1. SMEU
  2. All Volumes and Issues
  3. Volume 5, Number 2, 2023
  4. Risk: the Essence of the Concept and Classification in the Tourism Industry

Risk: the Essence of the Concept and Classification in the Tourism Industry

SMEU.
2023;
Volume 5, Number 2
: pp. 160 - 170
https://doi.org/10.23939/smeu2023.02.160
Authors:
  1. K. M. Yarmola
  2. N.I. Chukhray
1
Lviv Polytechnic National University
2
Lviv Politechnic National University

Nowadays one of the characteristic features of society's functioning is high uncertainty. This is manifested in the impossibility of predicting future events, which creates fear and apprehension to perform some activity in order to protect oneself from undesirable consequences. Uncertainty is the prerequisite for the risks emergence.

The purpose of the study is to define the essence of "risk" concept, its classification and systematization, which will allow a better understanding which factors affect tourism activity in the world for the further risk management programs formation.

Despite the large number of studies, the authors mostly consider the risks of the tourism industry which affect a separate tourist enterprise activities. The decisive factor for risk management at the micro (enterprise) level is the ability to respond quickly and flexibly, the presence of risk management programs and measures to eliminate consequences. Each group of risks has a different effect on a separate industry or enterprise, and mostly they have a negative character.

The tourism industry suffers significantly from conditions caused by natural, climatic, economic, political, foreign economic and other factors. The most devastating event in recent years that caused a significant drop in tourism industry was the COVID-19 pandemic, with an average of 70% drop in international tourist arrivals for 2020-2022. Due to the existing risks, the tourism industry bears significant financial losses, bankruptcies or structural changes. Different risks require appropriate solutions and support measures.

To carry out the research, general scientific and special methods were used, in particular theoretical generalizationto highlight the theoretical aspects of risks in tourism; synthesis, comparison and systematization; statistical analysis method - for analyzing statistical data of tourist flows. The information base is scientific publications of Ukrainian and foreign scientists, as well as data from the World Tourism Organization (WTO).

The conducted study of the tourism industry and the risks impact on it gives reason to conclude that it is very sensitive to the risks that arise in society, even one adverse event can leave a negative impression on the destination or the tourist attraction of the country. The results of this research can be useful to develop practical recommendations for risk management at the level of enterprises and the industry as a whole.

The article proposes a classification of risks in tourism with information about countries that are most vulnerable to such phenomena as natural disasters, terrorism, environmental and political dangers, etc., thanks to which it is possible to assess the safety of individual destinations. Examples of the various factors influence on the tourism industry of the countries and regions are also given.

