The Deputy Governor of the Bank of Spain (BdE), Soledad Núñez, pointed out on Friday the need to ‘reinforce the long-term view’ in addressing the implications of climate change on tourism, and recalled that this phenomenon is already affecting international demand in the sector.
She made these comments at the headquarters of the Mallorca Chamber of Commerce in Palma during the opening of a new session of Viernes de Transición (Transition Fridays), which on this occasion is dedicated to tourism. She referred to the strong pressure that this sector exerts on the region’s resources, especially in high season. ‘What we need now is to strengthen our long-term vision because the interaction between climate change, tourism and macro-financial stability is a complex field, but also one that is fertile in new ideas,’ she said.
She indicated that, although ‘anticipating the results of the coming season is essential’, she added that assessing ‘the impact of investment and innovation is the only way to strengthen financial stability and social welfare’. Núñez pointed out that recent evidence suggests that climate change is already influencing international demand behaviour, as data shows ‘greater dynamism in tourism in the autumn and winter months’ compared to ‘a more subdued trend in the summer months’.
‘From an economic and financial perspective, this trend poses considerable challenges because it changes the timing of revenues, alters the financing needs of companies and requires a review of the profitability of certain investments,’ she said during her speech. The Deputy Governor of the Bank of Spain stated that, although until recently climate change could be considered ‘a peripheral element of economic analysis’, the reality is that it is no longer ‘a backdrop’ but ‘a determining factor that influences investment decisions, capital allocation, the relative competitiveness of sectors and the way in which companies and households plan their future’.
Regarding how climate change affects us, she pointed out that, based on the Bank of Spain’s analysis, its effects ‘do not usually materialise in the form of sudden disruptions, but rather through gradual but persistent changes in activity patterns’. She said that tourism has three unusual characteristics that are sensitive to this climate situation: its high interdependence with the natural and cultural environment, a historical capacity to adapt to global changes, and a very significant macroeconomic weight.
She also highlighted its importance, as it is a sector ‘that has contributed decisively to Spain’s growth, employment and international profile’, citing the Balearics as an example, where 45% of GDP is linked to this economic activity. During her speech, she acknowledged that tourism also generates ‘vulnerabilities’, especially in territories such as the Balearics, where changes in global demand and visitor expectations are compounded by ‘the growing disaffection of local citizens’ and problems with resources.
She pointed out that ‘in territories where tourism plays such an important role’, it is crucial that ‘the sector is able to adapt to a changing environment, but also to continue generating value and prosperity’. She also indicated that it is essential to make it clear that the need to adapt to new circumstances does not imply ‘a break with the past’, but rather ‘a natural evolution of a sector that has already demonstrated its capacity’ on multiple occasions. ‘Tourism has been able to reinvent itself in the face of new trends, new technologies, new demands and new global competitors,’ she said.