ABSTRACT

Although said to be the world’s largest industry, tourism is vulnerable to the economic climate as well as to changes in public perception in both the destination and generating countries, so that a crisis in one may have considerable impact on the other. In addition, improvements in technology and a global media mean that no crisis is restricted to its immediate vicinity but can cause global repercussions. Because of the economic importance of tourism, it is crucial that swift action be taken in the event of a crisis. Crisis management offers the possibility of restoring the status quo promptly, minimising any economic losses resulting from a crisis and at the same time bolstering public confidence. However, the preparation of a crisis management plan requires not only substantial time and effort to identify objectives and priorities and to rationalise operations but there may also be a considerable financial cost involved. Failure to manage a crisis may lead to bankruptcy of suppliers, job and financial losses, or at worst the collapse of the tourism sector which, particularly in the case of developing countries, may be a major contributor to the economy.