1、Global Leisure and Hospitality Risk Outlook 2023 Where next for leisure and hospitality as the sector navigates emerging risks,challenges and opportunities?WTW Global Leisure and Hospitality Survey TABLE OF CONTENTSAbout our survey and key findings 04Future leisure and hospitality trends to watch 05

2、Market overview 06New technologies and digitalization 09Risk landscape 13ESG risks 19Risk management and resilience 23Risk alerts for 2023 and beyond 27Conclusion 28Survey sample and methodology 29 WTW Global Leisure and Hospitality Survey /3An industry getting back on its feet,slowly When the Colli

3、ns Dictionary chose permacrisis as their word of the year in 2022,they might have had leisure and hospitality in mind.Few industries have been as heavily impacted first by COVID-19,followed swiftly by the global cost of living crisis.Businesses are also feeling the impact of new technologies and com

4、petitors,from sharing platforms to fitness trackers.Consumer preferences are changing fast,making it hard to keep pace and maintain customer satisfaction.How is the sector adapting?We wanted to find out how businesses are coping in the face of these challenges and also where they see the opportuniti

5、es emerging that can lead to growth over the longer term.Our survey includes a broad cross-section of traditional leisure and hospitality businesses,as well as providers of in-home entertainment,such as gaming.Taking small steps forwardWe found that most traditional businesses including eating and d

6、rinking,hotels,venues,attractions and health and fitness,are focused on stabilization over the next couple of years,increasing margins where they can,rather than focusing on sales growth.While in-home entertainment providers have flourished during the pandemic,they will also be impacted by the cost-

7、of-living crisis and are similarly cautious about growth in the short term.Many firms are finding it difficult to manage their risks in a time of economic uncertainty and rapid change.Despite the challenges of keeping pace with changing consumer tastes and digital technology,this is also where many

8、businesses see their greatest opportunities for success in the medium term if they can adapt successfully.4/WTW Global Leisure and Hospitality Survey Key findingsPost-pandemic recovery still a work in progress COVID-19 hit traditional leisure and hospitality hard.44%of respondents said risk-related

9、losses were higher or much higher than expected over the last two years.Businesses in our survey are still feeling the long-term impacts,including a skills gap from staff leaving the sector(47%)and the shift to leisure activities at home(45%).Switch to digital will be pandemics greatest legacy The p

10、andemic may have provided a spur for companies to embrace new technologies and create innovative new offerings.Almost three-quarters(70%)said that an accelerated switch to digital first will be the greatest long-term legacy of COVID-19.Profitability is higher strategic priority than growthWith the g

11、lobal cost of living crisis following hard on the heels of the pandemic,its not surprising that company strategies are more focused on improving margins(46%)and growth through acquisition(48%)than on organic sales growth(35%)over the next two years.Businesses feel risks are not within their controlT

12、he sense of permacrisis in the industry may be making it harder to manage risks.Only 28%said the root causes of their risks were somewhat or completely within their control.Interestingly,almost three-quarters(74%)said they lacked the data or knowledge they needed to address their risks.Competition f

13、rom tech-savvy entrants is hotting upFrom home delivery apps to fitness trackers,new providers are looking to disrupt traditional leisure and hospitality business models and eat into market share.More than half(52%)of our respondents said increased competition from outside the sector was among the g

14、reatest obstacles to achieving their strategic objectives.Firms struggle to keep up with changing tastesYounger consumers want new experiences and Instagram-able moments,both online and in person,which can be challenging to deliver.This may explain why changing customer tastes and preferences were t

15、he second greatest obstacle to achieving strategic objectives(42%).Reputational risk is rising up the agendaA majority of businesses(59%)now measure and monitor their reputation to help identify and prevent potential threats that could tarnish their good name.46%think having insurance for reputation

16、 risks is necessary and 22%say its mission critical.When:September-October 2022.Who:600 senior decision makers,including CEOs,risk managers,operations managers and compliance managers.Where:Countries across Europe,North America,Asia-Pacific and Latin America.Sectors:Hotels and accommodation;health f

17、itness and wellbeing;venues and visitor attractions;bars,pubs,nightclubs,cafs and restaurants;gaming and gambling;media and entertainment.Size:99%of companies with annual revenue over$300 million,1%between$100-300 million.About our surveyPlease note the survey contained all closed questions with dif

18、ferent response options ranging from ranking questions and multi-select to single coded questions.In this report,we have included some of the findings from the survey,with breakdowns by industry sub-sector.For the full results,including breakdowns by region and job role,please contact us using the d

19、etails on page 31.WTW Global Leisure and Hospitality Survey /5Future leisure and hospitality trends to watchKey trendsFrontiers of new technology Offering tech-enabled customer experiences:more businesses will use tech,such as virtual reality and the metaverse,to create realistic tours pre-visit and

20、 personalized on-site experiences.Making it frictionless:well see more use of artificial intelligence to simplify booking and payment and RFID for keyless room access in hotels.With competition proliferating online,firms will also look to simplify apps and websites to improve the online experience.T

21、ransformation of people and workforce Improving the employee experience:firms will need to do more to recruit and retain staff,creating work that feels more meaningful and rethinking recognition and reward schemes.Blending automated systems and staff:finding the right balance between people and tech

22、nology will be key for example,using self-pay tablets in restaurants could free up staff to offer a better service to customers.Changing consumer preferences Bridging the demographic gap:the generations increasingly want very different things as younger consumers chase Instagram-able moments and new

23、 experiences,while older consumers require safety adaptations or mobility support.The increased desire for sustainable options is also influencing decisions for younger consumers.Scaling to meet changing demand:hybrid working and changing lifestyles will continue to affect how and where people spend

