Tourism and Natural Disaster Recovery: Keys to Success

What is the impact of natural disasters on tourism and how can the tourism industry itself promote recovery for the destination? Examining Nepal’s recovery following the Gorkha Earthquake in 2015, Jacqueline Harper shares insights into the role of tourism in disaster recovery, emphasizing the significance of swift recovery, effective destination marketing, strategic partnerships, and the opportunity to build back better through sustainable and community-focused approaches.

How tourism can help a tourist destination recover after a natural disaster 

In the wake of the Maui fires, earthquakes in Morocco, a new 2023 quake in remote western Nepal, and other recent natural and manmade disasters, tourism officials have been contemplating when to resume their tourism operations. This dilemma is not uncommon. Re-opening too soon can endanger tourists’ safety; add pressure to already taxed infrastructure, accommodations, and resources; and re-traumatize residents when tourists ask how they were affected by the disaster. On the other hand, tourism and the resumption of business activities is urgently needed to fuel the speedy recovery and rebuilding of the devastated local economy.

The Gorkha Earthquake in Nepal is a case study of how tourism can aid in disaster recovery. On April 25th, 2015, the Gorkha region of Nepal was the epicenter of a 7.8 magnitude earthquake. Hundreds of aftershocks occurred for months afterward, leaving a serious impact on the country’s infrastructure, including many heritage sites that double as tourist sites. Thousands of people were injured and died. Damages cost approximately $7 billion USD, and impacted about one-third of the population. In terms of tourist arrivals, after 6 months, visitor numbers had declined by 42%.

Before and after pictures of Durbar square in Kathmandu. [Photo courtesy of National Geographic]

I spent 3 months in the Kathmandu Valley researching how tourism can help a tourist destination recover after a natural disaster and gained four key insights:

1. There was a quick time frame for tourism to return to normal levels.

As shown in Figure 2 below, there was initially a decline in tourist arrivals following the earthquake. However, starting in 2016, tourist arrivals bounced back and continued to grow. In 2017, Nepal hit over one million international arrivals – a goal they set before the earthquake – and achieved a few years ahead of schedule. By 2018, Nepal was the third fastest-growing country in Asia based on tourist arrivals. Like many countries around the world, COVID-19 hit tourism in Nepal hard in 2020 and 2021; however, the number of arrivals is now back on the incline.

Tourist Arrival Numbers from 2010 to 2022. [Tourist Arrival Numbers received from the Ministry of Culture, Tourism & Civil Aviation]

2. Destination marketing played a critical role in the post-disaster tourism recovery.

One of the keys to getting tourism started again after the earthquake was marketing and the media. Nepal Tourism Board (NTB), the country’s destination marketing organization, worked diligently to restore the country’s image following the earthquake. In the media, Nepal was being shown as being destroyed – places in ruins; collapsed temples; people in hardship – an unappealing image for travelers selecting their next destination. However, this narrative was not completely true. The earthquake impacted a few regions; only 31 of 75 districts were hard hit. The earthquake did not impact popular tourist destinations like Pokhara and Chitwan. This is where marketing and the media were key to bringing tourism back.

NTB invited celebrities in key market groups to come to Nepal and highlight its tourism offerings: Jackie Chan, David Beckham, and Prince Harry, to name a few. This sparked conversation in the international news and demonstrated to international markets that Nepal was once again open for tourism. Additionally, representatives from NTB were sent on international roadshows to promote Nepal to tourism agencies, who would then promote traveling to Nepal within their own countries.

Prince Harry visiting Patan Durbar Square to view ongoing efforts to restore one of Nepal’s cultural treasures. [Photo courtesy of Jacqueline Harper]

Unfortunately, NTB had limited funding, so one strategy they employed was user-generated content. By doing so, they could receive maximum impact with little resources. The few tourists who were visiting at the end of 2015 and 2016 would photograph their travels and pose with a sign saying, “I am in Nepal Now” and then post it on their social media feeds. This demonstrated to their followers that it was both possible and safe to travel to Nepal after the earthquake.

Norie Quintos, a communications and content consultant, posing in front of an “I am in Nepal Now” sign in June 2019, while visiting the Himalayan Travel Mart conference. [Photo courtesy of Jacqueline Harper]

Between 2017 and 2019, NTB organized travel conferences inviting international press and journalists to come to Nepal and experience a location, such as Pokhara. In turn, they would write about it, and promote Nepal to foreign audiences.

These different methods allowed the NTB to rewrite the narrative of the country post-disaster and promote tourism once again.

