Development of a Mechanism for Typhoon- and Flood-risk Assessment and Disaster Management in the Hotel Industry – A Case Study of the Hualien Area

Taiwan is located both in the circum-Pacific seismic zone and sub-tropical regions. The special geographical and environmental characteristics of this location make the area prone to natural disasters triggered by earthquakes and typhoons. In recent years, there have been more than 200 recorded earthquakes and an average of 4.6 typhoons every year. Typhoons and floods have had a huge negative impact on the hotel industry almost every time they occur. For example, Typhoons Nari, Toraji (2001), Sinlaku (2008) and Morakot (2009) caused tremendous damage to the local hotel industry. Understanding the characteristics of such damage and its possible impact on the industry are very important for catastrophe risk management. Based on these concerns, the present study considers the damage characteristics in relation to Taiwan's hotel industry. Using modern conceptualizations of risk management, the characteristics of natural catastrophe risks are analyzed, and then integrated with relevant national and international research methods, such as fragility curve studies regarding catastrophes, flood potential analysis and so on. In addition, a case study is carried out using data from hotels in the Hualien Area. Based on the results, we present a mechanism for typhoon- and flood-risk assessment and management for the local hotel industry. The results provide information necessary for the government, for policyholders in the hotel industry, for insurance companies and for the financial sector to make decisions about the best courses of action to take when disasters do occur. They should also be useful in designing effective risk-management strategies and reducing or transferring losses caused by these types of disasters.