From coral bleaching to increasingly erratic weather patterns, the impacts of climate change are already severely felt across the globe, including the tourism industry. Rising temperatures, extreme weather events, and environmental degradation pose significant threats to the future of tourism. In Sri Lanka, the tourism sector generates approximately USD 2 billion per year, about 10% of the country’s GDP (SLTDA, 2023), while providing direct employment to over 250,000 individuals and indirectly supporting roughly 2 million more. As a nation on the frontlines of climate vulnerability, unchecked climate change threatens to erode Sri Lanka’s ecological and cultural heritage and jeopardize countless livelihoods. 

‍

Sri Lanka is renowned for its diverse tourism offerings, including pristine beaches, lush tea plantations, and UNESCO World Heritage sites such as Sigiriya and Polonnaruwa. Visitors can also experience diverse wildlife in national parks including Yala and Udawalawe, alongside rich cultural experiences in cities like Kandy and Galle. However, many of these iconic destinations are already experiencing the adverse economic and non-economic impacts of climate change, disrupting the very foundation of the country’s tourism appeal.

‍

To address these challenges, SLYCAN Trust actively engages with industry stakeholders, focusing on climate and disaster risk transfer and finance at both national and local levels. On World Tourism Day (September 27, 2024), the organisation conducted a workshop in Nuwara Eliya district in the hill country of central Sri Lanka, bringing together representatives from hotels, tourism experience providers, local government, and various associations. Participants engaged in discussions aimed at identifying the impacts of climate change and exploring collaborative strategies to bolster the resilience of the tourism industry. 

‍

Insights from the workshop revealed specific climate risks and their implications for tourism businesses. Key topics included specific climate events affecting tourism activities, vulnerability assessments of infrastructure and ecosystems, and the groups most impacted. Participants highlighted the challenges faced by the sector, existing adaptation and mitigation measures, and strategies for effective climate risk management. The role of insurance and financial tools for mitigation was also explored, emphasizing the need for innovative financial solutions and the harnessing of co-benefits and synergies.

‍

The impact of climate change on the location of tourism businesses

The impact of climate events on tourism varies depending on the geographical location and type of tourism activity. A heat map created during the workshop provides a visual representation of the extent of impact faced by different tourism regions (highlands, slopes, waterfront, urban, and forest) in Nuwara Eliya:

• Highlands: Moderately affected by climate events, and face challenges such as unpredictable weather, altered monsoon patterns disrupting tourism schedules, heavy rainfall and flooding rendering sites inaccessible, and rising temperatures undermining its appeal as a cool-climate destination, all of which pose cascading risks to the tourism-dependent economy.
• Slopes and mountain edges: Highly vulnerable to severe climate events, with frequent landslides caused by heavy rainfall damaging infrastructure and limiting access to popular sites, while strong winds, unpredictable weather, and rising temperatures further intensify risks for tourists and tourism businesses.
• Waterfronts: Face climate impacts, including frequent flooding from heavy rains disrupting water-based tourism and ecosystems, unpredictable weather and altered monsoon patterns creating business uncertainty, and rising temperatures diminishing their aesthetic and ecological value.
• Urban areas: highly impacted by unpredictable weather, flash floods disrupting transportation and operations, increased temperatures reducing appeal in cooler regions like Nuwara Eliya, and altered monsoon patterns moderately affecting resilience, collectively posing significant challenges to tourism activities.
• Forest areas: Face challenges such as heavy rainfall and flooding causing temporary closures of eco-tourism sites, strong winds and unpredictable weather disrupting outdoor activities, and rising temperatures threatening biodiversity and ecosystems vital to eco-tourism.

Variability of tourism activities due to climate impacts

In Nuwara Eliya, climate impacts have significantly influenced tourism activities, with varying effects observed across different sectors. The variability of these activities was assessed on a 5-point scale, where higher numbers indicate a greater impact. The following breakdown illustrates how specific tourism activities have been affected by climate-related challenges:

• Nature and wildlife tours: Nature and wildlife tours have been significantly affected by climate change, particularly due to habitat destruction and changing wildlife patterns. These factors threaten the availability of wildlife sightings and the overall experience, which can deter visitors.
• Adventure tourism: Adventure tourism activities, such as trekking and mountaineering, are also impacted. Increased rainfall and landslides pose risks to safety and accessibility, leading to potential cancellations and reduced participation in outdoor adventures.
• Eco-tourism: Eco-tourism has experienced moderate variability as climate impacts shift ecosystems and biodiversity. These changes can affect the quality of eco-tours, diminishing the appeal for environmentally conscious travelers who seek authentic experiences in nature.
• Historical and cultural tourism: Historical and cultural tourism has seen less impact compared to other activities. However, climate-related erosion and accessibility challenges at heritage sites can still pose risks, necessitating attention to preserve these attractions.
• Culinary tourism: Culinary tourism has the least variability, although it is not immune to climate impacts. Disruptions in local agriculture due to changing weather patterns can affect food sourcing and the diversity of culinary experiences offered to tourists.

‍The way forward

As Sri Lanka continues to face the mounting challenges posed by climate change, it is essential to strengthen the resilience of the tourism sector, an industry which is vital for the country’s economy and employment. To that end, SLYCAN Trust is conducting an in-depth research project that examines the multifaceted impacts of climate change on tourism in Sri Lanka. This initiative forms part of a broader strategy to support the development of climate and disaster risk financing and insurance options for the tourism sector. By identifying the specific vulnerabilities of different tourism activities and locations, the research aims to provide actionable insights that can help stakeholders better prepare for, adapt to, and mitigate the effects of climate change.

‍

Moving forward, this research will contribute to the formulation of targeted climate risk management measures, such as insurance schemes tailored for the tourism sector, to help businesses recover from climate-related disruptions and ensure continued operations. Findings will also guide policy recommendations to integrate climate adaptation into long-term tourism planning. By leveraging these insights, actors in Sri Lanka’s tourism sector can protect their livelihoods, preserve natural and cultural assets, and ensure the sustainability and competitiveness of the industry in an uncertain future.