Risk, Crisis and Disaster Management in Tourism, Hospitality and Event Industry

This research essay discusses the importance of stakeholder management, communication and consultation in relation to the micro, macro and other risks in the tourism, hospitality and event industry. It also provides recommendations to improve communication and consultation.

Running head: RISK, CRISIS AND DISASTER MANAGEMENT
Risk, Crisis and Disaster Management
[A Research Essay]
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Tourism, event and hospitality industry has undoubtedly become one of the most
prominent contributors in the local and global economy. Therefore, it is important that the
tourism, hospitality and event industry is regularly put to sustainable practices. A sustainable
practice is not just the responsibility of the local government or the tourism enterprises but rather
its stakeholders. Hence, this is important that the global hospitality and tourism industry is able
to manage an effective coordination and communication between its stakeholders. In this regard,
consulting firms can be the path guider as those firms follow a certified system to deal with the
multiple roles & responsibilities (Cheng & Wu, 2015). The study does also revolve around the
very same topic of concern. The study tries to understand who all the stakeholders are in the
tourism, hospitality and the event environment. Additionally, the study also discusses the
importance of stakeholder management, communication and consultation in relation to the
micro, macro and other risks. Recommendation to improve the ways to undertake
communication and consultation is also being explained in this study.
List of stakeholders: In the tourism, hospitality and the event industry there are the
number of stakeholders like as listed below (Farmaki et al., 2015):
 National governments
 Local governments
 Tourism enterprises and associations
 Institutions financing the tourism projects
 Tourism employees, tourism consultants and tourism professionals
 Trade unions for employees
 Education and training centers for tourism, hospitality and event industry
 Traveller of all kinds

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 Local populations
 Host communities
 Other bodies involved in tourism industry like the suppliers of services and private
organisations
The concept of stakeholder management: Stakeholder management would mean an
expected contribution from every single associated body. Now, it is important to know the
expectations to be fulfilled. Generally, stakeholders are not fully aware of the responsibilities
which they should perform. There may be various reasons for it; however, being ignorant to the
available resources like the consulting firms is one of those (Mihalic, 2016). An effective
communication between stakeholders is one of the essential elements of stakeholder
management. Communication in this context does not mean effectively involved in a two-way
interaction but rather understanding the each other’s needs. For example, providing a hassle free
and a secured tour experience to tourists is the responsibility of the tourism associations &
enterprises, local governments & the population and also the private organisation. In a likewise
manner, maintaining the highest standard of discipline and doing the acceptable activities are the
expectations of tourism enterprises & associations and the governments from the visitors (Cetin,
2015).
Micro, macro and other risks: Macro risks include political, economic, socio-cultural,
demographic, technological and environmental factors. Micro risks involve customers, suppliers,
employees, competitors, intermediaries and organisations. Other risks are related to the visitors'
activities and behaviours (Bunakov et al., 2015).

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Importance of communication, stakeholder management and consultation in regards to
the risks:
Macro: Political risks can be of varied kinds like the government taxes, regulation on
marketing communications, environmental protection policies, unemployment and others
(Weaver, 2014). The government taxes may not be static at all the time. It can fluctuate at times
and can affect the service charges, tour packages and others. On the other hand, it is imperative
to offer attractive tour packages to remain competitive in the market. Visitors are very selective
for their choice of location for a trip. Location is perhaps the first thing which crosses the mind at
the time of decision making. The decision making process does also include the tour package.
Understandably, tour package must be appealing to the target market or else others will take
away the benefits. In such situation, consulting firms can play the impactful roles. Consulting
firms generally work on a variety of works like destination management, policy, tourism
assessments, strategic planning, training, visitor experience development, tourism enterprise
development, institutional strengthening, measuring impacts and project design & monitoring
(Hall, 2016). Hence, an effective communication between the stakeholders and a consultation
with the consulting firms will help to find the alternative ways out of the crisis. Stakeholders in
particular the tourism and event enterprises & associations must know about how to offer the
attractive offers under any circumstances.
In a similar way, the economic crisis can include many like unemployment. Issues as
such the unemployment can be mitigated by extensive training for skills’ development and also a
curriculum redesign at the degree level colleges. It can also be sorted with effective migration
policies for job seekers. In all such cases, effective communication between tourism associations
& enterprises, educational institutions, local & national governments and job aspirants is utterly

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required. They all must know each others’ roles and the needs (Amir et al., 2015). The socio-
cultural crisis affecting the tourism, event and hospitality industry can include the religion,
culture and customs specific preferences. Travellers feel ecstatic by seeing their cultures and
customs being enjoyed in other parts of the world. Nevertheless, many travellers have specific
preferences for such things. They prefer visiting locations where they could feel like being in
their home countries (Mihalic, 2016). In this regard, local governments can play the supportive
roles by allowing the programs that promote the cultures, religions and the customs. Consulting
firms can help to assess the tourism, construct the strategic plans, design the programs, train the
volunteers and much more. Tourism & hospitality associations can contribute to the cause by
establishing effective communications with the governments and the target market (Weaver,
2014). This is necessary for a continued government supports and an increased participation of
the target market.
Demographic crisis can be due to the ageing population, migration of local citizens to
other countries, workplace diversity etc. Ageing population like for other industries is also a
threat to the tourism industry. The unemployment rate will probably increase. People are now
migrating to other countries in search of better opportunities. This also adds to the
unemployment rate in the countries that are losing their people. Gender gaps in the workplace are
another issue which affects the employment condition (Hall, 2016). Such issues require an
effective communication between the governments, the associated tourism & hospitality bodies,
private organisations and the consulting firms.
Technological developments and advancements is a must for the tourism, hospitality and
the event industry. The use of different technologies is increasingly becoming popular with
times. It means that a continual adoption of latest technologies is a must to the industry (Cheng

