Understanding the Effects of a Tourism Crisis

Abstract

Tourism as one of the most economically important industries is also one of the most vulnerable to crises and disasters. This study is focused on measuring the short-term impact of a recent incidence, the 2010 BP Gulf oil spill, using a systems perspective. Drawing from two datasets measuring the performance of the hotel and vacation rental industries, a major part of the accommodation industry, this study reveals the complex changes that occurred across a region that experienced this man-made disaster. The data clearly shows the complexity of the impact, generating both winners and losers on an industry and geographic basis. In addition, the results underscore the difficulties in determining damages at the macro level that in this case has resulted to date in US$13.5 billion of out of court settlements paid by BP to settle business owner claims. Practical implications and future research avenues are highlighted including the availability of secondary data sources.