Crisis Management in Tourism

Crisis Management in Tourism

The tourism sector has faced unprecedented volatility and uncertainty over the past 5 years, both globally and locally. The pandemic and its related restrictions, the geopolitical situation and local conflicts, the acceleration of inflation and price increases, and the disruption of logistical chains led to the share of tourism in the global economy decreasing significantly. By the end of 2023 only a few destinations had managed to return to 2019 levels.

Now, however, the outlook is more encouraging. Consumer behavior in 2024, despite ongoing uncertainty, indicates a strong will to travel. Thanks to this, the sector is adapting to changing reality – new tourist routes are emerging and existing ones are being developed, new hotels, airports, restaurants, and other infrastructure are opening.

That said, the sector is still affected by seasonality, high fixed costs, a lack of qualified people and relatively low profitability. In rapidly changing and disruptive environment, with unforeseen changes, crisis management and change management become critical to ensure the industry is sustainable and safe for tourists and business.

Crisis management in the tourism sector generally involves a strategic and proactive approach taken by business to anticipate, prepare for, respond to, and recover from unexpected events that may influence the safety, travel plans, and the overall satisfaction of tourists. The primary goal is to minimize the effects of a crisis, restore confidence, and enable a relevant recovery for all parties involved.

As for any general management activities, crisis management in tourism logically includes several steps:

1)Assessing the nature of crisis

Tourism industry crises can take different forms, each demanding a specific response. Natural disasters can disrupt travel plans, infrastructure, and local communities. Human-made events, such as terrorist attacks, civil unrest, or geopolitical tensions, can impact the safety and security of tourists in affected regions. Additionally, health-related issues, exemplified by pandemics like COVID-19, present unique challenges with widespread implications for global travel.

2)Pre-Crisis Planning and Preparation

Effective crisis management starts long before a crisis itself appears. The tourism industry must engage in pre-crisis planning and preparedness to mitigate potential risks and enhance responsiveness during emergencies. This involves conducting risk assessments, identifying vulnerabilities, and establishing crisis response teams with clear roles and responsibilities. Relevant communication plans are essential to spread accurate and timely information to tourists, employees, and the public, assuring transparency and trust.

3)Crisis Response and Communication

While crisis starts, the effectiveness of the response and communication can make a significant difference in managing the situation. Tourism enterprises must activate their crisis response teams promptly and implement pre-established protocols and procedures. Swift communication with relevant authorities, local communities, and other stakeholders is essential to assess the situation accurately and make informed decisions. Transparent communication with tourists is crucial for managing expectations, providing safety guidelines, and offering alternative solutions.

4)Flexibility and Redemption Strategies

Flexibility is a crucial component of effective crisis management in tourism. Diversifying tourism offerings, both in terms of destinations and experiences, may reduce the impact of crisis that affect specific regions or sectors. Creating contingency funds and investing in comprehensive insurance can provide financial stability during challenging times. Collaborative efforts among public and private sectors can improve the managing capabilities, fostering a collective commitment to the industry’s survival and recovery.

5)Post-Crisis Assessment and Mastering

After managing a crisis, a thorough post-crisis analysis is vital to learn from the experience and improve future crisis management strategies. The tourism industry should embrace a culture of life-long learning and adaptation, updating plans based on emerging trends and challenges. Sharing lessons learned with the industry community promotes knowledge sharing and improves practices for the tourism sector.

ARTEM KLYKOV, PhD, MBA

professor of tourism, Silk Road University Samarkand

visiting professor, SWISSAM International University

hospitality expert

media contributor

coach, mentor