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<strong>Disaster</strong> <strong>Risk</strong> <strong>Management</strong> For <strong>Coastal</strong> <strong>Tourism</strong> Destinations Responding To Climate Change<br />

A Practical Guide For Decision Makers<br />

The Group or its delegated sub-committee can evaluate the range of mitigation<br />

options <strong>for</strong> unacceptable risks and also make recommendations regarding which risks<br />

are considered acceptable. Appendix B provides a brief discussion on the seven major<br />

types of risk reduction options that should be considered. The <strong>Risk</strong> Evaluation Matrix<br />

presented below provides a useful visualization of the range of risk scenarios.<br />

For tourism destinations, strategies <strong>for</strong> addressing risks are categorized into 4<br />

categories which take into account the frequency of risk occurrence and the severity<br />

of impact, as illustrated in Figure 4.3. Evaluating the risk reduction options involve<br />

accepting, avoiding, reducing or transferring risks.<br />

<br />

<br />

<br />

<br />

Accepting Tolerable <strong>Risk</strong>: In situations where the frequency of hazards is<br />

low and the severity is also low, tourism destinations would accept a certain<br />

level of risk (i.e. the risk is tolerable). Retaining this risk is considered an<br />

aspect of the tourism investment.<br />

Avoiding <strong>Risk</strong>: At the other extreme, when risk frequency and severity<br />

are both high, the best option would be to avoid the risk e.g. rejecting a<br />

proposed resort expansion in a hazard prone area.<br />

Reducing <strong>Risk</strong>: <strong>Risk</strong> reduction involves the broadest scope of community<br />

<br />

them more disaster resistant, building capacity <strong>for</strong> physical planning and<br />

development review, or zoning development away from vulnerable coasts,<br />

among other options.<br />

Transferring <strong>Risk</strong>: Where the severity or consequences of risks are high<br />

but the event occurs infrequently, such as a super typhoon, resort owners<br />

normally rely on insurance coverage to transfer their risks to a third party.<br />

This may prove an impediment to small operators. Hence, in order to reduce<br />

risk and liability costs, tourism destinations can further mitigate risks by<br />

adopting “best practices” and improving their resilience e.g. having written<br />

health and safety policies, procedures and signage, staff training, visitor and<br />

<br />

industry standards (APEC 2004).<br />

Figure 4.2: The <strong>Risk</strong> Evaluation Matrix<br />

HIGH<br />

Frequency<br />

LOW<br />

Reduce <strong>Risk</strong><br />

Accept<br />

Tolerable<br />

<strong>Risk</strong><br />

Avoid <strong>Risk</strong><br />

Transfer <strong>Risk</strong><br />

Severity<br />

LOW<br />

HIGH<br />

Adapted from APEC 2004<br />

60 | Managing <strong>Disaster</strong> <strong>Risk</strong>s At <strong>Coastal</strong> <strong>Tourism</strong> Destinations

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