Expert Comment
Dr Frederik Dahlmann on the cost of Greece wildfires to the tourism industry
Dr Frederik Dahlmann, Associate Professor of Strategy and Sustainability at Warwick Business School at the University of Warwick said:
“The extensive and lasting heatwave followed by large-scale forest fires in Greece and the Mediterranean area more generally highlight the very urgent crisis climate change already presents for key countries and industries affected. Beyond the current and future impacts on these economies, the fires also throw a spotlight on tourism operators and their crisis management capabilities, which will only increase in importance in the years ahead.
“Not only will such companies need to better prepare for such events and develop processes to offer struggling tourists immediate help and support on site in their holiday destinations, but they must also become much better at organising repatriation flights and managing compensation claims. Additionally, they will also need to reinstate levels of flexibility for cancellations and booking changes that became normal immediately following the COVID crisis. While this increases financial risks for operators, tourists may well become more aware of the physical risks from climate change and reluctant to commit to certain destinations during the summer months without such flexibility in arrangements.
“At the same time, tourism operators will also need to develop new processes and mechanisms to help tourist destinations mitigate and especially adapt their hotels and resorts in regions and islands affected as conditions are set to worsen in the future. Apart from cleantech solutions, improved air conditioning and advanced building designs, there is also a clear opportunity to help implement nature-based solutions that provide cooling effects, improved water management solutions and effective protection from wildfires.
“More broadly, the current crisis should visibly remind all companies and consumers that climate change is not a challenge for the future. It is an urgent critical issue that is already having severe impacts on livelihoods and economies. All companies must drastically start reducing their emissions, while consumer need to reflect on their broader consumption patterns including their holiday plans.”