key: cord-022367-xpzx22qg authors: Murphy, Peter E. title: Risk management date: 2009-11-16 journal: The Business of Resort Management DOI: 10.1016/b978-0-7506-6661-9.50014-0 sha: doc_id: 22367 cord_uid: xpzx22qg nan Risk management has been placed at the end of this book in affirmation of its crucial and central role in resort management, and as a prime example of pulling together the external and internal elements of Parts B and C. While some may think risk management is a recent phenomenon, a result of global warming and terrorism, it has been associated with resort management for a long time and in a variety of ways. In normal business, financial risk is a regular occurrence that should be recognized and managed like other factors of demand and supply. However, with the taking-in of guests comes an extra responsibility, known as 'duty of care', where management is obliged to protect their guests from harm to the best of their ability. On the demand side guests are often looking for excitement and the spectacular, which can put them at risk. Those who seek excitement in adventure tourism, when they challenge themselves or look for an adrenalin rush, purposely place themselves at risk and it is up to resorts to ensure the real risk is minimalized by managing the situation. Even those who have not come to a resort to exert or excite themselves regularly demand spectacular views and sunsets that often require building on risky sites and in nonconformist style. The sounds of the sea and uninterrupted tropical sunsets attract resorts to the water's edge in areas where hurricanes and cyclones occur with regularity. In the mountains, similar demands for spectacular views place buildings at crests or on steep slopes where local climatic conditions are at their extreme and avalanches can occur. On the supply side risk is present at the very start, requiring a correct interpretation of market research and feasibility studies over the 30-50year life span of many resort investments. Risk is present in the location of many resorts on the 'edge of civilization', well removed from regular infrastructure and services that are the basis of quality service experiences. It is present in the operation of resorts where guests come to participate in challenging activities, regular sports or simply to unwind, a process that inevitably leads some of them to leave natural caution and common sense behind at home. It is not surprising that 'risk management is not just good for business, but is absolutely necessary in order for tourism and related organizations to remain competitive, to be sustainable, and to be responsible for their collective future' (Cunliffe, 2006: 35) . Resort management risk not only involves both demand and supply considerations, it can range in scale from minor yet important internal issues like a lack of staff in crucial situations and places to overwhelming natural disasters or human external interventions like terrorism or financial crises. Whatever form it takes the element of risk is ever present for resort management and some type of management structure needs to be in place to minimize its impact on the business. If no event or business decision within resort management is risk free, a risk management framework needs to take on a statistical probability structure. Tarlow (2006) has suggested a useful framework would be one that considers the probability of an event and its likely consequences. Figure 11 .1 provides some examples, using Tarlow's suggested framework, but it should be noted that the consequences will vary according to each incident's severity and relevance to the resort product offerings. Food poisoning is a serious occurrence for a resort because it means one duty of care has failed, ruining the visit of some guests and possibly closing a restaurant; but in the overall scheme of things, it has a low probability of occurrence and low consequences in a well-run establishment. The consequences are generally limited to some temporary bad publicity, financial compensation, a revision of safety procedures and possibly new equipment. This level of risk is discussed under the heading of 'Security' within this chapter. Accidents are presented in the form of personal injury, where the probability of occurrence can be high when a resort is associated with adventure tourism or dangerous locations. Duty of care is still a major consideration, but if a guest chooses to undertake a risky activity they are expected to assume some of that risk. Under these circumstances resorts are expected to minimize the level of risk by preparing the site properly, instructing the guest where appropriate, and providing warning signs or professional help where warranted. This level of risk has been assigned a low consequences ranking in that it usually applies to individuals or small groups and through the implementation of 'Risk Management' these consequences can be minimized, but not eliminated. Natural disasters have been a fact of life for the resort industry since its inception, with one of the earliest recorded disasters being the Tarlow, 2006.) destruction of Pompeii by the Mount Vesuvius volcano in AD79. Natural disasters have high consequences because they cause severe damage and can destroy a resort or close it down for a long period. Fortunately, their probability of occurrence is generally low. This form of risk is more difficult to anticipate so 'Crisis Management' is presented more as contingency planning, preparing for the worst in order to minimize its impact, especially on the loss of life. The weather had been classified as a high probability and consequence risk, because so many resorts are dependent on this feature yet it is something beyond their control. Bad weather or even the threat of it can reduce visits and sales, but in this era of global warming the signs of severe weather stress are starting to have an impact. The increasing number of Force 5 hurricanes is raising the insurance rates of all tropical resorts and not just those affected directly. The long-term drought in Australia's Alpine areas is creating poor snow seasons and raising questions about the ski industry's viability in these areas. Such events do not have the sudden impact of a site-specific natural disaster, but they can have a major say on the long-term viability of a resort business. In this regard such risks are incorporated into the overall framework of 'Sustainable Management', where the evolving weather patterns are integrated into the long-term resource planning for a resort. At the basic level a resort's 'duty of care' requires it to ensure the safety of its guests within reasonable limits. Possible threats to a guest's safety can arise from internal and external sources. Internally, the design of facilities should include safety considerations along with their functional role, whether that involves a ski lift or a hotel balcony. Staff should be trained to undertake their tasks safely, to keep an eye on guests and the general situation, and to note any external threats. These threats can include vandalism, theft or terrorism. The level of security will be determined by the perceived degree of threat in the local area, but some attention to this matter is necessary everywhere, for insurance and legal purposes alone. Security of a resort involves three basic steps: 1. Analyze and identify vulnerable areas/processes. Resorts offer extensive and varied terrain with open and friendly access to welcome guests. They need to reduce the vulnerability of property and guests by identifying the weakest and most exposed elements of the property, and the riskiest regular activities of the guests. 2. Establish security priorities. As Figure 11 .1 indicates not all risks warrant equal attention because their probabilities of occurrence and levels of impact on the operation will vary. In terms of basic security a differentiation should be made between public areas and private accommodation which ensures the privacy and security of guest accommodation can be maintained. In the restaurants and food outlets the storing, cooking and presentation of food must be undertaken with respect to health and safety regulations. In the most popular recreational areas like swimming pools and play areas, there must be qualified supervision. In guest rooms there should be a smoke alarm and sprinkler system to protect guests and the resort investment. 