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Student Name: Ambarose Carter

Student Number: 83750T

Subject Name: Risk, Crisis and
Disaster Management

Lecturer Name: Victor Ashelford

Name of Assessment: Essay

Date: Sunday 9 November

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The tourism, hospitality and events industry produce a high level of risk for crisis and
disaster situations, ultimately impacting the overall success of the industries. Most crisis
and disaster situations are unpredictable within the tourism, hospitality and events
industry, such as terrorism. Terrorism disrupts the flow of all three industries, and leads to
tourists, guests or attendees to search for alternative safer options. The tourism industry
is highly vulnerable to crisis situations like terrorism, especially when there is a high level
of perceived risk, low trust in the government or a weak crisis management plan
predetermined. The hospitality industry faces similar factors when the level of risk is
highlighted through situations of terrorism. Hotels seem to have weaker security, high
degree of access and have a high media coverage in situations of a terrorist attack.
Similarly, the events industry also highlights vulnerability due to the occurrence of megaevents, underlining the presence of high level of risks. The crisis of terrorism requires risk
treatment options which then need to be managed through an emergency risk
management plan. Overall, there are factors that influence the level of risk for the
occurrence of a crisis or disastrous situation within the tourism, events and hospitality

International tourism flows are subject to disruption due to a number of events,
consequently, leading tourists to search for alternative destinations. Major disruptions to
the tourism industry, as a result of crises and disasters, have impeded on the tourism
industry as a whole. While there are many types of crises and disasters that can impact
tourism, every one is distinct. Sonmez et al. (1999) suggests that terrorism would have an
higher impact on tourism than natural disaster. Moreover, while a natural disaster can
impede the flow of tourism, terrorism risk tends to intimidate the traveling public more
severely, as demonstrated by the realignment of travel flows and cancellation of vacations
during periods of heightened terrorist activity (Campiranon 2008). A risk factor that is
associated with terrorism is vulnerability. Vulnerability can be defined as susceptibility to
attack (The American Heritage Dictionary of the English Language 2007), and it remains
crucial for organisations to reduce susceptibility in order to ensure business continuity and
profitability (McEntire 2005). For a tourist destination to have a high perceived level of risk
and a weak crisis risk management set in place, the higher level of risk for the event of a
terrorist attack. Additionally, other factors that come into play which heighten the level of
risk for terrorism is their trust in the government. Hamelin et al. (n.d. p 231) suggests that
the degree to which individuals admit to low faith in government concern seems to be an
important driver for the intention towards violent action. The tourism industry will then
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almost certainly have lower tourist numbers with the severity of the outcome to be major,
resulting in an extreme level of risk; which will then likely affect the profit margins to
decrease with a severe outcome, highlighting an extreme level of risk; as well as the
likelihood of loss of reputation for the destination with significant or major consequences,
producing a medium to high level of risk. Overall, there are many factors that influence
crisis and disaster within the tourism industry, heightening the level of risk associated with

The hospitality industry (focusing on hotels) is also susceptible from the disturbance of
crises and disasters that emerge, altering the choice of accommodation guests search for.
All three industries have an inter-relation, meaning that if the tourism industry is effected
by terrorism, the hospitality industry will also be influenced. As hotels have weaker security
measures compared with governmental or military facilities, they are more exposed to
terrorist threats. Furthermore, hotels are also targets for their brand names, location, and
the media coverage produced by attacking them (Som et al 2013). Additionally, another
factor that comes into play that heightens the level of risk of terrorism crises is that hotels
offer a high degree of access. Security is limited within the architecture of the buildings, as
publicising these measures would ignite unfounded fear for their guests. Similarly to the
tourism industry, the threat of terrorism has a negative impact on the hospitality industry
due to concerns about travel safety, which may result in the reduction of both business and
leisure travel. This would then result in a moderate likelihood of the hotel to go out of
business, which will cause a significant to major consequence, concluding with a medium
to high level of risk; additionally, their reputation will falter with the risk of this occurring to
be likely, creating major consequences for the company, highlighting a very high level of
risk. All in all, the hospitality industry will be just as affected by crisis and disastrous
situations in addition to the tourism industry.

