Climate risk management: why it’s crucial for tourism and how HBX Group is leading the way 

In the tourism sector, sustainability and resilience to climate change are no longer optional: they are critical to protecting operations, infrastructure and profitability. Extreme weather events —hurricanes, heatwaves, floods and droughts— are already affecting traveller flows and revenues, and climate risks are estimated to generate global annual losses of USD 560–610 billion for publicly listed companies by 2035, with sectors such as tourism facing profitability reductions of more than 20%. (World Economic Forum). 

Climate risks directly impact operations and the tourist experience. Examples include:

• Extreme weather events: Hurricanes, storms, floods, and heatwaves damage infrastructure and services, reducing visitor numbers and affecting revenues (UNDRR). 

• Seasonal shifts: In the Mediterranean, higher temperatures are shifting demand from summer to spring and autumn, reducing high-season revenues by up to 20% (Joint Research Centre, EU). 

• Winter tourism: Reduced snowfall in mountain destinations could shorten ski seasons in Europe by up to 30%, affecting hotels, transport, and related activities (EEA / ClimateADAPT). 

• Beaches and coastal areas: Erosion and rising sea levels threaten the attractiveness of sun-and-beach destinations and critical tourism infrastructure (European Climate Foundation). 

• Biodiversity: The loss of species and ecosystems can reduce demand in natural parks and protected areas by up to 10% (CBD). 

• Water and energy: Scarcity and power outages affect hotel operations and recreational activities, causing operational losses of up to 5–10% of annual revenue (UNEP). 

For tourism companies, anticipating and managing these risks means addressing not only acute climate events such as storms, floods or heatwaves, but also chronic changes like gradual temperature rise, desertification, or sea level rise. These slow-onset impacts can progressively affect destination quality, operational costs, and traveller preferences. That is why climate risk management must combine adaptation with prevention and long-term planning, ensuring resilience to both sudden disruptions and cumulative, long-lasting changes.level increase. These slow-onset impacts can progressively affect destination quality, operational costs, and traveller preferences. That is why climate risk management must combine adaptation with term planning.

This analysis has allowed HBX Group to clearly understand how climate risks manifest across its value chain and how exposure varies by destination, product category, and partner type. Building on these insights, HBX Group has identified practical measures that can help partners reduce disruptions, avoid damage, minimise downtime and strengthen long-term resilience, tailored to each type of business, geography’s risk profile and operational context. term resilience, tailored to each geography’s risk profile and operational context.  

Climate risk management is now a core capability for the tourism sector; through clear assessment and practical steps, HBX Group aims to help strengthen resilience across the industry. 

• Physical risks: Risks associated with natural phenomena that can affect infrastructure, operations, and destination quality. They include: 

1. Acute risks: Sudden events that can cause immediate disruption, such as storms, floods, or heatwaves.
2. Chronic risks: Slow-onset changes that progressively affect destinations, such as rising temperatures, sea levellevel rise, or desertification. 

• Transition risks: Risks linked to the tourism sector’s shift towards a low carbon economy, including emissions regulations, environmentally conscious traveller preferences, and reputational pressure from unsustainable practices.carbon economy, including emissions regulations, environmentally conscious traveller preferences, and reputational pressure from unsustainable practices. 

Managing these risks involves: 

• Assessing direct and indirect impacts on infrastructure, services, and the value chain. 

• Measuring and reducing the carbon footprint, including Scope 1 (direct emissions), Scope 2 (energy-related emissions), and Scope 3 (indirect emissions from suppliers and partners, which are often the most significant). 

• Improving energy efficiency and promoting sustainable practices across accommodation, transport, and tourist experiences. 

• Leveraging market opportunities related to sustainability, resilience, and brand reputation. 

These actions protect the business while enabling innovation and differentiation in a sector increasingly aware of its environmental impact. 

As a B2B intermediary in accommodation, mobility, and experiences, HBX Group has adopted a structured approach to manage climate risks and opportunities: 

• Integrated governance: HBX Group ensures climate risks are considered in strategic and operational planning, linking risk analysis, sustainability, and investment decisions. 

• Risk and resilience: To understand how climate risks may affect its business and the sector, HBX Group applies a value chain approach, considering exposure across its own assets and those of its partners. This structured methodology enables comprehensive, data-driven analysis: 

• Value chain mapping: Identify key stakeholders and operations along the business value chain. 

• Risk and opportunity identification: Preliminarily identify potential climate risks and opportunities for each activity and business unit. 

• Exposure analysis: Assess which assets and activities are most exposed to climate risks, considering location and type of activity. 

• Vulnerability analysis: Analyse how exposure to identified risks could translate into operational disruptions and financial implications. 

• Financial effects analysis: Estimate potential financial impacts of climate-related physical risks on the business model. 

• Risk map integration: Incorporate climate risks into the overall risk management framework, evaluated alongside operational, financial, and reputational risks. 

​