Risk Management Practices and Their Effects on Hotel and Resort Attributes in Surigao del Norte, Philippines
Abstract
This study examined the risk management practices of hotels and resorts in Surigao del Norte and their effects on key attributes of reputation, perceived quality, and financial performance. A quantitative descriptive survey design was employed, involving 263 respondents composed of hoteliers, resort owners, and employees selected through purposive sampling. Data were gathered using a validated researcher-made questionnaire, which achieved a Cronbach’s alpha of 0.96, indicating excellent reliability. Statistical treatments included frequency count, percentage, mean, and standard deviation for descriptive analysis, while inferential tests employed Analysis of Variance (ANOVA) and Spearman’s rank correlation coefficient at a 0.05 level of significance. Findings revealed that risk management practices across the four dimensions of identification (M=3.48), assessment (M=3.38), mitigation (M=3.45), and monitoring (M=3.35) were all rated as “highly practiced.” Differences in practices were statistically significant when grouped by business profile—type of property (F=4.32, p=0.018), location (F=3.89, p=0.024), number of employees (F=5.01, p=0.011), and years of operation (F=2.76, p=0.041)—as well as by demographic profile, including age, educational attainment, position, and years in service. Spearman’s correlation further indicated strong positive relationships between risk management practices and hotel reputation (ρ=0.642, p<0.001), perceived quality (ρ=0.618, p<0.001), and financial performance (ρ=0.587, p<0.001). The results underscore that risk management is not only protective but also strategic, contributing to organizational resilience, improved service quality, and long-term financial stability. The study recommends institutionalizing risk management teams, strengthening food safety programs, enhancing monitoring tools, and providing continuous capacity-building initiatives tailored to the unique contexts of hospitality establishments in Surigao del Norte. Keywords: Hotels And Resorts, Risk Management Practices, Hotel Reputation, Perceived Quality, Financial Performance
