Northstar

www.travelweekly-asia.com 23 ITB ASIA OFFICIAL DAILIES | AD focus\\\Tour Operators FEH-ITB-Asia-27092016.indd 1 27/9/16 4:11 pm "If possible, having a diversified business is always helpful, as well as a solid business continuation plan." –MARTY MACKAY, PRESIDENT, HOSTS GLOBAL ALLIANCE In order to prevent a ruinous ripple effect, many tour operators and suppliers, especially those burned in the past, have been working to diversify their product portfolios so as not to have all their eggs in one destination basket. As for the troubled destination itself, while no one has a crystal ball as to when, where and to what severity a disaster might occur, according to Marty MacKay, president of the Washington-based destination management company Hosts Global Alliance, there are ways destinations and suppliers can and should prepare in order to minimise the damage. "If possible, having [a] diversified business is always helpful as well as a solid business continuation plan," MacKay said. "A good business practice is to plan for cash reserves to keep your company running and for post-event marketing to help communicate to clients when and why it is safe to return." One of the biggest challenges in times of a rapid drop in tourist arrivals is how to manage the tourism workforce on the ground. In the short term, suppliers might feel they need to lay off staff to control costs, but they could very well need those trained workers back once business starts to return. One option is to employ that workforce in any rebuilding efforts that are needed if a destination has been physically damaged, such as in the aftermath of a natural disaster. There is also the opportunity to have them engage in maintenance work or help upgrade properties or infrastructure as the destination waits for a return of tourism revenue. If the downturn is longer term, such as in Egypt, a disenchanted workforce might leave the travel and hospitality industry altogether to find work in other sectors because they are financially incapable of waiting out the storm. But the overwhelming consensus about what ultimately makes the difference between a slow and fast recovery, about what destinations can do to minimise the damage, is proactive and transparent marketing and communications to restimulate demand. While most admit that some degree of discounting can help for the short term, if destinations and the people and businesses in the tourism industry that they support are going to fully rebound, they need to effectively reinvent themselves in the aftermath of disaster. "When there is a crisis," Sanghrajka said, "the tourism boards must have damage-control protocol that focuses on frequent communication of the facts, not propaganda. Suppliers need the facts to be able to manage their own communications. The ideal strategy is storytelling and education."

• Cover