Crisis ManagementCrisis ManagementCrisis: any situation that has the potential to Crisis: any situation that has the potential to affect long-term confidence in an organisation affect long-term confidence in an organisation or product and may interfere with its ability to or product and may interfere with its ability to continue operating normallycontinue operating normally

Examples of crisis eventsExamples of crisis events– Natural disasters: cyclone, floods, tsunami, volcano, Natural disasters: cyclone, floods, tsunami, volcano,

earthquakeearthquake– Man-made disasters: chemical or gas leak, oil spillsMan-made disasters: chemical or gas leak, oil spills– Pandemic, plagues or other health scaresPandemic, plagues or other health scares– Major transport incident affecting visitor access Major transport incident affecting visitor access – Terrorist/cyber attackTerrorist/cyber attack– Financial crisisFinancial crisis

Prior to CrisisPrior to Crisis

Identify risksIdentify risks

Assess level of riskAssess level of risk– Consequence of event (i.e., floods) on business Consequence of event (i.e., floods) on business

were it to occur – extreme, high, medium, low were it to occur – extreme, high, medium, low – Likelihood of event – almost certain, likely, possible, Likelihood of event – almost certain, likely, possible,

unlikely, rareunlikely, rare

Address risksAddress risks– Reduce consequence, impact through policies, Reduce consequence, impact through policies,

backing up critical information, etc.backing up critical information, etc.– Transfer/outsource risk Transfer/outsource risk – Avoid risk by changing processes, practicesAvoid risk by changing processes, practices

Reducing Consequences of Reducing Consequences of RiskRisk

Cancellation PolicyCancellation Policy– Inform of cancellation policy, terms of refunding Inform of cancellation policy, terms of refunding

depositdeposit

Insurance as approach to transferring riskInsurance as approach to transferring risk– Level of coverLevel of cover– Business interruption insurance – triggered if Business interruption insurance – triggered if

business is directly impacted by crisisbusiness is directly impacted by crisisMay not cover if roads to business are closedMay not cover if roads to business are closed

Prior to CrisisPrior to CrisisEstablish crisis team, with roles and Establish crisis team, with roles and responsibilities for each member (i.e., legal, responsibilities for each member (i.e., legal, financial, leadership, first aid, human resources)financial, leadership, first aid, human resources)

Train teamTrain team

Develop list of regional emergency contacts to Develop list of regional emergency contacts to go to go to – Understand how you will be alerted to emergencies Understand how you will be alerted to emergencies

(e.g., radio, text, voice messages on telephones)(e.g., radio, text, voice messages on telephones)

Join network in region Join network in region – Gov. agencies, operators, media, community, etc.Gov. agencies, operators, media, community, etc.– Regional or destination tourism crisis management Regional or destination tourism crisis management

groupsgroups

Prior to CrisisPrior to Crisis

Emergency Response PlanEmergency Response Plan– Identify early warning procedures for crisis events Identify early warning procedures for crisis events

that can be predicted (i.e., cyclones, flooding)that can be predicted (i.e., cyclones, flooding)– Tied to Risk Management Plan Tied to Risk Management Plan – Clear guide to action, response and who to notify Clear guide to action, response and who to notify

important to have when crisis occursimportant to have when crisis occurs

Evacuation Plan Evacuation Plan What triggers it, who authorises, how staff & guests What triggers it, who authorises, how staff & guests are to be evacuated, known and practiced regularlyare to be evacuated, known and practiced regularly

Prior to CrisisPrior to CrisisCrisis CommunicationCrisis Communication– Key stakeholders to be contacted when crisis Key stakeholders to be contacted when crisis

occursoccursEmergency PersonnelEmergency Personnel

CustomersCustomers

StaffStaff

Tourism Industry PartnersTourism Industry Partners

SuppliersSuppliers

Working with mediaWorking with media– Work with crisis management groupWork with crisis management group– Need for consistent, coordinated informationNeed for consistent, coordinated information– Reduce misinformationReduce misinformation

Prior to CrisisPrior to CrisisDevelop Business Recovery PlanDevelop Business Recovery Plan

