Bank of Spain Deputy Governor links climate-driven changes in tourism to financial stability and calls for better risk data

The Bank of Spain published remarks by Deputy Governor Soledad Núñez setting out how climate change is increasingly shaping economic activity and, in turn, altering tourism patterns in ways that can affect macroeconomic and financial stability. She argued that climate impacts are likely to transmit through gradual but persistent shifts in demand, seasonality and asset values, changing firms’ financing needs and banks’ credit risk assessments, particularly in regions with heavy reliance on tourism. Using the Balearic Islands as an example, she highlighted the region’s exposure to tourism, noting a population of around 1.2 million alongside almost 20 million annual visitors and that close to 45% of regional GDP is linked to international tourism spending. The speech pointed to pressures on water resources and infrastructure, citing research that tourism accounts for around 24% of the islands’ water consumption and that tourist per-capita use can reach up to five times that of residents in high season, alongside a coastal monitoring report indicating record sea surface temperatures in 2025 and an average of 190 days of marine heatwaves. She also referenced evidence of tourism demand shifting towards autumn and winter months, with implications for revenue timing, investment profitability and financing requirements, and noted links between strong tourism demand and housing price dynamics. From the central bank perspective, the priorities set out were to improve the analytical basis with granular data for risk assessment, identify emerging risks and strengthen the quality of prudential supervision, alongside coordination with public authorities, firms, financial institutions and research centres.