3. Organization of a security system. The combination of guest enjoyment and security often requires a delicate touch in a resort environment, so as not to spoil the vacation experience. This means security should be present, but as invisible as possible. In a casino resort the presence of occasional guards can be re-assuring, but most of the security surveillance is conducted by closed circuit television (cctv). In other resorts there may be patrols for the grounds, especially at night, alarms in sensitive areas and instructions to staff and guests about possible dangers. In-room security is aided by instructions via notices or local hotel channel on the television, and an in-room safe. When resorts are exclusive in terms of being up-market, providing extensive facilities and attracting wealthy guests they need to be particularly concerned with security because they can become a magnet for criminal activity and litigious activity. For example, the Jalousie Plantation Resort and Spa in the island of St Lucia would offer a tempting target according to the description offered by Pattullo (1996: A security system is only as good as its staff and cannot operate effectively in isolation from general staff and guests. Resorts can either hire their own security staff or outsource the responsibility to a professional company. Regardless of the approach used it must be integrated into the daily operations in such a way as to be effective yet undetected. 'Management should view the cost of developing a security training program as an investment. A resort in which all employees are attuned to the safety and security concerns can create a safer environment for guests and employees and a more profitable operation in the long run' (Gee, 1996: 415) . There are several aspects to security planning: In major resorts it is now common to hire a professional security company to provide coverage for key areas and assets. In addition to being skilled in their task the individuals selected for resorts need to be presentable and able to interact with guests. Just like Disney theme park street sweepers are trained to know about their theme park and emergency procedures, resort security will find themselves called upon for directions and advice by the guests. ■ Staff training. Even if a resort has a professional security arm it needs to include general staff in its security planning. They should be knowledgeable about basic procedures and able to advise guests. They should learn to keep their ears and eyes open for trouble. ■ Records and reports. Recording what happens is vital because it can help identify danger spots and become invaluable evidence for insurance and litigation purposes. There are several types of reporting mechanisms; Daily Activity Report, General Incident Report, Loss Report, Accident Report, Monthly Statistical Report. Failure to fulfil the 'duty of care' responsibility may result in a security related liability law suit. In a suit alleging negligence, the plaintiff (the accuser) must show the defendant (the resort) failed to provide 'reasonable care' regarding 'foreseeable' acts or situations. Judges often apportion blame for an accident. That is a certain percentage of the blame is seen as the responsibility of the operator and the remainder the responsibility of the guest. Damages associated with negligence can be of two types: 1. Compensatory damages: to compensate for loss of income, for pain and suffering. 2. Punitive damages: to inflict punishment for outrageous conduct and to act as a lesson for others (setting precedence). Examples of the legal consequences from insufficient attention paid to 'duty of care' abound, but in many cases involving private companies the cases are settled out-of-court with minimum publicity. To illustrate what can happen with regard to apportioned blame and the challenges in safeguarding tourists, the following two published accounts of Australian cases are presented. The first involves a young man, who like many before him went to swim at a local waterhole in the Murray River. He dived from a log in the waterhole and struck the riverbed, suffered permanent spinal injuries and sued the Berrigan Shire Council and Forestry Commission of NSW for A$8 million in damages.'Both defendants denied liability, but agreed that damages should be assessed at A$8.2 million' (Gregory and Hewitt, 2005: 6) . In the original judgement the presiding judge reduced the assessment by 32 per cent to take account of the plaintiff's share of responsibility, through contributory negligence. For the remaining A$5.6 million he ordered the council to pay 80 per cent and the commission 20 per cent. As often happens in such cases involving large sums this 2004 judgement was appealed. In 2005 a new judge upheld the decision but placed all the blame and financial responsibility on the council. In his summary the new judge said: Council employees were aware of people diving from the log, and the changes to the riverbed that floods could cause. He said the council has means and opportunity to put up warning signs, and in the longer term, to remove the log. Justice Nettle said the council owed (the plaintiff) a specific duty (of care) to take reasonable steps to guard against the risk of harm resulting from the use of the log for diving. But he said the commission had a very different charter and purpose (responsible for managing the forest alongside the river), and arguably no actual knowledge of the use of the log (as a diving platform). (Gregory and Hewitt, 2005: 6) The second case involves a man who on a warm day in 1997 went to Sydney's Bondi Beach for a swim and like a responsible Australian Risk management waded into the sea 'between the red-and-yellow "safe swimming" flags, (where) he dived under a foaming wave and collided with a sand bar' (Feizkhah, 2002: 46) . By 2005, the plaintiff who is now a quadriplegic as a result of this incident, claimed: Waverley Council's life-guards should have put the flags in a different spot or installed warning signs. Perhaps 'a fellow diving and a cross through it or some words saying "sand banks"'. Last week a jury agreed, ordering the council to pay (the plaintiff) A$3.75 million. (Feizkhah, 2002: 46) This judgement not only cost a local council a great deal of money, it sent shock waves through the industry because it meant standard procedures had failed to demonstrate sufficient 'duty of care' in the eyes of the law. The wider implication of this case and others like it has been an increase in claims for negligence and a rise in public liability insurance. Feizkhah (2002: 46) reports: Between 1998 and 2000, the number of public liability claims Australiawide rose by 60% to 88 000: total payouts rose by 52% to A$724 million. Most claims are settled out of court for less than A$20 000. But, 'there is a jackpot mentality, where people with minor injuries see reports of big payouts and see if they can get something too'. One of the most affected tourism activities in this regard has been adventure tourism, an activity closely associated with resorts whose owners, such as international chains and public companies, are often viewed as possessing deep pockets. Claims in these activities and areas have been increasing over a long period and have been associated with rising public liability insurance costs to cover not just recorded claims; but to help cover the broader costs of global insurance increases. Given its importance as a major attraction for many resorts and as a prime source of risk and insurance claims, adventure tourism deserves special attention. Depending on the level of risk and size of insurance claims, it can vary from a general security issue to a risk management issue. As can be seen in Table 11 .1 representing the insurance claims for a whole state, the number and amounts are relatively minor, although they can be crippling for small businesses with limited resources. When accidents and claims involve major incidents, with extensive pain and suffering, loss of The Business of Resort Management income and possibly life there is a need for more extensive risk management and control as will be discussed in the next section. Adventure tourism is a very general term and hence a very inclusive subset of tourism, including a large array of activities. The term implies excitement and a change from normal daily life by pursuing an activity in a different environment. Adventure tourism can take many forms because three dimensions have been linked to its structure (Page et al., 2005) . These dimensions involve the following characteristics, with an indication in the brackets of who is the major player: The amount of physical effort a person is prepared to put into the activity is a major feature of adventure tourism. In terms of an active situation the guest is an active participant who, with or without the help of a guide or instructor, is looking for excitement and an adrenalin rush. In a passive situation the guest is a spectator or observer, one who wishes to learn more about the world around them rather than about themselves and their personal limits. ■ Hard-soft dimension (Business). These are the categories applied by the industry and relate more to the degree of preparation and pampering the guest requires for the activity. A 'soft' activity is one where the guest is able to view the scenery or wildlife from a safe vantage point with low risk of injury. A 'hard' activity is more risky because