Back-up plans and good governance make tourism more resilient

23.02.2024 - 23:41 / euronews.com / Red Sea

Nearly four years after the devastating effects of COVID-19, the tourism industry is out of intensive care and approaching a full recovery. Welcome to the era of resilience.

Passenger demand for international air travel has rebounded and is now just 5% shy of what it was in 2019, the year before the pandemic. Hotel occupancy rates have risen to 60% after tumbling to 22% in 2020, according to UN Tourism.

This month, we observed the UN Global Tourism Resilience Day, a valuable reminder that resilience is vital not only for successful tourism, but for our overall economic well-being. 

Tourism accounted for one in every 10 jobs before COVID-19, and many of the world’s poorest countries depend on it for jobs and revenue. The UN designated 17 February to highlight the importance of resilience in this valuable industry.

Resilience grows from good governance and effective risk mitigation, though it can be hard to define. 

For example, resilience for a developer of tourism destinations can mean one thing in relation to its corporate offices but something quite different in the context of its actual projects. 

We need to build resilience into every aspect of what we do, and that means integrating ESG (Environmental, Social, and Governance) and sustainability principles into all facets of our work.

Sustainability and energy efficiency have become paramount for the post-pandemic tourism industry. Resilience, in this global context, extends beyond economic considerations to encompass environmental stewardship. 

By investing in energy-efficient technologies and practices, tourism businesses can not only reduce their operating costs but also position themselves as responsible, forward-thinking players on the world stage.

Given the increasing scrutiny that companies and governments alike face for their ESG and sustainability commitments, those that embrace renewable energy will fortify themselves against potential criticism and prove more likely to keep partners, suppliers, creditors, investors, and consumers on their side.

A good example is Costa Rica, where renewables account for 98% of the energy supply, providing the foundations for a successful eco-tourism economic model. As a result, the country has reduced its carbon emissions and strengthened relationships with major international organizations. 

Costa Rica has won numerous environmental awards over the last few years, including the Earthshot Prize and the UN Champion of the Earth honours. This achievement led the International Monetary Fund to select it as the first nation to benefit from the IMF’s Resilience and Sustainability Facility in 2023, which will help the country respond to external shocks and climate change risks.

At Red Sea Global, we’re responsible for