Crypto News: Tourism in the climate era

In today's newsletter reporter Jack Wittels writes about a crushing reality in this climate era: Dream vacation destinations are now under threat due to extreme heat. You can read the full version of this story on Bloomberg.com.

Meanwhile, weather reporter Brian K. Sullivan explains one particular facet of global warming that's making extreme weather even more intense: record-hot oceans. You can read the full story on Bloomberg.com.

By Jack Wittels

An idyllic summer vacation turned into a nightmare after thousands of people were evacuated from Greek islands beset by wildfires — the latest reminder that Europe's tourism industry needs to confront the realities of climate change and adapt fast.

Summers have been getting more intense in southern Europe, and the blazes in Greece are a grim repeat of deadly fires that devastated the country in 2021. Unbearable heat this year has forced authorities to shut the Acropolis and driven tourists on the Italian island of Sardinia indoors. And that's with just 1.2C of global warming from pre-industrial levels. Scientists say it's going to get worse even if we contain the temperature rise to the Paris Agreement's goal of 2C.

Smoke billowing near Kiotari village, on Rhodes on July 24. Photographer: Spyros Bakalis/AFP/Getty Images

Climate change is set to make the tourist-friendly weather in some places unrecognizable. A 2019 study predicted that Madrid's climate in 2050 will resemble the north African city of Marrakesh; London will be more like Barcelona and Stockholm like Budapest. This would be a tectonic shift for Europe's travel and tourism industry, which contributed €1.9 trillion ($2.1 trillion) to the regional economy last year, and remap travel patterns in a way that will likely deal a blow to some countries in southern Europe.

A pharmacy sign displays the temperature on a street in Cagliari, Sardinia

45C heat in Cagliari, Sardinia. Photographer: Francesca Volpi/Bloomberg

The industry may not have fully factored that in yet. "There's still quite a big part of the industry that's literally just waking up," said Catharina Martinez-Pardo, a partner at Boston Consulting Group who specializes in climate and sustainability in hospitality. "I don't think they're really ready."

Even though Europe's tourism sector is estimated to grow at an average annual rate of 3.3% up to 2032, the frequency of extreme events in southern Europe may push travelers to destinations in the northern part of the continent. Heat waves may "reduce southern Europe's attractiveness as a tourist destination in the longer term or at the very least reduce demand in summer," Moody's Investors Service said Monday.

Visitors crowd around a water fountain during hot weather in Rome, July 17. Photographer: Gaia Squarci/Bloomberg

Some researchers have modeled extreme scenarios to gauge the fallout for different parts of the economy. In a world that reached 4C of warming, alongside ecological breakdown would be a steep drop of more than 9% in tourism to the Greek Ionian islands, according to a European Commission report published this year. The same scenario would see an increase in tourism by about 16% to western Wales.

That shift will be a blow for countries which rely heavily on visitors for economic growth. The tourism industry contributed 14.9% to Greece's gross domestic product in 2021 while adding as much as 9.1% and 8.5% for Italy and Spain respectively.

An employee works in a restaurant in the heat in Rome, July 17. Photographer: Gaia Squarci/Bloomberg

Some European destinations will "suffer" in the summer months when there's "nowhere to escape the heat," Eduardo Santander, executive director of the European Travel Commission said last week. For travelers, this may mean going north instead of south in Europe, or traveling in the spring or winter instead of summer, he said. People will probably book their holidays at short notice, based on what the weather is expected to be like at their destinations.

Supplies of bottled water for tourists in an Hellenic Red Cross medical support van at the entrance to the Acropolis during extreme hot weather in Athens. Photographer: Yorgos Karahalis/Bloomberg

As of Monday, 162 fires were reported across Greece and another 2,466 tourists and residents were evacuated in northern Corfu the night before, including 59 rescued from a beach by the coast guard. As forest fires threaten five more villages on Rhodes, a further evacuation order has been issued.