the guest participates directly in the activity in order to obtain that adrenalin rush and requires more individual attention, before (preparation) and during (guidance) the activity. ■ High risk-low risk dimension (Business-Guest). This is where guest perception and business management create the preferred and real tourism experience. Beedie (2003: 206) notes correctly that a paradox has been created, 'whereby the more detailed, planned and logistically smooth an adventure tourist itinerary becomes, the more removed the experience is from the notion of adventure'. This helps to explain why 'injury rates do not necessarily conform to the notion of perceived risk', with some soft activities having substantial injury and death rates while some hard activities have far fewer than commonly expected. In bringing the guest's desires and expectations together with the resort's prepared and staged offerings, adventure tourism has been seen as a natural business opportunity by some (Cloutier, 2003) and a commodifiction of the human spirit by others (Beedie, 2003) . Regardless of which interpretation is correct, for resorts it provides a varied and profitable business mix (Figure 11 .2). Many of the references quoted in this section have extensive lists of activities cited as adventure tourism, but most shy away from classifying them because whatever groups are selected cannot be mutually exclusive given the three dimensional characteristics and the varying conditions under which they operate. For example, skiings' rating would be influenced by its location, whether it be in mountain areas with steep slopes and tricky runs or on the gentler beginner slopes attached to some resorts and urban centres. It would also depend on whether we are considering downhill or cross-country skiing, and of course on the skill and experience of the individual skier. When resorts present hard adventure tourism products they face the challenge of providing an exciting adrenalin provoking experience in the safest way possible. In many tropical resorts scuba diving is one of the key attractions, and although not physically demanding does require a reasonable level of health and fitness. Wilks and Davis (2000: 596) observe, however, that a review of 100 consecutive scuba diving deaths found 'that in 25% of the fatalities there was a pre-existing medical contraindication to scuba diving' and those people should not have risked a dive. In this respect most dive companies rely heavily on personal honesty when guests fill in preliminary medical questionnaires, and at times this trust is abused through bravado and peer pressure. At other times the bravado and peer pressure can be laid at the door of the adventure tourism company. This was one accusation and explanation offered in relation to the canyoning tragedy in Switzerland that claimed 21 lives in 1999 (Head, 1999: 3) . According to Morgan and Fluker (2000: 2) : Clearly the risks associated with this incident were beyond the capabilities of participants. Importantly, newspaper reports of the Interlaken tragedy speculated that early warning signs of danger had been ignored by the activity's guides. Expert opinions of experienced river guides were also reported. These reports expressed serious concerns that the Interlaken river guides employed by the adventure company may have been under pressure to put profits before safety, this being compounded by their lack of knowledge of local conditions. The judge apparently agreed, stating the 'safety measures taken by the now defunct Adventure World were totally inadequate -with no proper safety training for the employees' (BBC News, 2001) . Something that should have been undertaken before hand, as part of a risk management process. Risk Management is a way in which to prepare for the security risk and crisis issues outlined above. It is becoming a significant aspect of resort Risk management management given the adventurous nature of many of their activities, their exciting locations, the growing litigious nature of customers, and the growing threat of terrorism. Risk management should incorporate the following, which involves considerable overlap with the previous security planning. The difference being that risk management is more comprehensive, including environmental concerns and financial considerations as well as human safety. The unique characteristic of adventure tourism, and those resorts offering that type of product, is that 'participants are deliberately seeking and/or accepting the chance of sustaining physical injury' (Morgan and Fluker, 2000: 4) . This means that for adventure clients perceived risk becomes an important part of the adventure experience, while for the commercial operator the actual and managed level of risk is the real risk as shown in Figure 11 .2. When guests pay money for the specialized knowledge, skills and equipment of the commercial provider, 'they reduce their need for risk awareness and responsibility. This transfer of risk responsibility to an activity operator, arising from the tourist's financial consideration (contract), raises a number of legal and ethical issues' (Morgan and Fluker, 2000: 3) . The legal issues revolve around duty of care and individual responsibility, the ethical issues include the paradox that 'accidents can add to the allure of the adventure experience through providing a valid testimony of the risk' (Morgan and Fluker, 2000: 9) . Risk management is a rational approach to deal with real risk. It is about managing risk rather than eliminating it because as we have seen some degree of perceived risk is inherent in adventure tourism and many resort locations. But 'it is important to grasp the concept that the level of risk management applied is relative to the tolerance of a specific business and its guests for risk, which can vary substantially from one operator to another' (Cloutier, 2000: 96) . Gee (1996: 437-440) has identified a general process, that can assist resorts in their management of risk for both adventure tourism and general operations which consists of four steps. Risk is associated with all aspects of business, and like the adventure tourist that is part of the thrill for many entrepreneurs and business people. Adventure tourism operations must be identified in terms of their real risk, and even when they are outsourced to separate organizations with their own liability insurance, their professionalism and record will still impact on a resort's reputation and business. Asset risks involve the major investment in property and facilities that need to be protected. Identifying areas of particular danger and hazard is an important first step, such as the buildup of under growth and leaf-litter in woodland areas; the presence of currents or steeply shelving beaches along the beach-front; the physical dangers associated with wastewater treatment plants and with electrical substations; and the ever present danger of fire when people are relaxed and having fun. Income risks are a major concern for resorts, which have a high dependence on external conditions often beyond their immediate control. Anderson (2006 Anderson ( : 1290 in the introduction to her article on crisis management in the Australian tourism industry lays out a catalogue of disasters that have befallen that country's tourism over the past 20 years: ■ 1989 -pilot's strike ■ 1991 -Gulf War ■ 1997 -Asian economic crisis ■ 2000 -dot com crash ■ 2001 -collapse of HIH Insurance Company (which was the major public liability insurer in Australia and with its demise there were major increases in insurance premiums for everyone). -World Trade Centre Attacks -demise of Ansett Airlines (which had a 35 per cent market share of the domestic airline business at the time). ■ 2002 -Bali bombings which killed 202 people ■ 2003 -Iraq War -outbreak of Severe Acute Respiratory Syndrome (SARS) As if this is not enough some countries could add the outbreak of foot and mouth disease, avian flu epidemics, further terrorists attacks and unreliable weather. Although in Australia and most countries tourism has recovered from such experiences, the industry has learned valuable lessons along the way. One has been to recognize the potential loss of business that can occur through interruption or damage, and to prepare for it through contingency planning and market diversification. Legal liability risks are increasing as society becomes more litigious. Resorts as businesses are responsible to their guests, employees and shareholders, all of whom are better educated regarding their rights and are more prepared and able to exercise those rights in court if need be. Now liability insurance is a major cost factor that all businesses must consider, including resorts. Loss of key personnel risks are often under-appreciated until such a situation occurs and the resort discovers how much a certain individual contributed to the business' overall attraction. A key person like a chef, an entertainer or instructor whose skills and special qualities are hard to replace can leave a big hole in a resort's reputation. These people should be identified and retained wherever possible, and if they are lost to illness or poaching then succession plans should be in place. To control the frequency and magnitude of losses due to risk it is essential to develop recording procedures and to create a repository of past records. Detailed record keeping is a key to identifying where and when risks are occurring, and the staff who were or should be involved. If personal injury is involved it is particularly important to obtain independent witnesses to the incident, in case there are later legal or insurance claims. Such data should be recorded in a central registry on a daily and weekly basis to be deposited in an appropriate computer database.This will provide important information regarding the safety record, or otherwise, of individual operations and the total resort. Such data will prove useful when negotiating liability insurance or to demonstrate the resort's actual duty of care record. 