24、 in cities,suburbs and online.Businesses may find it increasingly difficult to scale up and down to meet changing demand.Sustainability and ESG Planning for climate impacts:were seeing heatwaves,wildfires,storms and floods in areas that never had them before.Businesses need to plan for these events

25、happening on a regular basis.Getting ahead of climate regulations:more businesses will make net zero commitments and report in line with the Taskforce for Climate-related Financial Disclosures(TCFD).Initiatives to reduce plastic and food waste will also increase.Emerging focus on water and biodivers

26、ity.While climate has tended to receive most attention to date,concerns related to water and biodiversity will become more prevalent over time,especially for assets that are in areas of high water scarcity or biodiversity hotspots,or that have large footprints.Integrating ESG into risk and materiali

27、ty efforts:as with many industries,risk leaders are incorporating ESG risks into their risk planning efforts,often expanding a generic ESG risks labels in materiality summaries into detailed risk(and opportunity)descriptions that are specific to their business.6/WTW Global Leisure and Hospitality Su

28、rvey Recovery and stability are top prioritiesDisruption is no longer a temporary state in leisure and hospitality its becoming a way of life as the sector deals with a succession of external shocks,as well as new technologies and challengers encroaching on traditional business models.Many businesse

29、s are still recovering from the impact of Covid-19,named by respondents as the top factor contributing to losses over the last two years.Almost a third(32%)said risk-related losses had been higher than expected over this period,while 12%said they had been much higher.Losses were greatest in areas mo

30、st affected by Covid restrictions 42%in hotels and accommodation said losses were higher than expected and 25%in health,fitness and wellbeing said much higher.Legacy of pandemic looms largeThe pandemic has left a legacy that firms are still grappling with,including the skills gap from staff leaving

31、the sector,named by 47%among the greatest long term impacts,and the shift to leisure activities at home(45%).Although 2022 saw a resurgence of interest in going out,which has helped the sector recover some ground,this upswing is largely being cancelled out by the global cost-of-living crisis,which l

32、ooks likely to dampen demand in the near term.Some areas,such as gaming and media,may have gained during the pandemic.Their main focus will be on maintaining that momentum post-COVID.New entrants pose competitive threatIts the impact of market upheaval and new competition that seems to worry busines

33、ses most looking forward.When asked what were the greatest obstacles to achieving strategic objectives,52%said increased competition from outside the sector(67%in entertainment venues and attractions),while 42%said changing consumer tastes and requirements.Firms focus on stability over sales growthG

34、iven these volatile market conditions,its perhaps not surprising that firms are focused on restoring profitability and stability rather than expanding sales right now.Almost half(48%)put increasing dividends and growth through acquisition among their top strategic priorities over the next two years,

35、46%increasing margins and 44%consolidation and stabilization.That compares to 35%who said organic sales growth.Market overview Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming a

36、nd gambling(100)Media and entertainment(100)Single code questionTotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainmentMuch higher than expectedTop 2 Box(Net)Higher t

37、han expectedAbout what expectedLower than expectedMuch lower than expectedFigure 1:Extent of risk related losses over last 2 years Over the last 2 years,which of the following best describes the extent of your businesss risk-related losses?12%44%32%44%11%6%48%42%42%9%1%1%1%25%54%29%11%43%32%49%8%17%

38、39%22%4%40%36%44%15%36%10%10%7%41%34%48%48%13%-%*%-%-%0%60%50%40%30%20%10%WTW Global Leisure and Hospitality Survey /7Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambli

39、ng(100)Media and entertainment(100)Rank 1/2/3TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainmentFigure 2:Top strategic objectives for the next 2 years What are yo

40、ur organisations top strategic objectives for the next 2 years?0%0%Increasing dividendsGrowth through acquisitionImproving marginsConsolidation and stabilisationIncreasing liquidityReducing costsOrganic growth60%60%50%50%40%40%30%30%20%20%10%10%48%47%48%46%44%42%37%35%44%42%42%40%42%43%40%44%50%49%4

41、7%44%43%38%40%30%42%38%44%46%54%46%49%45%30%26%52%51%42%38%33%48%36%28%39%56%56%46%48%28%54%8/WTW Global Leisure and Hospitality Survey Figure 3:Greatest obstacles to businesses achieving strategic objectives Which of the following represent the greatest obstacles to your organisation achieving its

42、strategic objectives?Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Rank 1/2/3/4TotalEntertainment venues and visitor attractionsH

43、otels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainment0%0%Increased competition for customers from outside your sectorCapacity constraintsChanging customer tastes and requirementsLack of time for strategic focusInte

44、rnal culture not aligned with objectivesIncreased regulationIncreased competition from within your sectorSupply chain issuesLack of access to capitalRising costsDifficulties in attracting and retaining talent50%50%70%70%40%40%60%60%30%30%20%20%10%10%52%33%59%39%42%33%42%32%36%32%34%30%34%24%32%39%28

45、%44%32%32%32%39%49%38%48%37%49%23%48%26%45%37%29%27%34%39%35%32%34%33%46%38%67%35%37%33%42%38%36%31%30%20%27%42%27%27%40%32%27%33%33%29%36%32%35%57%28%52%30%47%33%35%32%46%35%38%31%WTW Global Leisure and Hospitality Survey /9New technologies and digitalization Tech is the solution not the problemSta

46、ying in vs going out is the contest that may define the future of leisure and hospitality.How well businesses adapt and innovate,either finding new ways to attract people out of their homes or offering exciting experiences online,could be the difference between success and failure over the next few

47、years.Stay in digital platforms,such as streaming services,home delivery apps,and fitness games and trackers,have gained a major foothold during the pandemic.Now these competitors are looking to entrench their position and increase market share,posing an increasing challenge to traditional going out

