Perfect Storm: Climate Change and Tourism

Abstract

While the world’s attention is on dealing with the COVID-19 pandemic, climate change remains a greater existential threat to vulnerable countries that are highly dependent on a weather-sensitive sector like tourism. Using a multidimensional index, this study investigates the long-term impact of climate change vulnerability on international tourism in a panel of 15 Caribbean countries over the period 1995–2017. Empirical results show that climate vulnerability already has a statistically and economically significant negative effect on international tourism revenues across the region. As extreme weather events are becoming more frequent and severe over time, our findings indicate that the Caribbean countries need to invest more in adaptation and mitigation in order to reduce vulnerabilities.

Dirty Dance: Tourism and Environment

“…In the Caribbean, the cost of Hurricane Ivan for Grenada in 2004 amounted to 148 percent of GDP and Hurricane Maria for Dominica in 2017 reached 260 percent, reflecting both the intensity of hurricane damage and the small size of these economies. 4 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Global Temperature Anomalies (Degrees Celsius, deviation from trend) effect on international tourism revenues across the Caribbean (Cevik and Ghazanchyan, 2021). For example, a 10 percentage-point increase in climate change vulnerability leads to a decline of 9 percentage points in tourism earnings per visitor (or a reduction of 10 percentage points in tourism revenues as a share of GDP), even after controlling for conventional macroeconomic and social factors.…”

The Impact of Extreme Weather Events on Quality of Life in Small Island Developing States with Varying Levels of Export Diversification

“…As has already been uncovered, SIDS are especially vulnerable to climate change (Rasmussen, 2004) which is important to keep in mind when considering the findings of this study since the sample consisted of thirteen Caribbean countries. Cevik and Ghazanchyan (2021) found that climate vulnerability has a statistically significant impact on tourism revenue, communicating the existence of a key relationship between at-risk destinations and economic success.…”

Tourism in the Post-Pandemic World

“…TDCs are especially vulnerable given their reliance on vulnerable natural resources such as beaches and coral reefs, or particular weather patterns (beach and ski resorts). For example, Cevik and Ghazanchyan (2020) find that a one standard deviation increase in climate change vulnerability is associated with a decline of 9.2 percentage points in international tourism earnings (or a loss of 1.5 percent of GDP) in the Caribbean. Tourism total contribution to GDP (as share of GDP)…”