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Disaster Risk Management in
Tourism Destinations
Dr. Stefanos Fotiou
United Nations Environment Programme
Division of Technology, Industry and Economics
This presentation is
about………
1
Tourism and Risk
2
Tourism Risk Management
3 Vulnerability of Destinations4
APELL in Tourism Destinations
Let’s start with ……
1 2
3 4
Tourism and Risk
Tourism Risk Management
Vulnerability of Destinations
APELL in Tourism Destinations
Sustainable tourism
 Tourism development that promotes:
 Economic efficient
 Environmental protection
 Socio-cultural progress
Economy
Environment
Society
1 2
3 4
Tourism growth and
sustainability
 1 billion tourists by 2020
 Dynamic opportunistic market
 Structural changes
 New destinations
 Demand for new tourism products (“Life-
style”; adventure; custom made tourism)
 Competition
 Tourism development will depend on
external threats
1 2
3 4
Hazards and Risks
1 2
3 4
 Hazard: A potentially damaging physical
event, phenomenon or human activity
that may cause the loss of life or injury,
property damage, social and economic
disruption or environmental degradation.
 Risk: The probability of harmful
consequences, or expected losses
resulting from interactions between
natural or human-induced hazards and
vulnerable conditions.
Hazards for tourism
destinations
Atmospheric Earth
(Geological)
Biologic Human
Cyclones Earthquakes Human
epidemics
Industrial
accidents
Tornadoes Tsunamis Plant
epidemics
Traffic
accidents
Storms Landslides Animal
epidemics
Crime;
Terrorism
Floods Volcanoes Plagues Economic
Frosts Erosion Fires Political
conflict
1 2
3 4
Source: Adapted from Granger, K. (2000).
"An information infrastructure for disaster management in Pacific island countries."
Risks for tourists
1 2
3 4
Environmental Diseases Financial Socio-cultural
Product liability Property damage Security ….
Impacts of hazards and risks
on tourism development
 Damage of tourism specific assets
 Human, environmental, social
 Degradation of destination’s image
 Decrease of income
 Substitution by other destinations
 Indirect damages
 Macroeconomic effects
1 2
3 4
And then the media will come
The number of foreign tourists visiting France fell
by 2.6% in 2003, according to a study issued by
the tourism minister, Léon Bertrand. The
strength of the euro against the dollar and other
major currencies depressed French tourism last
year. The country also suffered a negative
impact from the oil spill from the Prestige tanker
disaster, a series of forest fires and the heat
wave that struck in August.
(International Herald Tribune 26/02/2004, p.24)
1 2
3 4
And then the media will come
The number of foreign tourists visiting France fell
by 2.6% in 2003, according to a study issued by
the tourism minister, Léon Bertrand. The
strength of the euro against the dollar and other
major currencies depressed French tourism last
year. The country also suffered a negative
impact from the oil spill from the Prestige tanker
disaster, a series of forest fires and the heat
wave that struck in August.
(International Herald Tribune 26/02/2004, p.24)
1 2
3 4
Human Hazard
(Financial
Instability)
Human Hazard
(Industrial
Accident)
Biologic Hazard Atmospheric
Hazard
The future
 The market:
 Destinations perceived as being overdeveloped,
unattractive, poorly serviced, and less safe will
be gradually rejected, despite the lower price of
such destinations.
 Increased probability of hazards
 Growth of the tourism; more people will travel
 Climate change
 Tourism communities should learn to co-exist
with and respond to the risks
 Demonstrate their capacity to manage risks
1 2
3 4
How do we do that?
1 2
3 4
Tourism and Risk
Tourism Risk Management
Vulnerability of Destinations
APELL in Tourism Destinations
Tourism risk management
Tourism risk management is a systematic
approach to making decisions under
conditions of uncertainty, dealing with
the total risk, by anticipating possible
opportunities and accidental losses, and
designating and implementing
procedures that minimize; i) the
occurrence of loss, and/or ii) the social,
economic and environmental impact of
the losses that do occur.
1 2
3 4
Source: Destination Risk Management Modelling, 2004
Tourism risk management
Tourism risk management is a systematic
approach to making decisions under
conditions of uncertainty, dealing with the
total risk, by anticipating possible
opportunities and accidental losses, and
designating and implementing
procedures that minimize; i) the
occurrence of loss, and/or ii) the social,
economic and environmental impact of
the losses that do occur.
