Abstract:
The study reveals the impact of temperature increase on the demand, supply, and investment in the tourism activities in coastal zones of Italy both at the national Level (Italy) and at the regional level – Abruzzo, Liguria, Calibria, Campania, Sicilia, and Sardegna were selected coastal regions and Valle d’ Aosta for control (non-coastal) region. Observations were made from 1999 to 2019 for the regional level and 2008 to 2019 for the national level. Regression model was used to analyse temperature data with tourism demand, supply and investment data, time series plot was used to visualize the consistency in trend, and correlogram was used to visualize their relationship. Result revealed that temperature increase has both positive and negative effect, and direct and indirect impact on tourism demand and supply in coastal zones at the regional and national level. It also has some economic consequences which include damage and prolonged operational time of cooling system in hospitality (accommodation and restaurant sectors). There was no clear definition on how temperature increase affects specific tourism businesses at the regional level but there was defined evidence on how temperature increase affect tourism demand, supply and investment at the national level. The relationship between temperature increase, tourism demand, and supply is strong at the national level but weak at the regional level. The risk and vulnerability level in the tourism supply in the coastal regions requires immediate institutional intervention and adaptation measures need adequate and proactive measures.