovery for South East Asia in 2003
o Thailand’s Post Tsunami recovery 2005
o Alliances between wholesalers and their destination partners
6) Protect profitability during Marketing Recovery
- You can protect profitability by
o Offering incentives that will enable a business to sustain profitability.
o Valuing add rather than discount.
o Avoiding dropping prices so low that it exposes your bottom line.
o Offering incentives in conjunction with travel industry partners (allied incentive programs), which may
combine benefits for accommodation, dining, tours, and visits to attractions.
7) Re – imagine the business
o Understanding that a crisis event presents an opportunity to upgrade and re-image a business.
o Completely re-theming the advertising and promotion.
o Focusing on the future.
o Focusing on benefits of doing business with your company.
o Highlighting features and benefits that may have previously been ignored or under-promoted.
 8) Create Incentives that attract customers and travel agency support
- Choose and develop incentives such as:
o Value-added products: packages with free added product for consumers such as bonus meals, sightseeing,
and entry to attractions.
o A thank you gift/recognition for the visit.
o Special welcome.
o Hospitality touches.
9) Publicize the positives
o You need to have media presence like celebrities
o Special guest arrivals, especially celebrities.
o Positive news of resurgence of tourist arrivals and rebuilding and enhancements of infrastructure.
o Developing a re-opening or a re-launch event.
o Testimonials that are meaningful to source markets.
o Statements from visitors saying the visit exceeded their expectations.
o Visuals of visitors enjoying their visit/stay.
10) Report and Monitor Progress
o Conducting a Then and Now Analysis. This is done by comparing the state of an enterprise or a destination
at the time of disaster to advanced recovery phase.
o Publicizing the changes and enhancements made.
o Promoting to stakeholders and media how tourism has contributed to revitalizing a destination.

THE BRIGHT FUTURE OF TOURISM

The Future of Tourism and Hospitality

Increase speed and shopping – use of the internet in developed countries

- Since technology is a driving course. Opportunities for greater efficiency. We use technology to our utmost
advantage. All of the information about tourist services are now available virtually.
Extended reach in less developed countries
- There is a potential client both in developed and developing once can be any residents of the world
since connectivity is not an option today but it is necessity.
Improved security of personal information
- Not only for our safety but for the safety of our customers too.
Robotic labor resources
- Establishment will be run by robots. Economy is being lifted by the robotics. Healthcare sector as well
Reservation system with more sophisticated, voice activated, artificial intelligence
- It is a computerized system used to store and retrieve information and conduct transactions that is
related to air travel, hotels, car rentals or other activities.
- It helps our client to book easier and at the same time hassle free
An improved navigational system for rental cars
- Most rental cars have option in Car GPS so this can help you when travelling for business
Electronic entertainment venues in rental cars, and on plane and cruise ship
- You will be having entertainment venues for comfort while waiting like VR boxes, plane
Upgraded internet personal digital assistants for operations
- It is a mobile device that functions as a personal information manager.
- Jollibee order
Marketing mass communications
- In other words, you are imparting or exchanging information on a large scale to a wide range of people
- Television, Internet, Printed ads
JIT or Just in Time seats, rooms and cars inventories
- real time availability of rooms, seats, and inventories
Electronic travel agents
- Online travel agent
Blended Hybrid accommodation
- You are incorporating multi functionality and creativity into your designs. Bubble room
 Emphasis on ecotourism
- Center of tourism is environment. Eco friendly practices are becoming the norm. Renewable
energy resources
Improved customer relationship marketing information
- Main goal is motivation

TRENDS THAT WILL SHAPE THE FUTURE OF TOURISM

A. Silver – haired Tourists

- Considered one of the fastest growing segments in the tourism market
- Also called baby boomer, dual citizen, seniors
- They have this satisfactory disposable income. Pensioners and relatively good health
- They will spend on holiday travel
B. Generation Y and Z
- Generation Y is known as the “millenials” while Generation Z is also called as “iGen”
- Millenials are recognized by tourism sector as a current a future driving course of revenue
- GenZ are 6-20 years old, they are very different from generation Y, they have higher access to
information. More dynamic lifestyle, more travel, high level of education, acceleration adaption of change
C. Growing middle class
- The world’s population that is neither rich nor poor

FACTORS THAT CONTRIBUTE TO THE BRIGHT FUTURE OF TOURISM

 Early Retirement
- 58 years old. It is an advantage because these people will use their time to travel
 Longer Life – span
- Average individual can now live beyond the age of 70 and many will live longer. The growing population
of retired citizens who receive pensions will provide a larger base of potential customer for us
 Shorter work week
- 4 days popular norm 7-6 pm. This will lead to the increase leisure time. Take advantage of the long weekend
to travel
 Greater disposable income
- More family has more money spend due to higher wages. Dual income means both parents have work
 Greater mobility
- Improved transportation services
 Smaller families
- The average family size has decreased.

TOURISM TREND OF THE FUTURE

 Tailor made
- Customized based on what you wanted as tourist.
 Tourist with locals
- This happens when establishment promotes unity and diverse community . this is when the locals has
the chance to view one with the tourist. Immerse yourself with local people.
 Social Media
- Travel’s experiences. The main motivator of our traveling
 Innovation and cooperation
- Guest and local residents in the creation of new tourism trends
 Authenticity and Immersion
- Traveler, cultural identity. We will travel back in time or history
 Genuine experience
- We want our customer to experience genuine once they visit an attraction or destination by immersing
 No tourist zones
- Some places will be overcrowded and we are going to limit the number of visitor in order to save places.