3. Risk reduction. Business, like life, is never risk free so in designing and operating a resort one important emphasis is safety -for guests and staff. Many of the common dangers like food, health and safety and fire are regulated and controlled by local by-laws or ordinances. However, such statutes often involve the 'minimum acceptable' precautions, so a resort may choose to follow the Walt Disney World lead and select higher standards. This will mean higher initial building costs, however it should reduce both the associated risks and annual insurance premiums. 'One of the most rewarding loss-control projects is training personnel to think in terms of accident and loss avoidance' according to Gee (1996: 439) . This becomes particularly important in the operations phase and needs to be emphasized as part of the resort's duty of care. When accidents occur they become significant 'moments of truth' for the guests and if they are handled in an empathetic and professional manner many later difficulties can be avoided. Most businesses, including resorts can absorb small and infrequent losses brought on by seasonal fluctuations or occasional accidents, but will need to transfer the risk of large business interruptions or liability claims to outside suppliers of such coverage, such as insurance companies or brokers. Small losses and claims will still be a matter for management's discretion even when they have insurance coverage, due to the deduction or excess clause associated with their insurance premium. Most personal injury and damage claims can be accommodated within these parameters and involve negotiation with the affected parties rather than court cases, but if it becomes a major contentious court case insurance providers will become involved. Resort owners can also transfer risk to other parties via non-insurance responsibility. In terms of major recreation equipment, like ski lifts or spas, the supplier can be encouraged to guarantee the safety of its equipment if it is properly installed and operated. This often involves the supplier installing the equipment and certifying the operators. In terms of more hazardous adventure tourism activities the resort can sub-contract these activities to specialist operators who carry their own and independent insurance policies. Cloutier (2000: 104-105) provides some insights into actual risk management, as seen through the eyes of Will Leverette, who offers simple guidelines based on the real experience of lawsuits and consultations with adventure tourism companies. According to Leverette there are six basic rules to follow: 1. Develop a means to prove that guests were adequately warned and informed. 2. Any guarantee of safety made in a business' literature or marketing materials is an open invitation to be sued. 3. All field staff must have current training in basic first aid. 4. The business should develop a written emergency/evacuation plan for all areas and activities to be used. 5. One good witness statement will shut down a frivolous lawsuit faster, more cheaply and less painfully than will anything else. 6. The business must use a properly drafted liability-release form. (this author's emphases) Such personal experiences are a guide as to how today's risk management is evolving into a legal discourse over duty of care, but when there is a major disruption to business through some form of disaster the emphasis changes from prevention to the rescue and recovery of crisis management. 'Crisis management is an extension of risk management' according to the Pacific Asia Travel Association (PATA, 2003: 3) . Risk management can be viewed as management initiatives designed to minimize loss through poor decision-making; but it can also be viewed as an important proactive step in reducing the dangers of catastrophic business collapse due to crisis or disaster. The PATA booklet presents a 'four R' step process to crisis management: 1. Reduction -detecting early warning signs; 2. Readiness -preparing plans and running exercises; 3. Response -executing operational and communication plans in a crisis situation; 4. Recovery -returning the organization to normal after a crisis; where risk management practices would dominate the first two steps. Risk management procedures that help to identify safety and security weaknesses in an operation will not only help to minimize danger and loss, they will expose the weak points in case a crisis occurs. Crisis in a literate sense represents a moment of acute danger or difficulty, which in terms of the tourism industry has been defined as: an unwanted, unusual situation for an organization, which, due to the seriousness of the event, demands an immediate entrepreneurial response. (Glaesser, 2003: 8) This approach places the emphasis of crisis management on the response and recovery phases of a crisis and brings it into line with disaster planning which has its own four-stage process of: assessment-warningimpact-recovery (Foster, 1980) . It is natural disasters which often trigger crisis within the tourism industry be they earthquakes (Kyoto -1995) , volcanic eruptions (Mount St Helens -1980), forest fires (Yellowstone National Park -1988), tsunami (Phuket -2004) or hurricanes (New Orleans -2005) . One should not forget that human beings can and do create their own crises for tourism and the resort industry. Wars, terrorism and political decisions can bring about dramatic declines in visitation due to the prospect of danger or the removal of access. King and Berno (2002) provide a good example of this in their analysis of the impact of Fiji's two coups in 1987 and 2000 on the local tourist trade, which is heavily resort oriented. They note that: like many other tropical island nations, Fiji has long established procedures in place to deal with emergencies such as cyclones. This meant that the overall preparedness in 1987 was relatively good with provision to contact hotels across the country with advice on how to react (King and Berno, 2002: 49) Such an experience demonstrates strong synergistic links can exist between natural disaster and human crisis management. From past crisis experiences Ritchie (2004) sets out a strategic framework for the planning and management of crises by public or private organizations. His model outlines three main stages in managing such incidents -prevention and planning, implementation, evaluation and feedback. Ritchie's three strategic management stages, along with Faulkner's earlier crisis stages and their ingredients, has been combined with more resort oriented issues and actions in Table 11 .2. If the process is divided into the three phases of pre-, actual and post-crisis it is possible to determine a clear pattern of events and responsibilities for resorts. Pre-crisis for most resorts will be some form of preparation for a future possible disaster. Whether that be an 'inevitable' physical disaster like an earthquake in certain regions or a possible negative political change, such major 'unthinkable' events need to be considered and prepared for. The recommended and common approach at this phase is to develop contingency plans -plans for actions that will mitigate the disaster's effects. This involves recognizing the potential scale and frequency of the expected disaster, and planning accordingly. In terms of the guests, all staff must be trained in emergency procedures and have a role to fulfil. In most cases there will be an obvious overlap with regular security measures such as fire drills, but in terms of major disaster preparation additional factors will need to be considered and plans prepared. For human created crises the degree of notice may be shorter than for natural disasters but there will usually be a warning period of political unrest. In this case the experts will be political commentators and the