Case Study: Prestige Adventure Limited — The Cost of Getting It Wrong

Case Study: Prestige Adventure Limited

If you thought your audit was expensive, think again.

Your adventure tourism operator audit might seem expensive, but the consequences of not having one can be catastrophic — as discovered by Prestige Adventures Limited.

The Result

Prestige Adventure Limited was an adventure company with a great future ahead of it. A few wrong decisions led to the tragic death of two British tourists in 2019, the collapse of the business, and the financial ruin of the director.

WorkSafe prosecuted both the company and its director:

• The company was fined $595,000
• The director was ordered to pay $100,000 in reparations to the families of the two deceased

The fines could have been in the millions — the judge reduced them only because of proven financial incapacity to pay more.

What Happened

Gary Murphy (50) and Trevor Smith (55), both from the UK, were part of a multi-day trip across the South Island using ATVs, horses, walking, and rafting. In the afternoon of the first day, the two were driving an ATV when the wheels on the right-hand side crossed the right edge of the track, causing it to overbalance and fall more than 80 metres, killing both men instantly.

What Went Wrong — The Full List

• No registration: Prestige Adventure Ltd enquired about certification but decided against it due to perceived cost. Without certification they had no defence in law. If certified, they would have needed to meet the ATV Activity Safety Guideline.
• No Safety Management System: There was no documented SMS to induct staff into.
• No Standard Operating Procedures for ATV-specific activities.
• No access permission: The operator led the group across a property where they did not have current permission.
• Route not pre-driven: No time-and-space appreciation was done, and hazards on the route were not identified in advance.
• No safety briefing was conducted before the fatal ride on 23 March.
• Training not reinforced: Familiarisation training was done the day before but not revised on the day, and progressive driver training was not conducted as the afternoon progressed.
• Poor timing: A 90km route was started at 1:00pm — this should have been a full-day activity.
• No participant communication: No ongoing communication with individual drivers about fatigue, hydration, or confidence levels. Earlier in the afternoon, one driver had indicated discomfort — this warning was not acted on.
• Speed over safety: The group drove at speed to make up lost time, increasing punctures and risk rather than reducing it.
• Wrong hazard advice: The leader told drivers to avoid rocks — in narrow terrain it is safer to slow down and roll over them than to swerve.
• Insufficient stops: No additional rest stops were scheduled as the day progressed and fatigue increased.
• Fatigue not managed: Participants may have been suffering jet lag, heat, dust, and dehydration. No contingency to shorten the route existed, so participants may have been reluctant to stop.
• Wrong focus: Written event documents focused on logistics, not health and safety.

What Every Operator Should Take From This

This was an ATV operator operating without registration — but the failures apply to any adventure activity:

• Get registered and audited — the cost of an audit is trivial against the consequences of a prosecution
• Document everything — your SMS, SOPs, risk assessments, briefings, and staff records
• Never compromise on route assessment — pre-drive, pre-walk, or pre-paddle every route
• Respond to participant signals — if someone expresses discomfort, stop and reassess
• Build in contingency — have a shorter option that doesn't require rushing
• Brief before every session — not just on day one

Author note: David Greenslade, ROSA member, AdventureMark auditor, and technical expert for motorbike, ATV, and 4x4 adventure tourism audits wrote the original analysis of this case.