Tourism risk analysis and mitigation: Strategies for managing risks in a dynamic tourism environment

Yaroslav Leonov; Oleg Parubets; Yevhenii Portnoi; Zinoviia Zaloha; Olha Sukhai

doi:10.31893/multirev.2024243

Keywords:

market

risk management

indicators of state

development and risks

sports industry

sports events

Abstract

Tourism is interconnected with other industries and brings additional benefits to both the European economy and Ukraine in general. However, it also depends on external and internal factors and is the first to react to their changes. The article describes and uses a strategy for managing the risks posed by the fast-changing tourism market, where every second trip for travel purposes goes to EU countries. The EU countries comprise 50% of global tourism, while outbound tourism from European countries is almost 48% of all outbound trips and tourism activities worldwide. The COVID-19 pandemic had a severe impact on the tourism sector of many countries, leading to significant changes and negative consequences. However, the tourism industry is dynamic and constantly evolving, responding to any changes and demands. Therefore, the relevance of this study lies in exploring further ways to develop tourism in the European tourism macroregion, taking into account the impact of the COVID-19 pandemic. The unprecedented pace of transformation has affected the management system of tourism enterprises. Travel companies must respond quickly to constantly changing environmental conditions to protect their reputation and financial stability. Therefore, there is a real need to create a modern, comprehensive risk management system for tourism companies. Risks cannot be eliminated, yet any business owner who cares about the success of their business must investigate possible adverse factors affecting their profits and take action to reduce them. Risk management serves this purpose.
References
1. Aprilyani, I., Widyarti, M. T. H., & Hamida, N. (2021). The effect of erm, firm size, leverage, profitability, and dividend policy on firm value (evidence from food & beverage subsector companies listed in IDX 2015-2019). Actual Journal of Applied Business Financial Accounting, 4(1), 65-75. http://dx.doi.org/10.32497/akunbisnis.v4i1.2663
2. Baggio, R., & Sainaghi, R., (2016). Mapping time series into networks as a tool to assess the complex dynamics of tourism systems. Tourism Management, 54, 23-33. https://doi.org/10.1016/j.tourman.2015.10.008
3. Bambang, T., Soewarno, N., Ismail W. A. W., Kustiningsih N., & Nafidah, L. (2023). Community behavioral change and management of COVID-19 Pandemic: Evidence from Indonesia. Journal of King Saud University-Science, 35, 102451. https://doi.org/10.1016/j.jksus.2022.102451
4. Bayev, V. V., Bakhov, I. S., Mirzodaieva, T. V., Rozmetova, O., & Boretskaya, N. (2022). Theoretical and methodological fundamentals of the modern paradigm of quality management in the field of tourism. Journal of Environmental Management and Tourism, 13(2), 338-345. https://doi.org/10.14505/jemt.v13.2(58).04
5. Damm, A., Greuell, W., Landgren, O., & Prettenthaler, F. (2017). Impacts of +2◦C global warming on winter tourism demand in Europe. Climate Services, 7, 31-46. http://dx.doi.org/10.1016/j.cliser.2016.07.003
6. Ðorđević, B. S. (2018). Hedging by using weather derivatives in winter ski tourism. Economics of Agriculture, 65(1), 125-142. http://dx.doi.org/10.5987/ekoPolj1801125D
7. Gultom, O. (2020). Indonesia for Global Justice. Retrieved from Post-Covid19: Perubahan Global dan Perang Digital Pasca Covid. https://igj.or.id/post-covid19-perubahan-global-dan-perang-digital-pasca-covid/.Accessed on April 5, 2024.
8. Hardani, N. H. (2020). Qualitative & Quantitative Research Methods. PustakaIlmu Group. https://igj.or.id/post-covid19-perubahan-global-dan-perang-digital-pasca-covid/. Accessed on April 5, 2024.
9. Iswajuni, I., Manasikana, A., & Soetedjo, S. (2018). The effect of enterprise risk management (ERM) on firm value in manufacturing companies listed on the Indonesian Stock Exchange year 2010-2013. Asian Journal of Accounting Research. https://doi.org/10.1108/AJAR-06-2018-0006
10. Kalina, I., Khurdei, V., Shevchuk, V., Vlasiuk, T., & Leonidov, I. (2022). Introduction of a corporate security risk management system: The experience of Poland. Journal of Risk and Financial Management, 15(8). https://doi.org/10.3390/jrfm15080335
