5 climate change challenges to tourism and hospitality
Published 17 July 2018
Tourism, including hospitality and food service, plays a vital role in the Australian economy, but rising temperatures and unpredictable weather threaten the future of the industry. The United Nations has identified Australia and New Zealand as one of five global tourism regions vulnerable to climate change.
Australia’s top five attractions for international visitors are already being affected:
Here at Gallagher, we are alert to the escalating risk climate change presents to our clients and the future of their businesses, as Taylor King explains.
The impacts of climate change for the future of the industry cover 5 key areas:
1. Economic effects
In 2015‒16 Great Barrier Reef Tourism was valued at $5.7 billion. A survey conducted by The Australia Institute after the 2016 bleaching found that if coral depredation continues, the reduction in visitor numbers to tourism areas adjacent to the Great Barrier Reef could result in a loss of more than $1 billion.
2. Weather events
Cyclone Yasi (2011) is estimated to have cost the tourism industry $600 million.
Flooding in the New South Wales Hunter Valley region in 2015 resulted in local tourism industry losses of $110 million.
Claims for international weather events added up to a global total of US$136 billion in insured losses from catastrophes.
Want to know more about how climate change is affecting the tourism and hospitality in Australia, and some suggested strategies for managing these impacts? Download Gallagher’s report in detail to access the latest insights.