From Investing.com: 2025-01-18 05:30:00

Climate change is set to reshape the travel industry, impacting destinations, costs, and demand patterns, according to UBS. Suppliers like airlines and hotels face challenges as rising temperatures and emission reduction efforts transform global tourism.

Higher travel costs are on the horizon as companies aim for net-zero emissions under regulatory pressure. UBS predicts Ryanair may need to raise ticket prices by over 10% by 2030 to offset environmental expenses. Capital investments in sustainable aviation fuel facilities could surpass $8 trillion globally by 2050, UBS estimates.

Rising temperatures are shifting travel preferences, potentially lowering tourism in Southern European countries like Spain. UBS warns that Spanish tourism could decline by 11% annually by the end of the century due to warmer summers. Conversely, cooler regions like the UK might see a slight increase in tourism revenues.

UBS sees climate change as a net negative for the travel industry, highlighting risks of consolidation, higher risk premiums, and increased operating costs for companies in climate-vulnerable areas. The report suggests focusing on firms with strong balance sheets and resilience to climate impacts, while urging caution for businesses in weather-sensitive tourism regions.



Read more at Investing.com: How could global warming impact the travel industry? By Investing.com