global news services, and it will be up to owners and managers to keep abreast with their regional situations. More governments are becoming involved in this scanning process on behalf of their travelling citizens, and are offering travel advisories. For many resort destinations these advisories have both positive and negative features. On the positive side they provide up-to-date and comparable risk assessments for tourists; on the negative side they are susceptible to political influence and may not be as objective as one would hope; plus they paint the risk picture with broad strokes, so that relatively safe enclaves become included in the national summary. Glaesser (2003: 131-132) provides an example of how one crisis, the Bali bombing of 12 October 2002, produced various levels of advisory notice in Europe, ranging from a low level general security advice to warnings against travel under any circumstances. During the actual crisis there is going to be chaos and confusion and it is the prepared and cool-headed who will prevail. Hence the key management task at this stage is to have staff able to implement the contingency plan and to be empowered to show initiative when conditions do not exactly follow the predicted pattern of events. A major disaster or crisis is likely to affect more than one resort or destination, so collaboration with other tourism organizations and government agencies will be essential. Hopefully in the imminent stage all or most guests would have been evacuated with the help of public agencies and industry partners to safer areas, but generally a skeleton staff of key personnel will be required to stay on site as long as possible to ensure the safety of assets. One of the biggest challenges during this period will be media relations, for in today's global village a disaster or crisis attracts the attention of the world and a media frenzy erupts. Glaesser (2003: 223) in his discussion of communications policy with respect to a crisis states 'the principle (sic) task is to convey information with the aim of influencing and guiding consumer behaviour, opinions and expectations'. To achieve this he advocates the affected organization creates a quick understanding of the situation and a transparency in its preparation and response, to build the credibility of the business. He recommends (Glaesser, 2003: 230-231) a communication process that follows the sequence of: 1. Portray the dismay and responsibility of the organization. 2. Describe decisions and measures introduced to cope with the crisis. 3. Indicate, based on the current experience, what further measures will be introduced to avoid future repetitions. In the case of major disasters and crises resort destinations and businesses will need to collaborate with central and regional governments, for it is they alone who can mobilize the resources needed to handle major catastrophes.The evacuation of guests to other areas will require bus and truck transportation and possibly air evacuation. The chaos and confusion of a crisis provides the opportunity for crime and lawlessness, so governments will need to bolster regular police forces with federal police and possibly troops. In the case of the New Orleans hurricane of 2005 such a government response was widely criticized for its slowness and inadequacy. Since much of the world's resort business occurs in the developing world when a major disaster or crisis occurs the host communities often need international assistance. It is at such times that the international community has revealed its better nature, ignoring old differences to come to the aid of fellow humans suffering from the ravages of nature or the actions of a few. Unfortunately, the generosity of individuals, charities and nations is not generally put to the best use. Partly this is because many receiving nations have neither their own contingency plans for such disasters nor the organization and infrastructure to handle a major in-pouring of generosity; and partly because some of the recovering nations have been susceptible to pilfering and corruption, which results in funds and materials not reaching the designated destinations and sufferers. Given the occurrence of irregularities and disappointments with various international aid programs, it is not surprising that their recovery period is often much longer and more difficult than many expect. The post-crisis phase occurs when the actual crisis has abated and is out of the international news headlines, and represents the business and community efforts to return to pre-crisis conditions. As many students of disaster/crisis management indicate this is not only the time to get back to business as quickly as possible, it is an opportunity to redevelop and learn from the mistakes of the past. An immediate concern is to take advantage of the media attention that will have placed the resort destination in the world headlines, by demonstrating that the crisis has passed and life is returning to normal. It is quite likely that the global public has been presented an inaccurate and exaggerated picture of local devastation, which needs to be remedied as quickly as possible. For example, when hurricane Iwa struck the Hawaiian island of Kauai in November 1982 some international news media were reporting that part of the island had sunk and thousands of people had died, which was far from the truth, although the hurricane caused a lot of physical damage (Murphy and Bayley, 1989: 38) . Such stories need to be refuted, and information about the undamaged areas and recovery put in their place wherever possible. When it comes to repairing the damage an opportunity is presented to upgrade a resort's infrastructure and facilities. There will always be improvements (real or imagined) that the consumer society has developed since the original building of a resort destination which can and should be integrated into the new resort. There will be lessons learned from the disaster or crisis that can be incorporated into the design of the new resort which will make it more disaster-proof in the future. One example of how a disaster can be turned into a positive for tourism occurred with the Mount St Helens eruption. Prior to the eruption Mount St Helens was a relatively quite tourist attraction, appealing mostly to outdoor recreationists and offering mainly basic facilities. The publicity of the 1980 eruption, including dramatic television coverage, increased interest in the volcano to the extent that 'a national monument was created by setting off 110 000 acres from the existing national forest to commemorate the eruption . . . a new visitor center was opened in December 1986, with illustrations and other graphics that depict the events and the subsequent natural regeneration of the devastated areas' (Murphy and Bayley, 1989: 42) . This new visitor centre has good access to the local interstate freeway and now many more visitors are drawn to the area, incorporating a wider range of tourist types and market segments than before. As has been mentioned, life is a risk and as we modify the earth's environment we are creating new and uncharted conditions that will bring increased risk. Signs that business conditions are changing come in various guises. Nature seems to be going through a period of instability, with evidence of climate change beginning to take on more significance as scientific evidence points more to a global shift in weather patterns rather than normal climatic cycles. Climate change is a serious and urgent issue. While climate change and climate modeling are subject to inherent uncertainties, it is clear that human activities have a powerful role in influencing the climate and the risks and scale of impacts in the future. All science implies a strong likelihood that, if emissions continue unabated, the world will experience a radical transformation of its climate. (Stern, 2006: 17) Even the conservative periodical The Economist has come to the conclusion that 'the chances of serious consequences are high enough to make it worth spending the 'not exorbitant' sums needed to try to mitigate climate change' (The Economist, 2006b: 5). Resort tourism is particularly vulnerable to climatic change given that many resorts are located in high risk areas like mountains and tropical beaches, and it uses high levels of energy drawing in its guests and on-site water to keep them happy. War has been joined by global terrorism as a major disruption and deterrent to travel, with tourists seen as 'soft targets' bringing maximum exposure to the terrorist cause. An evercrowded world with over-stretched medical systems appears to be waiting for the next pandemic, with the recent outbreaks of SARS (2003) and avian flu (2006) revealing a certain lack of control and openness in dealing with global health crises. Under these circumstances one of the most direct business signs of change has been the dramatic increase in insurance