3. Partnerships are key to disaster and tourism recovery.

The success of Nepal’s disaster recovery was also due to partnerships. NTB worked with news outlets like BBC, CNN, and TripAdvisor to get the message out that one could safely travel to Nepal. They also had financial and technical support from other countries like Japan International Cooperation Agency, China Aid, USAID to rebuild heritage sites. International Knowledge of tourism recovery came from PATA, the World Bank, and UNWTO to help with the tourism recovery. International partnerships were key for rebuilding and financing the recovery, but also marketing the country to foreign markets.

4. Disasters are an opportunity to build back better within the tourism industry.

Based on my observations, tourism is being promoted heavily post-earthquake and COVID-19 to attract as many visitors as possible. My main criticism of this process is that the NTB government is adopting the “heads in beds” strategy, in which they try to maximize growth by bringing in as many tourists as possible. Immediately following a disaster, this may be important to restarting an economy; however, once tourism has returned, it should not be the long-term strategy. Natural disasters are an opportunity to build tourism more responsibly. The NTB (and many DMOs around the world) should be incorporating sustainability and accessibility principles into their national and regional tourism strategies. As they are rebuilding the brand image of a destination post-disaster, there is an opportunity to make tourism better for the community in which it operates.

Tourists and locals make their way around the Bouddha Stupa in Kathmandu, Nepal. [Photo courtesy of Jacqueline Harper]

For example, New Zealand’s response to the Christchurch earthquake, with its focus on sustainability and community involvement, is a prime example of (1) sustainable rebuilding, (2) community engagement, (3) promotion of local businesses, and (4) resilience and adaptation.

  1. After the devastating earthquakes in 2010 and 2011, Christchurch embarked on a journey of sustainable rebuilding. This involved not just reconstructing damaged infrastructure but doing so with an emphasis on eco-friendly and resilient designs. Many buildings incorporated modern earthquake-resistant features and energy-efficient technologies.
  2. A critical aspect of the recovery was the involvement of the local community. Residents were encouraged to participate in the decision-making process, allowing them to have a say in how their city would be reimagined. This engagement ensured that the rebuilt city reflected the desires and needs of the people who call it home.
  3. In the aftermath of the disaster, there was a concerted effort to support and promote local businesses. The “Shop the Sirens” campaign encouraged residents and visitors to shop at local stores, helping these businesses recover and thrive.
  4. The earthquake catalyzed Christchurch to become more resilient in the face of future disasters. The city implemented comprehensive disaster preparedness and risk reduction strategies to mitigate the impact of any future seismic events. By following the path of building back better, destinations can not only recover but emerge stronger, ensuring that the benefits of tourism extend to all and that they are better prepared to face any future challenges that come their way.

In conclusion, the case of Nepal’s recovery after the Gorkha Earthquake serves as a valuable lesson for destinations worldwide facing the aftermath of natural disasters. As we’ve seen, quick recovery in the tourism sector is possible with effective destination marketing, partnerships, and a clear message of safety and opportunity. Yet, it’s equally important for destinations to look beyond short-term recovery and use post-disaster periods to “build back better” by embracing a sustainable, community-centered approach. That means investing in eco-friendly infrastructure, supporting local businesses, engaging the community in decision-making, and integrating sustainability and accessibility principles into their tourism strategies.

Jacqueline Harper is a Masters of Environmental Studies in Geography student at the University of Waterloo in Canada. Her masters research focuses on looking at the role social and cultural capital plays in aiding tourism recovery in the Kathmandu Valley post-Gorkha earthquake. As an inspiring destination stewardship practitioner, Jacqueline hopes to work in tourism after grad school. As such, she has volunteered with the Destination Stewardship Center, researched the impacts of cruise vs layover tourism, and interned at the Center for Responsible Travel and Solimar International.

How Data Science Can Help Destinations

Destination Stewardship Report – Autumn 2020 

Sustainable destination planning is frequently hobbled by conventional measures of return on investment. But if ROI is expanded by using data science to include tangible but often omitted factors at both company and destination levels, says Irene Lane, then the picture is more accurate – and brighter.

Lucerne, Switzerland supports sustainable development by optimizing operations and promoting nature-based and cultural opportunities for tourists. © Greenloons

It’s Time To Merge Sustainable Destination Planning with Data Science

By Irene Lane

Before COVID hit, destination stakeholders were concerned about the social, economic, and environmental impact of overtourism at their locales. On the one hand, tourists eagerly flocked to fragile, biodiverse hotspots thereby assuring plentiful (albeit low-paying) service jobs, corporate hospitality investments, and tax revenues. On the other, local residents were facing the costs of an overloaded public infrastructure, a decaying social fabric holding their communities together, and increased residential resistance to fickle travelers looking for their next viral Instagram post.

