Climate Change and Tourism Seasonality: The Role of Rising Temperature in Hotel Performance in Urban Southern Europe Destinations
DOI:
https://doi.org/10.18089/tms.20260303Keywords:
Climate Change, Tourism Seasonality, Rising Temperature, Theil index, Occupancy rateAbstract
Climate change is driving substantial changes in the tourism industry, influencing tourist flows, seasonality patterns, and hotel profitability. However, there is a research gap regarding the impact of rising temperatures on urban destinations. This study analyses 600 monthly observations from five Southern European urban destinations using a panel data approach. The empirical results suggest that higher temperatures during peak-demand periods decrease occupancy rates; in August, a 1 °C increase in maximum temperature reduces occupancy by 2.1%. The analysis also confirms a nonlinear effect of temperature on occupancy rates, with 25.5ºC representing the level that maximises occupancy rates, ceteris paribus. Finally, for the five analysed cities, rising temperatures contribute, with a small but statistically significant effect, to the smoothing of seasonal patterns. These findings suggest that climate change may gradually reshape the distribution of demand and affect destination competitiveness and hotel profitability among the sample of Southern European cities analysed.
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