Identify critical assets for operations (equipment, Identify critical assets for operations (equipment, staff)staff)

Off-site back up of company filesOff-site back up of company files– Keep up-to-date recordsKeep up-to-date records– Online: secure, can be accessed remotelyOnline: secure, can be accessed remotely– Safe storage of hard copiesSafe storage of hard copies

Plan alternative facilities for periods of disruption Plan alternative facilities for periods of disruption

Identify alternative sources of essential services, Identify alternative sources of essential services, suppliessupplies

During CrisisDuring CrisisImmediate: Emergency Management PlanImmediate: Emergency Management Plan

Short-Medium Term (Days 2-14)Short-Medium Term (Days 2-14)– Manage bookings to keep cash in businessManage bookings to keep cash in business

Contact customers who have booked with updatesContact customers who have booked with updates

If advise not to come in short-term, encourage If advise not to come in short-term, encourage reschedulingrescheduling

– Deal with cancellations according to policyDeal with cancellations according to policy– If cancel, offer alternatives (credit, transfer If cancel, offer alternatives (credit, transfer

bookings to other dates, businesses)bookings to other dates, businesses)– Stay abreast of developments in regionStay abreast of developments in region– Update customers, staff, tourism partnersUpdate customers, staff, tourism partners– Adjust marketing (review ads in light of event)Adjust marketing (review ads in light of event)

Manage Cash FlowManage Cash Flow– Monitor Monitor – Manage bookings to prevent cancellationsManage bookings to prevent cancellations

Contact customers about forward bookingsContact customers about forward bookings

– Financial support (government, banks)Financial support (government, banks)

Recovery After CrisisRecovery After Crisis

Manage StaffManage Staff– Assess and review staffing levels and structureAssess and review staffing levels and structure– Consider ways to retain key employees for time Consider ways to retain key employees for time

when publicity and government programs spur when publicity and government programs spur business, business recoversbusiness, business recovers

Alternatives (take accrued leave, leave without pay, shift Alternatives (take accrued leave, leave without pay, shift to part-time)to part-time)

Negotiate with other local businesses to employ staff on Negotiate with other local businesses to employ staff on short-term basisshort-term basis

Provide services to those employed in disaster recoveryProvide services to those employed in disaster recovery

Recovery After CrisisRecovery After Crisis

Reassess and revise product, if needed Reassess and revise product, if needed – Environment and thus appeal affected?Environment and thus appeal affected?– Major attractions in region closed or damaged?Major attractions in region closed or damaged?– Range of products or services affected due to Range of products or services affected due to

problems with suppliers, damage to property?problems with suppliers, damage to property?– Negative perceptions resulting from crisis?Negative perceptions resulting from crisis?– Restructure product to appeal to new market that Restructure product to appeal to new market that

could substitute for those who visited in pastcould substitute for those who visited in past

Recovery After CrisisRecovery After Crisis

Review and adjust market, if neededReview and adjust market, if needed– Review customer demographics, visitation patternsReview customer demographics, visitation patterns– Build relationships with previous customers, Build relationships with previous customers,

contacting them about new products, special offerscontacting them about new products, special offersMay support out of loyalty to crisis-affected businessMay support out of loyalty to crisis-affected business

– Look for substitute post-crisis markets less deterred Look for substitute post-crisis markets less deterred by specific type of crisisby specific type of crisis

Business travelers vs. leisure travelersBusiness travelers vs. leisure travelers

Relevant domestic markets vs. internationalRelevant domestic markets vs. international

Longer-term seniors vs. weekendersLonger-term seniors vs. weekenders

Recovery After CrisisRecovery After Crisis

Review and develop new promotionsReview and develop new promotions– Value adding vs. discountingValue adding vs. discounting– E-marketing/social mediaE-marketing/social media– Direct marketing to special interest groupDirect marketing to special interest group– EventsEvents– Work with Visitor Information Centre, regional Work with Visitor Information Centre, regional

tourism organisationstourism organisations

Recovery After CrisisRecovery After Crisis