Economic Crisis Management in Hospitality and Tourism Industry

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INSTITUTE FOR INTERNATIONAL MANAGEMENT AND TECHNOLOGY
OXFORD BROOKES UNIVERSITY, GURGAON

Issues in International Hospitality and Tourism Management
U 54082

Module leader:
Ms. Bandana Rai

Submission:
ECONOMIC CRISIS IN HOSPITALITY & TOURISM INDUSTRY

Submitted by:
Pavitra Mehrotra
Student Id: 010109029

Abstract

In the recent scenario, hospitality and tourism sector has become an important part of daily life but which is now experiencing multiple challenges because of the global economic crisis. Besides tourism, many other industries are in a position to create affluence and economic development opportunities, which also considered difficult to develop. After a significant reduction in 2009, tourism industry boomed strongly in 2010 and 2011 the international tourist arrivals were predictable to increase considerably. As tourism is a steadily growing sector, and a more globally connected, which is already indulged with a maximum population, so in such environment it is often considered different to think about Crisis Management. But this thing is often neglected and also mostly considered a task to be only thought upon when Crisis actually takes place. Purpose

This research study is done to know how financial crisis occurs in tourism industry and how it can be overcome. So this research article named Economic Crisis in Hospitality and Tourism Industry will tell about the impact of economic crisis on this industry and the recommendation to overcome it. Methodology

It was an attempt to determine the impact of Economic Crisis in Hospitality Industry, and its main objectives were: * To investigate negative effects of economic crisis in this industry. * To investigate the possibilities and importance of preventive crisis management within corporate framework. * To recognize the importance of crisis planning and organizational measures. Keywords: hospitality, tourism, crisis, economic uncertainty, growth, and tourism market Paper Type: Research Paper

Introduction

The word “crisis” is derived from the Greek word “krisis”, which means differentiation. (Dirk, 2003). In legal terms, crisis was used to describe the differentiation i.e. separation between actual and proposed situation. National economics was the first to use crisis for its operations. Their business administration started to look into the matter when the conditions were getting worse due to shortage of crude oil in 1970s. The company was unable to solve this oil shortage due to lack of situation management, so this laid the consequence of coping with crisis. Crisis Management, the term usually refers to change of tasks and procedures done when a crisis materialize. Different types of crisis management and correlating activities are categorized in regards to the process and differentiation between different phases. Crisis Management as a system refers to the group of people who are responsible for crisis management activities. Mainly middle and lower level employees and the external factors join with the upper management as essential part of crisis. Although crisis management has abided through various attempts of explanations and theories, but till now none of the standards have been found to overcome it. Crisis management should be implicit as a preparation to avoid uncertain damage or negative effects. Taking the process of crisis management into consideration, the prevention of actually surviving with the crisis is acknowledged. Therefore, both the activities of prevention and struggling should be comprehended to crisis management as should be apprehended as a comprehensive management problem. This part of crisis management is dependable on crisis terminology, both part of regular official planning are also independent from it. Literature Review

As quoted by Krystek and Schulten “Business administration predominantly terms crisis as a process that negatively influences the development of a company to a considerable extent”...
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