1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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)

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

10. 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

11. 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

12. 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

13. 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