White Island Case: What It Means for Adventure Tourism

The White Island (Whakaari) volcano eruption across the Tasman Sea from Australia does still have fallout for Australian adventure tourism businesses. The horrific December 2019 tragedy in New Zealand claimed 22 lives, injuring many others.

This article explains the potential consequences for the adventure tourism industry beyond New Zealand, particularly relating to liability and insurance.

The Judgement: Take-home messages

The case looked at the responsibility of Whakaari Management Limited (WML) in its leasing agreements with tour companies for commercial walking tours on White Island. The judge disagreed with WML that it was a passive owner and pointed to the 2016 eruption which should have triggered a higher level of risk assessment.

In March, WML was ordered to pay AU$4.19M damages to victim, while White Islands Tours (which brought tourists to the volcano) must pay slightly more in reparations. As well, the government-owned research institution responsible for monitoring New Zealand’s volcanoes had to pay a $54,000 fine. It had neglected to adequately inform contractors about White Island’s risks.

The White Island case spotlights health and safety obligations for businesses involved in New Zealand adventure tourism. The court ruled that tour operators and ticketing agencies could be held accountable for health and safety failures.

So, wherever your SME sits on the adventure tourism supply chain, be it as a booking agent to tour guide, you must be vigilant in managing risks related to natural hazards. For example, you may operate in Australia, but take bookings for tours in New Zealand. As an Australian adventure tourism business, you’ll need to adapt to the changing landscape – safety and risk management will take on more importance.