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Purpose

This paper aims to analyze the recovery of the Balinese and Egyptian tourism industries after experiencing terrorist attacks, to see what can be learnt by Caribbean destinations.

Design/methodology/approach

The paper applies the principles of consumer behaviour to the observed behaviours of tourists in post‐crisis situations.

Findings

The Caribbean's dependence on the tourism industry for economic growth has made the region potentially more vulnerable to a crisis external to the industry, such as terrorism. Many Caribbean stakeholders are concerned about the potential impact of terrorism; however, recent events in Bali and Egypt have shown that the tourism industry is much more resilient than was first assumed.

Practical implications

Findings suggest that the effects of crises can be controlled by increasing the consumer's perception of value. Additionally, managing media coverage can be used to influence the perception of risk.

Originality/value

The paper provides an insight into crisis management in the tourism industry.

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