Creativity and Innovation in Managing Uncertainty and Risk in Tourism - Theory and Practice September 30, 2009

Tourism involves the movement of millions of people to virtually all countries on the surface of the globe. Due to its inherent characteristics, the tourism industry is particularly vulnerable to crises not confined to any geographical region, ranging from natural disasters to epidemics, and from mismanagement to security concerns. Tourists are generally both more likely to take certain risks while travelling, and more susceptible to hazard and uncertainty in an unfamiliar environment.

Destinations differ significantly from each other in many respects, such as their size, location, political systems, historical experience, economic prospects, ecological fragility, and vulnerability to political instability, ethnic conflicts, crime and the threat of global terrorism. Given these differences, the analysis of destination risk and its components is of substantial interest to private tourism operators and foreign direct investors, tourist boards and governments.

Since millions of people are involved in tourism mobility around the world, it is of paramount importance that the tourism industry should help increase awareness of the hazards that visitors may face when travelling. Due to tourism’s predilection for locating in scenically spectacular, relatively high-risk zones, tourism facilities and activities should be considered at both the risk analysis and warning stages of hazard assessment. Innovative methods used by tourism companies and authorities can help risk mitigation and disaster recovery, and bring visitors back to an affected area.

Due to the characteristics of tourism products, especially their intangibility, risk is an inherent component of travellers’ product and destination choice, despite the increasing availability of information. Individuals have different perceptions of possible destination and service choices as gains and losses, and tend to be risk-averse or risk-taking to different degrees. Risk perception is affected by the media and the marketing communication messages conveyed by tourist companies, and the level of risk that tourists are generally willing to take is also significantly influenced by their personality and socio-cultural background.

Ignoring risks that apply to tourism activities has on impact on the health and safety of employees, customers, volunteers and participants, the reputation, credibility and status of a company or destination, public and customer confidence, financial success, and the environment, among others. Consequently, the development of innovative and creative approaches to risk management and risk assessment has become a vital component of the way all businesses operate within the tourism industry: without innovation in this field, tourist businesses and destinations are unable to remain competitive in the global market.

Critical issues in crisis management include crisis anatomy, crisis incubation, risk perception in tourism and destination image, among others. The benefits of risk management consist of more effective strategic planning, better cost control, enhancing shareholder value by minimising losses and maximising opportunities, increased knowledge and understanding of exposure to risk, a systematic, well-informed and thorough method of decision making, minimised disruptions, better utilisation of resources, strengthening culture for continued improvement, and creating best practice and quality organisations.

CONFERENCE THEMES

• Current trends in international tourism affecting risk and uncertainty (e.g. disintermediation, global climate change, social polarization, migration, demographic trends, economic trends, political instability, etc.)


• Sources of risk and uncertainty in tourism (e.g. intercultural differences, communication problems, lack of information, unfamiliarity with local circumstances, intangibility of services)


• Innovation and creativity in risk management in the field of tourism


• Intercultural challenges in tourism development and tourism management


• Destination attributes related to risk and uncertainty (e.g. health, hygiene, food safety, natural characteristics, political disturbance, terrorism)


• Destination risk analysis


• Crime and tourism


• Risk and uncertainty associated with certain tourism products (e.g. shopping tourism, medical tourism, adventure tourism, or extreme sports)


• Innovative approaches used in product development to minimise risk and uncertainty


• The role of risk and uncertainty in the tourist experience


• Risk taking and tourist behaviour/tourist personality


• Measurement of tourists’ risk aversion and willingness to take risks


• Health and safety of tourists and tourism employees


• Risk and uncertainty faced by tourism employees working abroad


• Uncertainty and risk related to tourism investment


• Risk taken by investors – economic risk, political risk


• The economics of risk in tourism


• Innovative measures to decrease risk and uncertainty – forecasting, standardisation, regulation, planning


• Increasing risk awareness through communication


• Trust enhancement in tourism – standardisation, regulation, communication – processes, institutions


• Key factors in minimising uncertainty and risk in tourism – lessons learnt from successful destinations and enterprises

Conference information provided by konferenciakalauz.hu

Official Website: http://www.kodolanyi.hu/conference2009/