48、 providers.On the other side of the divide,media and gaming businesses that already cater to an at home audience have been doing well.But even here,there is pressure to stay relevant at a time of rapid change,when new technologies such as augmented and virtual reality promise to change the way that

49、service and experiences are delivered.Taking a digital first approach Our survey suggests that firms across the sector are beginning to embrace digitalization and address changes in consumer preferences and demographics.It seems that despite the disruption and losses suffered during the pandemic,it

50、did provide a needed spur to innovation.A large majority(70%)said the accelerated switch to digital first and digital logistics will be among the greatest long-term impacts of the pandemic.1 https:/www.theaudienceagency.org/evidence/covid-19-cultural-participation-monitor/recent-key-insightsMore tha

51、n half(52%)said that continuing with adaptations made in response to the pandemic was among their biggest business opportunities over the next two years(64%in entertainment venues and visitor attractions).Half(50%)said engaging with younger consumers (58%in pubs,bars,restaurants and cafes),49%consum

52、er desire for experiences(56%in gaming and gambling),42%digital technologies(52%in media and entertainment),and 40%changing tastes and preferences.Creating new experiences onlineWhen asked about their greatest digital transformation opportunities in the next three years,42%said digital rewards,41%im

53、proved data and data access,and 40%artificial intelligence.More than a third(35%)said online offerings including augmented reality but there was a wide range between sub-sectors with 50%in bars,cafes,nightclubs and restaurants seeing this as a top opportunity and only 14%in entertainment venues and

54、visitor attractions.92%of people in the UK said they intend to scale back on entertainment spend outside of the home as a result of the cost-of-living crisis.110/WTW Global Leisure and Hospitality Survey Figure 4:Greatest opportunities for the leisure and hospitality sector over the next 2 years Whi

55、ch of the following do you believe represent the greatest opportunities for the leisure and hospitality sector over the next 2 years?Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Ga

56、ming and gambling(100)Media and entertainment(100)Rank 1/2/3/4TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainment0%0%Continuing with adaptations to business made

57、in response to the pandemicRemote deliveryEngaging with younger more socially minded consumersChanging dietary requirementsConsumer desire for experiencesConsolidation/acquisitionDigital technologiesEmbracing sustainabilityChanging tastes and preferencesReturn of tourists50%50%70%70%40%40%60%60%30%3

58、0%20%20%10%10%52%37%37%40%50%36%49%34%42%34%40%26%51%44%51%30%39%39%41%28%55%48%40%51%43%42%38%56%31%37%45%28%40%33%46%35%57%29%64%36%35%58%35%49%37%37%40%40%25%49%43%41%38%33%18%29%36%54%37%46%28%43%27%47%38%52%34%35%48%14%WTW Global Leisure and Hospitality Survey /11Base:All respondents(600)Hotels

59、 and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Rank 1/2/3/4TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafe

60、s and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainmentFigure 5:Greatest digital transformation opportunities in the next 3 years?Thinking about digital transformation,which of the following do you think offer the greatest opportunities to your business in the next th

61、ree years?0%0%Digital rewardsOnline offerings,including augmented reality(AR)AutomationInternet of things(IoT)Hybrid workingVR and the MetaverseContactless ordering systemsImproved data and data accessArtificial intelligence and machine learningConvenient reservation systemsHybrid training for staff

62、RFID for keyless room entries50%50%40%40%30%30%20%20%10%10%42%35%33%33%32%24%6%37%37%28%28%29%37%12%41%40%39%37%37%40%48%32%36%36%43%41%34%26%31%23%3%2%37%49%25%35%26%39%34%17%45%41%35%33%47%39%43%45%33%29%35%25%4%36%38%14%44%37%37%32%19%42%39%50%41%39%39%43%46%34%41%34%27%45%50%32%20%15%46%31%44%42

63、%25%-%12/WTW Global Leisure and Hospitality Survey Our survey shows an increasing digital focus in leisure and hospitality.Even businesses that dont offer online services are becoming reliant on technology for their operations,from customer bookings to supply chain management.This greater dependence

64、 brings increased risks,from cyber-attacks and ransom demands to data breaches,loss of confidence in the business and potential reputational damage.An incident that might once have only caused temporary inconvenience may now bring the whole business to a halt.Countries around the world are expected

65、to add to consumer privacy laws and regulations in 2023,while litigants find new routes for claims.For example,in California,class action lawyers are targeting websites that use chat bots to communicate with customers,alleging that they violate privacy laws by recording communications with consumers

66、 without their knowledge or consent.To protect themselves against cyber threats and prevent data breaches,businesses should:Implement cyber security controls such as multi-factor authentication,privileged access management(PAM),encryption,endpoint security and rapid patch systems for critical assets

67、.Train staff in cyber security and create a culture of openness.Never try to hide a cyber incident.A leading ride sharing company that failed to disclose a breach for a year was fined almost$150 million after the data of over 50 million customers was compromised.Integrate cyber threats into business

68、 continuity plans:make cyber a regular part of incident response and disaster recovery planning.Identify vulnerabilities and fix them.Assess what insurance cover is needed:even with the best controls,incidents can still happen.Cyber insurance can protect your business from incidents caused by cyber-

69、attack,human error and technical failure.WTW insight:Cyber riskRisk landscape Firms face a spectrum of enterprise risksIn a complex,interconnected world,leisure and hospitality firms are concerned about a wide range of risks that affect their ability to do business and reflect the current upheavals

70、in the sector and the wider economy.Economy and cost of livingWith high inflation set to continue this year,its not surprising that cost and availability of inputs including raw materials(28%)was named among the top risks to business success over the next three to five years.Social inflation,such as

