• Subject Name : Hospitality Management

Table of Contents


Climate change threats to the hospitality industry.


Reference List

Introduction to Effect of Climate Change on the Hospitality Industry

Climate change has substantial physical impact across the world that possess socioeconomic threats (Mckinsey & Co. 2020). The effect of climate change across the hospitality industry has implications for economic growth and profits as client safety and protection are the prime focus on climate upheaval and drastic change in the climate. This essay highlights the impact of climate change on the hospitality industry. Tourism is a multi-billion industry providing employment and accounts for 5 percent of the overall growth (Deloitte 2020).

Climate Change Threats to The Hospitality Industry

The Minor Hotel is an international operator, owner with over 530 properties across 56 countries with its hotel portfolio (Minor Hotels 2020). The frequency of extreme weather such as storms, heatwaves, and the recent bush fires affected the viability of tourist stay and operation of the hospitality industry. Ski tourism has been visibly affected by climate change with a decline in the length of snow depth in Australia and other regions of the world. The minor hotel group has a hotel chain in Australia that have shown tourist decline due to extreme weather (CN Traveller 2020). Climate change is affecting the biodiversity, landscape, and incidence of vector-borne disease. Minor hotel tourist attraction on beaches and travel destination change is experienced with users. The rise in sea level has led to change switching in the destination with loss in the sunshine coast for Minor group hotels. The coldest temperature will rise due to climate change and projected snowfall will be under high emissions (Deloitte 2020).

Climate change is due to internal or external modulations of atmosphere or land. The hospitality industry is dependent on key attractions for lakeside, mountain, and fishing. The decline in coral reef and natural beauty has resulted in environmental threats for the industry as a tourist attraction is one of the sale points for climate change. The fall in hotels with an average loss in the next 5 years will see refurbished hotels and change in consumer behavior towards destination travel (Climate council 2018). The cruise ship uses operational facilities with routing for operating in weather changes. Climate change plays a key role in the performance of accommodation facilities. Unpleasant weather will result in the loss of visitors and a reduction in profit. The temperature rise will increase the length of summer in the temperature countries and would reduce the inbound tourism for international tourists in the warmer locations. The change in indigenous activities at locations will influence authenticity, standardization, and employment creation of the allied activities with local and heritage in the country's contribution towards GDP (Mckinsey & Co. 2020). This will create job driftnets due to endangerment in the community with natural resources. The short term impacts on water reservoirs and recreational activity as major attractiveness will create a slow down with booking enterprise and online aggregator may impact temporal loss due to environmental impact

Minor hotels with its global chain will be impacted in its operating model with climate change in extreme weather circumstances as an impact on landscaping and guest service as hotel operations affected due to seasonality. A minor hotel chain in its location features Brazil which has a fragile infrastructure system vulnerable to damage through man-made barriers causing rising sea levels to create risk for tourist safety and travel in the densely populated country. The hospitality industry faces fixed costs and has to adapt to cost-cutting strategies due to non-functionality with extreme climate changes and accessibility (Mckinsey & Co. 2020). Change in precipitation levels with extreme variability impacts business sustainability in coping with demand for freshwater and an increase in supply chain cost (Climate control 2018). The major properties are at the coast with a rise in sea levels capital investments for mitigating the impact of sea level is necessary, this impacts the desirability of the location with subject to tropical cyclones and flooding.

Climate change has increase consumer's focus on business energy emissions and change in product offerings to clients. Leisure traveler's focus on environmental sustainability will weight on corporate clients for developing energy models. The far-reaching impacts on modernization and natural and cultural heritage have a holistic impact on employment generation affecting the attractiveness of the location. The direct impact on the asset in climate change the business has to change approach to the asset-light model. Bush fire incident had to short term compression in sales by % across NSW owning to lack of fresh air and rise in pollution levels (CN Traveller 2020).

The warmer temperature has caused alter in flora and fauna with localized extinction and spread of disease that can cause force majeure and non-operations of the allied travel activities and impact on the hospitality industry. The long term impact will result in operational cost with aviation and transportation cost fluctuations with climate change with a role in business continuity for disaster change will be radical. The climate change with an increase in global warming will lead to the imposition of location selection and operations in tight scrutiny. The loss of biodiversity and operational continuity will impact visitor experience and hinder the development of exiting the market due to downfall with risk assessment on operations.

Conclusion on Effect of Climate Change on the Hospitality Industry

The hospitality industry is at risk due to climate change and is vulnerable with reliance on nature-based attractions. The shift in consumer preference will be long term that will impact operational cost and sustainability actions by hospitality industry market players for growth and plan for collective actions for climate risk mitigation for Minor Hotels group.

Reference List for Effect of Climate Change on the Hospitality Industry

Climate council. 2018. Icons at Risk: Climate change threatening Australian tourism. [Online]. Available from https://www.climatecouncil.org.au/uploads/964cb874391d33dfd85ec959aa4141ff.pdf. [Accessed on July 4th, 2020].

CN Traveller. 2020. How hotels are going green. [Online]. Available from https://www.cntravellerme.com/22867-how-hotels-are-going-green. [Accessed on July 4th, 2020].

Deloitte. 2020. Travel and hospitality industry outlook. [Online]. Available from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-consumer-2019-us-travel-and-hospitality-outlook.pdf. [Accessed on July 4th, 2020].

Mckinsey & Co. 2020. Climate risk and response: Physical impacts and socio-economic impacts [Online]. Available from https://www.mckinsey.com/~/media/mckinsey/business%20functions/sustainability/our%20insights/climate%20risk%20and%20response%20physical%20hazards%20and%20socioeconomic%20impacts/mgi-climate-risk-and-response-full-report-vf.ashx. [Accessed on July 4th, 2020].

Minor hotels. 2020. About us. [Online]. Available from https://www.minorhotels.com/en. [Accessed on July 4th, 2020].

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