Economics of Travel

How destinations are addressing resilience priorities

October 9, 2024
In an ever-changing global environment, the ability of travel destinations to withstand and recover from various shocks and stresses is crucial.Resilience priorities differ significantly between destinations and are influenced by factors such as location, climate, visitor mix, economic reliance on tourism, visitor typology, political vision, and the prioritisation of tourism among other activities. Understanding and addressing these diverse priorities is essential for building robust and sustainable tourism sectors.

Differing resilience priorities
Businesses such as small and medium enterprises (SMEs) in varied destinations, especially those prone to extreme weather events, typically prioritise environmental and infrastructure resilience. For instance, SMEs in areas prone to hurricanes or typhoons focus on safeguarding natural assets and ensuring robust infrastructure.
Climate resilience directly contributes to the stability of tourism destinations. By implementing measures to mitigate and adapt to climate change, destinations can protect their natural resources, which are often the primary attractions for tourists. For instance, destinations like Puerto Rico and the Philippines have developed sophisticated resilience strategies that include climate risk assessments, biodiversity conservation plans, and hazard mapping.1,2 These measures help preserve beaches, forests, and other natural assets that are crucial for tourism.

In an ever-changing global environment, the ability of travel destinations to withstand and recover from various shocks and stresses is crucial. Resilience priorities differ significantly between destinations and are influenced by factors such as location, climate, visitor mix, economic reliance on tourism, visitor typology, political vision, and the prioritisation of tourism among other activities. Understanding and addressing these diverse priorities is essential for building robust and sustainable tourism sectors.

Differing resilience priorities
Businesses such as small and medium enterprises (SMEs) in varied destinations, especially those prone to extreme weather events, typically prioritise environmental and infrastructure resilience. For instance, SMEs in areas prone to hurricanes or typhoons focus on safeguarding natural assets and ensuring robust infrastructure.

WAYS TO EMBRACING RESILIENCE:

  • Focus on environmental and infrastructure resilience: SMEs, especially those in regions prone to extreme weather events, should prioritize safeguarding natural assets and ensuring robust infrastructure. This involves developing land use policies around key natural sites, pursuing biodiversity conservation initiatives, and ensuring infrastructure can withstand severe weather events.
  • Emphasize economic flexibility: For SMEs in tourism-dependent economies, maintaining economic resilience is crucial. This means having the ability to adapt quickly to disruptions, such as providing financial support to SMEs and tourism-dependent workers during crises. Implementing flexible economic strategies can help businesses recover swiftly from shocks like natural disasters or pandemics.
  • Promote community involvement and collaboration: Building social resilience through community involvement in tourism activities is essential. Engaging local communities helps balance the needs of visitors and residents, enhancing social cohesion and resilience. Additionally, collaboration between public and private sectors is vital for developing and implementing effective resilience strategies.
Therefore, SMEs should focus on developing land use policies around key natural sites, pursue biodiversity conservation initiatives, and ensure infrastructure is capable of withstanding severe weather events. For example, the Philippines, which experiences numerous typhoons annually, has implemented measures to protect biodiversity and manage tourism capacity to minimise environmental impact.i

Destinations heavily reliant on tourism revenues often emphasise economic resilience. This involves maintaining the ability of businesses and the workforce to adapt quickly to disruptions. During the COVID-19 pandemic, many tourism-dependent economies provided financial support to SMEs and tourism-dependent workers, emphasising the need for flexible economic strategies. Puerto Rico, for example, developed a comprehensive recovery strategy focusing on relief, restoration, and recovery phases to rebuild its tourism sector after hurricanes and the pandemic.ii

Additionally, destinations with seasonal or concentrated tourist demand prioritise social resilience to balance the needs of visitors and residents. This includes ensuring community involvement in tourism activities to build stronger connections and facilitate information flow. The Bahamas, for instance, has focused on involving local communities in tourism development to enhance social cohesion and resilience.iii

Addressing resilience through governance and collaboration
National and regional governments need to set clear sustainability and resilience agendas that permeate all levels. This involves defining key resilience and sustainability issues, identifying stakeholders such as SMEs, prioritising goals, and establishing governance mechanisms. Moreover, collaboration between the public and private sectors is essential for developing and implementing resilience strategies. For instance, Ras Al Khaimah in the UAE has implemented a holistic resilience approach, involving stakeholders from various sectors to ensure the destination, SMEs, and the community benefit. Initiatives like the ‘Shortcations’ campaign promoted domestic tourism during the pandemic, showcasing the importance of flexible and adaptive marketing strategies.iv

Learning from crises
The COVID-19 pandemic underscored the need for resilience in the tourism sector. It highlighted the risks of over-reliance on tourism without flexibility and the importance of having adaptable strategies in place. Destinations must catalogue lessons from past crises, engage in continuous improvement, and prepare for future shocks. This involves regular cross-sectoral dialogues on resilience themes and implementing knowledge management practices to capture and apply the best ideas and practices.

Building resilience in travel destinations is a multifaceted effort that requires addressing diverse priorities based on specific local conditions. By focusing on environmental, economic, and social resilience, fostering effective governance and collaboration, and learning from past crises, destinations can enhance their ability to withstand and recover from shocks.