71、 the rising cost of litigation,was a top risk for 25%(37%in health,fitness and wellbeing).The economic climate and reduced disposable income was named by 24%.Property and business interruptionLeisure and hospitality suffered high levels of business interruption during the pandemic but very little of

72、 this was covered under traditional property insurance policies.This may explain why property comes high on the list of risks to business success(28%).Firms may also be concerned about the costs of running properties and climate and weather-related exposures.Supply chain Supply chain and infrastruct

73、ure issues will continue to loom large this year,named by 28%among their top risks to business success.Looking at individual supply chain challenges,42%said logistics and warehousing shortages are among their biggest concerns.This is especially true in health,fitness and wellbeing(52%),bars and rest

74、aurants(48%)and gaming and gambling(48%).Cyber and data privacyThe sectors increasing reliance on digital technologies and migration of services from bricks and mortar to online also brings with it increased cyber risk,cited by 24%as a risk to business success,rising to 32%in media and entertainment

75、.As they embrace digital transformation,firms will inevitably hold greater volumes of customer data,raising issues around data privacy and consent a top risk for 24%.Reputational risksIn a business built on word of mouth and good name,reputation risks are understandably front of mind,named by 23%of

76、respondents among their risks to success.Incidents such as customer abuse by employees or injury or illness at a restaurant or venue,can be picked up and spread on social media.One complaint that gets traction can damage a reputation built up over many years.WTW Global Leisure and Hospitality Survey

77、 /1314/WTW Global Leisure and Hospitality Survey Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Rank 1/2/3/4/5TotalEntertainment v

78、enues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainmentFigure 6:Greatest risk to business success in the next 3-5 years Thinking about the next 3 to 5 years,which of these factors do you

79、 believe pose the greatest risk to your organisations success?0%0%Cost and availability of inputs(such as raw materials,energy,transport)Big data/data privacy/informed consentSupply chain and infrastructure riskPandemicsProperty risksCyber risks,e.g.,phishing,employee fraud,ransomware,data breachesD

80、igital transformation risksDirectors and officers liability risksSocial inflation,such as rising costs of litigationBrand and reputational riskEconomic climate,including reduced disposable incomeGeopolitical risks40%40%30%30%20%20%10%10%28%24%28%22%28%24%28%24%28%23%25%23%24%22%23%29%30%21%29%23%28%

81、19%30%26%24%25%20%25%33%27%35%18%30%24%26%23%25%21%26%13%20%26%22%30%29%23%34%20%25%24%25%18%19%27%26%21%27%21%23%26%32%25%37%19%23%23%29%19%25%27%20%25%30%21%35%22%23%17%33%32%24%32%17%26%WTW Global Leisure and Hospitality Survey /15Figure 6(contd):Greatest risk to business success in the next 3-5

82、years Thinking about the next 3 to 5 years,which of these factors do you believe pose the greatest risk to your organisations success?0%0%M and A risksHealth and safety risksEnvironmental risk/climate change/severe weather eventsFood provenanceChanging tastes and preferencesChallenges in talent acqu

83、isition and retentionTravel disruption facing consumersWorkplace violence and abuseCompetition and disrupters entering your sectorBorder/customs issues post BrexitAllergen risks40%40%30%30%20%20%10%10%22%20%25%10%22%17%21%16%21%12%20%7%20%25%16%18%12%18%12%21%10%25%20%19%28%15%21%20%17%21%21%18%22%1

84、9%15%8%16%27%18%17%26%12%16%21%17%21%24%15%28%7%15%19%11%22%22%17%8%29%8%25%18%11%16%3%13%34%33%16%19%27%22%18%13%25%9%13%8%16/WTW Global Leisure and Hospitality Survey Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions

85、(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Rank 1/2/3/4TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainmentFigure 7:Grea

86、test supply chain risk for business in the next 2 years?Which of the following supply chain risks do you believe will have the greatest impact on your business in the next 2 years?Logistics and warehousing shortagesConstruction delaysPandemicsGeopolitical factorsComponent or ingredient shortagesRegu

87、lation changesCyberBrexitJust-in-time operating modelsShipping container shortagesRaw material shortagesShortage of driversShortage of talentNatural disasters42%28%28%28%26%20%19%8%29%23%29%32%30%29%15%9%36%35%33%33%33%31%42%26%29%36%28%43%52%30%24%31%31%11%17%7%24%7%29%48%28%28%26%28%24%19%36%38%34

88、%33%38%19%25%9%32%32%35%40%35%24%30%8%17%13%37%38%22%27%27%26%20%34%44%32%21%40%33%39%39%39%37%25%28%34%33%33%24%48%26%22%18%23%6%29%37%30%31%36%0%0%50%50%40%40%60%60%30%30%20%20%10%10%WTW Global Leisure and Hospitality Survey /17Property emerged as one of the greatest risks to success in our survey

89、,even in sub-sectors such as gaming and gambling which are moving increasingly online.For most traditional leisure and hospitality operators,its the core of their business.But protecting buildings and assets from damage,and associated business interruption,is becoming more difficult and costly.Extre

90、me weather events are becoming more common and unpredictable,increasing risks for hotels and leisure attractions located in high catastrophe risk areas.Meanwhile,soaring inflation is leading to higher reinstatement costs and insurance rates.Reinsurance rates are likely to see a jump in 2023 and this

91、 will have a significant knock-on impact on the cost of property insurance.As the market hardens,some businesses may find it difficult to get adequate cover or struggle to afford the limits they would like to have.It will be the job of the brokers to communicate with the businesses the different opt

92、ions and solutions available to them.Businesses should engage earlier with their brokers to prepare renewal submissions that will help them maximize cover and keep control of premiums.Key to this is updating their schedules of values to reflect the latest inflation numbers and the true cost of rebui