The events industry, although interrelated with the other two industries, doesnt necessarily
profit off them. In the context of terrorism, if the tourism and hospitality industry is disrupted
by this, the events will be effected but not to the same extent. However, similar factors
apply within the events industry that increase the level of risk associated with threats of
terrorism. As like the tourism industry, the events industry is also highly vulnerable to
crises like terrorism, especially mega-events. Mega-events consist of a large scale of
people gathered in one area for a certain period of time, mostly occurring outside. The
vulnerability of the event is high associated with an extreme level of risk for a terrorist
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attack to occur. Most events are open to the public, some with limited security, others with
high security, nevertheless, it is susceptible to an attack. Therefore, mega-events pose
significant opportunities, challenges and liabilities for governments and businesses.
Therefore, in the rare situation of a terrorist attack, it is then likely that the event will be
terminated, ending in a significant consequence, positioning it at a high level of risk; profit
margins will likely deplete, causing a major outcome with a very high level of risk; the
reputation and the popularity of the event will almost certainly fluctuate, causing the
severity of the outcome to be significant for the company, concluding its a very high level
of risk; as well as the overall viewpoint that mega-events arent safe which is likely to occur
resulting in a major outcome for all event business, ending with a very high level of risk.
The events industry, just like the tourism and hospitality industry, can be inconvenienced
by a range of crises and disasters, especially terrorism, ultimately influencing the level of
risk associated with the risk factors of terrorism.

While managing tourism, hospitality and events crisis appears difficult in itself, it should
also be recognised that crisis is unpredictable which means it is no longer a question of
whether crises will happen, but rather when and how best they can be dealt with
(Campiranon 2008). Planning for emergencies should consider several internal factors
such as collaboration, communication, and control. But the most important internal factor is
the managements commitment to adopt and develop an emergency management plan,
which will be a strong guidance and updated message to communicate before, during, and
after the crisis (Faulkner, 2001). An emergency risk management plan for crisis and
disasters advocated by Faulkner (2001) begins with proactive planning and emergency
preparedness which includes hazard scanning, issue management; forecasting; risk
reduction; following with adopting and developing plans. The second part of the plan is
preparedness and planning implementation, involving the planning evaluation and control;
disaster communication; resource management and stakeholder collaboration. The last
part suggests evaluation, resolution and learning which involves resolution and restoration
as well as organisational learning. Faulkner and Vikulov (2001) and Ritchie (2004), then
proposed that the disaster responses would be categorised into six stages: pre-event
phase, when planning for the disasters and trying to prevent and mitigate their effects;
prodormal phase, the need to activate the managerial plans where the hospitality industry
has no choice of avoidance and must face the hazards; emergency phase, when the
disaster strikes and begins doing damage to the destination; intermediate phase, where
emergency plans should be adopted to help people and satisfy their needs; recovery
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phase, where the long-term plans should be applied and affected destination should be
rebuilt; and finally in the resolution phase, crisis management should be evaluated and
improved and organisational learning should be undertaken, to plan for the next hazards
and try to mitigate the effect of the next disasters. By businesses within the tourism,
hospitality and events industry adopting this proposed emergency risk management plan,
they would be able to manage all different crises and disastrous situation which arise.

There are many crises and disasters that can impact the tourism, hospitality and events
industries in their own unique ways. Terrorism, being one, which highly effects all
industries in to similar extents. Tourism is strongly impacted by terrorism, with the risks of
low tourists numbers, low profit margins and loss of reputation. This is similarly highlighted
in the hospitality industry where terrorism has jeopardised their reputation as a hotel
business and decreased their profits due to the lower number of guests. The events
industry is also struck by similar factors where their reputation as an event will diminish as
well as their profit margins. As highlighted, crisis and disastrous situations can affect all
three industries, tourism, hospitality and events due to their unpredictability, however with
a strong emergency plan like Faulkner and Vikulov (2001) and Ritchie (2004) proposed
plan, the risks and consequences of terrorism will be lessened. Ultimately, the level of risk
behind the crisis of terrorism is highly depended on the factors that influence that risk and
with strong risk treatment options, these crises and disasters will be managed.


Word Count: 1, 926

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Management, 22, p 135-147.

Faulkner B., Vikulov S. (2001). Katherine, washed out one day, back on track the next: A
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Hamelin, N., Aznay, H, et al. n.d. Trigger Factors of Terrorism:

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McEntire, D. 2005. "Why Vulnerability Matters: Exploring the Merit of an Inclusive Disaster
Reduction Concept." Disaster Prevention and Management 14(2): p.206-223.

Ritchie B. W. (2004). Chaos, crises and disasters: A strategic approach to crisis

management in the tourism industry. Tourism Management, 25, 669-683.
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Sonmez, S., Y. Apostolopoulos, et al. 1999. "Tourism in Crisis: Managing the Effects of
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vulnerable n.d. The American Heritage Dictionary of the English Language. 2007.
q=vulnerable&submit.x=51&submit.y=22 (accessed 8 November 2014)

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