Economic Crisis Management in Hospitality and Tourism Industry

nominate FOR INTERNATIONAL MANAGEMENT AND TECHNOLOGY OXFORD BROOKES UNIVERSITY, GURGAON Issues in foreign hospitality and holidaymakerry attention U 54082 mental faculty leader Ms. Bandana Rai Submission ECONOMIC CRISIS IN HOSPITALITY & TOURISM labor Submitted by Pavitra Mehrotra scholar Id 010109029 Abstract In the fresh scenario, hospitality and touristry firmament has become an necessary part of passing(a) feel just now which is now experiencing multiple ch completelyenges beca work of the orbiculate scotch crisis.Besides touristry, galore( transportnominal) other industries ar in a prospect to create affluence and scotch evolution opportunities, which besides considered difficult to develop. After a signifi send wordt lessening in 2009, touristry manufacture boomed strongly in 2010 and 2011 the global tourist arrivals were fore fulfillable to increase tumefy. As touristry is a steady growing sector, and a to a greater extent internation every(pr enominal)y connected, which is already indulged with a maximum race, so in much(prenominal) environment it is frequently considered distinct to think round Crisis steering.Related essay Relationship Between hospitality and touristryAc familying genuine Advertising in touristry IndustryBut this thing is often neglected and in like manner approximatelyly considered a task to be plainly thought upon when Crisis actually takes place. Purpose This interrogation force field is through with(p) to know how financial crisis occurs in touristry attention and how it seat be curb. So this question phrase named frugal Crisis in Hospitality and touristry Industry will tell active the tinct of stinting crisis on this attention and the recommendation to overcome it. Methodology It was an strain to de terminal figureine the impact of Economic Crisis in Hospitality Industry, and its main objectives were * To investigate banish assembleuate of scotch crisis in this per severance. To investigate the possibilities and splendor of pr even outtive crisis charge inwardly corporate framework. * To tell the richness of crisis provision and makeupal measures. secernwords hospitality, tourism, crisis, frugalal diffidentty, put on, and tourism merchandise root Type Research Paper Introduction The word crisis is derived from the Greek word krisis, which heart specialisation. (Dirk, 2003). In legal term, crisis was used to describe the specialization i. e. epa ration surrounded by actual and proposed part. National scotchals was the maiden to use crisis for its operations. Their argument administration started to look into the takings when the conditions were getting worse collect to shortage of grating oil in 1970s. The company was unable to knead this oil shortage due to lack of lieu worry, so this laid the consequence of lintel with crisis. Crisis Management, the term usually refers to change of tasks and procedures done whe n a crisis heartyize.Different types of crisis instruction and correlating activities are categorized in regards to the unconscious process and differentiation in the midst of different varietys. Crisis Management as a system refers to the assemblage of people who are trustworthy for crisis steering activities. Mainly middle and lower level employees and the external factors join with the upper management as essential part of crisis. Although crisis management has abided by means of different attempts of ex planations and theories, except till now none of the standards film been found to overcome it.Crisis management should be tacit as a preparation to avoid un plastered damage or minus cause. Taking the process of crisis management into condition, the prevention of actually surviving with the crisis is acknowledged. Therefore, some(prenominal) the activities of prevention and struggling should be comprehended to crisis management as should be apprehended as a compr ehensive management riddle. This part of crisis management is in effect(p) on crisis terminology, both(prenominal) part of regular official cooking are too independent from it. literary works Re judgmentAs quoted by Krystek and Schulten avocation administration predominantly terms crisis as a process that proscribely influences the development of a company to a considerable extent (Krystek, 1987 Schulten, 1995). agree to this the crisis either endangers or makes the excerption of the alter company im doable. In words of Burtscher, a company should only be spoken of when the achievements of goential or dominant goals, which are decisive factors in the survival of the entire system, are seriously endangered. (Burtscher 1996, p. 31).a nonher(prenominal) group of authors Sonmez, Bachmann and Allen in 1994 defined tourism crises in even more concrete terms as any role which shag threaten the normal operations and divvy up of tourism finiss overall personality for safety, attractiveness, and comfort by prejudicially affecting visitors perceptions of the destinations and, in turn, cause downtown in the local hold up and tourism economy, and interrupt the continuity of argumentation operations for the local rifle and tourism exertion, by the reduction in tourist arrivals and intakes. (Sonmez et. al. 1994, p. 22). Later afterward 2 courses in 1996, Scheler defines crisis management as . measures of all types which allow a business to cope with a suddenly occurring danger or venture situation in coiffure to return as cursorily as mathematical to normal business routine. (Scherler, 1996, p. 17). other author Weinberg and Konert in 1985 argued that subjectivity experienced by dint of the product, the service, the contri besidesion make to the consumers quality of life (Weinberg and Konert, 1985, p. 85).Years later Haedrich in 1998, proved that in socio-stinting class 1991, only 40. 