93、lding.If insurers see a well-prepared realistic submission,theyre much more likely to be flexible and negotiate terms.Having up to date values can also help businesses ensure they are adequately funded for any property risks they retain within the company.Risk analytics can also play an important ro

94、le in assessing and quantifying risks to identify what limits are needed.This can also help inform decisions on which elements of risk to retain.WTW insight:Property and business interruption WTW insight:Supply chain risk For many leisure and hospitality businesses,the pandemic was the first time th

95、ey experienced serious supply chain issues.Typically,businesses in the sector can easily switch providers for most of the items they need.But in a global supply chain crisis that didnt work.Suddenly it was much harder to find alternative supplies even for basic items,leading to delays and business i

96、nterruption.Some businesses operating on a just-in-time model were left without stock and unable to change to bulk ordering as there was no warehouse space available.Although many of the pandemic shortages have now eased,the Ukraine conflict and increasing extreme weather events highlight continuing

97、 global risks.Leisure and hospitality businesses need to think more carefully about what it takes to keep their businesses running and be more proactive in projecting and managing fluctuations in demand.Being able to document and understand your supply chain is crucial in minimizing interruption.Ana

98、lytics tools such as WTWs Supply Chain Risk Diagnostic can help businesses map their supply chains and quantify risks at each location and stage of the journey.This can enable scenario planning and lead to better decision making and business continuity planning.Although there is no one insurance sol

99、ution to cover all supply chain risks,some cover is available through extensions to property and business interruption policies.Marine cargo policies will cover goods while in transit,which is an increasing source of delays and therefore potential cost to leisure and hospitality.18/WTW Global Leisur

100、e and Hospitality Survey How to protect against terror threatsTerror attacks and active assailants are a continuing risk for most leisure and hospitality businesses,particularly those that welcome large crowds.In some countries,such as the UK,these businesses are facing new regulatory duties to prot

101、ect the public from these threats.As part of their crisis management planning,firms should consider measures to make their venues less vulnerable to attack and respond effectively if an incident occurs.Deter:fences,lights,signs and security personnel will let attackers know your business is not a so

102、ft target.Detect:training your staff to spot suspicious behavior and installing CCTV and alarms can help you prevent an attack before it happens.Delay:vehicle barriers and rollershutter doors can delay or stop assailants getting into your premises,giving more time to prepare your response.Mitigate:s

103、imple protections such as anti-blast film on windows can reduce the damage from an attack.Respond:a good incident response plan,including first aid and links to emergency services,will help minimise harm and loss of life.This should be tested in regular drills and exercises.Staff should be trained t

104、o make sure they have the right capabilities and know what to do if an attack occurs.WTW Global Leisure and Hospitality Survey /19ESG risksESG issues are increasingly front and centreSustainability is now an essential in leisure and hospitality,not a nice to have.Businesses are facing pressure from

105、governments and regulators to reduce their emissions,while many younger,socially-minded consumers are looking for visible commitment to energy consumption and water usage,ethically sourced food and drink and,increasingly,awareness and action on social issues.In our survey we found that businesses ar

106、e taking these issues seriously across all sub-sectors.The vast majority(88%)have a formal process to manage ESG risks that everyone is trained in(in a range from 93%in hotels and accommodation to 73%in entertainment venues).For about a third(34%)the process is measured and evolves over time.Environ

107、mental:natural resources are top concernInterestingly,when asked which environmental factors posed the greatest risk to their business,70%named natural resources such as water,raw materials and biodiversity among their top concerns,compared to 50%who said carbon emissions.Part of the reason for this

108、 is that,having already set emission inventories and taken steps to reduce emissions,many organizations are now focusing on the depletion of the natural resources they rely on.Social:community relations rank highlyCompanies are actively integrating their focus on gender and race and diversity issues

109、 into their overall ESG priorities and metrics.Community relations(64%)and labour standards(63%)emerged as the top social risk factors,reflecting the industrys high dependence on local goodwill and staff recruitment and retention to operate successfully.Gender,race and diversity(57%)also ranked high

110、ly,with businesses that welcome the public needing to be mindful of issues such as gender identity and unconscious prejudice.Governance:risks reflect financial scrutinyAudit committee structure and board composition was easily the biggest governance factor,named by 59%among their top risks.This may

111、indicate concern about potential legal action or claims if they are found to have breached financial regulations.Shareholder actions emerged as the top concern for directors and officers,named by 45%among their leading risks.Health and safety:homeworking risks increasingHygiene and infection(43%),wo

112、rking with machinery(38%)and slips and trips(38%)top the list of biggest health and safety risks.But newer concerns also featured,including assault by customers(33%)and risks related to homeworking incidents(30%),reflecting the changes in society and the way work is organized.In common with most pub

113、lic facing sectors,sustainability has moved from a nice to have to a business essential in leisure and hospitality.Businesses that ignore ESG issues run an increasing risk of being isolated by consumers and investors.Consumer preferences are changing,and people are looking for more environmentally s

114、ound options.Customers now expect to see ethically sourced food and drink,evidence of reduced carbon footprint and,increasingly,awareness and action on social issues.Firms are also facing increasing regulatory requirements.For example,in many countries,businesses are being required to disclose clima

115、te-related financial information based on Taskforce for Climate-related Financial Disclosures(TCFD)guidelines.To meet these growing requirements,ESG needs to become a priority at board level and be integrated in business continuity planning.Tools such as WTWs Climate Diagnostic provide excellent ins

116、ights on physical climate risk,while our ESG Clarified platform enables our clients to track and report on ESG.Our experts also help companies complete TCFD efforts and identify,measure,and mitigate priority climate and ESG risks.Though not a highly polluting sector,leisure and hospitality also face

