Optimum Arrangement between Tourism Industry Natural Disasters Insurance and Risk Control

This paper presents an extended framework of the economic effects analysis for tourism Industry natural disaster risk management. For government or a tourism industry, there are several possible actions for building risk controlling, i.e. structure retrofitting, insurance protection, alternative risk transfer and emergency planning. In addition, it is a trial to define the optimum arrangement and evaluate it. A model called economic utility constrained-maximization model is proposed. The purpose of this paper is to establish a strategy to determine the tourism industry insurance and risk control plan in which consideration is given to the balance with the economic effects (e.g. decrease in damage cost) due to disaster mitigation. Furthermore, these values were compared between those risk control actions to determine the priority and provide data to help evaluate the benefit of each risk control action.