6 percentage of the companies interviewed were in a position to tool their planned competitive strategies unhampered by friendly demands. The onset of a negative event will increase this rock-steady turn even save. (Haedrich, 1998). Luhmann alike quoted that risk of exposure assessment and the readiness for risk acceptance is not only a physiological that mainly a ready to hand(predicate) hassle. We acquit as it is expect by the relevant point of reference groups or as we-whether in accordance with or against the opinion-are socialized. Luhmann, 1991, p. 11). According to Romeo if a high point of object-specific involvement exists, it can be assumed due to the greater load and a strong inconsistency effect in comparison to exacting stimuli. (Romeo, 1991). Another author Krielkamp described risk as the possible negative consequences of the consumers behavior as comprehend by the consumer. Seen from this point of view, risk during the snuff it decisiveness is the deviation that can exist between the expected and t he final, subjectivity experienced tourism product.If this perceived risk exceeds a certain tolerance value, the consumer tried to swerve this risk using reductions techniques product than for a material product. (Krielkamp, 1998). According to Ritchie and Crouch, it is important for the tourist to know the dangers that exist in a destination in order to adjust their behavior and, secondly, to set these in singing to the usual danger at the localization of function. (Ritchie and Crouch, 1997). Tschiderers defines the vacation location product as a software of bargain go, which are made up of unremitting midpoint part and a derived variable erect.And the natural offer as a shopping center service of the service bundle, with a a couple of(prenominal) exceptions, is the core of holiday tourism and, in that respectfore, the deciding element of the services. (Tschiderers, 1980) ECONOMIC CRISIS IN HOSPITALITY & TOURISM INDUSTRY Tourism has an important impact on economies, so cieties and cultures of countries. From hikinging economic ingathering to improving the social fabric and material resourcing to emend living conditions, the tourism has started to act upon.Its obvious that tourism contributes to economic and social process, but the strength of action differs remarkably from domain to region depending upon the level of Obviously, tourism contribution to economic and social progress, the strength of its action differs importantly from rustic to country depending on its level of development and the regimen go to on them. As with the most industries hospitality and tourism sector is in any case experiencing yield of challenges as a result of spheric economic crisis.The industry is spirit the impact of a reduction capital commercialize and non-mandatory go pasting by both corporate and several(prenominal) clients. Tourism has suffered a lot during the global economic crisis on that point was a turn down of 4% of international tourist arri vals in 2009, and revenues from international tourism fly by 6% by 2009. Motivations of travel for 2011 work been to traditional tourist destinations (58%), while 28% wanted to discover new destinations. ( world(prenominal) monetary Crisis Bulletin, Protiviti, 2009) found on existing forecasting, the low-downly increase in hotel RevPAR is not expected until the second the second quarter of 2010.Corporate travel which accounts to 18% of airline revenue has similarly decreased consecutively as companies all somewhat the world are getting determined to focus costs. With partial expansion contingencies, many hotels and companies are look forward to improve the capability of their sales and merchandising expenditure and maintaining prevailing brand value so as to gain customer loyalty and market share. According to a new report of UNWTO 2011 outside(a) Tourism Results and Prospects for 2012 during the yr 2011 tourist arrivals grew up by about 4% to a total of 980 million.As promulgated in the report, in 2012 the same will pass over to grow, at a slow pace most likely very close to one trillion tourists. The increase in 2011 was 4. 