Physical and transition climate risks and tourism demand

Abstract

In this study, we investigate the impact of physical and transition climate risks on international tourism demand in Europe. Using monthly data from 31 countries for the period 2005-2024, we find that both types of climate risk are significant determinants of tourism demand in Europe. Notably, the influence of physical risk is stronger than that of transition risk. The findings highlight the susceptibility of European tourism to climate change and have important implications for policymakers and industry stakeholders.

Keywords

climate risks tourism demand transition risk physical risk Europe

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