ISSUES RELATING TO THE TOURISM, EVENT AND HOSPITALITY ENVIRONMENT Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

issues relating to the tourism, event and hospitality environment Case Study Solution

Introduction

Disasters and crisis are common in every industry.Over the last years, tourism has become a supported economic tool and also one of the leading drivers of international trade. Crisis and disasters are also prominent in tourism, hospitality and events industry.The tourism industry is highly open to crisis or disasters related circumstances as most of the tourism destinations are placed in the areas of natural beauty and these areas are at a greater risk in respect to a natural disaster. Moreover, such an industry is also exposed to terrorism which can have a negative impact on the entire industry. Tourism industry contributes to strong economic growth, greater export returns, and creation of skilled jobs. Disaster and crisis can impact the overall performance of the entire hospitality industry.(Santana, 2008)

It is necessary that there must be some risk treatment options available to enhance the entire performance of tourism industry.This paper is aimed at examining the factors that influence the level of risk associated with the disaster crisis situation in tourism, events and hospitality industry and it also examines the risk treatment options to manage the disaster and crisis situations.(Drita Kruja, 2012)

Factors influencing the level of risk associated with disaster and crisis situation in tourism

This section is now focused towards the risk factors associated with the tourism, hospitality and events industry.Literature indicates that disaster and crisis situation in the tourism industry can be because of involving in international war or conflict. The terrorism is also viewed as a crisis situation in such industry.

Apart from terrorism, tourist industry could be affected from natural disasters such as floods, earthquake, and volcano.These disasters can affect the urban areas of the country and at last,tourists get affected from it. Health diseases can cause the disaster situation in the hospitality industry.
However, there are lot of such cases and situations that can affect the performance of tourism, events and hospitality industry and there are certain major factors that affect the level of risks associated with the crisis situations in tourism industry, major factors include perceived risk in tourism, complexity of disaster management and characteristics of tourism industry. These factors can influence the disaster exposure in the tourism industry.(Shakya, 2009) Analysis of these factors is perceived as below.

Tourism characteristics

The major characteristics of the industry that expose it to these verity of disaster are its highest level of integration with the consumer groups and its labor-intensive nature. The overall performance of this industry depends on the people who significantly increase the level of risks in performing the operations in a positive way. As tourists are required to move from one place to another, it is a major factor increasing the level of risk. Moreover, the tourism industry is of perishable nature and this influences the overall performance of the industry. For instance,lower number of tourist visiting destinations because of disaster and crisis will result in lower revenues of the industry and it also poses a high level of risk to the survival of the tourism industry. This is because natural disasters in such destinations decrease the level of confidence tourists and their lower inflow in the country leads to the declining revenues of the tourism industry. Such lost revenues because of natural disaster (Tourism characteristic) cannot be improved and it will be regarded as a loss to the entire industry.

Perceived risk in tourism

It also has been the important factor that affects the level of risk associated with disaster and crisis situation in the tourism industry. The role of this factor is significant in respect to the decision-making process of potential tourists. Risk perception is viewed as a decisive factor and it has a considerable impact on demand for tourism. Higher perception of risk will result in lower demand for tourism and vice versa. This indicates that perceived risks in tourism are the major factors directly influencing the performance of tourism industry. Because of a higher level of perceived risk, tourists do not prefer to travel to such places as there are a lot of options available to tourists.(O'Connor, 2010)The negative image of such destinations is likely to affect the overall performance of the industry. Moreover, distance traveling to an unknown location is also an integral component of uncertainty in the tourism industry as it involves certain kind of risk.

The role of the image of some specific destinations is crucial there it is necessary that the positive image should be maintained. However, the crisis in the form of 9/11 attack brings negative impact on the overall performance of tourism, events and hospitality industry as it creates a feeling of danger and enhances the potential risks within them.(Glaesser, 2006)Ultimately this kind of factors affect the overall performance of the industry.Therefore, it is essential for a country to maintain a positive image on such destinations.

ISSUES RELATING TO THE TOURISM, EVENT AND HOSPITALITY ENVIRONMENT Harvard Case Solution & Analysis

Complexity of crisis management in tourism

It is also another factor that influences the overall performance of tourism, events and hospitality industry. The unpredictable nature of disasters in the tourism industry is a crucial factorthat increases the management of risks within it. Such as natural disaster (Earthquake) is quite unpredictable and at the same time, terrorist attack, natural calamities,and situations have also been ahigher level of unpredictability.

These factors increase the complexity level of managing the tourism industry and its impact will decrease the performance of tourism industry..................................

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