117、s similar risks to any large company with complex operations.For example,untreated or poorly disposed waste can be damaging to both humans and wildlife if it gets into groundwater or rivers.Building work could bring historic pollution to the surface,which can contaminate the soil and cause toxic run

118、off.To mitigate these risks,companies should apply a global standard for environmental management across all global operations,ideally with a dedicated team to oversee and enforce policies.WTW insight:ESG risks20/WTW Global Leisure and Hospitality Survey Figure 8:Greatest ESG risk to business (Envir

119、onmental factors)Which of the following environmental factors pose the greatest risk for your business?Figure 9:Greatest ESG risk to business (Social factors)Which of the following social factors pose the greatest risk for your business?Rank 1/2/3Rank 1/2/30%0%Natural resources(water,raw materials,b

120、iodiversity)Community relationsPollution,waste and recyclingLabour standardsProcurement(sustainable,green)Employee engagementEnergy(efficient,renewable,sustainable)Human rightsCarbon footprint and emissionsGender,race and diversity50%50%70%70%80%80%40%40%60%60%30%30%20%20%10%10%70%64%67%66%62%63%60%

121、59%58%58%50%57%60%66%59%53%64%51%50%64%74%56%66%57%69%64%67%53%63%64%61%62%61%60%50%41%73%57%62%65%64%71%61%66%57%58%54%61%58%57%54%67%53%56%53%64%37%51%70%69%57%69%71%54%57%58%58%56%50%64%Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and

122、 visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media

123、 and entertainment(100)TotalTotalEntertainment venues and visitor attractionsEntertainment venues and visitor attractionsHotels and accommodationHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingHealth,fitn

124、ess and wellbeingGaming and gamblingGaming and gamblingMedia and entertainmentMedia and entertainment WTW Global Leisure and Hospitality Survey /21Figure 10:Greatest ESG risk to business (Governance factors)Which of the following governance factors are the greatest priority for your business?Rank 1/

125、2/30%0%Audit committee structure and board compositionExecutive compensationLobbying and political contributionsData protection and privacyHealth and safetyBribery and corruptionWhistleblower schemes50%50%70%70%40%40%60%60%30%30%20%20%10%10%59%59%46%43%41%38%38%35%48%37%52%34%36%34%58%35%65%47%43%43

126、%38%38%38%27%60%53%57%45%44%38%38%47%34%33%34%47%40%34%41%45%40%43%34%57%51%38%47%35%33%Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment

127、(100)TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainment22/WTW Global Leisure and Hospitality Survey Base:All respondents(600)Hotels and accommodation(100)Health,

128、fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Rank 1/2/3/4TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitnes

129、s and wellbeingGaming and gamblingMedia and entertainmentFigure 11:Biggest health and safety risks to the workforce What are the biggest health and safety risks for your workforce?0%0%Hygiene and infection riskAssault by customerMachinery/moving equipment/machine guardingWorkplace vehiclesSlips,trip

130、s and fallsHeat or cold exposurePoor posture/ergonomics/repetitive strain injury(RSI)Home working related risksManual handlingIndustrial disease(such as asthma,or dermatitis)Burns,scalds and cutsFalls from height40%40%50%50%30%30%20%20%10%10%43%33%37%25%38%32%38%31%38%30%35%30%34%28%33%25%37%34%41%2

131、4%29%32%40%33%40%27%41%29%45%42%42%34%39%24%42%27%26%22%40%36%40%38%33%48%27%39%31%27%34%32%28%30%24%35%39%44%30%44%23%36%32%29%30%37%25%37%30%24%39%29%27%17%49%33%34%39%33%33%30%29%41%33%34%19%WTW Global Leisure and Hospitality Survey /23Risk management and resilienceGaining control over risks is a

132、 struggleOverall we found that businesses have a good approach to managing risk.More than three quarters(76%)said their C-suite is largely aligned with risk management,while 92%said they had a formal process for business continuity planning.However,as weve discussed,many leisure and hospitality busi

133、nesses are reeling from the impact of successive global shocks and the pace of change in technology and consumer behavior.Our results suggest that events may be running ahead of capability to manage the associated risks effectively.For example,only 27%of respondents in our survey said the root cause

134、s of their risks were somewhat within their control,while only 1%said they were entirely within their control.Firms lack the knowledge to address risksWhen asked about the greatest challenges to addressing their risks over the next three to five years,almost three-quarters(74%)said they lacked the n

135、ecessary data or knowledge,69%said they didnt have access to the right insurance and risk transfer solutions,and 56%lacked the right risk management tools and insight.Most businesses rely on general insurance to cover their main risks.As the risk landscape evolves,with new risks emerging and some co

136、ver being restricted,this may leave significant exposures and gaps in cover.Climate-related risks are not well coveredFor example,despite the increasing frequency and severity of climate-related extreme weather events,a majority of businesses(52%)said their insurance covered damage to property only

137、and not the cost of business interruption if they are forced to close.Entertainment venues and visitor attractions were a notable exception with 70%saying they had business interruption cover.Almost a third(32%)said they have no insurance for the impact of extreme weather in their supply chain,while

138、 55%said they had some cover but werent sure if it was sufficient.Climate risks are more than just physical risks.Companies are increasingly focusing on climate-related transition risks,such as emerging regulation,changes in consumer preferences,reputational impacts,business-specific impacts of carb

139、on reduction and the shift to renewables,and more.Reputation risks are hard to manageWhile 46%think having insurance for reputation risks is necessary and 22%say its mission critical,only 21%have specific insurance that could cover the costs of crisis management and recovery.A majority of businesses

140、(59%)now measure and monitor their reputation(67%in health,fitness and wellbeing).Almost half(49%)think reputation is critical to their ability to make money,rising to 66%in media and entertainment.But more than half(51%)think reputation risks are harder the manage than other risks(61%in hotels and

