How climate change is redefining tourism risks with Isabelle Cadignan

At a recent conference in Mallorca, Spain, Isabelle Cadignan, Chief Commercial Officer, Climate Risk & Resilience, Howden advised delegates "not to hide your head in the sand like an ostrich. Companies must protect the environment of which we are part and as a legacy for future generations", adding that it is important to "understand the impact of action and inaction".

Isabelle joined a debate on climate risks and the tourism industry organised by APD at the "Perspectives of the Balearic tourism sector for 2025" that convened diverse perspectives from across the industry, finance and climate.

Tourism plays a significant role in global economies, but it faces increasing challenges from climate risk. Extreme weather events, rising temperatures and environmental degradation threaten tourist destinations, especially costal areas and islands. Effective solutions in insurance and policy can help ensure the long-term viability of tourism in a changing climate. 

Carlos Elavai, Managing Director & Partner at Boston Consulting Group, said that "companies are gaining awareness. There is a reaction to what they are seeing in the news, what is happening with their assets, but they are still very reactive."

"Regulation is also accelerating some action" he added. "There are companies that are seeking to achieve a minimum compliance, and that are applying sustainable practices and taking steps towards responsible tourism. The use of technology, he believes, will be essential to measure and reduce consumption.”

Panellists at the conference conveyed a stark reality and reflected on possible sustainable strategies for the future. "The most significant risk (for the sector) is the disappearance of the tourist", added Isabelle, “due to extreme conditions… many travellers will look for safer and more comfortable alternatives."

Carlos added "there are good intentions, but it is difficult to move forward and investments are needed", and in the future it will be key to "manage resources to deal with climate risks". 

Read the full article in Spanish here.