What impact Climate Change is having on his industry, and the head of the worlds most influential airline body tells us how his members are tackling the challenges as they continue to recover from billions in covid losses. Also on the show, the man in charge of travel at one of the worlds biggest insurers. He tells us Climate Change is causing more of us to think about where we go and why its a top priority for his industry. Wherever yourejoining me from Around The World, once again, a big hello and a warm welcome to the show. You know, wildfires and extreme heat, they are posing major challenges across the globe, from spain and portugal to croatia and greece and from seattle to florida. They are a sign of how our climate is changing. And the economic consequences are potentially huge, not least for the travel and Tourism Industry, which of course plays a vital role in our Global Economy. Many destinations are facing major disruption just as the Northern Hemisphere� s peak Summer Season comes into full swing. The United Nations sastuly was the hottest month the world has ever seen, and its Wreaking Havoc for these tourists. Translation we flew without luggage, left the luggage at the hotel. We were not allowed into the hotel, which was already on fire. Translation its incredible. Never experienced such high temperatures. Its really awful. I would recommend coming in. May, earlier in the summertime, or later, to try to avoid the heat, because itsl really difficult to manage the heat sometimes. And shes not the only one thinking that, because the number of people hoping to travel to the Mediterranean Betweenjune To November has already fallen 10 compared to last year. Thats according to research from the european travel commission. Big changes to travel and tourism patterns could also have a broader impact. That industry is expected to make up 9. 2 of the Global Economy as it continues its post covid bounce back. Crucially, its also expected to account for 320 millionjobs. Thats almost one in ten jobs on this planet, everything from tour guides to pilots. So the wildfires, such as those on the greek island of rhodes, and the extreme heat across europe, theyre not just ruining holidays. The cancellations and evacuations means less money is being spent on everything from flights to sightseeing and businesses and livelihoods are being ruined. Now, we dont have money to do something to rebuild the restaurant. We spend a lot of money this winter to change everything, to rebuild the restaurant. And three months now, weve finished and everything is bad. Translation the immediate future is uncertain for all our. Employees and for the local community, as well as those working in hotels and tourism generally. We still dont know how the Tour Operators or the visitors from abroad will respond. We are depending on tourists. We are 100 a tourist destination. Everything living here involve tourists. So our biggest fear is. The tourists to come. And its Notjust Europe thats witnessing the dramatic effects of Climate Change. Right across the united states, theres been, in recent weeks, oppressive heat, which has been a major concern from, well, new york to california, leading to heat alerts for more than half the population. The us, of course, its one of the worlds most visited countries and also has a lot of internal Holiday Makers. So as our very own Michelle Fleury explains from new york, there are concerns for travel and tourism. From coast to coast, america is going through one of its hottest summers on record. Here in new york city, the high today is 95 degrees fahrenheit. Thats about 35 degrees celsius. But that hasnt kept tourists like this family from visiting new yorks times square. In the usa, its really easy because you all have air conditioning. In germany, no stores have all air conditioning, so. We every time stop in the shop and get cold again, and then we go out and its so hot again. Its really hot. Yeah. Is it making it hard to walk around . Yeah. In californias death valley, tourism picked up, people wanting to experience the hottest place on earth. Longer term, the fear is Climate Change is drying up lakes and harming us ski resorts that have traditionally attracted visitors. Overall, the scorching heat hasnt yet cooled down americas Summer Travel boom. So that was Michelle Fleury in new york. But to get more of an idea of the impact Climate Change is having on this side of the atlantic, i turned to the president of the European Tourism commission, whosejob is to promote the continent as a tourism destination. Miguel sanz, a real pleasure having you on the show. Miguel, lets start with this, because for weeks now, weve had these devastating wildfires spreading right around the mediterranean, hitting tourism dependent countries such as greece, italy and spain pretty badly. Miguel, what impact is this having on the travel and Tourism Industry . Well, we do not have figures yet of the impact of these specific wildfires on tourism. What i know is that this has an impact on everyone, every sector of the economy. Climate change is something that is affecting the entire Economic System of the world, and its something that we have to tackle, notjust in the Tourism Industry. I can tell you things like, there is a new net zero hotel in the island of minorca in spain or electricity used by trains in some of the countries. It is fully renewable. And things like that that we are rapidly growing a transition to a more Sustainable Travel industry. Your Research Shows that theres been a fall in the number of people hoping to travel to the mediterranean between the months ofjune and november to countries that have, well, certainly seen the worst of the wildfires. Miguel, just explain that a bit more, because im wondering, is that here to stay . Our latest report shows that there is a 10 less interest in travelling in the peak months of the summer in european domestic travel, especially to southern destinations. But there is an increase in interest in travelling in the shoulder seasons, in spring and