Evaluating the business case for investment in the resilience of the tourism sector of small island developing states

Abstract

Over the last decade, a number of disasters severely affected tourist destinations. At the same time, the management of disasters has shifted from a reactive, top-down approach to a more inclusive approach that seeks to proactively include the private sector in reducing the risk of disasters. Considering that a significant proportion of tourism occurs in the potentially hazardous coastal zones of Small Island Developing States (SIDS), private tourism sector stakeholders can – and maybe have to – play an active role in disaster risk reduction (DRR). Establishing the business merits associated with investment in disaster resilient measures would be necessary to support increased private sector DRR investment. This study therefore evaluated the business case for investment in the resilience of the tourism sector in SIDS. As such, it offers: 1) a greater understanding of the root causes of destination vulnerability and risk using a cross-regional, comparative case study approach; and 2) a qualitative evaluation of the business case for investment in the resilience of SIDS tourism. Semi-structured interviews with 80 private and public sector stakeholders in the Caribbean, Pacific and AIMS regions revealed that some private sector stakeholders already self-regulate based on individual evaluations of a variety of tangible and less tangible benefits. More research is needed to develop the economic and financial data that may possibly encourage greater private sector investment in DRR, as well as, create a supportive and enabling national economic context for resilient tourism investment.