In this post we will assess how climate change might affect the tourism industry. We will also discuss some precautions you can take as a travel agent or tour operator to safeguard your business and your customers.
When Summer Holidays Become Dangerously Hot
Summer 2023 was one of the hottest in recent memory. Greece had to evacuate over 2,000 holidaymakers as temperatures reached 45°C, and wildfires broke out on the island of Rhodes. Visitors to Rome also chose to end their holidays early due to the heatwave. Meanwhile, many flights were cancelled as aircraft were simply unable to take off in the hot, dense air.
Summer 2024 was not as intense as the previous year. In Athens the July temperatures reached a daily average of around 32°C. In Rome, the daily average temperature in July was around 28°C. Yet there were still concerns about the excessive heat. Athens once again was forced to close schools and some major tourist attractions.
How a Rise in Extreme Weather Conditions Affect the Travel Industry
As well as rising temperatures, some attribute extreme weather conditions to the changing climate. Climate scientists have linked heavy rains, flooding, drought, wildfires, and storms to climate change, all of which will affect the travel and tourism industry.
Certain coastal destinations are also concerned about rising sea levels. According to one University of Cambridge study, around 60% of Caribbean coastal resorts may be at risk of sea level rise.
The Travel Industry’s Carbon Footprint
The World Economic Forum has pointed out that the travel and tourism sector accounts for around 10% of all global greenhouse gas emissions. On top of this, total emissions from tourism are forecast to rise by around 25% by 2030.
It is easy to imagine how governments may penalise travel companies for these emissions, via taxes, fines, and strict regulations. This will increase the cost of doing business, which companies will pass on to their customers. Global travel, then, may become increasingly expensive in the coming years.
What is the Impact of Climate Change on Travel and Tourism?
- New Tourist Destinations – Tourists may choose to avoid previously popular city locations, such as Athens and Rome, along with coastal resorts where rising sea levels are a concern.
- New Risks – All travellers may face an increased risk of encountering extreme weather events, such as fires, floods, and storms.
- More Travel Disruption – It may become more likely that holidaymakers will have to abandon their travel plans as a result of rising temperatures and other risks.
How Can Travel Agents and Tour Operators Prepare For A Changing Climate?
- Be Flexible – You may not always be able to sell the same packages, and the same destinations, as you do today. Keep an eye on global travel trends so that you can identify the popular new travel destinations as early as possible.
- Get The Right Cover – Make sure that any travel insurance you provide includes cover for the risks associated with extreme weather events. Plus, if rising temperatures means that holidaymakers will face more cancellations and uncertainty, it is vital that you get cover for supplier failure, and other forms of disruption.
We Can Help You Ensure You Are Fully Covered for Emerging Risks as a Travel Agent or Tour Operator
At James Hallam, we have provided dedicated insurance services for travel agents and tour operators for over 20 years. The global travel agency has changed significantly over the past few decades, but we have always helped our travel and tourism clients stay resilient.
We will take the time to understand your business so we can tailor the best possible travel and tour insurance programme for you and your customers. So if you are concerned about how your industry might be affected by a changing climate, we can help you prepare for any additional risks you might face.
Find out more about our specialist insurance services for travel agents and tour operators.