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The business of climate change; opportunity or threat to Caribbean industry
Implications of Climate Change to
Tourism
BusinessAlexander
in the Caribbean
Mr. Jason
1
This business of Climate Change:
threats to & opportunities for the Caribbean
Tourism Industry
Dr. Marlene Attzs and Mr. Jason Alexander
Department of Economics, University of the West Indies,
St. Augustine, Trinidad and Tobago
[email protected] ; [email protected]
CONTENT
Economic Significance of Regional Tourism
Industry
Climate change and SIDS
Challenges to the sustainable development of
tourism
Climate change and Tourism
International Tourism Response
Regional Tourism Response
Policy conclusions for Caribbean Tourism
Sector
Implications of Climate Change to
Tourism Business in the Caribbean
3
Economic Significance
of Regional Tourism Industry
GDP
Antigua & Aruba Jamaica St. Lucia
Barbuda
21
13.8
7.7
16.8
Employment
34.6
38
19.1
35.4
Capital
Investment
61.2
31
36.8
60.5
74.3
62.7
31.1
43.3
Foreign
Exchange
Reserve
Implications of Climate Change to
Tourism Business in the Caribbean
4
Profile of Tourists – CTO Reports
CRUISE PASSENGERS vs. TOTAL TOURIST ARRIVALS TO THE
CARIBBEAN
25
20
15
Tourist Arrivals
Cruise Passengers
10
5
20
02
20
00
19
98
19
96
19
94
19
92
0
19
90
NO. OF
TOURISTS
(M )
YEAR
Implications of Climate Change to
Tourism Business in the Caribbean
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Origin of Tourists to CARICOM
PERCENTAGE OF TOURIST BY COUNTRY OF ORIGIN
70
60
% OF TOURIST
50
1995
40
2000
30
2004
20
10
0
US
Canada
Europe
COUNTRY
Implications of Climate Change to
Tourism Business in the Caribbean
LAC
6
Sustaining the Caribbean Tourism
Industry
Sustainable Tourism Development:
‘Minimizes the negative impacts of tourism
development on the natural environment
and vice versa with a view to satisfying the
goals of intragenerational equity and
intergenerational equity.’
culled from Munasinghe 1993.
Implications of Climate Change to
Tourism Business in the Caribbean
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Sustaining the Caribbean Tourism
Industry
Two challenges to sustainable development of
the regional tourism industry:
Maintaining tourism industry within the region’s
ecological and socio-cultural carrying capacity;
Anticipate and adapt to climate change impacts.
(reduced emissions and energy consumption
within the tourism industry)
Implications of Climate Change to
Tourism Business in the Caribbean
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Potential Physical Impacts of Climate
Change on Caribbean Tourism
Warmer temperatures in Europe – Caribbean
less attractive as a destination for European
tourists.
Increase in intensity and frequency of
windstorm-related events.
Coral bleaching – impact on the marine flora
and fauna that constitute a significant part of
the Caribbean tourism product.
Implications of Climate Change to
Tourism Business in the Caribbean
9
Potential Physical Impacts of Climate
Change on Caribbean Tourism
Coastal Erosion
Water supply
Implications of Climate Change to
Tourism Business in the Caribbean
10
Potential Economic Impacts of CC
on Caribbean Tourism Industry
ECONOMIC IMPACT
Reduced Tourism
LOW CASE HIGH CASE
$M
$M
164.5
500.5
Loss of beaches
83.4
718.1
Facility Replacement
9.1
79.3
Lost dive-, eco-tourism
11.9
36.2
268.9
1,334.1
TOTAL
Implications of Climate Change to
Tourism Business in the Caribbean
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Potential Economic Impacts of CC
on the Caribbean Tourism Industry
TOTAL DAMAGE AND FREQUENCY OF NATURAL
DISASTERS 1990-2006
Frequency of Natural Events
14
2000
1800
1600
1400
1200
1000
800
600
400
200
0
12
10
8
6
4
2
0
FREQUENCY
TOTAL
DAMAGES ($M)
Antigua & Bahamas Grenada Jamaica
Barbuda
Country
Implications of Climate Change to
Tourism Business in the Caribbean
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Insurance Market
Rising Premiums.
Reinsurance Companies cannot absorb
rising cost.
Not building near beaches.
Implications of Climate Change to
Tourism Business in the Caribbean
13
International Tourism Response :
reducing their carbon footprint
Hotels
Hilton (Energy Efficient Lighting Retrofit
Program)
InterContinental Thalasso Spa (natural Lighting
and an eco-friendly air conditioning system)
Airline
Silver Jet (Mandatory Carbon Neutral
Purchasing)
Virgin Atlantic (Partner with Boeing to reduce
emissions)
Implications of Climate Change to
Tourism Business in the Caribbean
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Caribbean Tourism Response:
impacts of climate change
Hotels
Greening (Caribbean leads the world in Green
Globe 21 certified properties – 57.
Hotel Mocking Bird Hill (Port Antonio, Jamaica)
Airline
Caribbean Airlines
(Invested in wing tips, Carbon Neutral Company,
target to reduce CO2 emissions by 4000-5000
tons)
Implications of Climate Change to
Tourism Business in the Caribbean
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Conclusions
Actors within Caribbean Tourism Industry cannot
afford to ignore the physical and economic
impacts of CC highlighted at onset.
(opportunity cost is too high)
We cannot overemphasize the benefits of
mitigation, especially with Natural Disasters.
Implications of Climate Change to
Tourism Business in the Caribbean
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Conclusions
Actors need to view their adaptation and
mitigation to Climate Change for what it is:
1. Energy Saving and
2. Cost Reducing (Hotel Mocking Bird
Hill)
Implications of Climate Change to
Tourism Business in the Caribbean
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Conclusions
Demand for Green Tourism by from a more
educated Tourist.
Climate Change presents an opportunity for
the Caribbean Tourism Industry to position
itself as the GREENEST TOURIST
DESTINATION IN THE WORLD.
Implications of Climate Change to
Tourism Business in the Caribbean
18