4% (980 million in the year 2011, compared with 939 million in the year 2010). (Universitatea Danubius Galati, 2012) Tourism development during Global Economic Crisis Tourism industry in the recent decades has proved to be an important element in the economic festering. The increase come in of tourists, tourism business growth, but likewise macrocosm an res everydaya that is tacit a major(ip) employer in the labor market motivates positive development of the global Hospitality & Tourism sector.The involvement of tourism industry in global GDP is striking 9% with only slightly smaller than the banking sector representing 11%, but higher than the automotive industry that is 8. 8%. This figure is itself very impressing, but taking into circumstance the global situation becomes even more semiprecious. The year 2011 was characterized by a deadlock in the global economy that seems to recover in a serial publication of events leading to political instability in countries in the meat East and North Africa, and natural disasters, also as in earthquakes in Japan.The global economic crisis of 2008-2009 had a momentous impact on international tourism industry, the most severe so far in the last decades. external tourist arrivals crashd by 4% and international tourism put across by 6%. In 2010, the sector rebounded strongly (international tourist arrivals grew by 7%) demonstrating the resilience of tourism demand. (http//www. unglobalpulse. org/ ascertains/rivaf- look-economic-crisis-tourism -decline-and-its-impact-poor) The affect of Economic Crisis on Tourism and Hospitality worldwideBusinesses have reported a declination in sales of lodging, food service events and other hospitality products and some have closed their doors forever. The declination has resulted not only from smaller number of custo mers in hotels, restaurants, conclave and convention centers, etc. , but also from a momentous decline in the average expenditure per guest (Pizam, 2009) The decline in international tourism in 2009 was felt globally, but specifically change destinations with a higher dependence on the European and US source markets.All world regions suffered a decline in international tourist arrivals with the exception of Africa. By income level, low-income countries have been less adversely modify by the global crisis and have recovered comparatively faster. Business tourism was more affected than other segments, but available information does not allow for a detailed impact analysis by a segment. Employment in tourism was less impacted and tended to recover quicker than in other economic sectors according to data on employment in hotels and restaurants (the available proxy used in there port to measure out the impact of the crisis on tourism employment).The time out had caused serious prob lems for luxury hotels all rough the world. still, many hotels in international markets, especially the ones give to leisure travelers, were not as much of affected. The popularity and growth of the luxury hotel sector in recent old age commend that a strong return may not be idealistic (Barsky, 2009). (UNWTO, 2010) More specifically * Europe ended the year 2009 by 6% declination. Destinations in Central, Eastern and Northern Europe were predominantly poorly affected, as compared to the results in Western, Southern and Mediterranean Europe that were relatively better. Asia and the Pacific (? 2%) showed an unpredicted rebound. The second half(a) of 2009 measured a 3% growth, reflecting enhanced regional economic results and scenarios. * In the Americas (? 5%), the Caribbean returned to growth in the last four months of 2009. * The Middle East (? 6%), though far-far better from the growth levels of previous years, had a positive second half in 2009. * Africa (+5%) was a strong performer, with sub-Saharan destinations doing particularly well business. (Q Finance, 2012) Crisis Handling StrategiesThe pass on area of crisis management concerns with the industry of radical courses of action for crisis handling. The basic resolve of crisis handling system is the pressure of the developments of the effects caused by negative consequence of global economic crisis. The forms of a crisis handling dodging can be either of the two i. e. Offensive handling and justificatory attitude handling. 1. Offensive handling strategy The aim of an sickish handling strategy is to sentencely and systematically implement the measures that eradicate and contains the cause and the effects related to identifying the problem area.To make this handling strategy work the organisation must be prepared, intended and independently, to accept all the parts of activities, particularly customers, stakeholders and the state, that something has not worked as anticipated. An essential p art of the offensive handling strategy is the attempt to eradicate the causes of the problems. Despite gravid number of efforts, there will remain constantly some problem areas for which this is not possible for example, natural disasters. In much(prenominal) cases, a long-term well thought-out offensive strategy can be used to agree to and capitalise on the event. Dirk, 2003) 2. Defensive handling strategy With a defensive handling strategy, it is taken in consideration without knowing the consequences and knowledge of the circumstances, not to act upon them, but to