In many small island developing states (SIDS), tourism is a principal driver of the economy and of infrastructure development. The SIDS' tourism sector is, however, threatened by climate change impacts, which will likely incur high costs for climate change adaptation (CCA). Discussions are starting about who should pay for the costs of adapting to climate change, especially the balance amongst sectors such as between governments and the tourism industry. Through the perceptions of selected industry stakeholders, this study explores the potential of the tourism industry in SIDS in financing its own CCA. Fiscal and political mechanisms were examined, such as adaptation taxes and levies, adaptation funds, building regulations, and risk transference. The study's exploratory method combines nine indepth key stakeholder interviews from various SIDS and an extensive literature review to develop a schematic of suggested mechanisms. The results reveal a high overall potential for the tourism industry funding its CCA, but with significant challenges in realizing this potential. Consumer expectations and demands, governmental hesitation in creating perceived investment barriers, and assumptions about cost effectiveness could undermine steps moving forward. Varying incentive structures, the sector's price sensitivity, and the differing abilities of tourism industry stakeholders to adapt are factors suggesting that government frameworks are needed to ensure effective and substantive action.

Koh Phi Phi Don is among the most visited island tourism destinations in Thailand. Due to the island’s topography and development patterns, most accommodation suppliers on the island are likely to be exposed to a range of climate change impacts, particularly sea-level rise, which can pose a severe risk to the local tourism operations. This study aimed to explore perceptions of climate change adaptation actions in response to impacts typically associated with climate change. This study, furthermore, investigated possible obstacles, barriers, and incentives influencing decision-making processes of accommodation owner-managers (the private sector) to adapt to climate change. The investigation builds on 81 surveys and 12 in-depth interviews. The findings provide evidence that most of the sampled businesses already implemented (consciously or not) climate change adaptation measures, such as insurance coverage, water treatment appliances, and staff training on emergency responses. Through a concentration of power on the island, their action is hindered, which creates a barrier to a sustainable and climate risk-informed development pathway.

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In the past, Kigali has frequently experienced heavy rain events. These have often led to flooding, which also affected businesses. In the face of climate change, such events can become more frequent and can threaten economic development. To determine if more action is needed to protect businesses from flooding, we assessed how many businesses have suffered damages from floods in certain years in a certain area of Kigali. We also gathered information on how businesses were affected, how they are preparing for flooding and what support they are seeking. We developed and piloted a survey, a standardised questionnaire for gathering information on the relevance of flooding for businesses. The survey was then conducted among 350 businesses in Kigali asking business owners about their experiences with flooding in recent years. Eighty-one per cent of businesses have been affected by floods in 2013 and 2014. The annual damage costs resemble 22% of the total net profit of the businesses in the area. The most common damages were damages to goods that were to be sold and damages to buildings. The extent of past flood damages warrants action on flood risk management, both by businesses and citizens, as well as by city officials. Suitable actions range from increasing awareness about suitable protection measures to upgrading the sewage system.

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This study investigates the potential recognition and engagement of the natural environment as an important factor in strategic investment decisions by accommodation suppliers in a small island context. The investigation, based on empirical data from two Thai islands, Koh Tao and Koh Phi Phi, contributes to the debate if the environment, by focusing on climate change, can be identified as a primary stakeholder for accommodation suppliers. The findings show that strategic investment decisions are influenced by impacts commonly associated with climate change, although a conscious recognition of climate change as a strategic stakeholder or important factor in strategic investment decisions could not be confirmed. Conversely, the element of unconsciousness in the process of recognising climate change in investment decisions sparks questions regarding the degree to which the recognition of business stakeholders requires being a conscious process and if the focus on investments could be another element for stakeholder identification frameworks for businesses.

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