TOPIC 2: Classifying and Understanding Crises

and Disasters
STM 802: DISASTER AND CRISIS MANAGEMENT IN TOURISM AND
HOSPITALITY

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 TOPIC 2: Classifying and Understanding Crises and
Disasters

TABLE OF CONTENTS
Topic Overview 3
Introduction 3
Topic Objectives 3
Learning Activities 3
Assignment 3
Main Content 4
Nature and Impacts of Tourism Crises and Disasters 4
Classification of Crisis 4
Crisis classification matrix 4
Types of crises and disasters, their characteristics 5
Classification of Disasters 5
Natural Disasters 5
Man-Made Disaster 6
Differentiating Between Incidents or Natural Events and Crises or Disasters 7
From Problem to Crisis 7
Crisis/Hazard or Resource? 8
Models for Understanding Crisis and Disaster Lifecycles 8
Prescriptive models or checklists 8
Descriptive models 8
Wrap Up 8

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 TOPIC 2: Classifying and Understanding Crises and
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Topic Overview

Introduction

Welcome to Topic Two of this unit. In this topic we will discuss the difference between crises and disasters, the interrelationship
between the two and how the ‘ripple effect’ can turn a crisis into a disaster or vice versa. We will analyse anatomy of a crisis or
disaster and discuss the lifecycle of such incidents. We will then review the different types or classification of crises and disasters
that exist and how they can impact upon the tourism industry.

Topic Objectives

By the end of this topic, you should be able to:

1. Classify crisis and disasters
2. Explain the impacts of crisis and disasters on the tourism industry
3. Differentiate between incidents, natural events, crises and disasters
4. Relate events with crisis and resources
5. Explain the models used in understanding crisis and disaster lifecycles

Learning Activities

1. Activity 2.1 Download and study Topic One Lecture Notes.

2. Activity 2.2: Download the document on types of crises and disasters and carefully study Table 2.1. Provide similar
examples under disasters or crises that happened in your country or neighbouring country under each of the category
given. Post your reactions in the discussion forum.
3. Activity 2.3: To gain more insight on types of disasters and their impacts on the tourism industry, read pages 31 – 40
of Crisis and Disaster Management for Tourism by Brent W. Ritchie (2009) and make summary notes on natural and
technical disasters, political crises/disasters and economic crises/disasters, and how they impact the tourism industry.
4. Activity 2.4: Suggest any event that can pass a resource and or hazards. How can the event you have suggested
pass for both a resource and a hazard? Post your reactions in the discussion forum.
5. Activity 2.5: To gain more insight on crisis and disaster models, download and read pages 45 – 55 on Crisis and
Disaster Models by Brent (2009). Make summary notes on the generic models have been developed to help managers
and researchers understand the lifecycle of a crisis or disaster. Point out these models and suggest their application
in disaster and crisis management. Post your views in the discussion forum

Assignment

Examine a recent crisis or disaster of any nature that happened in your country. Classify the crisis or disaster and discuss how
it affected the tourism industry. Upload as an assignment in the assignment box.

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 TOPIC 2: Classifying and Understanding Crises and
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Main Content

Nature and Impacts of Tourism Crises and Disasters

Crises range from small-scale organisational issues including staff illness, staff challenges/breakdowns, malevolence, and
organisational misdeeds to external factors such as natural disasters (earthquakes, floods, fires), often a result of global
environmental change as well as terrorist incidents.

Crises occur at all levels of tourism operations with varying degrees of severity. Disasters and crises may be natural or self-
inflicted.

Human processes and actions, however, may be partly responsible (such as building resorts close to the sea or in
environmentally sensitive areas such as mountain regions) for natural disasters.

Some natural disasters may lead to economic crises and vice versa (as they become linked)

Some crises and disasters can also be considered long running (such as civil wars or political instability) while others are short
duration (such as airline strikes).

Classification of Crisis

Crisis is a result of the threat, time pressure, and intensity of incidents or occurrences that a manager has failed to manage or
control.

A combination of these factors can lead to the development of a crisis continuum to help classify and understand such incidents,
and more importantly, illustrate to managers when an ‘issue’ or a ‘problem’ can develop into a ‘crisis’. Shrivastava and Mitroff
(1987, p. 7), illustrates this classification as shown in the crisis classification matrix.