1 2
3 4
Source: Destination Risk Management Modelling, 2004
The basis of risk management
Risk = %Hazard x Vulnerability/Capacity
Hazard
Vulnerability
Capacity
1 2
3 4
C1
V1
H1
+
+
+
Tourism risk management
process
 Risk Environment
 Risk Identification
 Risk Analysis
 Risk Treatment
1 2
3 4
Risk Environment
 Describe the environment where the
disaster may happen
 Assets for tourism development and
community wellbeing
 The tourism load and seasonality
 Stakeholders
 Legal, political, business framework that
rules the destination (identify authority)
1 2
3 4
Risk Identification
 Identification should include all risks,
whether or not they are under the control
of the tourist destination or local
government.
 Use various methods and tools like
brainstorming, flowcharts, check lists,
records, experience.
1 2
3 4
Risk analysis: Consequences
1 2
3 4
Source: AICST 2004, Tourism Risk Management in the Asia Pacific Region
Risk analysis: Likelihood
1 2
3 4
Source: AICST 2004, Tourism Risk Management in the Asia Pacific Region
Risk analysis: Level of risk
1 2
3 4
Source: AICST 2004, Tourism Risk Management in the Asia Pacific Region
Risk treatment
 Identifying the range of options available
to operators and destinations, making
plans and acting upon them.
 Risk treatment strategies
 Few risks remain static.
1 2
3 4
Minimizing risk version 1
1 2
3 4
Risk = %Hazard x Vulnerability/Capacity
Hazard
Vulnerability
Capacity
C1
V1
H1
V- < V1
Here is the difficult part
1 2
3 4
Tourism and Risk
Tourism Risk Management
Vulnerability of Destinations
APELL in Tourism Destinations
1 2
3 4
Global trends and
vulnerability of destinations
 The global population is moving and
concentrating to coastal zones; creation
of large urban conurbations (metropolis)
 The implications for tourism are
widespread; dominance of these
conurbations as both cultural centres
and transportation hubs for travellers.
 Therefore vulnerability is increasing
Global trends and
vulnerability of destinations
 There are more built-up areas for natural
and anthropogenic disasters to have a
negative impact, particularly areas
developed along coastlines specifically
for tourism purposes
 Vulnerability reduction is therefore at the
very heart of the risk management
processes for tourism destinations in
coastal areas.
1 2
3 4
Factors affecting tourism
destination’s vulnerability
 Exposure to hazards
 Land planning and management policies
 Resource management
 Availability of technologies
 Political climate and leadership
 Community behavior (community
vulnerability)
1 2
3 4
Exposure to hazards
 Difficult to change
 Coastal destinations are more vulnerable
to natural hazards
 Climate change will affect more coastal
destinations and all the Small Island
Developing States (SIDS)
 The need for Integrated Coastal Zone
Management (ICZM)
1 2
3 4
Land planning and
management
 Integrated Coastal Zone Management
 Participatory approach
 Land based activities
 Impacts on the capacity of coastal
communities
 The relative power of stakeholders
1 2
3 4
Resource management
 Seasonality of tourism demand
 Seasonality on resource demand
 Resources’ demanded from the tourists
are usually much more higher than the
ones demanded by locals
 During a disaster tourists are a threat to
local communities
1 2
3 4
Availability of technologies
 Depends on the development level of each
destination
 Destinations in developing countries may
benefit from tourism
 Tourists demand for technologies
 Destinations targeting quantities may suffer
from the low level of available technology
(investment priorities)
 Innovation is a very crucial factor for tourism
sustainability
1 2
3 4
Political climate and
leadership
 Mature and well organized destinations
in developing countries may have an
advantage if they are managed from
strong tourism authorities
 The advantage may become
disadvantage in cases of inefficient
central management
 The importance of Destination
Management Organisations
1 2
3 4
Community’s vulnerability
 Strong community institutions
 Effective planning for community
development
 Bottom-up approaches
 Mitigation initiatives in place
 Information level
 Economic and racial equality
 Capacity of the community
1 2
3 4
Increasing capacity
1 2
3 4
Tourism and Risk
Tourism Risk Management
Vulnerability of Destinations
APELL in Tourism Destinations
Minimizing risk version 2
1 2
3 4
Risk = %Hazard x Vulnerability/Capacity
Hazard
Vulnerability
Capacity
C1
V1
H1
C+ > C1
APELL in Tourism
Destinations
 We developing together a new method
 Integrating the experience of 2 countries,
1 international recognised rescue
agency, 1 international business
association and the UN system
 Creating together tolls to make our
communities better
 Creating experience and expertise for
other communities and people
1 2
3 4
Our project. Minimizing risk:
Integrated version
1 2
3 4
Risk = %Hazard x Vulnerability/Capacity
Hazard
Vulnerability
Capacity
C1
V1
H1
C+ > C1
V- < V1
“Institutional and societal
decrease of risk”
 We decrease risk by:
 Creating and operating strong institutions
 Maintaining social cohesion
 Understanding different cultures
 Accepting change
 Being open to new and maybe “non
understandable” behaviours
 Working as a team despite the different
interests and perceptions
1 2
3 4

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Risk Management in Tourism Destinations

  • 1. Disaster Risk Management in Tourism Destinations Dr. Stefanos Fotiou United Nations Environment Programme Division of Technology, Industry and Economics
  • 2. This presentation is about……… 1 Tourism and Risk 2 Tourism Risk Management 3 Vulnerability of Destinations4 APELL in Tourism Destinations
  • 3. Let’s start with …… 1 2 3 4 Tourism and Risk Tourism Risk Management Vulnerability of Destinations APELL in Tourism Destinations
  • 4. Sustainable tourism  Tourism development that promotes:  Economic efficient  Environmental protection  Socio-cultural progress Economy Environment Society 1 2 3 4
  • 5. Tourism growth and sustainability  1 billion tourists by 2020  Dynamic opportunistic market  Structural changes  New destinations  Demand for new tourism products (“Life- style”; adventure; custom made tourism)  Competition  Tourism development will depend on external threats 1 2 3 4
  • 6. Hazards and Risks 1 2 3 4  Hazard: A potentially damaging physical event, phenomenon or human activity that may cause the loss of life or injury, property damage, social and economic disruption or environmental degradation.  Risk: The probability of harmful consequences, or expected losses resulting from interactions between natural or human-induced hazards and vulnerable conditions.