11. Kementerian Ketenagakerjaan Republik Indonesia (2022). https://kemnaker.go.id/ .Accessed on April 5, 2024.
12. Leonov, Y. (2020). Modern paradigm of sports policy as an ideology of a healthy society. Three Seas Economic Journal, Riga, Latvia: “Baltija Publishing”, 1(4), 102–108. http://www.baltijapublishing.lv/index.php/threeseas/article/view/978/1032 Accessed on April 16, 2024.
13. Leonov, Y. V. (2018). Strategic changes and their impact on the development of sports industry organizations. Economic horizons. Economies' Horizons: quarterly of science journal Uman. state ped. University named after Pavlo Tychyna., 4(7), 230–237.
14. Levytska, S., Pershko, L., Akimova, L., Akimov, O., Havrilenko, K., & Kucherovskii, O. (2022). A risk-oriented approach in the system of internal auditing of the subjects of financial monitoring. International Journal of Applied Economics, Finance and Accounting, 14(2), 194-206. https://doi.org/10.33094/ijaefa.v14i2.715
15. Niziaieva, V., Liganenko, M., Muntyan, I., Ohiienko, M., Goncharenko, M., & Nazarenko, O. (2022). Balancing interests in the field of tourism based on digital marketing tools. Journal of Information Technology Management, 14, 59-77. https://doi.org/10.22059/jitm.2022.88875
16. Podolchak, N., Martyniuk, V., Tsygylyk, N., Skowron, S., & Wołowiec, T. (2022). Mitigating Risks for Effective Personnel Management in the Organization of the Energy Sector due to the COVID-19 Pandemic. Sustainability (Switzerland), 14(16), 10055. https://doi.org/10.3390/su141610055
17. Salisbury, R. (2020). The Himalaya database. The Expedition Archives of Elizabeth Hawley. https://www.himalayandatabase.com. Accessed on April 5, 2024.
18. Stepnov, I., Kovalchuk, J., Melnik, M., & Petrovic, T. (2022). Public Goals and Government Expenditures: Are the Solutions of the “Modern Monetary Theory” Realistic? Finance: Theory and Practice, 26, 6-18. http://dx.doi.org/10.26794/2587-5671-2022-26-3-6-18
19. Svirko, S., & Osadcha, O. (2014). Economic benefit category as an estimation of revenues and expenditures. Economic Annals-XXI, 1-2(1), 30-33. https://www.researchgate.net/publication/295537430_Economic_benefit_category_as_an_estimation_of_revenues_and_expenditures. Accessed on April 16, 2024.
20. Thanh, P. T., & Le, T. T. (2022). The role of government risk communication in public health emergencies: Evidence from the COVID-19 pandemic. Transforming Government: People, Process and Policy, 16, 277-91. https://www.proquest.com/scholarly-journals/role-government-risk-communication-public-health/docview/2686177745/se-2. Accessed on April 16, 2024.
21. Tropina, V., Melnyk, V., Rippa, M., Yevtushenko, N., & Rybakova, T. (2021). Investment potential of nonstate pension funds in Ukraine. Investment Management and Financial Innovations, 18, 79-90. https://doi.org/10.21511/imfi.18(2).2021.07
22. Vaidya, R. A., Mandira, S. S., Nasab, N., Gurung, D. R., Nagami, K., Neera, S. P., & Wasson, R. J. (2019). Disaster risk reduction and building resilience in the Hindu Kush Himalaya. In P. Wester, A. Mishra, A. Mukherji, & A. Shrestha (Eds.), The Hindu Kush Himalaya Assessment (pp. 389–419). Springer https://doi.org/10.1007/978-3-319-92288-1_11
23. Vogel, B., & Field, J. (2020). Reconstructing borders through the governance of tourism and trade in Ladakh, India. Political Geography, 82, 1-10. https://doi.org/10.1016/j.polgeo.2020.102226
24. Williams, A., & Balaz, V. (2014). Tourism Risk and Uncertainty. Journal of Travel Research, 3, 54. https://www.researchgate.net/publication/274053624_Tourism_Risk_and_Uncertainty. Accessed on April 5, 2024.
25. Wolf, A. B. (2022). COVID and the Risky Immigrant Workplace: How Declining Employment Standards Socialized Risk and Made the COVID-19 Pandemic Worse. Labor Studies Journal, 47, 286-319. https://doi.org/10.1177/0160449x221110276
26. Yankovskaya, V. V., Mustafin, T. A., Endovitsky, D. A., & Krivosheev, A. V. (2022). Corporate social responsibility as an alternative approach to financial risk management: Advantages for sustainable development. Risks, 10(5), 106. https://doi.org/10.3390/risks10050106
27. Yoo, J. W., Junsung, P., Jong, H. L., & Heejun, P. (2022). Recovering from the COVID-19 shock: The role of risk perception and perceived effectiveness of protective measures on travel intention during the pandemic. Service Business, 16, 557-80. https://doi.org/10.1007%2Fs11628-021-00476-3

