Crisis Management Strategies of Thailand's Tourism Industry Following Political Unrest and Terrorism in 2014-15, Kerstin KRIHA
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This document summarizes a master's thesis on the crisis management strategies of Thailand's tourism industry following political unrest and terrorism in 2014-2015. It describes three key steps in crisis management: 1) crisis prevention and planning through contingency planning and security training, 2) strategic implementation including internal and external communication as well as assisting victims, and 3) resolution through recovery marketing and review of crisis plans. Overall, it finds that Thailand demonstrated resilience through coordinated efforts between public and private sectors, as well as understanding of customer behavior to target resilient markets.
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Crisis Management Strategies of Thailand's Tourism Industry Following Political Unrest and Terrorism in 2014-15, Kerstin KRIHA
- 1. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Crisis Management Strategies of Thailand‘s Tourism Industry A study following political unrests and terrorism in 2014/15 Master Thesis Kerstin Kriha University of Applied Sciences HTW Chur
- 2. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org 1. Introduction: Thailand‘s Tourism and Crises Bangkok bombing 17. Aug 2015 2. Results: Crisis Management Activities 3. Conclusion Content
- 3. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Introduction: Thailand and its history of crises Bangkok Bombing on 17 August 2015: Bomb exploded at tourist attraction “Erawan Shrine” Worst terror attack aimed at tourists 20 fatalities and 120 injured Tsunami 2004 Flooding 2011Riots 2008-9
- 4. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org 7.3% -7,3% 16.4% -1.9% 20.0% 4.6% 0.8% -3.0% 12.6% 20.7% 16.2% 18.8% -6.5% 20.4% -10% 0% 10% 20% 30% 0 10 20 30 40 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Arrivalsinmio Int. Tourist arrivals to Thailand Introduction: Crises in Thailand – A Teflon Economy? SARS Tsunami Political crisis & GFC Political Riots & Coup Bangkok Bombing Thailand manifested itself as a highly resilient “Teflon Economy“ (Arnold, 2014)
- 5. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Research Question and Sample Tour Operators Hotels Tourism Authority Tourism Associations Industry Experts CH&DE 4 TH 1 8 2 1 3 What were key crisis management activities of Thailand‘s tourism stakeholders prior to, during and after the Bangkok bombing?
- 6. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Results: Crisis Management Strategies Crisis Prevention and Planning1 Strategic Implementation2 Resolution, Evaluation & Feedback3 Crisis
- 7. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Step 1: Crisis Prevention and Planning Crisis Prevention and Planning1 Contingency Planning → Tourism Authority of Thailand (TAT) has own „War Room“ → Scenario planning for different eventualities, (cost-saving plans, back- up office, prepared contact lists & messages) → Hotels trained staff for bombings Crisis plans, teams and trainings Security measures Understanding consumer behaviour Depending on nationalities & booking lead times Tourists nowadays are more resilient Fostering relationships (with media, travel agents)
- 8. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Step 2: Strategic Implementation Strategic Implementation2 Crisis Int. Communication Informing and aligning messages with staff & head/overseas offices → TAT advises tourism industry to appear in unified voice Transparency: control story through regular updates to media and partners → Reaching tourists through partners (Wholesale, Tripadvisor, Agoda) → Tracking technology to identify and correct misperceptions Sharing positive images, avoiding term „terrorism“ Social Media as a Game Changer Ext. Communication Assisting Victims Enhancing/Communicat- ing Security Measures Adapting reservations & managing costs Target resilient markets
- 9. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Step 2: Strategic Implementation Strategic Implementation2 Crisis Int. Communication Ext. Communication Assisting Victims Coordinate with emergency services & first aid for victims → Provide therapy for traumatised staff → TAT offered insurance coverage for those affected Enhancing/Communicat- ing Security Measures Adapting reservations & managing costs Target resilient markets
- 10. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Matched with crisis phase & scope → During crisis: Special insurances & #strongertogether promotion → After crisis: Use media attention! Celebrity marketing for HK market, new Logo with smile → Private sector: domestic packages, Social Media & OTA campaigns (particularly for previous guests) Step 3: Resolution Resolution, Evaluation and Feedback3 Recovery Marketing Review & adapt crisis plan
- 11. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Successful crisis management by private & public sector Contingency planning goes beyond crisis plans: Understand customer behaviour to target resilient markets Ensure transparent and prompt communication - integrating Social Media channels Proactive recovery marketing: Use media attention to turn negative into positive Conclusion →Stronger collaboration of public & private sector, particularly pre- & post-crisis × Private & public sector in Phuket lacked readiness - Cultural influence: × Some rely on “automatic” bounce back/ believe marketing is task of public sector
- 12. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Thailand‘s resilience is unique 60% Repeat Travelers “Welcoming“, “soft“, “kindhearted“ people and culture Previous political crises centralised to BKK →direct access to plenty unaffected regions „Thai Paradox“: Political crises usually non-violent, no risk for tourists →Riots turned into tourist attractions
- 13. 6th International Disaster and Risk Conference IDRC 2016 ‘Integrative Risk Management – Towards Resilient Cities‘ • 28 Aug – 1 Sept 2016 • Davos • Switzerland www.grforum.org Thank you for your attention ขอบคุณค่ะ
Editor's Notes
- Bangkok Bombing Impacts Immediate but short impact: 1-2 months New record 29.8 mio arrivals, +4% than expected
- 3 min
- 5 min Especialy important for immediate crises like a terror attack 2014: HK decreased -20% in Thailand, but increased 20% in Phuket Collaboration with Tourism Associations not always ideal, mostly for Thais, communication barrier, old-fashioned thinking? Association bringing together hoteliers in Phuket is missing
- Visualising certain security measures to reassure tourists Increased police presence Distributing leaflets with emergency number Controlling guests in hotels “our guests come to relax and not to worry about politics” (H1).
- Visualising certain security measures to reassure tourists Increased police presence Distributing leaflets with emergency number Controlling guests in hotels “our guests come to relax and not to worry about politics” (H1).
- TAT used media attention to turn negative messages into positive ones During crises: Target resilient markets & provide insurance After crises: Major campaigns > Avoid confusion and waste of resources (Ritchie, 2009)
- The case of the Bangkok bombing has shown that tourism businesses have no choice but to integrate social media channels into their crisis communication as the uncontrolled distribution of contents cannot be avoided. Developments in Social Media channels can be extremely fast, extremely far reaching, and can have an extreme impact on businesses. While the use of Social Media has become an everyday activity for most people, companies still have problems understanding the options for crisis communication behind it. “Crisis management for me is a matter of cooperation. But a lot of people don’t think like this, and even try to use their crisis management as an extra marketing tool, which is okay up to a certain extent, but not always good when you talk for the sake of the country. But very few tour operators or hotel chains worry too much about the country, they worry more about their own profit and loss” (E3)