For many tourism businesses, exemptions are considered an important part of their risk management process. Derogations are particularly important in the areas of adventure tourism, outdoor tourism and sport tourism, where the risk of injury is higher, and they are an effective risk management tool. Cloutier, R. (2000). Legal liability and risk management in adventure tourism. Winnipeg, MB: Hignell Printing. Obtaining and maintaining adequate insurance coverage is an important part of the risk management process. The insurance company transfers the financial risks to a third party – the insurance company. Operators pay premiums set by the insurer based on the coverage risk. If the probability of damage is high, premiums are higher. There are a variety of reasons why a tourism business needs insurance: to control the risk of the activities offered, to meet legal requirements, because industry partners require it, to protect businesses and property, and to protect employees (CLC, 2003b, p. 3).
Some insurance coverages are optional and operators may choose to insure themselves for assets such as real estate and receivables. Self-insurance is the practice of surgery where risk is maintained rather than transferred by insurance. This may be a conscious decision or a necessity based on the lack of available coverage. Inherent risk is the risk that must exist for the activity to take place. Examples are the risk of drowning while swimming and the risk of falling while skiing. It is impossible to exclude the risks inherent in these activities, as this would exclude participation in them. However, operators should take measures to minimise the inherent risk. This could include, for example, providing appropriate safety equipment to guests, training staff, and informing participants of the hazards of the activity (CCTC, 2003b). In addition to safety concerns, employers and employees need to be aware of the Employment Standards Act. This legislation sets out legal requirements for employment, such as minimum wage, breaks, meal times, paid holidays, statutory holidays, age of employment and leave (British Columbia Ministry of Labour, 2015) Risk management can be done at any scale. Individuals, businesses, corporations, communities, cities, regions, and even governments can follow the process to protect themselves against risks that can range from business-specific risks such as revenue disruptions to significant international risks such as climate change and civil unrest.
WorkSafeBC. (2015a). Tourism and Hotel Statistics. Excerpt from www2.worksafebc.com/Portals/Tourism/Statistics.asp?ReportID=22495&_Type=Statistics-for-Tourism-Hospitality&_Title=General-Tourism Some laws apply to each industry and those that guide travel activities from different countries. There are standardized procedures that are carried out in a certain way to preserve the feelings of the host country and travelers who travel. Travel laws are those that directly affect the travel industry and require lawyers who specialize in that particular area. It includes contract law between countries and travelers, labor law, laws promoting and protecting the accommodation process, regulatory and antitrust laws (Cui, Liu, Chang, Duan & Li, 2016). The industry must also have knowledge of international agreements and treaties, as there are many things a traveler can do during their visit. For example, a traveler traveling to New York can explore the sound and nightlife, sights. However, in some less developed cities, natural attraction, forest, and heritage would likely be the main attraction, requiring certain laws to support and preserve them (Tseng & Wang, 2016).
Local staff and the population are therefore responsible for the maintenance of attractions and activities in accordance with local culture and values that require legal support, regardless of the type of activities such as a concert, sporting event, films, theatre festivals, museum protection and preservation of historical monuments and other natural or man-made environments (Karl, 2018). These activities are subject to a variety of legal contracts and penalties for those who negatively impact cultural heritage sites, as well as laws for travelers who are violated at the host site to protect their interests. For example, a traveler who has booked a ticket online with Francisco to stay one night and travel to New Jersey all day, and if the hotel or tour guide does not provide the promised services and information, it will be the duty of the New Jersey court to take legal action against the hotel, to protect the interests of the traveler and the values of the country (Williams, & Baláž, 2015).