risk
tourist risk
risks in the tourism industry
  1. Tourism data (n.d.). World Tourism Organization. Retrieved from: https://www.unwto.org/tourism-data
  2. Bednarska, O.R. & Kulynyak, I.Ya. (2013). Ryzyky u mizhnarodnomu turyzmi: faktory, klasyfikaciya, metody optymizaciyi [Risks in the international tourism: factors, classification, optimization methods]. Visnyk Nacion- alnogo universytetu "Lvivska politexnika". Menedzhment ta pidpryyemnycztvo v Ukrayini: etapy stanovlennya i prob- lemy rozvytku. Vol. 767, 3-8 [in Ukrainian].
  3. Kravczova, A.V. (2013). Klasyfikaciya ryzykiv pidpryyemstv turystychnogo biznesu [Tourism business en- terprises risk classification]. Visnyk ONU imeni I.I.Mechnykova. Vol. 18, Issue 4 (2), 92-95 [in Ukrainian].
  4. Brych, V. & Kramarchuk, S. (2010). Upravlinnya ryzykamy u turystychnomu biznesi [Risk management in tourism business]. Naukovi zapysky Ternopilskogo nacionalnogo pedagogichnogo universytetu imeni Volodymyra Gnatyuka. Geografiya. Vol. 2 (28), 105-110. Retrieved from: http://dspace.tnpu.edu.ua/bit- stream/123456789/21586/1/Vasil.pdf [in Ukrainian].
  5. Bogdan, N.M. & Suxorukova, O.P. (2016). Doslidzhennya ryzykiv u turyzmi [Studying the Risks in Tourism].Biznes Inform. Vol. 10, 206-211 [in Ukrainian].
  6. Kozhuxivska R.B. Upravlinnya procesamy ryzyk-menedzhmentu na turystychnyx pidpryyemstvax [Admin- istration of risk management processes at tourist enterprises]. Retrieved from https://dspace.udpu.edu.ua/jspui/bit- stream/6789/2456/1/rizik-menedgent%20v%20turismi.pdf [in Ukrainian].
  7. Amara, D. (2012). Tourists’ risk aversion and willingness to take risks: the case of tourists visiting Egypt after 25th January revolution. 6th World Conference for Graduate Research in Tourism, Hospitality and Leisure. 22. Fethiye: Routledge [in English].
  8. Ritchie, B.W. & Jiang, Y. (2021). Risk, crisis and disaster management in hospitality and tourism: a compar- ative review. International Journal of Contemporary Hospitality Management, 3465 – 3493. DOI: https://doi.org/10.1108/IJCHM-12-2020-1480 [in English].
  9. Kovacic, S, Margarint, MC, Ionce, R. & Miljkovic, D. (2020). What are the Factors affecting Tourist Behavior based on the Perception of Risk? Romanian and Serbian Tourists’ Perspective in the Aftermath of the recent Floods and Wildfires in Greece. Sustainability, MDPI. Vol. 12 (16), 1-22 [in English].
  10. Bednarska, O.R. & Svirska, O.B. (2006). Upravlinnya ryzykamy mizhnarodnoyi turystychnoyi diyalnosti [International tourism activities risk management]. Visnyk Nacionalnogo universytetu "Lvivska politexnika". Menedzhment ta pidpryyemstvo v Ukrayini: etapy stanovlennya i problemy rozvytku. Vol. 570, 3–8 [in Ukrainian].
  11. Poniattia pro pidpryiemnytstvo. Vydy pidpryiemstv. Osnovy haluzevoi ekonomiky i pidpryiemnytstva [The concept of entrepreneurship. Types of enterprises. Basics of sectoral economy and entrepreneurship]. Retrieved from: http://cpto.dp.ua/public_html/posibnyky/posibnyk/page15.html
  12. Pekhnyk, A. V., Kroitor, A. V. & Zavhorodnia, Yu. V. (2019). Teoriia ryzyku: istoriia ta suchasni pidkhody [Risk theory: history and modern approaches]. Aktualni problemy polityky [Actual problems of politics]. Vol. 63. pp. 33-47. DOI: https://doi.org/10.32837/app.v63i0.5
  13. Tsvihun, T.V. (2011). Poniattia «ryzyk»: suchasnyi pohliad [The concept of "risk": a modern view]. Visnyk Skhidnoukrainskoho natsionalnoho universytetu im. V. Dalia [Bulletin of the Eastern Ukrainian National University named after V. Dalya]. № 3 (157). pp. 246-250.
  14. Ryzyky: kontseptsiia upravlinnia, poniattia, sutnist ta vyznachennia [Risks: management concept, concept, essence and definition]. Osvita.ua. Retrieved from: https://osvita.ua/vnz/reports/management/15100/
  15. Borovyk, M. V. (2018). Ryzyk-menedzhment [Risk management]. Kharkiv: KhNUMH im. O. M. Beketova.65 p.
  16. Hranaturov, V.M. & Shevchuk, O.B. (2000). Ryzyky pidpryiemnytskoi diialnosti [Risks of entrepreneurial activity]. K.: Zviazok. 149 с.
  17. Zaruba, O.D. (1996). Bankivskyi menedzhment ta audyt [Bank management and audit]. K.: Libra. 224 s.
  18. Ekonomichnyi entsyklopedychnyi slovnyk [Economic encyclopedic dictionary]. Mochernyi S.V. (red.). Lviv: Svit. 2006. 568 p.
  19. Vitlinskyi, V. V. (1996). Ryzyk u menedzhmenti [Risk in management]. Kyiv: Borysfen-M. 325 p.