  • 7. Hazards for tourism destinations Atmospheric Earth (Geological) Biologic Human Cyclones Earthquakes Human epidemics Industrial accidents Tornadoes Tsunamis Plant epidemics Traffic accidents Storms Landslides Animal epidemics Crime; Terrorism Floods Volcanoes Plagues Economic Frosts Erosion Fires Political conflict 1 2 3 4 Source: Adapted from Granger, K. (2000). "An information infrastructure for disaster management in Pacific island countries."
  • 8. Risks for tourists 1 2 3 4 Environmental Diseases Financial Socio-cultural Product liability Property damage Security ….
  • 9. Impacts of hazards and risks on tourism development  Damage of tourism specific assets  Human, environmental, social  Degradation of destination’s image  Decrease of income  Substitution by other destinations  Indirect damages  Macroeconomic effects 1 2 3 4
  • 10. And then the media will come The number of foreign tourists visiting France fell by 2.6% in 2003, according to a study issued by the tourism minister, Léon Bertrand. The strength of the euro against the dollar and other major currencies depressed French tourism last year. The country also suffered a negative impact from the oil spill from the Prestige tanker disaster, a series of forest fires and the heat wave that struck in August. (International Herald Tribune 26/02/2004, p.24) 1 2 3 4
  • 11. And then the media will come The number of foreign tourists visiting France fell by 2.6% in 2003, according to a study issued by the tourism minister, Léon Bertrand. The strength of the euro against the dollar and other major currencies depressed French tourism last year. The country also suffered a negative impact from the oil spill from the Prestige tanker disaster, a series of forest fires and the heat wave that struck in August. (International Herald Tribune 26/02/2004, p.24) 1 2 3 4 Human Hazard (Financial Instability) Human Hazard (Industrial Accident) Biologic Hazard Atmospheric Hazard
  • 12. The future  The market:  Destinations perceived as being overdeveloped, unattractive, poorly serviced, and less safe will be gradually rejected, despite the lower price of such destinations.  Increased probability of hazards  Growth of the tourism; more people will travel  Climate change  Tourism communities should learn to co-exist with and respond to the risks  Demonstrate their capacity to manage risks 1 2 3 4
  • 13. How do we do that? 1 2 3 4 Tourism and Risk Tourism Risk Management Vulnerability of Destinations APELL in Tourism Destinations
  • 14. Tourism risk management Tourism risk management is a systematic approach to making decisions under conditions of uncertainty, dealing with the total risk, by anticipating possible opportunities and accidental losses, and designating and implementing procedures that minimize; i) the occurrence of loss, and/or ii) the social, economic and environmental impact of the losses that do occur. 1 2 3 4 Source: Destination Risk Management Modelling, 2004
  • 15. Tourism risk management Tourism risk management is a systematic approach to making decisions under conditions of uncertainty, dealing with the total risk, by anticipating possible opportunities and accidental losses, and designating and implementing procedures that minimize; i) the occurrence of loss, and/or ii) the social, economic and environmental impact of the losses that do occur. 1 2 3 4 Source: Destination Risk Management Modelling, 2004
  • 16. The basis of risk management Risk = %Hazard x Vulnerability/Capacity Hazard Vulnerability Capacity 1 2 3 4 C1 V1 H1 + + +
  • 17. Tourism risk management process  Risk Environment  Risk Identification  Risk Analysis  Risk Treatment 1 2 3 4
  • 18. Risk Environment  Describe the environment where the disaster may happen  Assets for tourism development and community wellbeing  The tourism load and seasonality  Stakeholders  Legal, political, business framework that rules the destination (identify authority) 1 2 3 4
  • 19. Risk Identification  Identification should include all risks, whether or not they are under the control of the tourist destination or local government.  Use various methods and tools like brainstorming, flowcharts, check lists, records, experience. 1 2 3 4
  • 20. Risk analysis: Consequences 1 2 3 4 Source: AICST 2004, Tourism Risk Management in the Asia Pacific Region
  • 21. Risk analysis: Likelihood 1 2 3 4 Source: AICST 2004, Tourism Risk Management in the Asia Pacific Region
