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Climate risk management in Sri Lanka’s tourism sector

Climate risk management in Sri Lanka’s tourism sector

15 Oct 2023 | By Vositha Wijenayake

The tourism sector of Sri Lanka is among the key economic sectors of the country. Statistics by the Sri Lanka Tourism Development Board indicate a rise of tourist arrivals in Sri Lanka compared to last year, with a total of 1,042,528 tourists arriving in Sri Lanka up until 8 October this year.

However, climate risks pose difficulties and potential challenges to the tourism sector. Sri Lanka’s ‘Nationally Determined Contributions’ (NDCs) under the Paris Agreement indicate the possibility of increasing impacts to the tourism sector due to climate change, for example, in the form of heat extremes, storms, a loss of beaches, and a degradation of coastal biodiversity such as coral reefs. 

Additionally, the NDCs of Sri Lanka also take into consideration impacts of drought on biodiversity and activities related to tourism which are built on these natural resources, as well as the increase in risk transfer approaches when high impacts of climate risks are to be managed.

To address climate impacts on the tourism sector, it is important to identify and implement comprehensive risk management approaches that are coordinated and built on inclusive and participatory processes.


Resilience-building in the tourism sector

During a multi-stakeholder discussion focused on understanding climate risk management, key stakeholders of the tourism sector identified certain components which could indicate resilience in the sector. 

Among such indicators of resilience in the tourism sector are the following: access to information for all stakeholders which could be facilitated through an integrated platform; existence of a strong regulatory framework which facilitates and promotes Public-Private Partnerships (PPPs) in the sector; establishment of a risk management fund for the sector; and recognition of the sector’s crucial importance throughout the education system and for public awareness.

In addition to this, stakeholders also identified actions and guidelines related to green procurement in the sector as a key focus to be included, as well as working towards net zero emissions in the sector and achieving national emission targets.

As components of the enabling environment which will help achieve indicators of resilience, the stakeholders further identified climate finance for adoption of best practices in sustainability, climate-friendliness, and risk management; risk transfer approaches for the tourism sector; policies and regulations which will facilitate a climate-friendly and resilient tourism sector; and monitoring and reporting processes on activities in the sector that build on coordinated approaches.


Key milestones and actions for climate risk management

Among the key aspects of focus for comprehensive risk management in the tourism sector, the stakeholders highlighted the need for a risk mapping to facilitate evidence-based further actions. The need for a finance mechanism which would allow access to financial support for the implementation of climate-friendly initiatives by stakeholders in the sector was also highlighted.

Additionally, the importance of the new tourism policy and strategic plan were highlighted, which could contribute to scaling up climate action in the tourism sector. And finally, the inclusion of risk transfer approaches and tools, such as insurance against loss and damage incurred to the industry, were also marked as key actions to be implemented.


Climate action in the tourism sector

Sri Lanka’s updated NDCs provide key actions that are identified as climate actions to be implemented in the country’s tourism sector. These actions focus on building resilience through sustainable tourism practices and enhanced risk preparedness in destinations which are at high risk for climate impacts; the introduction of risk management approaches, including risk transfer instruments, to the tourism sector; and the introduction of green building designs in the sector to enhance long-term resilience and sustainable infrastructure. 

Furthermore, it will be equally important to focus on the communities and entrepreneurs who are dependent on the sector, build their awareness on climate risks, build capacities on how to address them, and implement collective approaches for climate risk management. This could include mechanisms for risk pooling where communities identify key actions for addressing risk through collective efforts and funds accumulated through contributions and other forms of access to finances for risk management.

Further, in implementing the actions identified by the NDCs, it is also important to ensure that actions are evidence-based through risk mapping that is marked by stakeholders of the sector, which could help to better integrate resilience-building approaches and address climate-related risks identified for specific geographies, resources, and destinations.


(The writer is an Attorney-at-Law specialising in public international law. She leads the work of SLYCAN Trust, a non-profit think tank working on climate change, sustainable development, biodiversity and ecosystem conservation, social justice, and animal welfare. She has worked for over a decade on climate change at local, national, and international levels with a focus on climate change related law and policy, UN climate change policy and actions, UNFCCC negotiations, climate adaptation and loss and damage related action, climate-friendly entrepreneurship, multi-stakeholder engagement in policy and climate action including youth engagement and gender)



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