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Leonov, Y., Parubets, O., Portnoi, Y., Zaloha, Z., & Sukhai, O. (2024). Tourism risk analysis and mitigation: Strategies for managing risks in a dynamic tourism environment. Multidisciplinary Reviews, 7(10), 2024243. https://doi.org/10.31893/multirev.2024243

[1] Aprilyani, I., Widyarti, M. T. H., & Hamida, N. (2021). The effect of erm, firm size, leverage, profitability, and dividend policy on firm value (evidence from food & beverage subsector companies listed in IDX 2015-2019). Actual Journal of Applied Business Financial Accounting, 4(1), 65-75. http://dx.doi.org/10.32497/akunbisnis.v4i1.2663

[2] Baggio, R., & Sainaghi, R., (2016). Mapping time series into networks as a tool to assess the complex dynamics of tourism systems. Tourism Management, 54, 23-33. https://doi.org/10.1016/j.tourman.2015.10.008

[3] Bambang, T., Soewarno, N., Ismail W. A. W., Kustiningsih N., & Nafidah, L. (2023). Community behavioral change and management of COVID-19 Pandemic: Evidence from Indonesia. Journal of King Saud University-Science, 35, 102451. https://doi.org/10.1016/j.jksus.2022.102451

[4] Bayev, V. V., Bakhov, I. S., Mirzodaieva, T. V., Rozmetova, O., & Boretskaya, N. (2022). Theoretical and methodological fundamentals of the modern paradigm of quality management in the field of tourism. Journal of Environmental Management and Tourism, 13(2), 338-345. https://doi.org/10.14505/jemt.v13.2(58).04

[5] Damm, A., Greuell, W., Landgren, O., & Prettenthaler, F. (2017). Impacts of +2◦C global warming on winter tourism demand in Europe. Climate Services, 7, 31-46. http://dx.doi.org/10.1016/j.cliser.2016.07.003

[6] Ðorđević, B. S. (2018). Hedging by using weather derivatives in winter ski tourism. Economics of Agriculture, 65(1), 125-142. http://dx.doi.org/10.5987/ekoPolj1801125D

[7] Gultom, O. (2020). Indonesia for Global Justice. Retrieved from Post-Covid19: Perubahan Global dan Perang Digital Pasca Covid. https://igj.or.id/post-covid19-perubahan-global-dan-perang-digital-pasca-covid/.Accessed on April 5, 2024.

[8] Hardani, N. H. (2020). Qualitative & Quantitative Research Methods. PustakaIlmu Group. https://igj.or.id/post-covid19-perubahan-global-dan-perang-digital-pasca-covid/. Accessed on April 5, 2024.

[9] Iswajuni, I., Manasikana, A., & Soetedjo, S. (2018). The effect of enterprise risk management (ERM) on firm value in manufacturing companies listed on the Indonesian Stock Exchange year 2010-2013. Asian Journal of Accounting Research. https://doi.org/10.1108/AJAR-06-2018-0006

[10] Kalina, I., Khurdei, V., Shevchuk, V., Vlasiuk, T., & Leonidov, I. (2022). Introduction of a corporate security risk management system: The experience of Poland. Journal of Risk and Financial Management, 15(8). https://doi.org/10.3390/jrfm15080335

[11] Kementerian Ketenagakerjaan Republik Indonesia (2022). https://kemnaker.go.id/ .Accessed on April 5, 2024.

[12] Leonov, Y. (2020). Modern paradigm of sports policy as an ideology of a healthy society. Three Seas Economic Journal, Riga, Latvia: “Baltija Publishing”, 1(4), 102–108. http://www.baltijapublishing.lv/index.php/threeseas/article/view/978/1032 Accessed on April 16, 2024.

[13] Leonov, Y. V. (2018). Strategic changes and their impact on the development of sports industry organizations. Economic horizons. Economies' Horizons: quarterly of science journal Uman. state ped. University named after Pavlo Tychyna., 4(7), 230–237.

