How will climate change impact tourism?

This fact sheet provides an overview of the following topics: Global impacts What will climate change mean for Australian tourism? Risks for tourism in the Northern Territory Opportunities for tourism in the Northern Territory Resources for further information

Global impacts
Climate change will have a significant impact on global tourism. Climate defines the length and quality of the tourism season, and it plays a major role in the choice of destination and tourist spending. In many destinations, tourism is closely linked with the natural environment. Climate affects a wide range of the environmental resources that are critical attractions for tourism, such as snow conditions, wildlife productivity and biodiversity, water levels and quality. Climate also has an important influence on environmental conditions than can deter tourists, including infectious disease, bushfires, insect and water-borne pests and extreme weather events such as tropical cyclones. Understanding the dynamics of how climate change will affect the global industry is complex. Tourism will continue to grow, but the patterns of travel will change some destinations will benefit and others will be impacted negatively. Tourism is a significant contributor to climate change through the greenhouse gas emissions produced by transporting and accommodating tourists and the services and products that are provided to support tourism in a destination. It is critical for tourism businesses to assess how they contribute to the problem, and to understand the impact climate change will have on tourism in order to understand what the risks will be and why every business must be a part of the solution. Around the world, businesses and even whole destinations are working hard to reposition themselves as green to try to capture a growing share of the market that is seeking travel options that are in harmony with their environment. Growing public awareness about the need to look after our surrounds means sustainable tourism products will soon move from their present niche status into the mainstream. Businesses who fail to respond to this growing demand will not remain competitive.

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green

What will climate change mean for Australian tourism?

Internationally, Australia is perceived as a clean, green destination. The natural environment is a key element of our global tourism appeal, and part of what differentiates Australia from competing destinations. On a global scale, Australia is considered to be the developed country most vulnerable to the adverse impacts of climate change Physical impacts of climate change for Australia, all of which have direct tourism impacts, include: warmer summers warmer winters increase in extreme weather events droughts marine and terrestrial biodiversity loss sea level rise increase in disease outbreaks.

Indirect impacts of climate change on Australian tourism include: increasing costs of travel both to and within Australia from governments around the world implementing policies to reduce emissions, such as carbon taxes and emissions trading schemes increasing operational costs for tourism businesses resulting from government regulation to reduce carbon emissions in Australia; and increasing consumer concern about the vast distance required to travel to Australia as a result of powerful lobbying against aviation, which may lead to a decrease in visitor numbers to Australia over time.

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green

Risks for tourism in the Northern Territory

The Northern Territorys tourism appeal depends heavily on nature-based, outdoor attractions and activities. Favourable climatic conditions at destinations are a key motivator for visitors and a positive influence on demand and changes to these conditions present challenges. The risks for the NT are diverse; some need to be considered in light of long term strategic planning, while others such as the emerging trends in consumer behaviour and attitudes towards travel need a swift response by the tourism industry. Concern about long haul travel Consumers are increasingly concerned about the environment and climate change and the impact of their daily activities on this growing problem. In particular, concern has been raised over the emissions produced by air travel, and what travellers can do to reduce the negative impact this has on climate change. While the evidence is clear that consumers are concerned about climate change and environmental degradation, it is yet to translate into changing holiday habits. Research conducted by Tourism Australia indicates that the majority of consumers are playing their part through day to day actions such as conserving energy and water. The proportion of people who claim they will eventually change their holiday habits, however, is growing. We are a long distance from our international markets and there are large distances between attractions within the NT. Increasing consumer concern regarding the carbon emissions generated by travel has the potential to impact the NT tourism industry more so than in many other destinations. Tourism businesses need to take action now to ensure they are prepared for future changes in consumer behaviour. Growing green travel trend With a heightened awareness of environmental issues, consumers who travel to Australia will be more likely to choose a tour operator or accommodation provider who is actively trying to reduce their impact on the environment. Travel intermediaries around the globe have started to respond to the increasing awareness and demands of the consumer for environmentally positive travel options. UK company, the Travel Foundation, has developed a training module to educate travel industry staff on what green travel is, so that they can understand and respond appropriately to consumer enquiries. They have also produced a range of insider guides for agents to engage their customers in green travel conversations. The number of information sources advising people how to travel green is increasing. These typically include tips telling travellers to: fly less take fewer and longer holidays take direct flights (due to the volume of fuel used on take off and landing) take public transport wherever possible offset emissions from travel choose tour products and stay in accommodation that demonstrates a commitment to looking after the environment.