"The climate crisis is already here," Greek Prime Minister Kyriakos Mitsotakis told lawmakers in parliament on Monday. "We are at war."

Click here to read the full version of this story as it appeared online. Subscribe to Bloomberg for unlimited access to climate and energy news, and to receive Bloomberg Green magazine.

30%

This is the capacity level for reservoirs in Spain's Catalonia region after months without rain. Drought conditions are impacting virtually all aspects of daily life in the country.

"Not a single fireman has gone on holiday, we are doing our best to secure the territory."

Giorgia Meloni

Italy's prime minister

In Italy, there's little relief from combating the heat, even as it's forecast to cool slightly in the coming days.

Record-hot oceans are one particular facet of global warming that's providing potent fuel to make extreme weather even more intense. They're amplifying weather-driven catastrophes that are claiming lives and inflicting massive economic damages — a cost that could rise to $1 trillion per year in the coming decades, according to marine scientist Deborah Brosnan. They're also accelerating climate change. As water temperatures rise, oceans lose their ability to serve a vital function: absorb the world's excess heat.

Fish swim near a coral reef in Key West, Florida, on July 14. Photographer: Joseph Prezioso/AFP/Getty Images

'Virtually impossible' things are happening. July's extreme heat in the US and southern Europe would have been almost impossible without climate change, according to a rapid analysis by scientists.

Fossil fuel divestment steps up. Christian Aid, a British nonprofit, announced that it will no longer bank with Barclays Plc due to the bank's funding of oil and gas projects.

The Property Brothers are worried, too. Drew and Jonathan Scott say they're staying up at night thinking about how your home could emit less carbon dioxide emissions.

By Brian K. Sullivan

Air quality in Chicago is unhealthy for sensitive groups and just under the threshold of being bad for everybody, according to AirNow.gov. Levels are currently at 147 in Chicago and the next step up – unhealthy – is at 150.

Across the Midwest air quality alerts have been posted in Minnesota, Wisconsin, Illinois, Indiana, Michigan and Ohio from smoke pouring down from Canadian wildfires, the National Weather Service said. Air quality alerts are also up across Canada.

However, Canadian smoke isn't the only risk out there today, a good-sized fire in Oregon has turned air quality unhealthy across parts of the state.

Heat warning and advisories are starting to spread again right down the Great Plains to Texas and across most of the southern states. Authorities in Canada have issued similar warnings and advisories across various provinces as well.

In other weather news:

Typhoon: Philippine authorities on Tuesday evacuated hundreds of people in coastal communities as super typhoon Doksuri intensified in strength, pummeling the north with strong winds and heavy rains before it heads toward Taiwan and China.

Japan: Eastern and western Japan have a 50% chance of higher-than-normal temperatures from August through October, the Japan Meteorological Agency said in a forecast on Tuesday.

So much solar power will be added to the global grid in the next three years that it's almost hard to believe – or model. "People are very, very bad at forecasting revolution," says BNEF solar analyst Jenny Chase, who joins Zero to discuss her predictions for the growth of solar and how free electricity might be the biggest challenge the industry faces. Listen to the full episode and subscribe on Apple, Spotify, and Google to stay on top of new episodes.

The Bloomberg Sustainable Business Summit returns to Singapore July 26 for a day of community building and solutions-driven discussions on innovations and best practices in sustainable business and finance. Speakers include Singapore Minister for Sustainability and the Environment Grace Fu, and top leaders from AIA, Nissan and many more. Register here for a virtual pass or to request to join us in Singapore.

Bloomberg Building a Green Economy for All: At this critical moment in history, societies are seeking to challenge the status quo in order to achieve decarbonization. What emerging power technology will be the most disruptive, and which power sources are accessible, affordable and can achieve scale? Executives from Octopus Energy Generation, Sustainable Energy for All, and Andretti Autosport will be discussing this and more on July 28 in London and virtually. Learn more here.