[14] Levytska, S., Pershko, L., Akimova, L., Akimov, O., Havrilenko, K., & Kucherovskii, O. (2022). A risk-oriented approach in the system of internal auditing of the subjects of financial monitoring. International Journal of Applied Economics, Finance and Accounting, 14(2), 194-206. https://doi.org/10.33094/ijaefa.v14i2.715

[15] Niziaieva, V., Liganenko, M., Muntyan, I., Ohiienko, M., Goncharenko, M., & Nazarenko, O. (2022). Balancing interests in the field of tourism based on digital marketing tools. Journal of Information Technology Management, 14, 59-77. https://doi.org/10.22059/jitm.2022.88875

[16] Podolchak, N., Martyniuk, V., Tsygylyk, N., Skowron, S., & Wołowiec, T. (2022). Mitigating Risks for Effective Personnel Management in the Organization of the Energy Sector due to the COVID-19 Pandemic. Sustainability (Switzerland), 14(16), 10055. https://doi.org/10.3390/su141610055

[17] Salisbury, R. (2020). The Himalaya database. The Expedition Archives of Elizabeth Hawley. https://www.himalayandatabase.com. Accessed on April 5, 2024.

[18] Stepnov, I., Kovalchuk, J., Melnik, M., & Petrovic, T. (2022). Public Goals and Government Expenditures: Are the Solutions of the “Modern Monetary Theory” Realistic? Finance: Theory and Practice, 26, 6-18. http://dx.doi.org/10.26794/2587-5671-2022-26-3-6-18

[19] Svirko, S., & Osadcha, O. (2014). Economic benefit category as an estimation of revenues and expenditures. Economic Annals-XXI, 1-2(1), 30-33. https://www.researchgate.net/publication/295537430_Economic_benefit_category_as_an_estimation_of_revenues_and_expenditures. Accessed on April 16, 2024.

[20] Thanh, P. T., & Le, T. T. (2022). The role of government risk communication in public health emergencies: Evidence from the COVID-19 pandemic. Transforming Government: People, Process and Policy, 16, 277-91. https://www.proquest.com/scholarly-journals/role-government-risk-communication-public-health/docview/2686177745/se-2. Accessed on April 16, 2024.

[21] Tropina, V., Melnyk, V., Rippa, M., Yevtushenko, N., & Rybakova, T. (2021). Investment potential of nonstate pension funds in Ukraine. Investment Management and Financial Innovations, 18, 79-90. https://doi.org/10.21511/imfi.18(2).2021.07

[22] Vaidya, R. A., Mandira, S. S., Nasab, N., Gurung, D. R., Nagami, K., Neera, S. P., & Wasson, R. J. (2019). Disaster risk reduction and building resilience in the Hindu Kush Himalaya. In P. Wester, A. Mishra, A. Mukherji, & A. Shrestha (Eds.), The Hindu Kush Himalaya Assessment (pp. 389–419). Springer https://doi.org/10.1007/978-3-319-92288-1_11

[23] Vogel, B., & Field, J. (2020). Reconstructing borders through the governance of tourism and trade in Ladakh, India. Political Geography, 82, 1-10. https://doi.org/10.1016/j.polgeo.2020.102226

[24] Williams, A., & Balaz, V. (2014). Tourism Risk and Uncertainty. Journal of Travel Research, 3, 54. https://www.researchgate.net/publication/274053624_Tourism_Risk_and_Uncertainty. Accessed on April 5, 2024.

[25] Wolf, A. B. (2022). COVID and the Risky Immigrant Workplace: How Declining Employment Standards Socialized Risk and Made the COVID-19 Pandemic Worse. Labor Studies Journal, 47, 286-319. https://doi.org/10.1177/0160449x221110276

[26] Yankovskaya, V. V., Mustafin, T. A., Endovitsky, D. A., & Krivosheev, A. V. (2022). Corporate social responsibility as an alternative approach to financial risk management: Advantages for sustainable development. Risks, 10(5), 106. https://doi.org/10.3390/risks10050106

[27] Yoo, J. W., Junsung, P., Jong, H. L., & Heejun, P. (2022). Recovering from the COVID-19 shock: The role of risk perception and perceived effectiveness of protective measures on travel intention during the pandemic. Service Business, 16, 557-80. https://doi.org/10.1007%2Fs11628-021-00476-3

Abstract

References

How to cite