The Rising Cost of Severe Weather for Australia’s Tourism Industry – Why Proactive Weather Intelligence Matters

Australia's tourism industry, a vital contributor to the nation's economy, is under increasing threat from the impacts of severe weather. Research from Zurich’s Mandala Climate Risk Index, released earlier this month, shows that half of Australia’s tourism assets are at significant risk from natural perils and climate change.

These include critical infrastructure such as airports, as well as national parks, beaches, and cultural landmarks.

The cost of severe weather is mounting for businesses, particularly those in the tourism sector, where downtime and damage from extreme events like floods, storms, and bushfires can lead to significant financial losses. As we move into storm season in Australia, proactive planning, supported by advanced weather intelligence services like those provided by EWN, is more important than ever for safeguarding operations and mitigating risk.

Queensland beaches regularly experience severe storms (image: shutterstock)

Zurich’s report highlights that climate risk varies by region, with certain states and territories more vulnerable than others based on geographical location and the type of tourism assets at risk. Below is an overview of how each state fares and which tourism sectors are most exposed:

Queensland - The Most Vulnerable Tourism State

Queensland is home to some of Australia’s most iconic tourism destinations, but it also faces the highest climate risk, with 79% of its assets falling within the top three risk categories. The state’s famous natural attractions, such as the Great Barrier Reef, Daintree Rainforest, and Whitsunday Islands, are at serious risk due to their geographic location and exposure to climate extremes like storms, floods, heatwaves, and cyclones. Queensland's tourism industry, particularly its coastal and national park assets, is vulnerable to the severe impacts of extreme weather.

The most at-risk sectors include:

• Beaches and Reefs: Beaches like Whitehaven Beach and Cable Beach, as well as reefs, are heavily impacted by rising sea levels, coral bleaching, and extreme weather patterns. These natural sites not only attract millions of tourists but are vital for the local economy, which depends heavily on eco-tourism and marine-based activities.
  
  
• Airports: Queensland’s airports, particularly in cities like Cairns and Brisbane, face significant risk from flooding and high winds, which can cause operational shutdowns, flight cancellations, and infrastructure damage. All major airports in the state are classified as high-risk sites, which can severely disrupt tourism flows and supply chains.
  
  
• National Parks: Natural wonders like the Daintree Rainforest are vulnerable to storms and flooding, which can damage ecosystems, destroy infrastructure like boardwalks, and pose accessibility issues during peak tourist seasons. Kakadu National Park is another example where seasonal tourism is already being disrupted by extreme weather.
  

With these assets integral to Queensland’s tourism economy, businesses must adopt advanced weather forecasting and alerting systems to minimise downtime, protect infrastructure, and safeguard visitors during peak periods.

Cairns airport underwater in December 2023 (Image: The Australian) 

New South Wales - Coastal and Cultural Sites at Risk

New South Wales (NSW) boasts a wide variety of natural and man-made tourist destinations, from the coastal beauty of Bondi Beach to the cultural landmarks of Sydney. However, the state faces diverse climate risks threatening its natural and urban tourism assets. While 60% of tourism assets in NSW are located in metropolitan areas, natural sites like the Blue Mountains, Byron Bay, and the Hunter Valley are significantly exposed to climate risks such as bushfires, floods, and extreme heat.

The most at-risk sectors include:

• Coastal Areas: Bondi Beach, Byron Bay, and Manly Beach are among the most iconic coastal destinations in Australia, but they are also at high risk from storm surges, erosion, and wind damage. Bondi Beach, in particular, has experienced frequent beach closures due to flooding and damage from large waves. Rising sea levels and storms could change the shape of these beaches, drastically reducing their tourism appeal.
  
  
• National Parks: The Blue Mountains and Kosciuszko National Park are at high risk from bushfires and extreme weather events. During the Black Summer bushfires of 2019-2020, 80% of the Blue Mountains were affected, leading to significant declines in visitor numbers and costing the area an estimated $71 million in tourism revenue.
  
  
• Cultural Sites: While urban centers like Sydney are more resilient to climate impacts, man-made assets such as the Sydney Opera House and the Royal Botanic Gardens are still vulnerable to severe storms, extreme heat, and flooding, especially due to their proximity to the coastline.

