Resort & Second-Home Markets Course CHAPTER FIVE

In This Section Overcoming bad publicity Formulating disaster preparation and recovery plans

The Dream Vacation Clients’ vacation or second-home properties may be in areas vulnerable to environmental and natural disasters “Dream vacation” feelings are very influenced by emotion-laden events and media coverage

Activate Your Network Galvanizing your local network for action Take the lead in bringing the group together to form a recovery coalition Elected volunteers have their hands full dealing with the immediate situation and will welcome the support of a coalition of community stakeholders

Handling Bad Publicity Rules of Thumb Provide prompt, honest, factual information Do not speculate on things you do not know Avoid rehashing old problems or dwelling on past events Focus on what is happening now NEVER respond with “no comment”

Case Study Ski industry representatives took a proactive approach Environmental charter Institutionalizes partnerships between the industry and government agencies

Skill Builder Tip Tips for Crisis Communications Before: Develop a communication plan; try to identify potential crises and plan responses. During: Gather the facts; activate your team or network; give the media as much information as possible; protect the integrity and reputation of the area and your firm. After: Perform an act of goodwill during or immediately after a crisis; declare an end to the crisis.

Creating Positive PR Clip and send local newspaper articles Get involved Create a newsletter Create a blog Post updated photos on your Web site Announce an “end” to a crisis Volunteer Act of goodwill

Creating Positive PR Charity and fundraiser event prizes Relationships with hospitality and travel schools Donation in lieu of a closing gift Create press releases Sponsor local market research and share with your network and community groups Ask for feedback and opinions from clients

“Stuff Happens” Every region experiences damage and disruption Doesn’t need not be widespread to cause disruption Develop fast or slow Maintain continuity for your business Provide information to help property owners prepare for, survive, and recover

Business Continuity Staying in business after a disaster Making call chain Compiling emergency contacts Backing up data files Inventorying assets Compiling a contact list Assessing insurance coverage Establishing an alternate business location Keeping hard copies of important papers

Re-Opening for Business Secure the premises Contact the insurance company Inspected for damage Restore electricity, gas, phone, water Make temporary repairs Clean up Keep track of extra expenses

Prepare and Prevent Provide information about natural events and. . . Utility connections Evacuation routes Emergency contacts Warnings Structural features Emergency kits Fire prevention Expert information

When a Property is Vacant Lessen the possibility of vandalism or damage Deadbolt locks and a security system Snow removal and lawn care even when the property is vacant Discontinue mail and newspaper delivery, remove advertising flyers Inform local law enforcement Schedule routine preventative maintenance Develop a “leaving routine” Remove anything that could do damage

What to Expect FEMA programs apply after the state declares an emergency, followed by a presidential declaration Federal disaster assistance does not cover vacation or second homes The Red Cross focuses on meeting acute emergency needs - - shelter, food, medical attention, and basic human needs

Insurance Readiness Understand insurable risks and policy coverage needed and available Don’t assume a basic insurance policy covers everything Cost of insurance in resort areas with a history of natural disasters is a significant financial consideration

What Happens to the Real Estate Market? Temporary halt in closings until cleaned up and repaired Buyer may back out of contract, and receive a refund of earnest money if the property is damaged or destroyed Buyer may choose to go through with the purchase when the property is restored at the seller’s expense

What Happens to the Real Estate Market? Sellers, cannot cancel a contract if the property to which they planned to move is damaged or destroyed, unless contract contingency Buyers must continue mortgage payments Business “boomlet”