Crisis Management Crisis: any situation that has the potential to affect long-term confidence in an organisation or product and may interfere with its ability to continue operating normally Examples of crisis events Natural disasters: cyclone, floods, tsunami, volcano, earthquake Man-made disasters: chemical or gas leak, oil spills Pandemic, plagues or other health scares Major transport incident affecting visitor access Terrorist/cyber attack Financial crisis

Prior to Crisis Identify risks Assess level of risk Address risks Consequence of event (i.e., floods) on business were it to occur – extreme, high, medium, low Likelihood of event – almost certain, likely, possible, unlikely, rare Address risks Reduce consequence, impact through policies, backing up critical information, etc. Transfer/outsource risk Avoid risk by changing processes, practices

Reducing Consequences of Risk Cancellation Policy Inform of cancellation policy, terms of refunding deposit Insurance as approach to transferring risk Level of cover Business interruption insurance – triggered if business is directly impacted by crisis May not cover if roads to business are closed

Prior to Crisis Establish crisis team, with roles and responsibilities for each member (i.e., legal, financial, leadership, first aid, human resources) Train team Develop list of regional emergency contacts to go to Understand how you will be alerted to emergencies (e.g., radio, text, voice messages on telephones) Join network in region Gov. agencies, operators, media, community, etc. Regional or destination tourism crisis management groups

Prior to Crisis Emergency Response Plan Evacuation Plan Identify early warning procedures for crisis events that can be predicted (i.e., cyclones, flooding) Tied to Risk Management Plan Clear guide to action, response and who to notify important to have when crisis occurs Evacuation Plan What triggers it, who authorises, how staff & guests are to be evacuated, known and practiced regularly

Prior to Crisis Crisis Communication Working with media Key stakeholders to be contacted when crisis occurs Emergency Personnel Customers Staff Tourism Industry Partners Suppliers Working with media Work with crisis management group Need for consistent, coordinated information Reduce misinformation

Prior to Crisis Develop Business Recovery Plan Identify critical assets for operations (equipment, staff) Off-site back up of company files Keep up-to-date records Online: secure, can be accessed remotely Safe storage of hard copies Plan alternative facilities for periods of disruption Identify alternative sources of essential services, supplies

During Crisis Immediate: Emergency Management Plan Short-Medium Term (Days 2-14) Manage bookings to keep cash in business Contact customers who have booked with updates If advise not to come in short-term, encourage rescheduling Deal with cancellations according to policy If cancel, offer alternatives (credit, transfer bookings to other dates, businesses) Stay abreast of developments in region Update customers, staff, tourism partners Adjust marketing (review ads in light of event)

Recovery After Crisis Manage Cash Flow Monitor Manage bookings to prevent cancellations Contact customers about forward bookings Financial support (government, banks)

Recovery After Crisis Manage Staff Assess and review staffing levels and structure Consider ways to retain key employees for time when publicity and government programs spur business, business recovers Alternatives (take accrued leave, leave without pay, shift to part-time) Negotiate with other local businesses to employ staff on short-term basis Provide services to those employed in disaster recovery

Recovery After Crisis Reassess and revise product, if needed Environment and thus appeal affected? Major attractions in region closed or damaged? Range of products or services affected due to problems with suppliers, damage to property? Negative perceptions resulting from crisis? Restructure product to appeal to new market that could substitute for those who visited in past

Recovery After Crisis Review and adjust market, if needed Review customer demographics, visitation patterns Build relationships with previous customers, contacting them about new products, special offers May support out of loyalty to crisis-affected business Look for substitute post-crisis markets less deterred by specific type of crisis Business travelers vs. leisure travelers Relevant domestic markets vs. international Longer-term seniors vs. weekenders

Recovery After Crisis Review and develop new promotions Value adding vs. discounting E-marketing/social media Direct marketing to special interest group Events Work with Visitor Information Centre, regional tourism organisations