premiums that everyone seems to have faced in this new millennium. Increased liability insurance has put some single owner peripheral tourism operations out of business, regular security insurance as well as liability insurance has risen dramatically for resorts, and resort destinations in vulnerable locations are facing either dramatic increases in premiums or the loss of direct insurance. After a disastrous 2005, with insured losses of $55 billion in the US, of which $38 billion was caused by hurricane Katrina,American insurers 'are cutting back their exposure in coastal areas . . . home owners who can get insurance coverage face sharply higher rates. Some premiums have risen by as much as 200% . . . Many residents cannot get private coverage at all. As a result, state -backed insurance plans, meant to provide coverage as a last resort, are being inundated' (The Economist, 2006a: 74) . This is only the tip of the iceberg according to figures provided by Winn and Kirchgeorg (2005: 245) who quote Table 11 .3 from the Topics GEO 2003 report, which shows 'the number of natural catastrophes rose nearly five fold (and) economic losses nearly 16 fold over the last five decades'. Winn and Kirchgeorg use such information to suggest business in general needs to rethink its strategic approach to the environment and The Business of Resort Management sustainable development. They view past and present management interest in environmental management and sustainable development as an 'inside-out' approach, 'one in which the primary perspective is to look from the firm out at the external environment' (Winn and Kirchgeorg, 2005: 240) that includes ecological and social considerations. But given the dramatic external forces in nature, politics and health which are leading to new levels of uncertainty in the ecological and societal realms, they see the need for 'a radical departure from the inside-out perspective of environmental management and its more systems theory-informed cousin from sustainability management' to one where sustainability management should be 'expanded and complemented, and may even need to be substituted by conceptual frameworks fairly new to organization theories, such as "resilience management" or "discontinuity management"' (Winn and Kirchgeorg, 2005: 250) . This is because if we are facing significant shifts in environmental and political conditions, the balancing nature of sustainable development will no longer apply in an unstable world. Rather, business will need to take on board the possibility or probability of structural shifts and the prospect of facing several global emergencies during their lifetime. 'Since ecological global systems cannot be affected significantly by actors in the short-term (the inside-out approach), broader adaptive behaviors that secure the survivability of the economy and society become increasingly relevant. Crisis management, risk management, and emergency responses need to be supplemented with long term management for survival' (Winn and Kirchgeorg, 2005: 252) . To put such thoughts into practice will require guidelines that incorporate all the knowledge that has been accumulated to date on risk and crisis management to be supplemented by a broader and more collaborative Decade 1950 -1960 -1970 -1980 -1990 -Last 10 1959 1969 1979 1989 1999 approach to business survival and sustainability. Given the noted exposure of tourism to the environmental, political and medical forces that seem to be in flux, it is not surprising to find some are already thinking along these lines. Santana (2003: 304) considers that if decision-makers acknowledge that in these complex and unpredictable times in which we live and operate, anything is possible, including a major crisis that may prove devastating to their organizations, management will be in the 'right frame of mind' to accept the contention that forms the basic foundation of crisis management; proper advanced planning. As Santana points out, with the increasing impact of external forces on tourism operations, crisis should be looked upon as an evolving process in itself, one that develops its own logic and consequences, rather than be treated as an isolated event. 'It is the degree to which management heeds the warning signals and prepares the organization (that) will determine how well it responds to the impending crisis' (Santana, 2003: 310) . Likewise, Hall et al. (2003: 2) note that tourism and destinations are 'deeply affected by the perceptions of security and the management of safety, security and risk'. They think the concept of security has broadened significantly since the end of the Cold War, with a dominant single political enemy being replaced by terrorism, wars of independence, indigenous rights, and religious differences. 'Security ideas now tend to stress more global and peoplecentered perspectives with greater emphasis on the multilateral frameworks of security management' (Hall et al., 2003: 12) . One of the few at this point to provide practical guidelines for sustainable crisis management in tourism is de Sausmarez (2004) . de Sausmarez maintains that many future crises will require careful detection and collaborative efforts to minimize their impact, and she has outlined a six step approach to tackle such major external threats. We, as students of tourism, know tourism and resorts are important socio-economic functions for many people, communities and nations, but we cannot assume others give tourism the same degree of importance in the bigger picture and more comprehensive view of events, including crises. Hence, the first step in the establishment of a national or regional crisis management policy is to determine and demonstrate the relative importance of the tourism and resort sectors. Until this has been done, it is impossible to prepare any sound strategy for the response to a crisis. This was well illustrated by Sharpley The Business of Resort Management and Craven (2001) who show that even though tourism contributes substantially more to the British economy than agriculture does, the British government's response to the foot and mouth crisis in 2001 was to slaughter rather than vaccinated animals and to close the countryside to visitors, moves which favoured the agricultural sector rather than the tourism sector and cost the taxpayer substantially more than was necessary. (de Sausmarez, 2004: 4) It is only when tourism in general and the resort component in particular are shown to be significant local and regional socioeconomic activities that governments and planners will consider them seriously and integrate their needs into macro-crisis management planning. If resorts and tourism are to integrate crisis management with their sustainable development philosophy they will need to identify the anticipated areas of greatest risk. In the literature and this chapter the emphasis has been on natural disasters, which are essentially supply side characteristics as they change or eliminate the attractiveness of a destination. However, just as important are demand side characteristics such as international political relations affecting visa requirements, economic conditions affecting the ability to travel, world health and safety, and competition from other destinations and leisure activities. Although none of these supply and demand risks will fall under the direct control of resort management, knowledge of their existence and development will be essential for future strategic planning, and should be used to lobby government. While it is important to scan the environment continuously it is important to be able to measure trends in a relevant and timely manner. The evidence of global warming is building momentum, but it is often sending out confusing and at times conflicting information, little of which has any bearing on a single location or site. Managers and owners of resort properties need to know what this impending crisis means for them specifically. de Sausmarez (2004: 7) maintains tour operators and travel agents, along with government agencies, are in a 'strong strategic position to monitor and assess changes in the tourism status quo as they have access to data on both supply and demand'. She notes that the World Tourism Organisation's (1999) recommendation after the Asian financial crisis of 1997 was that destinations should develop three categories of indicators, to warn of impending crises. i. Short-term indicators of up to three months, that include advance bookings from key markets, or an increase in the usual length of time needed to settle accounts. ii. Medium-term indicators, with a lead time of 3-12 months such as that needed for tour operator allocations and take-up to be recorded. iii. Long-term indicators, with a lead time of a year or more that include planned capacity developments, international currency valuations and trends in GDP, interest rates and inflation in key markets. To which Sustainability Crisis Management would add a fourth category: iv. Future indicators, with a lead time of 10-50 years which covers the life of most mortgages and leases and provides sufficient time to determine whether the current climatic experiences are long-term phenomena or cyclical aberrations. These indicators would subjectively convert the environmental, political, business and health trends into local and more useful indices. They would be subjective because it would depend on local knowledge to disaggregate the global information meaningfully, and that process would be influenced by the outlook of the assessor -be they an optimist or pessimist. The type of global crises that tourism may be facing will be sufficiently large scale and evolving that they will require collaboration to implement an effective management strategy. This means that responsibilities and coordination plans need to be drawn up at an early stage and should cover three essential areas: a speedy response, appropriate measures in terms of the local needs of impacted areas and communication and coordination between different levels of jurisdiction and different sectors. 