With the service sector being such an important part of the world economy, it is important to understand the risks that can come with it, more importantly the risks surrounding the accommodation business and tourism. Tourism today employs a higher number of people across the world; as such it is important that the businesses within this service sector are healthy and successful in order for those individuals to have job stability. It is also worth noting that the tourism sector is generally a very sustainable way for a country to increase their revenue, due to the fact that it has a much smaller environmental impact than most other sectors. Unfortunately it is also the most vulnerable sector due to the fact that it is highly susceptible to social and political issues.
Due to the fact that most of the tourism sector is based on people making a conscientious decision of going to a location in order to spend their free time, it is highly vulnerable to negative perception that can stem from a number of reasons. A country that was highly dependent on tourism, such as Greece recently had an economic downturn which also led to a number of social tensions and insecurity.
For only that reason, despite the fact that there were no significant events taking place, it had still been perceived as an unsafe place to visit, therefore tourism had dried up to extremely low levels which in turn had damaging effects on the accommodation businesses with a number of them having to close down or lay off some of their staff. As such, it is quite evident that a significant part of the accommodation businesses is dependent on the transit of tourists, the lack of which can spell disaster in many situations. Recently however, some of that negative perception has been washed away with tourists starting to go back to Greece.