Throughout, many destination stakeholders had called for both transparent, pragmatic sustainability standards and efficient data collection. An easy way to combine the two would help strategic investment and decision-making. Data modeling and statistical analysis, known as data science, is the key for doing that.

Now comes the age of Covid-19, with its declining tourism arrivals and tax revenues, along with the advent of policy changes (or at least discussions) that promote racial and social justice. That makes strategic decision-making buttressed by data science more important than ever.

Development of ROI Financial Model for Sustainable Destinations

For those who have been studying and advocating for destination sustainability, none of the social, economic, or environmental impacts of myopic destination planning were surprising. But a few of us with backgrounds in data analytics informally endeavored to go one step further. My contribution was to develop a return on investment (ROI) financial model that accounted for GSTC sustainable destination criteria along with other pertinent data including local tax incentives, productivity rates, and consumption benchmarks.

Calculation of the ROI of sustainability was not an entirely new concept. Previously, tourism companies had determined ROI based solely on operational investments and cost savings, such as those found with renewable energy, water conservation, waste management, and food and beverage sourcing projects, among others.

The consistent issue was that ROI, calculated under those parameters, was typically negative for the first two years. So, it came as no surprise that destination managers would choose to make other investments with quicker and higher rates of return.

The flaw in such ROI calculations was that they were not holistic in their approach.

By using an environmental scorecard approach for measuring ROI, I built on the traditional operational and environmental elements and expanded it to include the costs for and benefits to employees, communities, and customers.

For example, a company’s investment in environmental and wildlife educational materials could be balanced against the savings brought about by free media mentions sparked by its sustainability status and incremental revenue from customers seeking sustainable choices.

By investing in ecosystem preservation, destinations can attach a financial value to wildlife conservation, including this caiman in the Tambopata region of Peru. © Greenloons

Another example is a destination’s investment in sustainable tourism apprenticeship and small business loan programs balanced against the savings of shared agriculture, transportation, activity, and renewable energy resources as well as the incremental revenue from customers extending their stay at a destination due to the increased variety of options.

Essentially, rethinking the triple bottom-line financial value of each employee, community (including destination partnerships), and customer interaction that stemmed from sustainable investments greatly expanded the view of ROI at the company level.

Failte Ireland promotes agritourism along the Wild Atlantic Way cycling routes, thereby enabling small-scale and profitable agricultural and fishing production. © Greenloons

The result of our informal collaboration was an ROI model that allowed individual tourism businesses – and, in aggregate, destinations – to determine which sustainable criteria investments would yield the greatest returns based on the destination business climate.

At the destination level, for example, policy makers could see the economic impact gained by rebate programs or tax incentives for promoting renewable energy investments, supply chain partnerships, apprenticeship programs, or marketing campaigns.

The model further addressed how a sustainable tourism company, and thus a destination, can plan, budget, and market the social, economic, and environmental changes and improvements sustainability will bring to their businesses.

ROI Model starts with the operational, community, employee, and customer investments (along with savings and incremental revenue opportunities) needed to adhere to the GSTC Industry Certification Criteria. The ROI Model then incorporates specific GSTC Destination Criteria to allow and incentivize businesses to create their own 5 Year ROI Dashboards, thereby creating a continuous improvement loop.

ROI Modeling in Action

One of the frequently overlooked drivers of ROI is the calculation of strategic and supply chain partnerships. When partnerships are encouraged or incentivized, and other aforementioned data is included and weighted appropriately, the ROI calculation generally goes from negative to positive during the first year.

If destinations can factor in visitor interactions, employee training and productivity, community partnerships, and culture and heritage preservation behaviors and investments, then sustainability ROI increases dramatically. In fact, statistics reveal for the UK, New Zealand, Australia, and India, that travelers interested in destinations with authentic culture and heritage sites spend as much as 38% higher per day and stayed 22% longer overall compared to other kinds of travelers.

Importance of ROI Data Analysis Post COVID

Now that there is the potential for the reset button to be pushed for the tourism industry, the focus might well be on communities that are working together to increase living standards, biodiversity conservation, and food ecosystem resilience.

In other words, perhaps we can now start adopting a more sustainable or regenerative set of travel infrastructure practices backed up by – data collection, data modeling, and data analysis practices – rigorous data science.