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green

This type of advice presents challenges for the NT, with limited public transport options such as rail and coach travel that cover the vast distances between key destinations, limited number of direct flights into the NT from key international source markets, and very few operators participating in carbon offset schemes. Where the advice benefits the NTs tourism industry is in its encouragement of visitors to stay longer and experience more within a single destination. This supports our existing industry objectives. Business travel There is a strong belief among consumers that governments and industry need to take responsibility for their share of emissions, and that business travel needs to be reduced. Businesses are also under increasing pressure to ensure they operate ethically. Corporate social responsibility is a genuine attempt by a business to build meaningful relationships with the corporate sector and broader society. It is achieved when a business operates in ways that meet or exceed the ethical, legal, commercial and public expectations of society. Acting with regard for the environment is a key component of corporate social responsibility and it means that a company will not only seek to improve their internal environmental performance, but also influence the environmental performance of suppliers they engage. Increasingly, those involved in the business tourism sector are being asked to demonstrate their environmental credentials as a key component of their bid to win business. Risks to human health Warming that is predicted to occur will mean changes in the frequency, intensity and duration of extremely hot periods in the Territory. The frequency of very hot days (above 35 is C) projected to rise significantly. Darwin currently averages 11 very hot days per year, but this is projected to rise to anywhere between 12 and 61 days per year by 2030, and more by 2070. Alice Springs averages 90 very hot days but could experience between 95 and 125 days per year and more by 2070. An increase in hot spells (three or more days in a row with temperatures over 35 can C also be expected.

Increases in average temperature will increase the incidence of heat stress which poses a risk for visitor safety that is already challenging to manage. This may mean more stringent risk management practices for tour operators and greater regulation to address heat management at key tourism destinations. Climate change also means there is a likelihood of increased spread of insect-borne diseases, which also poses a threat to visitor safety. Risks to biodiversity Australias native plants and animals are likely to suffer with a drastic reduction of the extent and quality of their habitats. The diversity of the Territorys natural assets could be radically altered. A temperature rise of 2.1 to 2.9 could see the geographical ranges of 83% of C C Australian species reduced by at least 50%. A 5 increase could result in a loss of C

How will climate change impact tourism? July 2009

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90 to 100% of the core habitat for most native vertebrates. This will affect the distribution, physiology, and life cycles of a range of plants and animals. These effects could be profound. Species that are unable to tolerate changed conditions within their current range, or that cannot migrate fast enough to keep up with moving climate zones, face eventual extinction. The most vulnerable species will be those with long generation times, low mobility, highly specific host relationships, small or isolated ranges, and low genetic variation. Effects on one species or ecosystem may have a cascading effect on others.

An increase of more than 2 and the associated sea level rise may mean that 80% of C Kakadus freshwater wetlands are lost due to saltwater intrusion and erosion. Economic impacts Extreme weather events such as cyclones and storm surges can significantly impact infrastructure such as buildings and roads which can affect tourism access. Recent examples in the NT include: The collapse of a large section of the Barkly Highway due to extraordinary flooding in January 2009, cutting off northern access between QLD and the NT for a number of weeks; Cyclone Monica (April 2006) and Tropical Low George (March 2007) both resulted in substantial flooding in the Kakadu region. The accommodation at Gagudju Lodge Cooinda was inundated on both occasions and during the 2007 event a culvert on the Arnhem Highway was destroyed, which rendered the Arnhem Highway inaccessible for an entire month.

