Risk Management in Tourism and Hospitality (PDF)

RISK MANAGEMENT IN TOURISM INDUSTRY  Cyber attacks- Hazardous chemicals Fire Labor shortages Terrorism Theft Air pollution Data privacy Other risks facing the hospitality industry include rising operational costs, increasing demand, technology disrupt...

RISK MANAGEMENT IN TOURISM INDUSTRY  Cyber attacks- Hazardous chemicals Fire Labor shortages Terrorism Theft Air pollution Data privacy Other risks facing the hospitality industry include rising operational costs, increasing demand, technology disruption, and increased competition.  Cyber attacks- Cyber criminals can target hotel owners and staff through phishing attacks and other hacking attempts. EXAMPLE OF PHISING EMAIL EXAMPLE OF PHISING EMAIL EXAMPLE OF PHISING MESSAGES Cyber security in the tourism industry Hazardous Chemicals-. Cleaning is a big part of keeping hotels and hospitality businesses ready for guests. Fire- Tourism facilities are especially prone to fire because of activities like cooking and bonfires The blaze at the Waterfront Manila Pavilion, a hotel and casino complex, was still raging six hours after it began on Sunday morning, prompting more than 300 people to flee the area and six to be brought to hospital A labor shortage- in the hospitality industry can lead to a number of risks, including: Lower service quality: Staff shortages can cause delayed service, longer wait times, and overworked staff. Damaged reputation: A poor customer experience can lead to negative reviews and word-of-mouth, which can damage a business's reputation and customer loyalty. Revenue loss: Missed revenue opportunities can result from service limitations. Terrorism- High-profile hospitality establishments can be targets for terrorism or security threats, emphasizing the need for robust security measures.  Theft is the act of unlawfully taking another person’s property without permission, with the intention to permanently deprive the owner of its use. It is a criminal offense that can include acts like burglary, shoplifting, embezzlement, or fraud.  Data privacy refers to the protection and proper handling of personal and sensitive data to prevent unauthorized access, misuse, or disclosure. It encompasses laws, regulations, and practices aimed at safeguarding personal information such as names, addresses, financial data, and other sensitive details from breaches or exploitation.  The Importance of Crisis Management Team in Tourism and Hospitality Establishments  Protect safety: Ensure the safety of staff and tourists during a crisis Maintain reputation: Protect the image of the business or destination Build trust: Maintain confidence among tourists and stakeholders Minimize financial losses: Aid in a quick recovery and minimize financial losses Communicate effectively: Show customers, stakeholders, and business partners that the business can handle the crisis The 12 principles of sustainable tourism, as recognised by the UNWTO,  Economical Feasibility, Local Prosperity, Employment Quality, Social Equity, Local Control, Cultural Prosperity, Visitor Fulfillment, Physical Integrity, Resource Efficiency, Biological Diversity Environmental Purity. The 17 Sustainable Development Goals (SDGs) of the United Nations are:  No poverty Reduced inequalities Zero hunger Sustainable cities and communities Good health and well-being Responsible consumption and Quality education production Gender equality Climate action Clean water and sanitation Life below water Affordable and clean energy Life on land Decent work and economic Peace, justice, and strong institutions growth Partnerships for the goals Industry, innovation, and infrastructure What are the Triple bottom line of sustainability John Elkington coined the term in 1994. The TBL is flexible and can be applied in a way that's suitable to an organization's needs People This includes all stakeholders, such as employees, customers, communities, and future generations. Planet This measures the organization's environmental impact and efforts to operate sustainably. Profit This goes beyond simple profit measurements to include factors such as ethical business practices and fair treatment of customers and suppliers..  Standardization of Tourism and Hospitality related establishments by DOT BENEFITS AND INCENTIVES Endorsement to COMELEC for exemption from liquor ban during election-related events* Endorsement to embassies and travel trade associations for utilization of establishment’s facilities and services. Being prioritized for DOT training programs Endorsement to international and domestic airports (if appropriate) for Issuance of Access Pass to Qualified Personnel** Qualification for Exemption from the United Vehicular Volume Reduction Program (UVVRP) of the Metro Manila Development Authority (MMDA).*** Endorsement to Land Transportation Franchising and Regulatory Board (LTFRB) for Issuance of Tourist Transport Franchise.*** Technical / Security / Facilitation Support or Assistance *For accommodation establishments and restaurants only. **For Tour Operators and Accommodation Establishments only. ***For Tourist Land Transport Vehicles only. https://beta.tourism.gov.ph/accreditations/ Ethical standards in the tourism and hospitality industry  Respect for Local Cultures and Communities: Tourism businesses must promote responsible travel that respects local cultures, traditions, and values Environmental Responsibility: Sustainable practices such as reducing waste, conserving water, energy efficiency, and promoting eco-friendly tourism options are vital for the long-term health of the environment and the tourism industry. Fair Labor Practices: Ensuring fair wages, safe working conditions, and equality in employment opportunities for all workers is a fundamental ethical standard. This also includes addressing issues such as human trafficking and child labor. Honesty and Transparency: Businesses in tourism and hospitality should provide accurate information regarding prices, services, and policies. This also involves avoiding false advertising and hidden fees that could mislead customers.  Guest Privacy and Safety: Ensuring the privacy and safety of guests is paramount. Businesses must protect guest data, follow legal requirements related to privacy, and ensure a safe and secure environment for travelers. Inclusive and Non-Discriminatory Practices: Promoting inclusivity and diversity by providing equal access to services regardless of race, gender, age, disability, or other characteristics. This also includes training staff to be culturally sensitive and respectful. Responsible Marketing and Sales: Tourism companies should market their products and services responsibly, avoiding manipulation, over-promising, or exploiting vulnerable individuals. Corporate Social Responsibility (CSR): Tourism businesses are encouraged to invest in social initiatives that benefit local communities, protect cultural heritage, and address social issues such as poverty or inequality.  FINAL PROJECT “PODCAST” Create a 1-episode podcast with at least 3 segments. You may select your own segments or title for the podcast and upload it to YouTube. The podcast should combine a number of episodes following one storyline or topic. You may interview someone with expertise on your assigned crisis topic. Be as creative as you like, as long as it remains a podcast. Example topic Segments: 1.Global Impact on the Crisis 2.Crisis Case Studies 3.Recovery and Resilience Mechanics: Each segment should be at least 15-30 minutes. (20%) Creativity (20%) Content (30%) Accuracy (30%) Total: 100 points (100%) Deadline: One week after the midterm exam.