Crises can be divided into those caused by internal forces and those caused by external influences. The nature of the crisis for
organisations can be divided into either technical/economic failures, or failures in the human/organisational/social processes.

Seymour and Moore (2000) further classifies crisis as ‘the cobra’ that strike suddenly with no warning or the much slower ‘python’
which gradually grows over time.
Parsons (1996) suggests three types of crises as:

a) Immediate crises: where little or no warning exists, therefore, organisations are unable to research the problem or
prepare a plan before the crisis hits.
b) Emerging crises: these are slower in developing and may be able to be stopped or limited by organisational action.
c) Sustained crises: that may last for weeks, months or even years.

Crisis classification matrix

Problems or issues found in the level 1 or cell 1 would not be classified as a crisis but would enable general strategic
management responses as part of the normal management function.

Several of level 2 or 3 cells could develop or be classified as crises,

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 TOPIC 2: Classifying and Understanding Crises and
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The most challenging problems are found in the only level 4 cell as the time pressure is intense, the degree of control is low,
and the threat level high and response options are few in number.

Technical/Economic
Cell 1 Cell 2
Major industrial accidents Widespread environmental destruction
Product injuries Natural disasters
Computer breakdown Societal crises (civil or political)
Defective, undisclosed information Large scale systems failure

External
Internal

Cell 3 Cell 4
Failure to adapt/change Symbolic projection
Sabotage by insiders Sabotage by outsiders
Organizational breakdown Terrorism, executive kidnapping
Communication breakdown Off-site product tampering
On-site products tampering Counterfeiting
Illegal activities
Occupational health diseases
Human/Organizational/Social
Figure 1.2. Crisis classification matrix

Source: modified after Shrivastava and Mitroff (1987: 7)

Types of crises and disasters, their characteristics

See Table 2.1 provided as a separate file for illustration of some of the types of crises and disasters, their characteristics and
provides some examples.

Classification of Disasters

Disasters can be classified as:

a) Natural
b) Man-made disasters.

Based on the devastation, these are further classified into major/minor natural disaster and major/minor manmade disasters.

Disasters can also be classified as:

a) Natural and technical disasters
b) Political crises/disasters
c) Economic crises/disasters

Natural Disasters
A natural disaster is a major adverse event resulting from natural processes of the Earth; examples include floods, volcanic
eruptions, earthquakes, tsunamis, and other geologic processes. A natural disaster can cause loss of life or property damage,

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 TOPIC 2: Classifying and Understanding Crises and
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and typically leaves some economic damage in its wake, the severity of which depends on the affected population's resilience,
or ability to recover. Major natural disasters include:
 Climate change
 Floods
 Cyclone Storms
 Drought
 Earthquakes
 Volcanic Eruptions
 Tornados
 Wildfires
 Pollution

Minor natural disasters include:

 Cold wave
 Thunderstorms
 Heat waves:
 Mud slides
 Storm

Man-Made Disaster
Manmade disasters may result from major accidents or inadvertent as well deliberate actions of individuals, groups or
governments. Manmade disasters can be of biological, physical or chemical in nature. They can be categorized into major
manmade and minor manmade disasters. Major manmade disaster includes:
 Setting of fires
 Epidemic
 Deforestation
 Pollution due to prawn cultivation
 Chemical pollution.
 Wars
 Terrorist attack e.g. in Kenya, US, France
 Nuclear attack

Minor manmade disasters include:

 Road / train accidents, riots
 Food poisoning
 Industrial disaster/ crisis
 Environmental pollution

To gain more insight natural and technical disasters, political crises/disasters and economic crises/disasters, and how they
impact the tourism industry, read pages 31 – 40 of Crisis and Disaster Management for Tourism by Brent W. Ritchie (2009).

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 TOPIC 2: Classifying and Understanding Crises and
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Differentiating Between Incidents or Natural Events and Crises or Disasters

The definition of a crisis considers the threat, time pressure, and intensity of incidents. A combination of these factors leads to
the development of a crisis continuum. Burnett (1998) uses a 16-cell matrix based on threat level (high versus low), response
options (many versus few), time pressure (intense versus minimal), and degree of control (high versus low) to classify crisis.