141、accommodation).Many firms(47%)think social media has increased their reputational risks(56%in hotels and accommodation).24/WTW Global Leisure and Hospitality Survey Figure 12:Greatest challenges to addressing businesses risk over the next 3-5 years Which of the following will pose the greatest chall

142、enge to addressing your risks over the next 3 to 5 years?Figure 13:Businesses control of root causes of risk How would you describe the level of control your business has over the root causes of the risks it faces?Rank 1/2/3Single Code Question0%Lack of data,knowledge and understanding of these risk

143、sTop 2 Box(Net)Lack of access to insurance and risk transfer solutionsCompletely within our control(5)Lack of internal risk management tools and insightSomewhat within our control(4)Lack of board buy-inMix of within our control and outside our control(3)Lack of budget50%70%80%90%40%60%30%20%10%74%28

144、%80%34%69%1%56%27%56%52%45%71%2%58%32%49%48%42%70%22%68%-%72%27%75%-%57%25%56%52%62%61%50%74%35%70%3%69%28%63%-%54%28%60%40%42%56%22%59%60%47%45%76%22%65%2%54%22%60%32%52%50%44%Completely outside our control(1)Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Ent

145、ertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)Base:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment venues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming a

146、nd gambling(100)Media and entertainment(100)TotalTotalEntertainment venues and visitor attractionsEntertainment venues and visitor attractionsHotels and accommodationHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and

147、 wellbeingHealth,fitness and wellbeingGaming and gamblingGaming and gamblingMedia and entertainmentMedia and entertainment0%50%70%40%60%30%20%10%Somewhat outside our control(2)20%18%21%32%18%17%15%-%-%-%-%-%-%-%WTW Global Leisure and Hospitality Survey /25Figure 14:Insurance for impact of extreme we

148、ather events to property and business interruptions What best describes your property and business interruption insurance for the impact of extreme weather events?Single Code QuestionWe have property insurance to cover all associated risksOur insurance covers damage to property onlyOur insurance cov

149、ers property damage and business interruptionNot sure if extreme weather events are covered15%16%52%32%*%60%24%-%13%59%8%30%36%1%1%-%15%55%32%55%38%-%27%8%55%37%30%-%We dont have property insuranceBase:All respondents(600)Hotels and accommodation(100)Health,fitness and wellbeing(100)Entertainment ve

150、nues and visitor attractions(100)Pubs,bars and nightclubs(100)Gaming and gambling(100)Media and entertainment(100)TotalEntertainment venues and visitor attractionsHotels and accommodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingMedia and entertainm

151、ent0%50%70%40%60%30%20%10%Leisure and hospitality businesses are facing increasing gaps in their casualty cover because of blanket exclusions imposed by insurers.For example,many policies contain a blanket communicable diseases exclusion,which left operators seriously exposed to claims during the pa

152、ndemic.However,these exclusions can sometimes be avoided if you have the right information and data.Insurers might agree to drop the communicable diseases exclusion if you can demonstrate strong protocols for disease prevention and document how and when you clean rooms and facilities,including the c

153、leaning materials used.Likewise,carriers may be persuaded to reduce exclusions around customer abuse caused by employees if you can produce evidence of vetting and police checks when employing customer-facing staff.As mentioned elsewhere in this report,leisure and hospitality customers are increasin

154、gly looking for experiences and Instagram-able moments.This can lead operators to offer more extreme activities,which can increase the risk of injury and liability claims.Where these activities are run by concessionaires,businesses need to get contractual indemnities from them accepting liability fo

155、r any injury and damage.Theft or misuse of customer data by employees is another increasing source of liability claims.Firms should have robust firewalls in place to ensure that staff cannot access information such as credit card numbers.WTW insight:General and employers liability-%-%-%-%-%-%-%26/WT

156、W Global Leisure and Hospitality Survey Understanding the risks to your reputation can be the first step to minimizing them.Based on our experience of cases and claims in leisure and hospitality,weve identified the factors most likely to lead to negative publicity.These include:Harm to people on the

157、 premises Allegations of unsafe or unhygienic conditions Discriminatory attacks or abuse on customers Active assailant Employee abuse or poor working conditionsIf an incident happens in any of these areas,it can be magnified in the glare of social media negative experiences can go viral and even hit

158、 the mainstream news.Knowing how to overcome the fallout is key to maintaining a good reputation.Customers will scrutinize how you respond to a crisis as much as the crisis itself.They want to see that youre handling the situation,taking action to avoid future incidents and facing up to your respons

159、ibilities.Its a good idea to keep your ear to the ground and monitor how your business is perceived,whether thats in the press,on social media or among your peers.WTW has partnered with Polecat to develop a risk monitoring tool powered by artificial intelligence(AI)linked to crisis management respon

160、se that can help you get ahead of any brewing story before it hits the headlines.Our Reputational Risk Readiness Review can help you clarify your reputational risks,identify the potential impacts,map any gaps in your mitigation measures,and prioritize the matters of greatest concern.You can also ben

161、chmark your businesss resilience to reputational risks against the strategies used in 500 of the worlds leading companies on our Reputational Risk Benchmarking portal.We also offer Reputational Crisis Insurance specifically designed to help companies understand and manage the risk of reputational da

162、mage.WTW insight:Reputation risk WTW Global Leisure and Hospitality Survey /27Risk alerts for 2023 and beyondData privacy and consent With digitalization,automation and use of new technologies such as virtual reality,businesses are collecting and storing increasing amounts of customer data.This not

163、only increases the risk from cyber attack,it also raises fresh data privacy concerns.Firms can stray into privacy breaches if they dont have clear and adequate consent for how they use and manipulate this data.Virtual reality health and ethicsVirtual spaces such as the metaverse create a new reality

