Franzine Melody Nicole A.

Garano

BSTM 1E

Discussion Questions’

1. assumming that you are a hotel investor what are the external environment risk factors that you will consider
before you invest in tourism related businesses in asean region

2. What is necessary preventive actions and documentations should be placed to augment the risk factors prior to
operation of tourism related businesses?

3. Philippines ranked fifth as the most affected countries of climate change in 20years peiod (1998-2017) as reported
by the Germanwarch e. V in the document Global Climate Risk Index

2019. Given this situation, what courses of actions can you suggest as hotelier or as a tourism professional to adapt
and mitigate the impacts of climate change in a tourism related business?

Answer:

1. As a hotel investor looking to invest in tourism-related businesses in the ASEAN (Association of

Southeast Asian Nations) region, it's crucial to assess the external environmental risk factors to
make informed investment decisions. The ASEAN region comprises diverse countries, each with its
own unique characteristics and challenges. Here are some key external environment risk factors to
consider:

Economic Factors:

Economic Stability: Assess the overall economic stability of the ASEAN countries you are
considering. Political instability or economic downturns can affect tourism.

Exchange Rate Fluctuations: Exchange rate variations can impact the cost of travel for tourists
and your hotel's revenue if it's priced in a foreign currency.

Income Disparities: Income disparities among countries and within regions can influence the
type of tourists and their spending patterns.

Political and Regulatory Factors:

Government Stability: Political instability, changes in government, or government policies can

impact the tourism industry. Stay informed about political developments in the region.

Regulatory Environment: Understand the regulatory framework for tourism and hospitality,
including visa policies, taxes, and regulations related to foreign ownership.
Security and Safety:

Safety Concerns: Evaluate the safety and security situation in the region. Political unrest,
terrorism, and crime can deter tourists.

Health and Pandemic Risks: Given the lessons learned from the COVID-19 pandemic, assess the
region's healthcare infrastructure and preparedness for handling health crises.

Environmental Factors:

Climate and Natural Disasters: Consider the region's susceptibility to natural disasters like
earthquakes, tsunamis, floods, and typhoons. Climate change may also impact weather patterns.

Environmental Sustainability: Increasingly, tourists are concerned about sustainable and eco-
friendly tourism. Assess the environmental policies and practices in the region.

Cultural and Social Factors:

Cultural Sensitivity: Be aware of cultural differences and sensitivities. Respect for local customs
and traditions is essential for attracting and retaining tourists.

Social Trends: Monitor social trends, including changing travel preferences, demographics, and
the rise of technology in tourism.

Infrastructure and Connectivity:

Transportation Infrastructure: The availability and quality of transportation infrastructure,

such as airports, roads, and public transportation, can impact tourist arrivals.

Internet and Communication: Access to reliable internet and communication services is

increasingly important for tourists.

Competitive Landscape:

Competitive Hotels and Accommodations: Analyze the existing competition in the region.
The number, quality, and pricing of hotels can affect your hotel's performance.

Tourist Attractions: Assess the availability and popularity of tourist attractions in the area.
Market Demand and Trends:

Tourist Trends: Stay updated on global and regional tourism trends, including emerging markets
and segments.

Demand Fluctuations: Understand the seasonality of tourism and potential demand fluctuations.

Currency and Financial Risks:

Foreign Exchange Exposure: Currency fluctuations can affect the cost of operations,
profitability, and pricing strategies.

Legal and Property Rights:

Property Rights: Ensure that property rights are secure and that there are no legal disputes
regarding the land or property where you plan to invest.

Infrastructure Development: Assess ongoing and planned infrastructure projects in the region,
as these can significantly impact tourism.

Crisis Management and Contingency Planning: Develop contingency plans for dealing with
unexpected events, such as natural disasters, health crises, or political instability.

Conducting a thorough risk assessment based on these factors and staying informed about the
evolving situation in the ASEAN region will help you make informed investment decisions in the
tourism and hospitality sector. Additionally, consulting with local experts and conducting feasibility
studies can provide valuable insights into the specific risks and opportunities in the area you are
considering for investment.

