The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development
Edited by Alessandro Lanza, Anil Markandya and Francesco Pigliaru
Chapter 6: The effect of climate change and extreme weather events on tourism
6. The eﬀect of climate change and extreme weather events on tourism Andrea Bigano, Alessandra Goria, Jacqueline Hamilton and Richard S.J. Tol 1. INTRODUCTION Decisions about whether to take a holiday and where to spend that holiday are by no means secondary ones. Such decisions are relevant for our wellbeing, but, more importantly, are economically relevant because billions of people in the world make analogous decisions every year, many of them more than once per year.1 This makes tourism an industry of primary importance for the world economy: it generates about 7.3 per cent of total worldwide exports.2 For some countries, tourism is the ﬁrst source of income and foreign currency, and many local economies heavily depend on it. Among the factors taken into account by tourists when they decide upon their holidays, the destinations’ climate characteristics rank very high (Hu and Ritchie, 1993; Lohmann and Kaim, 1999). Hence tourists are sensitive to climate and to climate change (Maddison, 2001; Lise and Tol, 2002; Hamilton, 2003). Climate change will aﬀect the relative attractiveness of destinations and hence the motive for international tourists to leave their country of origin. Yet, until recently, the attention devoted by the tourism literature to climate change and by the climate change literature to tourism has been quite limited. The degree of interest is now slowly increasing, and various aspects of the relationship between climate change and tourism are being covered. We review this literature in section 2. Five branches of literature have started...
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