5. The development of a crisis plan. The development of a national crisis management plan is itself an example of macro-level proactive crisis management (de Sausmarez, 2004: 9) , and a considerable achievement in itself. Such plans need to be flexible as we can expect a series of different crises in the future, with varying local and regional impacts within national jurisdictions. An important part of any large scale crisis management plan will be media relations, relying on the various forms of media to distribute the relevant information as quickly and effectively as possible and being transparent about the severity of the crisis and remedies being undertaken. In some countries there may already be plans in place to cope with anticipated natural crisis such as cyclones (Fiji) or earthquakes (Pacific North West of America) that can be extended to include other forms of possible crisis. Such plans would need regular re-assessment by government departments and the private sector, but can build an invaluable data bank and procedural map. In an Asian context de Sausmarez (2004: 11) feels communication and inter-agency cooperation needs to overcome the perceptual association between a crisis and 'loss of face', as is claimed to have occurred with the SARS outbreak in East Asia in 2003. In terms of global warming and its associated crisis no single country or person is to blame, we all need to take joint responsibility. 6. The potential for regional cooperation. Although de Sausmarez focusses on the creation of national crisis management she recognizes that global issues like climate change require an even larger operational scale. No single country can be isolated from its neighbors, as 'was clearly illustrated by the decline in tourism to Southeast Asia following the Bali bombings in October 2002' (de Sausmarez, 2004: 12) . She points out that the combined effort of the Association of Southeast Asian Nations (ASEAN) was able to effectively contain the SARS epidemic through regional preventative action in 2003, and that success has been repeated with the later outbreak of avian flu in East Asia. The six steps outlined by de Sausmarez do not follow a natural linear sequence, but should be viewed more as a continuous dynamic process which has been divided up to permit closer examination and appreciation of its component parts. The whole process depends on continual learning and adjustment, so as to be responsive and flexible in the face of future crises. For resorts which have survived as a separate form of tourism since the early days it becomes imperative to embrace risk and crisis management as a central part of their business strategy. This chapter has discussed the growing importance of risk management to resorts as our business and natural environments have changed. Although financial risk has been a constant within business it is only in recent times, with the rise of a litigious society and a less stable natural environment, that it has become a more general and important issue for management. Its increased prominence in business and society now means resorts should make it a key feature of their strategic management, and possibly their central concern. Risk management does make a logical central theme for resort management in that it provides a focussed context for its past, present and future directions. The past experiences and business literature (Part A) provide a guide as to what management may expect today, and the general level of risk associated with most options. Present management must consider both external factors (Part B) and internal strategies (Part C) to create the most viable and sustainable options for today's resorts. The future can be extrapolated from the present if global business conditions change slowly and in a familiar manner, as predicted in the forecast for a growing senior's market for resorts. But what if we are experiencing major changes to the physical well-being of our planet and in human behaviour to one another? The risk factors that we have calculated from the past and present may no longer work so well or even apply, and we will need to enlarge our risk management process to incorporate more fluid business and environmental situations (Part D). The purpose of this chapter and book is to encourage the reader to think about the wonderful legacy that has been provided by resorts; how we should strive to ensure resorts continue to delight our senses and educate us about our planet and its various cultures; and how we can achieve this through appropriate business management, even in this era of global change. A risk management focus would not only assist with the general sustainability objectives of a resort business, it can help position resorts at the forefront of monitoring and adjusting to the predicted changes in our natural and human environments. The chapter and book closes with an examination of one recent global crisis, which had a direct impact on resorts throughout a large area of the world, and one resort which learned a great deal from one hurricane season. The Indian Ocean Tsunami of 2004 illustrates how we can still be caught unawares by a natural disaster, how such disasters can become international in scale, and thanks to rising sea levels may have even more significance in the future. Walt Disney World Resort received its first hurricane direct hit in more than 40 years in mid-August 2004, only to have it followed by three others in the space of six weeks. In the process it learned some invaluable lessons. The Indian Ocean Tsunami, also known in some quarters as the Boxing Day Tsunami, occurred on 26 December 26 2004.This tsunami was generated by an earthquake under the Indian Ocean near the west coast of the Indonesian island of Sumatra, and is estimated to have released the energy of 23 000 Hiroshima-type atomic bombs. By the end of that day 'more than 150 000 people were dead or missing and millions more were homeless in 11 countries, making it perhaps the most destructive tsunami in history' (National Geographic News, 2005: 1). These figures were subsequently revised upward, so that now the Indian Ocean tsunami is estimated to have 'left 216 000 people dead or missing' (Guardian Unlimited, 2006: 1) . If this terrible natural disaster is examined using the threefold strategic action template of Table 11 .2 certain key crisis management lessons emerge. At the pre-crisis stage little formal preparation had been undertaken at either government or resort levels of responsibility. This is understandable because there had been little history of major tsunamis in the Indian Ocean, the last being associated with Krakatoa's eruption in 1868, but unforgivable for tsunamis are still a risk in oceans with volcanic and tectonic activity. What was missing was both an early warning system of seismic buoys and a way to convey that information to potentially threatened areas, so they could instigate evacuation plans. While the 'Pacific Tsunami Warning Centre in Hawaii had sent an alert to 26 countries, including Thailand and Indonesia, (it) struggled to reach the right people.Television and radio alerts were not issued in Thailand until 9 a.m. local time -nearly an hour after the waves had hit' (Global Security, 2006: 3) . In this case there had been no regional forecasting or risk analysis and there was no internationally coordinated contingency plan to deal with such a situation. The result was that even if a coastal resort had its own evacuation plan there was nothing to trigger it until the arrival of the first wave, and by then it was too late. The actual crisis stage was viewed by millions of us around the globe, as we were able to view tourists' video camera images of this spectacular and unusual Sunday morning feature on our television screens. The world