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

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.