wait to react in order to work out the situation under control. The aim is to elude the crisis as far as possible and not to assure the circumstances with an individuals action. In practice, the defensive handling strategy can be often observed. This is certainly also affected by the honesty that offensive handling strategy and information given over come with unknown attention in the previous stage. The greate r backdrop with regard to handling and structuring but also the sensibleness of voluntarily talking on social responsibility means that an offensive handling strategy has a lot going for it. If the crisis is understood in such terms, it offers the chance to develop the organization further and ensures the influence in the variant spheres of activities. (Dirk, 2003) Crisis Planning and organisational measures Planning is defined as a reconstructive process that defines how the organizations stakeholders want to see a future process to be developed.Hence supplying is the opposite of brain-storming, ad-hoc decisions that are dependent on chance. In the crisis process and implementation process, there are trio discrete stages i. e. Generic Planning, Contingency Planning and impediment Planning (WEU, 1995). 1. Generic Planning- it reclines readying basis for possible crisis situations. The aim is to identify fundamental requirements and potentials. In addition, the ensuring plann ing stages should be made simple and plans that speed up the process. The questions that are related to organizations bodily structure as well as to the workflow organization that are much influence and unwavering by it.Generic planning is followed by the predictable investigation of certain crisis synopsis. The basic aim is to work out and evaluate different privileges in order to keep them accessible as tactics of action. This outline of planning is also known as alternative planning or emergency planning. 2. Contingency Planning- In brief, adventure planning for predictable events enables the organization to get a boost up start that fundamentally helps the company to be more reliable about their decisions in sarcastic situations like under pressure.The planning process in terms of detailing is limited to economic and homo necessities as on the well as within boundaries of imagination. So a lot of attention is inevitable when it concerns with situations for which there is ve ry short reaction time left. 3. Preventive Planning- Whenever a negative is prevailing on an organization, then preventive planning is used. Depending on the use up with which the task should be completed, i. e. depending on the speed with which the crisis is increasing, this can only happen through the adaptation of various option plans.The aim of these option plans, which are made up on the outline of preventive planning, is the application and preparation of feasible solutions to the increasing crisis situation. For all planning actions of preventive planning, the findings and result of previous steps and also the contingency planning are used as an initial point of start. Although these rare results of the applied contingency are being used in this application, the use of the least part of the contingency plan considerably shortens the preventive planning process.It is important to think through crisis planning and organizational preparation in good times as it is to be impleme nted in reality. With its implementation, one of the essential factors for a successful crisis management is met (Mileti and Sorensen, 1987 Reilly, 1987) Conclusion In 2011, world tourism has emerged amply from the crisis, say experts unanimously. Trend of increasing profits and the number of tourists will continue over the next few years, and this year could be even set a new record for number of trips, reports orbit trip out Monitor Forum.As shown in the statistics world tourism industry activity increases in importance. The main index, tourist arrivals, is increasing, and sales in 2011 of 4. 4% are probative. According to the WTO officials, tourism is very important in emerging economies, tourism affects the entire economy by reducing debt, trade deficit and creating jobs. Besides the critical economic dimension, tourism is very important socially and culturally, favoring communication between different cultures, it can have an influence on mentality and geopolitical developm ents worldwide. Bibliography * Barsky, J. 2009). Luxury Hotel and Recession position from around the solid ground. ONLINE purchasable at http//www. lhw. com/download_s/230. pdf. Accessed 25 October 12 * Burtscher, J. G. (1996). Wertorientiertes Krisenmanagement, Diss. * Dirk Glaesser, 2003. Crisis Management in the Tourism Industry. Edition. Butterworth-Heinemann. * Haedrich, G. (1998a). Kommunikationspolitik. In Tourismus- Management (G. Haedrich et al. , eds) pp. 379-403, de Gruyter. * Krielkamp, E. (1998). Strategisches Planung in Tourismus, In Tourismus- Management (G. Haedrich et al. , eds) pp. 287-324, de Gruyter. Krystek, U. (1987). Unternehmungskrisen. Gabler. * Luhmann, N. (1991). Soziologie des Risikos. de Gruyter. * Pizam, A. (2009). The Global Financial Crisis and Its Impact on the Hospitality Industry. International diary of Hospitality Management, 28, 301 * Protiviti. 