Measuring the economic impact of climate-induced environmental changes on sun-and-beach tourism

Abstract

Despite the economic importance of the tourism sector and its close relationship to the environment and climate, substantial gaps remain in the investigation of climate change (CC) impacts on tourism. Unlike the increasing body of literature focusing on the variation in the climatic suitability of tourism destinations, this paper focuses on the impacts of CC on the provision of natural resources affecting the attractiveness of destinations. More specifically, the paper provides an economic measurement of climate-induced environmental changes on the coast of Mallorca (Spain), one of the Mediterranean’s leading sun-and-beach destinations. A choice experiment is used to elicit the willingness to pay (WTP) of tourists for the introduction of policies aimed at reducing three climate-induced environmental changes. The estimated results show the positive WTP of tourists to reduce CC impacts and provide evidence of preference heterogeneity among individuals with different socioeconomic and travel characteristics.