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& Wu, 2015). Stakeholder management, therefore, becomes very important. A collaborative
approach from the stakeholders would only help in this regard. This is the reason why there is a
need for effective communication between the stakeholders and also a consultation with the
consulting firms. Environmental pollution and the wastes are the common worries for the global
tourism, hospitality and event industry. Air pollution due to incrementing greenhouse gas
emission, water pollution due to the wastes and others are some of the environmental worries.
Tourists travel to other countries to spend a few moments with the scenic beauties and the
peaceful environment. However, pollution will certainly spoil their purposes (Mihalic, 2016).
Environmental pollution is a global issue which is why the entire stakeholders are expected to
contribute their best to make the possible difference.
Micro: Travellers visiting a country can be of various types like the business travellers,
students, normal travellers and all. It is essential for the host country that its customers have
enough resources to have the fun. It is also necessary that travellers are safe and secured from
dangers like unwanted physical attacks, physical abuse, sexual assault, racial discrimination and
others (Cheng & Wu, 2015). This is where the governments and the tourism associations in
collaboration with the consulting firms can try to make a difference. Such issues cannot be
entirely mitigated; however, protection from the dangers can be enhanced. The ageing population
and the increasing unemployment rate are the threats to the local tourism. The local tourism in
such case will struggle to get the skilled professionals (Cheng & Wu, 2015). This is also where a
collaborative relationship between the governments, tourism enterprises and the consulting firms
can make the difference.
Suppliers are those that are involved in the tourism, hospitality and event industry for
supplying the demands of customers. Customers need lodging which is made available to them

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through hotels, resorts and other means of lodging. Shopping malls, food stores, entertainment
zones, event halls, educational institutions, public & private companies and lot more are all the
suppliers of the various needs of travellers. This is indeed a huge field and does require a
collaborative and a structured system to identify, plan, implement and monitor the progress of
the strategies. Consulting firms will be hugely beneficial in this regard (Cetin, 2015). Private
organisations can also play the critical roles in supplying the demands of tourists. The effective
workplace policies and the other benefits will not only retain the staffs but will also attract the
professionals from other countries. However, ineffective policies will certainly be the reasons for
employee turnover (Cetin, 2015). Hence, a collaboration of private organisations with the local
governments’ policies and the consulting firms will certainly help to overcome the crisis.
Other issues: This is mainly related to the travellers' attitudes and behaviours. Visitors
represent the different cultures and customs which means they will struggle to adjust to the local
cultures. The host country will face the challenge in mitigating the cultural conflicts in the
workplace and also between the visitors. Sometimes the visitors are responsible for the conflicts.
On the other hand, local people are responsible in some cases. The racial discrimination at the
workplace, the institutions and the other places are due to the local peoples’ unawareness and
hatred with the other cultures (Bunakov et al., 2015). In all such circumstances, the different
stakeholders will face the challenge.
Ways to be undertaken for communication and consultation: As stated earlier that an
effective communication between the stakeholders and the collaboration with the consulting
firms is important for the tourism, hospitality and event industry. This can be attained through
several possible steps. One of the steps is giving stakeholders a certain level of visibility and
autonomy in projects (Mihalic, 2016). This will allow stakeholders to explore their creative

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potentials. They will be encouraged to experiment with different things and find better ways to
improve the communication. Emphasis needs to be given to the non-financial benefits which
stakeholders will receive by participating in the projects. Non-financial benefits can even do
things which are not possible with monetary benefits. Non-financial benefits include but are not
limited to like flexible-times, time off, retirement matching, gym membership discounts,
discounted or free parking, childcare, mentoring programs and tuition assistance (Mihalic, 2016).
Tourism networks must have the clear communication channels, so that, stakeholders are
effectively engaged with the local authorities as well. This will also help to delineate the
responsibilities of each party involved. This will improve the coordination and solidify the
collaboration with the different bodies and also with the consulting firms (Amir et al., 2015).
High involvement of destination management organisations (DMO) in the tourism, event and
hospitality environment can do the wonders. DMO helps to relate the different interests of
stakeholders which are necessary for a sustainable tourism. DMO is aimed at delivering the
managerial roles and ensuring the social & economic benefits for the stakeholders (Amir et al.,
2015).
In summary, this can be said that tourism, event and hospitality industry is full of
complexities and the challenges. It is due to the stakeholders’ management, communication with
the local authorities and the collaboration with the consulting firms. Stakeholders’ management
is attached to the number of complexities; however, it is resolvable with effective plans. One of
such plans is to give preference to the destination management organisations (DMO). It is due to
a fact that they are now more centred on managerial kind of work. DMO can effectively help to
relate the different interests of stakeholders. Effective communication is also required between
the stakeholders and the local authorities. A sustainable tourism is a challenge indeed without a

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cooperation of visitors. Visitors can affect the socio-cultural and environmental state of the
visiting nations.

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References
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