Time pressure Intense Minimal

Threat Degree of control Low High Low High
Level Response options
Low Many (4) (3) (2) (1)
Level 2 Level 1 Level 1 Level 0
Few (8) (7) (6) (5)
Level 3 Level 2 Level 2 Level 1
High Many (12) (11) (10) (9)
Level 3 Level 2 Level 2 Level 1
Few (16) (15) (14) (13)
Level 4 Level 3 Level 3 Level 2
Fig. 2.1 A crisis classification matrix

Source: modified from Burnet (1998)

 Cells 0 - 1: Problems or issues found in these cells would not be classified as a crisis but would enable general strategic
management responses as part of the normal management function.
 Cells 2 – 3: Several of level 2 or 3 cells could develop or be classified as crises
 Cell 4: The most challenging problems are found in this cell as the time pressure is intense, the degree of control is
low, and the threat level high and response options are few in number.

From Problem to Crisis

Billings et al. (1980) proposed a model to help managers and planners understand when a problem becomes a crisis. The model
has elements that explore the perceived value of the possible loss to an organisation, compared with the perceived probability
of loss and the perceived time pressure.

According to this model, a threat level will be high because of the perceived loss and probability of loss combined with the time
pressure

Disasters are related to the concepts of vulnerability and risk. Risk is the probability or likelihood of a certain level of loss due to
a hazard impact, while vulnerability is the potential for losses or other adverse impacts

Risk is concerned with the probable size and magnitude of a natural hazard. For example, building of an unprotected tourist
resort next to a river system that is known to flood creates a situation of risk (probable flood damage) and an element of
vulnerability (threatened property). The location of people or humans and their property that creates a hazard through either risk
taking or vulnerability.

The magnitude of an incident can render it to become a crisis or a disaster. The magnitude of a problem or an issue or an
incident can be assessed using the following six attributes:

 The degree to which impact damage seems random in occurrence;

 The size of the impact area;

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 TOPIC 2: Classifying and Understanding Crises and
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 The severity of impact;

 The ratio of visible to invisible damage;
 The number of major sub-event crises triggered by the impact of the event; and
 The degree of psychological distortion caused by (or accelerated by) the impact of the event.

Crisis/Hazard or Resource?
Some natural events may be considered beneficial, in the case of floods providing silt for agriculture but not impacting upon
human settlements.

The degree of socioeconomic tolerance of environmental or natural events determines whether events are seen as resources
or perceived as hazards if they pass beyond damage thresholds. If damage progresses above or below a band of tolerance and
affects humans, then it breaches the damage threshold and is seen as a hazard rather than a resource. For example, the
example snow is considered a resource for the activity of skiing and the business of ski resorts. If snow falls on the slopes then
it may be considered a resource, but if it blocks access, then it will constitute a hazard and could result in a disaster if the resort
is inaccessible by tourists or if tourists are caught in a snow storm.

Models for Understanding Crisis and Disaster Lifecycles

Disasters and crises are temporary and that they have certain lifecycles which could last hours, days, months or even years.

The main models that help in understanding and classification of crisis and disaster lifecycles are generally prescriptive or
descriptive models.

Prescriptive models or checklists

 Have both general- and industry specific applicability in that they provide useful prescriptions concerning crisis
identification, response and resolution
 Provide managers with ideas on how to plan and attempt to manage crises or disasters.
 Offer little new information or do not provide comprehensive strategies because they only tell us what to do to solve
problems before we actually experience them for ourselves

Descriptive models
 Provide insights based on hindsight that can be useful for the future management of crises and disasters that affect
the tourism industry.
 They describe how plans or policies actually worked in relation to crisis or disaster situations.

Wrap Up

Classified crisis and disasters and explained their impacts on the tourism industry. We also examined the distinction between
incidents, natural events, crises and disasters and explored events in relation to tourism resources and crisis disaster in the
tourism industry. We finally examined the various models to understanding disaster and crisis including prescriptive, descriptive
and generic models.

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