Coastal erosion is a regular occurrence for many tourist-friendly beaches in NSW (Image: ABC News)

Victoria: Coastal Roads and National Parks in Danger

Victoria is unique in that many of its top tourism attractions are man-made and located in metropolitan Melbourne, meaning they face relatively lower climate risk compared to other states. However, certain natural attractions in regional Victoria, such as the Great Ocean Road, the Grampians, and Phillip Island, are increasingly exposed to climate extremes like flooding, erosion, and bushfires.

The Most at-risk sectors include:

• Scenic Roads: The Great Ocean Road, one of Victoria’s most famous tourist attractions, faces severe risk from flooding, erosion, and landslides. The road, which provides access to destinations like the Twelve Apostles, has been damaged multiple times by landslides and heavy rainfall, leading to closures that disrupt tourist access and cause economic losses.
  
  
• Coastal Areas: Beaches along the Great Ocean Road and the Mornington Peninsula are at risk from rising sea levels and storm surges. Erosion along these coastlines not only affects beach access but also poses a long-term threat to the infrastructure supporting the tourism industry.
  
  
• National Parks: The Grampians and Great Otway National Parks are vulnerable to bushfires, heavy rain, and wind damage, which could impact the accessibility and safety of these popular natural attractions.

Tourism operators in Victoria should consider integrating comprehensive weather monitoring systems and forecasting to anticipate extreme weather events and adjust visitor schedules and operations accordingly.

Restaurants & stores in Melbourne were inundated with storm water after recent storms swept Victoria (Image: ABC News)

WA: National Parks and Coastal Attractions at Risk

Western Australia’s tourism industry relies heavily on its natural assets, with 70% of the state’s top tourist destinations located in regional areas. National parks like Karijini, Kalbarri, and Purnululu and coastal sites like Cable Beach and Ningaloo Reef face significant climate risks from storms, wind, heat waves, and flooding.

Most at-risk sectors include:

• National Parks: Karijini and Kalbarri National Parks are particularly at risk from heatwaves and storms, which can cause significant damage to the environment and infrastructure. Tourism to these parks may become less viable during extreme weather conditions, leading to fewer visitors and potential revenue loss.
  
  
• Beaches: Cable Beach, a major tourist destination, faces increasing climate risk from extreme heat, wind, and monsoon storms. In 2023, a tropical low caused extensive flooding in Broome, impacting access to the beach and tourism operations such as 4WD and camel tours.
  
  
• Wine Regions: Western Australia’s famous wine regions, including Margaret River, are susceptible to bushfires, drought, and extreme heat, which can damage vineyards and disrupt the tourism flow during peak wine-tasting seasons.

To protect their operations, Western Australian tourism businesses should adopt proactive weather forecasting systems to monitor conditions and make data-driven decisions about visitor management and safety protocols.

Parts of the Kimberly cut-off towns in WA in 2023, including the tourist hub of Broome (Image ABC Kimberly)

SA: Vineyards and Coastal Sites in Danger

South Australia’s tourism industry is heavily reliant on its wine regions, national parks, and coastal attractions. The Barossa Valley, McLaren Vale, and Adelaide Hills are renowned for their vineyards but are also vulnerable to bushfires, extreme heat, and drought. Coastal destinations like Glenelg Beach face risks from flooding and storm surges, while the state’s national parks, including Kangaroo Island, are at risk from bushfires and heatwaves.

Most at-risk sectors include:

• Vineyards: The Barossa Valley and McLaren Vale are particularly susceptible to extreme heat, drought, and bushfires. The 2019-2020 bushfires significantly impacted South Australia’s wine industry, with as much as a third of the region's vineyard production wiped out by fire and many vineyards suffering from smoke taint and reduced yields.

• National Parks: Kangaroo Island, a major tourist destination, is still recovering from the 2019-2020 bushfires, which devastated much of the island’s natural beauty and wildlife. Future climate risks include more frequent bushfires and heatwaves, which could deter tourists and cause further damage to the island’s ecosystems.
  
  
• Beaches: Glenelg Beach, one of Adelaide’s most popular tourist spots, faces high flood risk, but resilience measures such as seawalls and dune restoration are expected to mitigate some of the damage.

For South Australian businesses, adopting comprehensive weather resilience solutions such as Tomorrow.io will be crucial in maintaining resilience against these weather events, protecting both natural and man-made assets, and ensuring operational continuity year-round.