2. Operating a tourism-related business involves various risks, and it's crucial to take preventive
actions and maintain documentation to mitigate these risks effectively.

Risk Assessment:

Conduct a comprehensive risk assessment to identify potential hazards and threats related to your
business, such as natural disasters, health crises, accidents, and security concerns.

Business Plan:

Develop a detailed business plan that outlines your business goals, strategies, and risk management
approaches. Include a section on risk mitigation.
Insurance:

Purchase appropriate insurance coverage, including liability insurance, property insurance, and
business interruption insurance, to protect your business in case of unexpected events.

Legal and Regulatory Compliance:

Ensure that your business complies with all local, state, and national regulations related to tourism
and hospitality.

Safety Measures:

Implement safety measures to protect employees and customers. This may include safety training,
emergency response plans, and first-aid kits.

Health and Hygiene Protocols:

Develop and document health and hygiene protocols in line with current guidelines and
regulations, especially important in the post-COVID-19 era.

Customer Waivers and Agreements:

Have customers sign waivers and agreements, acknowledging potential risks and liabilities
associated with your services.

Emergency Contact Information:

Maintain up-to-date emergency contact information for employees, customers, and local
authorities. Ensure that employees are trained in emergency response procedures.

Financial Planning:

Have a financial contingency plan in place, including access to emergency funds to handle
unforeseen expenses.

Cancellation and Refund Policies:

Clearly outline your cancellation and refund policies to manage customer expectations and prevent
disputes.
3. Adapting to and mitigating the impacts of climate change is crucial for the sustainability of
tourism-related businesses, especially in a country like the Philippines that is vulnerable to climate-
related risks. As a hotelier or tourism professional, here are some courses of action you can
consider:

Energy Efficiency and Conservation:

Invest in energy-efficient technologies such as LED lighting, solar panels, and energy-efficient HVAC
systems to reduce your carbon footprint.

Encourage guests to participate in energy-saving practices like reusing towels and turning off lights
and air conditioning when not in use.

Water Conservation:

Implement water-saving measures such as low-flow faucets and toilets.

Educate guests on responsible water usage, and encourage them to participate in conservation
efforts.

Waste Reduction and Recycling:

Implement recycling programs in your hotel and promote waste reduction.

Serve meals with reusable or biodegradable utensils and reduce single-use plastic.

Climate-Resilient Infrastructure:

Invest in resilient building designs and materials to withstand extreme weather events.

Elevate properties in flood-prone areas and reinforce structures against typhoons and earthquakes.

Natural Resource Protection:

Support local conservation efforts and engage guests in eco-friendly activities such as reef
protection and mangrove planting.

Promote responsible wildlife watching and discourage activities that harm the environment.

Community Engagement:

Collaborate with local communities and support initiatives that enhance their resilience to climate
change.

Involve guests in community-based tourism experiences that benefit the local economy and
environment.
Climate-Resilient Business Practices:

Diversify your tourism offerings to be less dependent on seasonal or climate-sensitive activities.

Develop a business continuity plan that addresses climate-related risks and outlines strategies for
quick recovery.

Education and Awareness:

Educate both staff and guests about the impacts of climate change and the importance of
sustainable tourism.

Provide information on eco-friendly practices and local conservation efforts.

Green Certifications:

Seek certifications such as LEED (Leadership in Energy and Environmental Design) or Green Globe
to demonstrate your commitment to sustainability.

Display these certifications prominently to attract eco-conscious travelers.

Advocacy and Policy Engagement:

Join industry associations advocating for climate action and sustainable tourism practices.

Engage with policymakers to support regulations that promote environmental sustainability.

Monitoring and Reporting:

Regularly assess and report on your carbon emissions and sustainability efforts.

Share this information with guests to showcase your commitment to reducing environmental
impact.

Alternative Transportation:

Encourage the use of eco-friendly transportation options, such as electric shuttles or bicycles, for
local exploration.

Provide information on public transportation to reduce the use of private vehicles.

By taking these actions, you can not only adapt to the changing climate but also contribute to the
mitigation of its impacts, all while enhancing the overall sustainability and attractiveness of your
tourism-related business in the Philippines.