press immediately brought us these graphic images to go along with the rising death and damage statistics, so that once again the selective reporting of a natural disaster convinced many that the whole region had been devastated. This was particularly the case with Phuket Island, where the images of destruction at Patong Beach on the west coast were transformed to represent the whole island in the minds of many, even Case studies though Phuket is a large island with many separate resort enclaves scattered around its varied shoreline and many of them were untouched by the tragedy. This confirms the need for control over communications, to ensure reporting remains factual and in proportion, rather than sensational and exploitive. The post-crisis stage represents an opportunity to learn from the crisis and to rebuild. This is certainly the case with the Indian Ocean Tsunami. The biggest weakness was the lack of information and warning, which prevented the implementation of effective contingency planning. This is now being addressed with the building of the Indian Ocean Tsunami Warning System in 2006.This system has been coordinated by the United Nations' Educational, Scientific and Cultural Organization (UNESCO) and consists of 25 new seismographic stations, supplemented by three deep-ocean sensors to provide the required early warning. But this is just the start, for the information needs to get to the areas around the Indian Ocean that are likely to be affected and the people in those areas who need to know what actions to take. Therefore, UNESCO is continuing to work on international coordination and with governments to provide grassroots preparedness (Terra Daily, 2006) . UNESCO is providing expertise to assist with the redevelopment of mangrove, sea grass and coral reef rehabilitation; it is strengthening disaster preparation for cultural and heritage sites and integrating this into its reconstruction processes; and it is teaching tsunami awareness in schools, training decision-makers and broadcasters and staging local practice drills. The recovery is well underway around much of the Indian Ocean. In Phuket where the damage was highly localized, Patong Beach showed no outward sign of the tsunami by October 2005, when the author paid a visit. The local tourism industry and English newspaper reported that while business had been slow in the months immediately following the tsunami, things had started to pick up around June and 'we expect it will be 80 per cent to 90 per cent from New Year (2006) to the end of March (high season)' (Phuket Gazette, 2005: 3C) . Another example of crisis recovery is provided in the Maldives. Like all low-lying islands the Maldives are particularly susceptible to this form of disaster; thousands of local inhabitants lost their homes and 82 were killed in the tragedy. However, only two tourists lost their lives and although most resorts were damaged their 'higher construction standards (meant they) withstood the waves much better than local housing did' (Travel Wire News, 2005: 2) . Consequently, it did not take most resorts long to rebuild and re-open, but in the process local businesses and government wanted to be better prepared for the future. Five months after the tsunami swept across these islands in the Indian Ocean, the tourism sector and government agencies are cooperating to ensure that low-lying resorts and the nation's airport are better equipped to handle any type of emergency. (Travel Wire News, 2005: 2) Among the changes proposed are improving communications through the installation of satellite telephones on each island and a centralized emergency information command. New resort regulations will require evacuation plans and emergency supplies. A higher seawall around the airport and safeguards for electrical power supplies are also being considered. These and other accounts of the Indian Ocean tsunami indicate the challenges facing the resort sector with today's concerns over global warming and the negative impact of news coverage for such disasters. Major tsunamis are fortunately rare events, but this case has demonstrated the need for some international warning system, so that regional and local contingency plans can be put into operation to minimize the impact. This will clearly require coordination at government levels and the will to maintain vigilance and training over long time periods between natural disaster events -something that will test human nature to the full. One also has to ask, if future tsunamis are associated with the rising sea levels of global warming will such improvements be enough? This is the type of question that some academics and researchers are asking us to consider, and should certainly be examined in terms of the sustainability and risk management of many resorts and their relevance in an era of possible climatic shifts. This case is based on an article by Barbara Higgins (2005) who was Director of Operations Integration for Walt Disney World Resort when four hurricanes impacted the resort's operations in 2004, providing an invaluable learning opportunity for them and other resort operations. Walt Disney World's hurricane plans, as part of its general emergency planning, had definite priorities and procedures. Priorities included (Higgins, 2005: 41) : ■ keep guests safe; ■ keep employees safe; ■ have a thoughtful plan for tie-down, ride-out and recovery; and ■ provide the ability to get our parks open and operating as soon as possible after the storm. The procedures were designed to account for varying hurricane strengths, and whether the hurricane involved a direct hit or a near miss in terms of its path across central Florida. To prepare for this Walt Disney World has instituted a five-phase approach to its hurricane preparedness, with each phase being selected in consultation with the National Hurricane Centre and local authorities. Reviewing hurricane plans and verifying contact numbers for employees. Further review of plans and beginning of preparation for possible shutdown of long-lead-time operations. Predetermined emergency supplies are delivered, the site is cleared of loose materials and where relevant lightweight equipment and buildings are anchored to the ground, and managers evaluate moving to next phase. Guests and essential staff take shelter in hurricane-proofed buildings or begin evacuation. All activities closed down, with only essential ride-out crews remaining in designated shelters. Despite these plans and the thoroughness of preparation the sequence of four very different hurricanes revealed some additional factors and priorities. One major lesson from that summer's hurricane experience is that no two hurricanes are alike, so a resort can only prepare for hurricanes in general and not the specific one(s) that come its way.'The first lesson we learned was that our rigorous plans were only guidelines that needed to be flexible enough to adjust to changes dictated by our circumstances' (Higgins, 2005: 42) . The most important elements in the general emergency plans turned out to be: ■ maintaining guest and employee communication, letting them know about the impending storm and providing the relevant information regarding each phase's action plan; ■ operating the food service, with the provision of hot meals being the biggest priority; ■ offering in-resort entertainment to guests who were room-bound for many hours; ■ preparing guests for confinement in their rooms over long periods, which is not what they came to the resort to do; ■ arranging for the ability to use news media to give (information on park closures and re-openings) and to get (weather details and various local government announcements regarding schools, police and emergency services). One 'important lesson to be learned in the face of a crisis is to show compassion for your employees and the toll the situation has had upon them, their families and their loved ones' (Higgins, 2005: 45) . It is important to release unessential staff from their duties as soon as possible so they can attend to the safety of their family and homes as the hurricane approaches. Likewise, in the aftermath it is likely some employees will require shelter and hot meals due to the hurricane damage. 'One lesson many Floridians learned in the wake of these storms was the high deductible (excess) associated with hurricane insurance claims . . . (As a consequence) we anticipate providing more than $8 million to as many as ninety-five hundred employees who desperately need the funds to recover from the damage to their homes' (Higgins, 2005: 45) . Thus, in the end we have a reaffirmation that the business of resort management is 'to think globally but act locally'. Although the driver is business and financial concerns, there needs to be an appreciation of the importance of the local environment and community to the long-term success of a resort. 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