Our relative long-term bullishness for Europe is premised upon the following: It is stronger than it seems, but most importantly, it is better placed than most other countries, regions or continents to mitigate the major global risks (like climate change) that is collectively faced. Water is a big case in point. Fresh water availability is changing fast, with water insecurity becoming an increasing economic and geopolitical concern. New research shows that Europe will not face significant water availability problems in the coming decades, contrary to some regions like the Middle East, northern India, Northeast China or the Caspian Sea, where the lack of water will become at best, a source of acute economic stress and geopolitical tensions or at worst, a question of survival.
The issue of water scarcity has a direct bearing on the tourism and wellness industries. The water crisis that affected Cape Town a few months ago (now only just averted) should serve as a wake-up call. The example of Shimla (a picturesque Himalayan town in India) crystallizes the issue of how water shortages will soon constrain—or even prevent—tourism in some regions of the world that heavily rely on tourists’ financial inflows.
As they grapple with an acute drinking water crisis, residents have asked the millions of tourists that normally visit Shimla to stay away, forcing hotels to cancel advance bookings. Like in Cape Town, both nature and the municipal authorities are being blamed for the water crisis, but catching the culprit is irrelevant.
The bottom line is this: As some regions and countries (like India) gradually run dry, operating wellness resorts in them, (which are very “thirsty”), will become increasingly expensive and regulated.