Bounce Back - Pacific Asia Travel Association Thailand Chapter

Bounce Back - Pacific Asia Travel Association Thailand Chapter

There is a wide a range of risks to a business which involves the overall context

of staffing. In addition to the example above there are possibilities such as

resignation or retirement of key staff, criminal actions undertaken by staff, errors

in customer service which result in loss of business.

An effective risk audit will take into account the effect of the risk, likelihood

of occurrence and the remedial actions to be taken. In the following table are

common risks which can impact on tourism destinations and businesses.

The core skill of effective risk management is the identification and prioritisation

of those risks which impact on each specific business and destination. Too much

professional time and money can be wasted on preparing for risk which will not

really happen to you. Conversely, it is well worth taking the effort to think outside

the square of obvious risks.

In April 2010 the eruption of the Eyjafajallajokull Volcano in Iceland resulted

in a plume of volcanic ash which was expelled by the volcano. The ash clouds

grounded airlines and closed air space over much of Northern Europe. This event

caught most tourism businesses completely off guard with the sole exception of

airlines ( which had a contingency plan developed by the ICAO (International Civil

Aviation Organisation).

As a result, hotels had no contingeny plan for dealing with excess guests or

mass cancellations, land transport had problems coping with extra demand

and insurance companies had conflicting approaches to assisting stranded


Having identified the most likely risks an audit should include the measures which

will be taken to deal with the event, and business should ensure that whenever

possible they have insurance coverage which will financially protect the business

should that risk eventuate.

Bounce Back


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