Risk & Crisis Management in Tourism Sector:
Recovery from Crisis
in the OIC Member Countries
47
During the global economic crisis, marketing and promotional efforts directed at European and
North American source markets were the most effective instrument for addressing the negative
effects of on international tourism (UNWTO & ILO, 2013). Other aspects of increased activity
include travel trade and consumer fairs. These may involve collaboration between the Tourism
Board/DMO and private sector of the destination, with support from tour operators based in the
source market being targeted.
2. Government Commitment and Leadership
Governments can help tourism businesses regain momentum after a slowdown through several
means, in particular by swiftly rebuilding the infrastructure and by demonstrating a high-profile
commitment to improved security. In the case of terrorist attacks, this includes measures to track
down the perpetrators and bring them to justice as quickly as possible, and increased levels of
security in tourist areas. The survey carried out for this report cited increased security as the most
effective way of responding to terrorist threats and political insecurity, including regional
cooperation on securitymeasures. Government-fundedpromotion in keymarketswas also thought
to be effective. Similarly, a 2017 World Economic Forum report ascribes the main drivers of
recovery in Egypt’s tourism performance to an increase in government support, including
allocating 6.8%of the total national budget to the sector, aswell as strengthening cultural resources
to help rebuild the country’s image.
Governments must support the industry by demonstrating continued confidence in the area. For
instance, after the Bali bombings in 2002, the IndonesianPresident at the time relocatedministerial
meetings from the Indonesian capital Jakarta to Bali and provided financial support for conferences
there (Putra and Hitchcock, 2006). Where atrocities have been perpetrated by one ethnic or
political grouping against another, the government can try to ensure that retribution or revenge
attacks do not take place. In Rwanda, efforts to rebuild a peaceful and stable country and change
international perceptions after the genocide of 1994 (in which a fifth of the population was killed)
included improving access to education, ensuring that different ethnic groups are fully integrated
into the same schools and discouraging children from identifying themselveswith a particular tribe,
asking them instead to focus on building their common nation (Howard, 2014).
3. Cost Reduction
Governments can further support recovery by reducing the costs which have to be passed on to
tour operators and tourists, thereby making the destination more competitive. A supportive fiscal
policy may reduce or waive visa fees or exit taxes for tourists or allow hoteliers a tax holiday in
terms of social security payments or a reduction in the level of bed-taxes, or operators can be given
subsidies or low-interest loans, which again help them to cut costs. For example, the Macedonian
government offered subsidies to air carriers willing to introduce new destinations within the
country. The carriers received €40,000 for each new destination, and the government also paid
them €7 to €9 for each ticket purchased on the new flights. As a result, flights by low-cost carriers
to Macedonia nearly doubled in 2014 (World Economic Forum, 2015). Partnership arrangements