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Risk management of climate impact for tourism operators: An empirical analysis on ski resorts

Ballotta, L. ORCID: 0000-0002-2059-6281, Fusai, G. ORCID: 0000-0001-9215-2586, Kyriakou, I. ORCID: 0000-0001-9592-596X, Papapostolou, N. C. ORCID: 0000-0003-4529-1182 and Pouliasis, P. K. ORCID: 0000-0002-7389-3722 (2020). Risk management of climate impact for tourism operators: An empirical analysis on ski resorts. Tourism Management, 77, 104011.. doi: 10.1016/j.tourman.2019.104011

Abstract

The aim of this paper is to analyze the performance of hedging strategies based on snow andtemperature options developed by ski operators to protect their profitability under adversechanges in climatic conditions. The setup is based on a joint non-parametric model for snowand temperature aimed at providing a modelling support for the assessment of the impact ofthese weather variables on the number of visitors at the ski resort. The analysis is carried outconsidering the case of Austrian Alps, and examines: i) the ability of the proposed approach toprovide a realistic representation of the true data-generating process; ii) the variability reductionin the Profit and Loss of the ski operator offered by the suggested strategies; and iii) the tradeoffbetween the budget earmarked for hedging and profitability protection.

Publication Type: Article
Additional Information: © 2019 Elsevier. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Publisher Keywords: Ski tourism; Climate change; Weather variables; Block bootstrap; Riskmanagement; Options; Profitability
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
H Social Sciences > HF Commerce
Departments: Cass Business School > Actuarial Science & Insurance
Cass Business School > Finance
URI: http://openaccess.city.ac.uk/id/eprint/23019
[img] Text - Accepted Version
This document is not freely accessible until 22 October 2021 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

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