Risk & Crisis Management in Tourism Sector:
Recovery from Crisis
in the OIC Member Countries
28
loss of 224 lives, the same procedures to recover from the crisis are necessary as in respect of a
terrorist attack; these measures will be discussed in Section 2.
There has been a single major cruise ship accident involving fatalities since 2000 – the Costa
Concordia in 2012 sinking in which 32 passengers and crew lost their lives. Rail accidents are more
common, particularly in countries with low standards of track and equipment maintenance.
In the case of road transport, there is a possibility of tourists being caught up and injured in
accidents, and hazards may be intensified in countries where regulatory standards are low –
especially - as Henderson, 2007, points out - where public transport systems are concerned.
In view of society’s greatly increased mobility using all forms of transport, allied to the high safety
record of international transportation, the occurrence of transportation accidents is rather low. As
a result, the reactionof touristmarkets to transportation accidents that do not involve aircraft tends
to be less dramatic than for other types of crisis, particularly in cases where rescue and recovery
efforts are conducted quickly and professionally, and when investigations into the cause are
conducted with speed and openness.
1.5.5. Economic Events
Economic crises affecting tourism include global recessions, weak national economies, and sudden
changes in exchange rates. All these can result in a loss of consumer confidence and alter the
propensity to travel. Since the Millennium, the most significant economic event affecting
international tourismwas the 2008/09 financial crisis and subsequent global economic slowdown.
This resulted in a decline in international tourist arrivals and receipts of 4%and 6% respectively in
2009, compared to 2008. All regions were affected, though some – particularly the Asia-Pacific and
Sub-Saharan Africa - fared better than others. However, the downturnwas short-lived: the UNDP&
ILO (2013) reported that in 2010 the tourismsector rebounded faster than expected, with a growth
in international arrivals of 7%.
Another formof economic crisis relates to the relative value of national currencies. When these are
weak against those of the principal source markets, tourist flows tend to increase because tourists
receive more for their money, while countries with strong currencies are viewed as uncompetitive
by international tour operators and their customers. For instance, a significant influence on US–
Europe tourist flows is the relative exchange rates between the dollar and the euro (WTTC, 2016),
and the low value of the pound against source market currencies was said to be the main factor in
a rise in long-haul bookings to the UK from China (up 209%) and the USA (up 19%) in July/August
2017; on average the UK was 9% cheaper for visitors compared to the previous year (Doward and
McCrum, 2017).