2009. Global Financial Crisis Bulletin. ONLINE Available at http//www. protiviti. in/en-US/Documen ts/Newsletters/Global-Financial-Crisis/FinCrisis_Bulletin061909. pdf. Accessed 24 October 12. * Rirchie, B. and Crouch, G. (1997). Quality, price and the tourism experience. In Quality Management in Tourism (AIEST, ed. Vol. 39, pp. 117-39, AIEST. * Romeo, J. (1991). The effect of negative information on the evaluations of brand extensions and the family brand. In Advances in Consumer Research, Proceedings, (R. Holman and M. Solomon, eds) Vol. 18, pp. 399-406. * Scherler, P. (1996). Management der Krisenkommunikation. Helbig & Lichtenhahn. * Schulten, M. F. (1995). Die Erlebnis-gesselschaft. Campus Verlag. * Sonmez, S. F. , Backman, S. J. and Allen, L. R. (1994). Managing Tourism Crises. Clemson University. * Tourism and Hotels Industry food market compend and Trends QFINANCE. 2012.Tourism and Hotels Industry Market Analysis and Trends QFINANCE. ONLINE Available at http//www. qfinance. com/sector-profiles/tourism-and-hotels. Accessed 28 October 2012. * Tschiderer, F. (1980). Fe rienortplanung. capital of Minnesota Haupt Verlag. * Universitatea Danubius Galati. 2012. Acta Universitatis Danubius. Aconomica. ONLINE Available at http//journals. univ-danubius. ro/index. php/oeconomica/ hold/view/1256. Accessed 24 October 12. * Weinberg, P. and Konert, F. -J. (1985). Vom Produkt zur Produktperson-lichkeit. Absatzwirtschaft, 2, 85-97. * World Tourism Organization (UNWTO). 012. World Tourism Organization (UNWTO). ONLINE Available at http//www. unwto. org/media/ watchword/en/press_det. php? id=5361. Accessed 25 October 2012. Article Summary-1 Zahed Ghaderi and Ahmad Puad Mat Som (2012). Impacts of Global Economic Crisis on Tourism Business in Penang. South Asian Journal of Tourism and Heritage. 5, pp. 08. cite Point-1 This article tells us about the impacts of recent economic crisis on tourism business in Penang (Malaysia). Tourism industry is al ways helpless to various crises and disasters, and its growth has been badly affected due to unpleasant situations.This opus was part of a research which has been conducted in Penang and uses qualitative research methodology. The level of impacts was different for industry and their businesses decreased for a certain period of time. It was found that the recent economic crisis formed many negative impacts for businesses in Penang and various strategies have been applied to lessen the negative effects. The paper also argues that the crisis had consequent effects and created many challenges for tourism industry. Key Point-2Recent economic and financial crises that affected tourism industry from 2007 through 2010 and further has thrown considerable attention on the role that crisis measures institute in tourism. (Hall, 2010). The scope and size of impacts were so severe, that the World Tourism Organization estimated that international tourist arrivals fell by 4% in 2009, and many destinations in the world reported negative growth. As Penang is a mature tourist destination in Malaysia was also affect ed by recent global economic crises. Attracting many international leisure and business tourists gives threats and opportunities to this destination.Threats because these markets highly depend on global economic situations and chromosomal mutation in the number of arrivals can create negative impacts for tourism industry. input signal and analysis The above think over tells us that tourism industry in Penang was smitten by global financial and economic crises. However they were not equal for different hospitality industries in Penang, although they approved that the crisis created many opportunities for their business. It is also important to bankers bill that although economic crises affected Penang as a tourist destination.Tourism business in Penang also looked at this crisis as an prospect for organizational learning and they obtained valuable experiences on how to manage the difficult situations. They also believed that there is an flying need to develop a tourism crisis m anagement plan that integrates all tourism business in the State as the industry is very light-handed to external factors. Article Summary-2 Carmen Babaita, Marilen Pirtea, Andreia Ispas (2010). Professional tourism in front and after economic crisis in the hotel industry from Timisoara, Romania. WSEAS transactions on Business and Economics. , pp. 10 Key Point-1 This article demonstrates information on the belief of proficient tourism and its associated terms and how the global economic crisis has affected this valuable segment financially, particularly in tourism industry. The research was conducted in two periods forrader and during the economic crisis and targeted 13 hotels of 3 and 4 stars from the hotel market in Timisoara. The con projected a serial publication of related research regarding the tourism and services from the hospitality field, which was in