Events such as these have flow on effects for everyone. They increase the threat to visitor safety, there are costs involved with evacuation of visitors, tourism businesses lose revenue from booking cancellations, infrastructure is damaged, and the cost of insurance increases (on top of the already high insurance premiums in the Northern Territory) for businesses directly impacted by these extreme weather events. From 1 July 2011, the Australian Government aims to introduce its Carbon Pollution Reduction Scheme. The introduction of a carbon price will affect everyone in Australia, boosting the cost of electricity, transport and fuel. Tourism businesses will face higher costs of operation. Domestic aviation will be included in the scheme, meaning costs of flights within Australia will increase. The European Union also has an emissions trading scheme in operation, and from 2012, international aviation will be included, which will cover any airline operating international flights on routes to, from or between airports in the European Union. This will lead to an increase in the cost of flights in and out of all countries in the European Union. The UK government intends to restructure its air passenger duties to ensure that people who fly further, and are therefore contributing more to emissions from aviation, will pay more. The duties have a tiered structure, so that travel to the destinations furthest from Britain cost the most. This comes into effect from 1 November 2009 (55 for economy class), with a second increase scheduled in November 2010 ((85 for economy class).

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green

Opportunities for tourism in the Northern Territory

While there are a number of risks for tourism, there are also opportunities. Tourism businesses that make a stronger environmental commitment can gain a definite marketing and competitive advantage. Regardless of whether your business is located in a city, town, protected area or natural landscape, enhancing your environmental performance will deliver a wide range of benefits for your business and the Northern Territory as a destination. By becoming a more environmentally sustainable business, you can: attract a greater share of the growing number of visitors seeking green travel options broaden your distribution channels by working with responsible travel partners ensure you remain competitive, particularly if you rely on corporate business, as more companies are placing emphasis on the environmental credentials of their supply chain reduce your operating costs and in doing so, be prepared for changes being introduced by the Australian Government in response to climate change which will have a flow on effect for your business enhance the appeal of the NT as a green destination contribute to the safeguarding of tourism in the NT through improved environmental protection.

Improving profitability Improving environmental performance can save money. A business that reduces its consumption of power, water, fuel and supplies can significantly lower operational costs. There are many things that can be done at no or low cost, such as eliminating use of standby power and switching to energy efficient light globes. There are also a range of other initiatives that require a more substantial investment upfront, such as installing a solar hot water system. Energy saving measures that require an upfront investment can often pay for themselves within a relatively short timeframe. Government grants, subsidies and rebates can also assist with the capital costs. Taking steps to become a more environmentally friendly business can also provide a competitive edge, driving increased sales by appealing to the growing number of travellers seeking green travel products. Responsible tourism Responsible tourism is tourism which can be defined as socially, culturally, economically and environmentally sustainable. Responsible tourism maximises the positive benefits of tourism to the local community while minimising the impact. It allows visitors to gain a deeper connection with the local people and the landscape so that they get more out of their experience. A responsible traveller will support businesses that are: locally owned and operated supportive of the local community supportive of local people and local cultures providing locally made products (arts and crafts, food etc)

How will climate change impact tourism? July 2009

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enabling the visitor to be involved in the lifestyle of the locals environmentally conscious (actively involved in the protection of the surrounding environment and ecosystems) reducing resource usage, recycling and minimising waste offering hands-on involvement to volunteers.

The NTs tourism industry has strong foundations in the areas that underpin responsible tourism: the industry is characterised by a large number of locally owned and operated businesses; tourism is a vital economic driver of the NT economy, which has a broad impact on many other industry sectors; tourism is a major contributor to employment for many Territorians directly and indirectly; for a number of the NTs indigenous communities, involvement in tourism has provided a pathway towards economic independence through business, employment and training. Tourism in indigenous communities also offers positive social and cultural benefits; the Territorys extensive network of parks and reserves allow visitors the opportunity to see our pristine natural and cultural landscapes, in the knowledge that they are not adversely impacting those areas, as tourism is controlled and responsibly managed; many tourism products offer meaningful engagement with local Indigenous communities. The availability and diversity of cultural tourism experiences in the NT continues to grow and, increasingly, non-Indigenous tour operators are adding cultural components to their product to extend their capacity to provide Indigenous experiences.

