CRITICAL ANALYSIS

Critical Analysis

Crises and Disasters Can Be Seen As Turning Points and Lead To The Positive Transformation Of Hospitality/Tourism Organizations And Destinations

Introduction

Faulkner (2001) notes the growing number of disasters and crises affecting tourism industry, ranging from natural to human influence incidents. In recent years global tourism industry has experienced many crises and disasters like terrorist attacks, political instability, economic recession, biosecurity threats and natural disasters. Lee and Harrald (1999, p. 184) states that "natural disasters can affect supply and distribution chains, including business services firms better prepared ... are increasingly vulnerable to electrical communication , and other critical infrastructure failures. " This vulnerability can also be exposed through man-made behavior more evident on 11 September 2001 and Bali bomb attack, which affected tourism and travel industry. Faulkner (2001) argues that there is the lack of research on phenomena of crisis and disasters in tourism industry on impact of these developments in industry specific organizations, and responses of tourism industry to such incidents. This lack of interest and research is somewhat surprising considering that crisis management, disaster recovery and continuity of organization are important skills for managers, both public and private sector (Lee and Harrald, 1999 p. 184).

Importance of crisis and disaster management for tourism

According to some authors, current world state is directly responsible for an increase in disasters and crises (Bramley, 1990, Blaikie, Cannon, Davis and Wisner, 1994; Berke, 1998). As Richardson (1994) points our environment has become the more crowded and as population pressure increases as urbanization, expansion of human settlements, and increased use and reliance on technology may have lead to an increase in disasters and crises. Globalization of tourism industry has led to the rapid expansion of tourism businesses internationally to expand its market share and profitability. However, this process has also opened companies to the broader set of "global risks" involved in management of companies on such the scale, as globalization is often seen as complex and chaotic (Jessop, 1999). Increased exposure to political, economic, social and technology in countries often removed from base of tourism enterprises, tourism managers to respond effectively to crises and disasters (often located at the considerable distance away). World is increasingly interdependent and connected so that small-scale crisis in world can have the significant impact on other parts of world. Political instability, or outbreak of war in one part of world can drastically reduce patterns of tourist travel to other parts of world as experienced by 1991 Gulf War and Iraq conflict in 2003. Tourism is therefore very susceptible to external factors and pressures in wider operating system.

THE strategic and holistic approach to planning and crisis management

Organizations of all sizes and shapes all have to deal with change at some point in their life cycle, and all destinations you have to deal with the disaster at some point (Faulkner, 2001). Kash and Darling (1998, p. 179) argue that it is no longer the case of "if" of an organization will face the crisis, it is rather the question of 'when', 'type' ...