How climate change threatens coastal tourism

Just think about a sun-kissed beach with waves gently lapping at the shore, vibrant coral reefs teeming with life just below the surface. For millions of travellers, coastal destinations are the ultimate getaway. But what happens when these idyllic escapes start vanishing?

From rising sea levels swallowing pristine beaches to coral bleaching turning underwater worlds into lifeless expanses, climate change is transforming our favourite coastal havens. The impacts are not just environmental; they threaten economies, cultures, and the way we connect with these treasured landscapes.

The economy of coastal tourism

Did you know that in 2023, about 50% of tourism spending happened at coastal destinations? The coastal and marine tourism sector significantly contributed to the global economy, with its direct gross value-added (GVA) contribution to GDP estimated at $1.5 trillion, or 1.4% of global GDP. When including supply chain impacts, this figure rose to $3.3 trillion, equivalent to 3.2% of global GDP.  

The sector directly employed 52 million people, expanding to 100 million when supply chains were factored in, and generated $820 billion in direct tax revenues, increasing to $1.3 trillion when supply chain impacts were included. This economic footprint is drawn from diverse coastal destinations worldwide, ranging from rural areas with pristine natural attractions to urban hubs featuring major cities.  

Small Island Developing States (SIDS) such as Grenada, the Seychelles, the Maldives, and Aruba are particularly dependent on coastal and marine tourism, with the Travel & Tourism sector contributing a quarter or more of domestic GDP directly, and over half of the economy when supply chain effects are included. In these nations, the sector plays a critical role in generating jobs for locals, particularly for young people and women, and provides essential tax revenues that support public services.  

How climate change threatens

Coastal destinations face significant vulnerabilities due to climate risks, impacting both the destinations and the people. Nearly 40% of the global population lives within 100 km of coastlines, putting them at risk from rising sea levels, more frequent extreme weather events, increased droughts, and the degradation of ecosystems.  

Research indicates that climate change could lead to a decline in tourist arrivals to the Caribbean by approximately 1% annually, resulting in over $100 million in lost tourism revenue each year. In some nations, this decline could reach up to 5% annually.

SIDS are particularly at risk without effective adaptation measures to address storms and sea-level rise. In the Pacific, between 2008 and 2017, climate and weather-related disasters displaced 320,000 people. In some extreme cases, disaster-related economic losses have been catastrophic; for example, Dominica’s losses in 2017 were estimated at up to 200% of its GDP.

Urban coastal destinations also face significant economic exposure to climate risks. Projections by C40 Cities suggest that by 2050, 800 million people could reside in urban areas where sea levels may rise by over half a meter, affecting major cities such as Miami, Guangzhou, New York, Bangkok, Jakarta, and Mumbai.

Climate change poses an existential threat to coastal tourism, jeopardising not only the natural beauty and ecosystems that attract visitors but also the livelihoods of millions who depend on this sector. To safeguard these destinations, proactive measures are essential, ranging from infrastructure adaptations and sustainable tourism practices to global efforts in reducing carbon emissions. Coastal communities and governments must prioritise resilience planning, leveraging technology and innovation to mitigate risks while ensuring the long-term viability. With proactive measures, we can save our favourite tourism destinations for future generations to explore and enjoy.

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