  • 22. Risk analysis: Level of risk 1 2 3 4 Source: AICST 2004, Tourism Risk Management in the Asia Pacific Region
  • 23. Risk treatment  Identifying the range of options available to operators and destinations, making plans and acting upon them.  Risk treatment strategies  Few risks remain static. 1 2 3 4
  • 24. Minimizing risk version 1 1 2 3 4 Risk = %Hazard x Vulnerability/Capacity Hazard Vulnerability Capacity C1 V1 H1 V- < V1
  • 25. Here is the difficult part 1 2 3 4 Tourism and Risk Tourism Risk Management Vulnerability of Destinations APELL in Tourism Destinations
  • 26. 1 2 3 4 Global trends and vulnerability of destinations  The global population is moving and concentrating to coastal zones; creation of large urban conurbations (metropolis)  The implications for tourism are widespread; dominance of these conurbations as both cultural centres and transportation hubs for travellers.  Therefore vulnerability is increasing
  • 27. Global trends and vulnerability of destinations  There are more built-up areas for natural and anthropogenic disasters to have a negative impact, particularly areas developed along coastlines specifically for tourism purposes  Vulnerability reduction is therefore at the very heart of the risk management processes for tourism destinations in coastal areas. 1 2 3 4
  • 28. Factors affecting tourism destination’s vulnerability  Exposure to hazards  Land planning and management policies  Resource management  Availability of technologies  Political climate and leadership  Community behavior (community vulnerability) 1 2 3 4
  • 29. Exposure to hazards  Difficult to change  Coastal destinations are more vulnerable to natural hazards  Climate change will affect more coastal destinations and all the Small Island Developing States (SIDS)  The need for Integrated Coastal Zone Management (ICZM) 1 2 3 4
  • 30. Land planning and management  Integrated Coastal Zone Management  Participatory approach  Land based activities  Impacts on the capacity of coastal communities  The relative power of stakeholders 1 2 3 4
  • 31. Resource management  Seasonality of tourism demand  Seasonality on resource demand  Resources’ demanded from the tourists are usually much more higher than the ones demanded by locals  During a disaster tourists are a threat to local communities 1 2 3 4
  • 32. Availability of technologies  Depends on the development level of each destination  Destinations in developing countries may benefit from tourism  Tourists demand for technologies  Destinations targeting quantities may suffer from the low level of available technology (investment priorities)  Innovation is a very crucial factor for tourism sustainability 1 2 3 4
  • 33. Political climate and leadership  Mature and well organized destinations in developing countries may have an advantage if they are managed from strong tourism authorities  The advantage may become disadvantage in cases of inefficient central management  The importance of Destination Management Organisations 1 2 3 4
  • 34. Community’s vulnerability  Strong community institutions  Effective planning for community development  Bottom-up approaches  Mitigation initiatives in place  Information level  Economic and racial equality  Capacity of the community 1 2 3 4
  • 35. Increasing capacity 1 2 3 4 Tourism and Risk Tourism Risk Management Vulnerability of Destinations APELL in Tourism Destinations
  • 36. Minimizing risk version 2 1 2 3 4 Risk = %Hazard x Vulnerability/Capacity Hazard Vulnerability Capacity C1 V1 H1 C+ > C1
  • 37. APELL in Tourism Destinations  We developing together a new method  Integrating the experience of 2 countries, 1 international recognised rescue agency, 1 international business association and the UN system  Creating together tolls to make our communities better  Creating experience and expertise for other communities and people 1 2 3 4
  • 38. Our project. Minimizing risk: Integrated version 1 2 3 4 Risk = %Hazard x Vulnerability/Capacity Hazard Vulnerability Capacity C1 V1 H1 C+ > C1 V- < V1
  • 39. “Institutional and societal decrease of risk”  We decrease risk by:  Creating and operating strong institutions  Maintaining social cohesion  Understanding different cultures  Accepting change  Being open to new and maybe “non understandable” behaviours  Working as a team despite the different interests and perceptions 1 2 3 4