164、 which also brings new risks.As these spaces become more like alternative worlds,who is liable for any harm that might occur in them?For example,long-term use of virtual reality could create as yet unknown physical and mental health impacts.Its also unclear who will regulate transactions or disputes

165、 that occur in these spaces,in which jurisdiction.Reputation and cancel cultureIn a heated social media environment,companies as well as celebrities can be targets for cancellation.Activists are particularly quick to pick up on any perceived hypocrisy saying one thing in public while private actions

166、 or past behaviors demonstrate the opposite.Firms should go through their history and make sure there is nothing that conflicts with current positions on issues such as diversity and sustainability.Compliance and codes of conductRegulation is increasing in areas such as anti-terror,food safety,gambl

167、ing and anti-money laundering.Firms need to keep up to speed on latest legislation and have clear procedures and codes of conduct in these areas if they want to stay on the right side of the law.28/WTW Global Leisure and Hospitality Survey Conclusion:finding a way through the permacrisisThe leisure

168、and hospitality sector has taken almost everything that could be thrown at it in the last few years.Even if many business havent come up smiling,most are finding a way to survive and are busy laying the groundwork for future success.Theyre turning adaptations made in response to the pandemic into op

169、portunities.Learning to use digitalization to their advantage,streamlining processes,creating a better customer experience and finding the right balance between bricks and mortar and online.As the sector evolves,so does the risk landscape firms need to navigate.Doing more in the digital and data spa

170、ce means increasing cyber risks.External threats from global instability to climate change may put supply chains and business models under further strain.Workplace transformation could increase the risk of employment-related claims.To build resilience against these risks,its a good idea to reassess

171、the critical risk issues in your business,where you need to focus,how you can manage the key risks you face,and where you might need more protection.WTW offers a range of insurance and consultancy solutions that can support you through this process,helping you quantify,model,mitigate and transfer yo

172、ur risk,while protecting your reputation.Survey sample and methodologyMethodology Phone to webSample size 600 Globally:North America(200)Europe(150)APAC(150)LATAM(100)Audience profile All respondents are global senior executives responsible for risk strategy in companies with revenues of US$300 mill

173、ion+(except LATAM Entertainment sector with some US$100-299 million)Fieldwork dates September to October 2022Our survey was carried out by our partner Coleman Parkes Research in September and October 2022,using a mixture of phone interviews and web-based survey forms.We received 600 responses from s

174、enior decision makers within leisure and hospitality businesses based in Europe,North America,Asia-Pacific and Latin America.Study detailGeographyRoleCompany revenueAudience profileIndustryDecision-makingNorth AmericaI am the key decision maker in terms of risk managementOver US$300mI am part of a t

175、eam who are involved in decision making regarding risk managementUS$100-$149mEuropeAPACLATAMHotels and accomodationPubs,bars and nightclubs,cafes and restaurantsHealth,fitness and wellbeingGaming and gamblingEntertainment venues and visitor attractionsMedia and entertainment33%19%99%81%1%25%25%17%17

176、%17%17%17%17%17%0%0%0%0%40%100%100%80%80%40%30%60%60%30%20%40%40%20%10%20%20%LATAM Entertaiment vanues and visitor attractions(relaxed quota)10%30%28%28%13%Operations ManagerCEO or equivalentCompliance ManagerRisk Manager WTW Global Leisure and Hospitality Survey /29 WTW Global Leisure and Hospitali

177、ty Survey /31For more information,please contact:AsiaGraham EdwardsHead of Sales&Client Management Asia +65 6958 Australia and New ZealandTrent WilliamsHead of Broking,Australasia+61 423 598 EuropeVictor de JagerHead of Property for Europe+31(0)6 2111 IrelandBrian ODwyerHead of Regions CRB+353 21 Po

178、landJerzy Suchodolski Head of Construction and Finance Insurance Department+48 509 909 North AmericaJim MartuscelliHead of Real Estate and Hospitality Industry PSpainJuan Carlos TrragaHead of Travel and Tourism Industry+34 971 71 83 South AmericaRoman MesuracaRegional Head of P&C&Broking-LatAm+54 11

179、 4324 UKKay McMenaminLeisure and Hospitality Practice Leader+44 20 3124 DisclaimerWTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates.For further authorisation and regulatory details about our WTW legal entities,oper

180、ating in your country,please refer to our WTW website-https:/ is a regulatory requirement for us to consider our local licensing requirements.The information given in this publication is believed to be accurate at the date of publication shown at the top of this document.This information may have su

181、bsequently changed or have been superseded and should not be relied upon to be accurate or suitable after this date.This publication offers a general overview of its subject matter.It does not necessarily address every aspect of its subject or every product available in the market and we disclaimer

182、all liability to the fullest extent permitted by law.It is not intended to be,and should not be,used to replace specific advice relating to individual situations and we do not offer,and this should not be seen as,legal,accounting or tax advice.If you intend to take any action or make any decision on

183、 the basis of the content of this publication you should first seek specific advice from an appropriate professional.Some of the information in this publication may be compiled from third party sources we consider to be reliable,however we do not guarantee and are not responsible for the accuracy of

184、 such.The views expressed are not necessarily those of WTW.Copyright WTW 2023.All rights 2023 WTW.All rights reserved.FPS4231439 WTW_85073/01/About WTWAt WTW(NASDAQ:WTW),we provide data-driven,insight-led solutions in the areas of people,risk and capital.Leveraging the global view and local expertis

185、e of our colleagues serving 140 countries and markets,we help you sharpen your strategy,enhance organisational resilience,motivate your workforce and maximise performance.Working shoulder to shoulder with you,we uncover opportunities for sustainable success and provide perspective that moves you.Learn more at .