  20. Pro osnovni zasady derzhavnoho nahliadu (kontroliu) u sferi hospodarskoi diialnosti [On the basic principles of state supervision (control) in the sphere of economic activity]: Zakon Ukrainy vid [Law of Ukraine dated] 05.04.2007 р. № 877-V. Retrieved from: https://zakon.rada.gov.ua/laws/card/877-16
  21. The new ISO 31000 keeps risk management simpleю ISO. Retrieved from: https://www.iso.org/news/ref2263.html.
  22. Yurydychna entsyklopediia [Legal encyclopedia]. Shemshuchenko Yu. S. ta in. (red.). K.: Ukr. entsykl. 1998. T. 5.
  23. Ryzyk [Risk]. Vikipediya. Vilna encyklopediya. Retrieved from https://uk.wikipe- dia.org/wiki/%D0%A0%D0%B8%D0%B7%D0%B8%D0%BA [in Ukrainian].
  24. Hudz, O.Ie. (2006). Strakhuvannia ahroryzykiv ta napriamy rozvytku ahro strakhuvannia v Ukraini [Insur- ance of agricultural risks and directions of agricultural insurance development in Ukraine]. Ekonomika APK [Econom- ics of AIC]. No 8. pp. 72-76.
  25. Zhygir, A. A. (2012). Riznovydy pidpryyemnyczkyx ryzykiv ta yix klasyfikaciya [Varieties of entrepreneur- ial risks and their classification]. Efektyvna ekonomika. Vol. 4. Retrieved from http://www.econ- omy.nayka.com.ua/?op=1&z=1063 [in Ukrainian].
  26. Shkola I.M. (Eds.) (2007). Rozvy’tok tury’sty’chnogo biznesu regionu [Development of the region tourist business]. Chernivtsi. Kny’gy’–XXI. 292 p. [in Ukrainian].
  27. Clayton A., Mustelier L.C., Korstanje M.E. (2014). Understanding Perceptions and Attitudes to Risk in the Tourism Industry. International Journal of Religious Tourism and Pilgrimage. Vol. 2 (1). Pp. 48-57. DOI: https://doi.org/10.21427/D70Q6Q [in English].
  28. Tornado climatology. Wikipedia. The Free Encyclopedia. Retrieved from: https://en.wikipedia.org/wiki/Tor- nado_climatology [in English].
  29. Flood Resilience Portal. Retrieved from: https://floodresilience.net/countries/ [in English].
  30. The countries with the highest flood risk. The Street. Retrieved from: https://www.thestreet.com/world/coun- tries-with-highest-flood-risk#gid=ci02ad8745900126d0&pid=22 [in English].
  31. The Countries Hit by Most Earthquakes. Greek Reporter. Retrieved from: https://greekreporter.com/2023/02/08/countries-most-earthquakes/ [in English].
  32. Which Countries Have The Most Tsunamis. AZ Animals. Retrieved from: https://a-z-ani- mals.com/blog/which-countries-have-the-most-tsunamis/ [in English].
  33. 10 Countries in conflict where concern is responding in 2023. Concern Worldwide US. Retrieved from: https://www.concernusa.org/story/countries-in-conflict/ [in English].
  34. Crime Rate by Country 2023. World Population Review. Retrieved from: https://worldpopulationre- view.com/country-rankings/crime-rate-by-country [in English].
  35. Political stability - Country rankings. The Global Economy. Retrieved from: https://www.theglobalecon- omy.com/rankings/wb_political_stability/ [in English].
  36. 10 Most unhygienic cities people prone to sickness shouldn’t visit. Dr. Prem. Travel&Tourism. Retrieved from: https://drprem.com/travel/10-most-unhygienic-cities-people-prone-to-sick... [in English].
  37. 2014-2016 Ebola Outbreak Distribution in West Africa. Centers for Disease Control and Prevention. Re- trieved from: https://www.cdc.gov/vhf/ebola/history/2014-2016-outbreak/ [in English].
  38. Global Terrorism Index. Wikipedia. The Free Encyclopedia. Retrieved from: https://en.wikipe- dia.org/wiki/Global_Terrorism_Index [in English].
  39. Italy, Austria And China Top The List Of Countries At High Risk Of Landslides Right Now. ResourceWatch. Retrieved from: https://blog.resourcewatch.org/2018/08/27/italy-austria-and-china-top-th... risk-of-landslides-right-now/ [in English].
  40. Bysyuk, Veronika (2010). Impact of 9/11 Terrorist Attacks on US and International Tourism Development: Bachelor thesis. Vienna. 43 p. Retrieved from: https://www.modul.ac.at/uploads/files/Theses/Bache- lor/BYSYUK_Impact_of_9_11_on_US_and_International_Tourism_Development.pdf    [in    English].
  41. Tourism Risk Management: An Authoritative Guide to Managing Crisis in Tourism (2007). APEC International Centre for Sustainable Tourism (AICST). 98 p. Retrieved from: https://sustain.pata.org/wp-content/up- loads/2015/03/APEC_Tourism-Risk-Management.pdf [in English].
  42. Resilient Tourism: Competitiveness in the Face of Disasters (2020). World Bank. Washington, DC: World Bank. 63 р. [in English].