The Adelaide Hills vineyards suffered great losses in the 2019-2020 Bushfires (Image: Broadsheet)

Tasmania: National Parks and Coastal Areas at Significant Risk

Tasmania’s tourism industry is predominantly driven by its natural assets, including national parks, coastal landscapes, and unique wildlife. The state is well-known for its pristine environment and outdoor tourism, but it is also highly vulnerable to climate risks, particularly from flooding, bushfires, and storms. Many of Tasmania’s top attractions, such as Cradle Mountain and Freycinet National Park, are located in remote, regional areas, making them susceptible to accessibility issues during severe weather events.

Most at-risk sectors include:

• National Parks: Tasmania’s national parks, including Cradle Mountain-Lake St Clair and Freycinet, face significant threats from extreme weather. Flooding, bushfires, and storms can cause damage to infrastructure like walking trails, campgrounds, and roads, disrupting tourism operations and access to these iconic sites.
  
  
• Coastal Areas: Tasmania’s coastline, particularly on the east coast, is vulnerable to storms, rising sea levels, and erosion. Beaches and coastal walking trails in areas like Wineglass Bay are at risk of being damaged or becoming inaccessible during extreme weather events.
  
  
• Remote Infrastructure: Many of Tasmania’s tourist attractions are located in remote or regional areas, which can exacerbate the impacts of extreme weather on accessibility. Flooding and landslides can block roads or trails, cutting off access to popular sites and disrupting tourism activities.

Tasmania’s reliance on natural attractions means that tourism businesses must be particularly vigilant about the impacts of climate change. Implementing proactive weather monitoring systems, like those provided by Early Warning Network, can help operators prepare for extreme weather, manage risk, and ensure that visitors continue to experience the state's natural beauty in a safe and sustainable manner.

Road conditions in Tasmania can be treacherous for tourists throughout severe weather, and include black ice, snow and fog.
(Image: ABC News)

NT: National Parks and Remote Tourism Sites at Risk

The Northern Territory’s tourism industry is predominantly based around its iconic national parks, including Kakadu, Litchfield, and Uluru-Kata Tjuta. While critical to the local economy, these sites are extremely vulnerable to climate impacts such as extreme heat, flooding, and bushfires. The remote nature of these attractions also poses challenges for accessibility during severe weather events.

Most at-risk sectors include:

• National Parks: Kakadu and Litchfield National Parks face high risk from both extreme heat and flooding, which can cause parts of the parks to close during the wet season. This disrupts tourism and causes significant revenue losses for operators relying on seasonal visitors.
• Remote Infrastructure: Due to the remote locations of many of the Northern Territory’s tourism assets, accessibility issues during extreme weather events can severely impact tourist numbers. Road closures due to flooding or fire hazards can leave visitors stranded and cut off key access points to popular attractions.

Businesses operating in the Northern Territory can benefit from the global coverage of Tomorrow.io's Resilience Platform. As more proprietary satellites are launched, even better outback coverage will provide real-time alerts and insights into changing conditions, allowing them to make proactive decisions about visitor safety and operational adjustments.

Flooding at Ellery Creek in Central Australia. (Image: The Courier Mail)

The financial toll of severe weather on the tourism industry is enormous. From infrastructure damage to decreased visitor numbers and reputational harm, the impact is widespread. For example, the 2019-2020 bushfires in New South Wales caused a 35% reduction in tourism revenue, a loss that continued to affect businesses well after the fires were extinguished.

Research from Victoria University shows that tourism-related businesses in affected areas lose an average of 35% of their revenue after a climate disaster. If this figure is extrapolated across Australia’s tourism industry today, up to 176,000 jobs would be at risk, with a large portion located in regional areas. Queensland, New South Wales, and Victoria would be the hardest hit.

Why Proactive Weather Intelligence is Essential

As severe weather events worsen due to climate change, it is crucial for tourism operators to adopt proactive measures to safeguard their operations. EWN's mission is to provide critical, real-time weather intelligence to users, allowing businesses to make informed decisions and respond swiftly to minimise the impact of extreme weather.

By integrating EWN’s comprehensive services, businesses can better prepare for severe weather events, protect infrastructure, ensure the safety of visitors, and maintain business continuity. Moreover, weather intelligence can help optimise operations by providing early warnings of potential disruptions, allowing for the timely rescheduling of activities, managing resources effectively, and reducing financial losses.