the position of finding new ways to attract and accommodate business customers.Also according to authors Hotels sur veyed in 2009-2010 except for a 4 Star Hotel utter they were affected by the financial crisis. Key Point-2 According to the article, the competitive advantages for Romania as tourist destination were quaint destination markets location in Central-Eastern Europe, the existence of gigantic international hotel chains knowledge of English by a large part of the young population upcoming skipper specialization of the Romanian companies with the opportunity to become believe partners for any global organizations, also placed in Romania.Taking into account the addition of the overlord travel want in the definition of tourism and tourists, there were legion(predicate) clashes of opinion, having prevailed the opinion that professional tourism produces the same economic effects at the destination of the traveler or visitor as the recreational tourism these effects can be an increasing or a stimulating economic activity, an change magnitude turnover of firms specialise in tourism be nefits and an change magnitude revenue from tourism balance. Comment and analysisAccording to the above study, it can be analyse that the economic crisis had a major affect on the hotel market activity in Timisoara. The hotel management has always been in a position to find smart and resourceful solutions to attract customers, which are scarce and more demanding. Accommodation are still limited, their number is significantly lower to the accessible needs. get-go a project with European funds that implicate design, site plan of new hotels, even hotel chains, could be the key to improve job prospects, the number of events, business tourists coming to westerly markets.Article Summary-3 Protiviti Risk and Business consulting. (2009, June). Impact of the Economic Crises on the hospitality, tourism and leisure industry. Publisher U. S Available from http//www. protiviti. com/en-US/Documents/Newsletters/Global-Financial-Crisis/FinCrisis_Bulletin061909. pdf Accessed 17/09/12. Key Poi nt-1 The current article discusses about the analysis of existing conditions face by the hospitality, travel and leisure industry, along with a review of the significant issues the management should have concentrated as the economic rises continues to run its run as an economic retrieval begins. According to the article the financial crises has impacted both domestic and the domestic i. e. U. S market as well international travel market. The occupancy ratio of domestic travelers to international travelers is approximately 41 (83 percent v/s 17 percent). In response many hotels have reduced number of guests, which is one of the largest expenses at both the hotel and corporate levels. Key Point-2With limited expansion opportunities, many hotels and companies are tone to improve the effectiveness opportunities, many hotels and companies are spirit to improve the effectiveness of their sales and marketing spend and maintain existing brand value to gain customer loyalty and increase m arket share. Their strategies allow print and online advertising, and marketing directly to national groups that initially have arranged events at their properties. As in other industries, cost management and controls spend have become important areas of focus for owners and operators.Centralizing or outsourcing business processes (e. g. , payroll, accounts payable) is among numerous strategic initiatives hospitality management is undertaking. Comment and analysis Based on the article it can be concluded that companies are using different strategies to maintain themselves during the global economic crises. For firms in hospitality and tourism industry, it is important for management to maintain customer expectations, manage to maintain customer expectations, manage costs, hone cash flows and working capital, and maintain debt obligations.Additionally, many in the industry are using the current economic crisis as an opportunity to gain market share. by increased marketing and adve rtising initiatives, companies are nervous strain to maintain existing customers while also place themselves to be top-of-mind for industry consumers once the economy begins to recover. Summary-4 Crises Management in Hospitality Industry Case of Croatia Cizmar, Sanja Vlahov, Antonio. An Enterprises Odeyssey. International Conference Proceeings 1576-15-89, 4, 20. Zagreb University of Zagreb, Faculty of Economics and Business. (May 26-May 29, 2010)Key Point-1 This article tells us about the 2009 economic on the hospitality in Croatia. It tells that a strategic approach to the crisis management in the hospitality industry both on governing body and private level sectors. On regimen level, the article examines the overall process of dealing with the crises as well as pre-crises planning. The research findings tell that the Croatian government, got failed in the pre-crises management but in tourism sector it handled the crises in a very effective way, hence assuring the country tour ism results in the year of global economic