Businesses that focus on improving their environmental performance will not only enhance the NTs existing strengths as a destination, they will also enhance their capacity to deliver products which meet the needs of the growing numbers of responsible travellers. There are a number of distribution channels specialising in promoting responsible travel opportunities, such as the high profile www.responsibletravel.com. Operators who have a comprehensive approach to delivering responsible tourism will benefit from the exposure these channels are able to provide. Building on our existing strategies The Northern Territory has a wealth of natural assets in pristine condition. This is a significant drawcard for environmentally conscious travellers. Travel tips and advice aimed at environmentally conscious travellers promotes staying longer and seeing more in fewer destinations. This aligns with the characteristics of the NTs target domestic and international visitors who are seeking a more immersive experience. It also aligns with our objectives of increasing yield and profitability within our industry. Becoming more environmentally sustainable provides significant marketing opportunities for tourism operators to encourage people to take longer tours by appealing to their environmental consciousness.

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green

Related fact sheets

Climate Change Overview, available from the Going Green section of Tourism NTs corporate website, www.tourismnt.com.au. Reducing Emissions in Australia, available from the Going Green section of Tourism NTs corporate website, www.tourismnt.com.au.

Additional information
Tourism NT Going Green www.tourismnt.com.au/going_green

Tourism and Climate Change

UN World Tourism Organisation Climate Change and Tourism: Responding to global challenges www.unwto.org/sdt/news/en/news_det.php?id=2421 Sustainable Tourism CRC publication Carbon Footprint of Australian Tourism http://crctourism.com.au/BookShop/BookDetail.aspx?d=599 Department of Resources, Energy and Tourism Tourism and Climate Change: A framework for action www.ret.gov.au/tourism/policy/tourism_climate_change_framework_for_action/Pages/TourismandClima teChangeAFrameworkforAction.aspx Tourism Australia http://www.tourism.australia.com/AboutUs.asp?sub=0303 International Tourism Partnership www.tourismpartnership.org/index.html Sustainable Travel International www.sustainabletravelinternational.org/ Sydney Morning Herald article British air passenger duties to rise http://www.smh.com.au/travel/australians-face-200-tax-to-fly-home-from-uk-20081125-6gmi.html

Market Research
Tourism NT Fact Sheet Green Tourism www.tourismnt.com.au/nt/system/galleries/download/NTTC_Research/Green_Tourism_Feb08.pdf Tourism Australia Brand Health Monitor, Environmental Concerns www.tourism.australia.com/content/Research/Factsheets/Enviro_Concerns_Fact_Sheet.pdf Department of Resources, Energy and Tourism UK & German Travellers: Climate change and travel www.ret.gov.au/tourism/Documents/Tourism%20and%20Climate%20Change/consumer_market_resear ch_report-uk_and_germany.pdf Contiki Shades of Green www.contiki.com.au/ShadesOfGreen Business Events Australia National Corporate Social Responsibility Audit www.businessevents.australia.com/Assets/CSR_Fact_Sheet_Dec08_v2.pdf

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green

Tips for Travellers, Green Travel Information and Ecotourism Resources

Responsible Travel Travel Tips www.responsibletravel.com/copy/copy101891.htm Lonely Planet Responsible Travel www.lonelyplanet.com/responsibletravel/index.cfm United Nations Environment Program (UNEP) Green Passport Campaign www.unep.fr/greenpassport/ Sustainable Tourism CRC Holiday Carbon Footprint Calculator www.crctourism.com.au/Page/Tools+and+Products/Carbon+Calculator.aspx WWF Green Living Travel www.panda.org/how_you_can_help/greenliving/travel/ WWF Travel Helper http://travel.panda.org/ The Travel Foundation (UK) www.thetravelfoundation.org.uk/ The Travel Foundation (UK) Sustainable Tourism Training for Travel Industry Staff www.maketravelgreener.com/ Good Tourism Wiki: Sustainable Tourism & Responsible Travel www.good-tourism.com/ Ecotourism Australia http://www.ecotourism.org.au/ Go Green Travel Green http://gogreentravelgreen.com/ Planet Green Eco-friendly travel http://planetgreen.discovery.com/travel-outdoors/eco-friendly-travel/ planeta.com online sustainable and ecotourism resource www.planeta.com/ Transitions Abroad Responsible Travel Handbook www.transitionsabroad.com/listings/travel/responsible/responsible_travel_handbook.pdf TravelGreen (USA) http://travelgreen.org/

How will climate change impact tourism? July 2009

www.tourismnt.com.au/going_green