Should we stop building hotels in risk areas? That's a loaded question and depends on how risks are assessed. Has the assessment included all "natural" hazards like earthquakes, floods, GLOFs, hurricanes, landslides, heat waves and drought? What about anthropogenic hazards like industrial accidents and terrorism? More importantly, does the assessment include the impacts of climate change over time? It has to.

The Cambridge Institute for Sustainability Leadership's new briefing "Risk sharing for Loss and Damage: Scaling up protection for the Global South", which identifies current and future climate risks, highlights the importance of reliable climate risk models for decision making by policymakers and global institutions. If decisions are based on reliable climate risk models, the Loss & Damage Fund proposed at COP27 and approved at COP28 could have the following positive implications on tourism destinations located in countries on the receiving end of the fund:

• Improved climate risk assessment: Proactive climate risk assessments can lead to a better understanding of risks and potential mitigation and adaptation measures.
• Enhanced resilience in vulnerable tourism destinations: L&D funds can bolster the resilience of vulnerable destinations, particularly those in Small Island Developing States (SIDS), which bear the brunt of climate change and rely heavily on tourism. 
• Increased investment in tourism infrastructure: The availability of pre-arranged financing can encourage investments in resilient tourism infrastructure.
• Global market opportunities: Tourism businesses that adapt to climate change and invest in resilient infrastructure can tap into green investment opportunities.