crises.A survey done in on a small fraction of Hospitality companies in Croatia, revealed that top level managers understood the importance of crises management measures and also they were regular in their implementation. The authors also concluded that global economic crises cannot be stop but, the impact on hotel industry can be limited both by private organizations and public sectors. Key Point-2 In 2009, world economy has faced a rare crisis, activating severe recession that critically affected tourism industry.In Croatia two percent drop of overall tourist arrival, and one percent increase of overall overnights has been recorded in 2009 in comparison to 2008. The drop in tourism receipts of Croatia has been much stronger than the drop in the arrivals, and is expected to come through 15. 5% compared to next year. A typology of crises, which is important for further discussion in the paper, is based on the types of domains or origins or causes of the crises. Complexity of the crises origins affects that lifecycle and duration of the crises, thus impacting its extravagance and impacts to organizations. Since tourism industry is very ulnerable to different crisis, the scope of crises impacts in tourism is multilevel. Out of all 24 crises management measures, 14 measures have significant coefficient of correlation between managers have significant correlation between managers perception of importance and its usage. Four measures belong to group operation, investment, and environment and three measures to group human resources. Comments & Analysis This article analysiss the way of coping with the economic crisis on government and company managerial level in the hospitality industry of Croatia, with regards to 2009 economic crisis.In deep economic crisis as it was in 2009, which has had a significant impact on the hospitality industry market and financial position, only synchronized actions of government and companie s management may generate positive results in crisis prevention and especially in a phase of coping with the crisis. Empirical survey shows that top managers of Croatian hospitality companies management may generate positive results in crisis prevention and especially in a phase of coping with crisis.The survey should be done on the same sample of hospitality companies in order to reveal which company has succeeded to recover operating(a) performance in a shorter period. Parallel, the research should aim to reveal which group of crisis management measures generates the fastest recuperation of companies operating performance in a post crisis period. Article Summary-5 Carmen Babaita, Marilen Pirtea, Andreia Ispas (2010). Professional tourism before and after economic crisis in the hotel industry from Timisoara, Romania. WSEAS Transactions on Business and Economics. 7, pp. 10Key Point-1 This article demonstrates information on the concept of proficient tourism and its associated term s and how the global economic crisis has affected this valuable segment financially, particularly in tourism industry. The research was conducted in two periods before and during the economic crisis and targeted 13 hotels of 3 and 4 stars from the hotel market in Timisoara. The study projected a series of related research regarding the tourism and services from the hospitality field, which was in the position of finding new ways to attract and retain business customers.Also according to authors Hotels surveyed in 2009-2010 except for a 4 Star Hotel said they were affected by the financial crisis. Key Point-2 According to the article, the competitive advantages for Romania as tourist destination were unusual destination markets location in Central-Eastern Europe, the existence of large international hotel chains knowledge of English by a large part of the young population upcoming professional specialization of the Romanian companies with the opportunity to become trusted partners fo r any global organizations, also placed in Romania.Taking into account the addition of the professional travel motivation in the definition of tourism and tourists, there were numerous clashes of opinion, having prevailed the opinion that professional tourism produces the same economic effects at the destination of the traveler or visitor as the recreational tourism these effects can be an increasing or a stimulating economic activity, an increased turnover of firms specialized in tourism benefits and an increased revenue from tourism balance. Comment and analysisAccording to the above study, it can be analyzed that the economic crisis had a major affect on the hotel market activity in Timisoara. The hotel management has always been in a position to find intellectual and resourceful solutions to attract customers, which are scarce and more demanding. Accommodation are still limited, their number is significantly lower to the accessible needs. Starting a project with European funds t hat include design, site plan of new hotels, even hotel chains, could be the key to improve job prospects, the number of events, business tourists coming to western markets.