At the recent Commonwealth Business Forum, the Pacific Tourism Organisation highlighted the urgent need for collaborative solutions to support Small Island States and tourism SMEs across the Pacific as they face increasing climate-related challenges.
SPTO Chief Executive Officer Christopher Cocker advocated for the engagement of private sector associations, government bodies, and regional organizations in designing and implementing innovative parametric insurance schemes, which provide essential financial protection against extreme weather events.
The Pacific Tourism Organisation recently participated in the Commonwealth Business Forum’s recent roundtable held alongside the Commonwealth Heads of Government (CHOGM) 2024 meetings in Samoa highlighted critical private sector resilience strategies for Small Island Developing States (SIDS), advocating for a shift in risk perception to foster a more open and attractive investment environment.
With an emphasis on climate risk management, key discussions centered on the role of parametric insurance—a rapid, trigger-based financial mechanism essential for mitigating the increasing impact of natural disasters on vulnerable regions. As foreign aid becomes less reliable, this approach offers a more efficient funding source for recovery, ensuring that SIDS can respond swiftly to climate shocks while fostering innovative, region-specific solutions across the Pacific and the wider Commonwealth.
“Strengthening resilience for our tourism SIDS and SMEs requires accessible, efficient solutions—especially when it comes to climate risks,” Cocker said. “Public-private partnerships that review and enhance insurance programs are critical, as they allow tourism businesses to thrive despite adversity.”
Mr Cocker also highlighted the importance of green finance and innovative funding mechanisms for SIDS. Financial institutions need to innovate by supporting SMEs, particularly tourism businesses, with tailored financing options. By collaborating on initiatives like group-buying for green technology, duty incentives for sustainable products, and policies enabling tourism businesses to sell renewable energy back to the grid, Pacific governments and industry leaders can drive a shift toward sustainable growth.
Innovative finance tools, such as debt-for-nature swaps and climate bonds, also offer promise, as they link debt management to biodiversity and climate goals, further recognizing the critical role tourism plays in environmental conservation. “These mechanisms would be a game-changer for sustainable development across the Commonwealth, providing Pacific SMEs with the tools to build long-term resilience,” added Cocker.
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