autumn, of 5 and 3 . And i think that this has to do notjust with Climate Change it might be a cause but it also has to do with prices, value for money for many consumers in europe, and it has to do with a trend to experience new types of tourism. I think that there are people now looking at sun and beach and something else, and these can be done notjust in the summer, in the peak summer months, but it can also be done injune, in may, in september, in october. And i think that this is actually a good thing. How much of a problem is that, miguel, for an economy, lets say greece, where some estimates say that tourism is worth about a fifth of their economy . To have these unpredictable problems like wildfires on this scale, imjust wondering, again, whats the wider Economic Impact . The impact on the travel sector, its also important, but the real problem is for the local communities and the local businesses and the local residents of those countries. And i think that these episodes of extreme weather conditions are going to be more recurrent. That is what the scientists� consensus is saying, and the travel industry is very quick to adapt to these changes. We are going to see a rapid and quick adaptation, notjust in terms of tourism flows to other destinations, but in these destinations, there is going to be a quick adaptation to these new conditions and there is going to be a more conscious way of how to experience and how to have a Great Holiday in destinations that might suffer extreme weather conditions. Because, i mean, if you see, saudi arabia is making huge investments in tourism, and the weather in the gulf countries compared to the mediterranean countries, its already severe and its already something that we are just beginning to experience. And no one is thinking that nobody is going to go to those destinations in the future or other destinations across the globe. For the Northern Hemisphere at least, having a holiday in the hot months ofjune through to september, its been a tradition for about 200 years. Miguel, is it now time for a fundamental rethink of that . Because im wondering, again, what impact would that have on economies . , given many are set up for workers to take time off at this particular time of the year. This is an excellent question, and i think that this is something that we need to talk about. Peak months, or high season for holidays, is something that happens primarily because of the School Holidays. Families are able to travel when their children are out of school. If this changes, we will see different patterns of travel. Also, an ageing population in europe that has more free time, and they may choose not to travel during the peak season, notjust because of the heat but also because of over tourism and too many people in one destination at a given time. So we will see people trying to travel to cities like amsterdam or berlin or venice or rome in other times of the year, because they have the possibility, retirees or students or families, if School Holidays are phased across the year or are distributed across the year. Well, on that point, miguel sanz, the big boss of the european travel commission, Thanks Forjoining me. Good luck with everything and ill check in with you soon. Bye bye, then you know, when we think of Climate Change and its impact on travel, many people point to the fact that aviation is responsible for around 2. 5 of the Carbon Emissions that are warming the planet. And heat and fires around the mediterranean have certainly been linked to Climate Change and theyve caused a headache for airlines and Holiday Companies as they all continue to navigate the fallout from the pandemic. So ive been catching up with the big boss of the body that represents the vast majority of the Worlds Airlines its iata, the International Air transport association. Willie walsh, always a pleasure to have you on the show. And, willie, lets start with this, because, you know, weve been seeing these heat waves. Weve got wildfires right around the mediterranean, from spain to greece and algeria and tunisia, at the time, during this peak season for Summer Travel. So, willie, just how disruptive has all of that been and is it for the airlines . I think some of the scenes weve seen recently are clearly very disturbing and terrible for the people who have been impacted directly by it. And the impact on the local areas that have been affected clearly will be very significant. But the impact on the industry as a whole has been relatively minor. Well, 0k. Well, let me talk about that local impact, because as we know, look, airlines play an absolutely crucial role in the travel and Tourism Industry. That industry itself accounts for Something Like 10 of the European Unions economy. So when those areas suffer from this disruption, you know, surely theres a Knock On Effect for those economies . You know, tourism in greece is, i think, about 18 of their economy. Its very, very significant. In fact, greece was the country that opened fastest after the pandemic, or during the period of the pandemic, because of the importance of tourism to their economy. What weve seen in the past is that they do tend to recover pretty quickly, again, because of the importance to their economy. And, willie, its Notjust Europe thats seeing aviation disrupted because of extreme weather. In the us, the faa, the federal aviation authority, recently said that wildfires are causing more delays than rain orfog. In the us, we have seen significant disruption as well. I think the problem in the us is compounded by a shortage of air traffic controllers. So its notjust one issue, its the combination of a couple of issues that are having a major impact on operations there. But, you know, without question, this year, were experiencing, if you like, a different level of disruption and different causes of disruption than maybe last year. And, willie, just to put this all into context, i mean, all of this comes at a time when the Aviation Industry is onlyjust getting back on its feet after almost, what, 200 billion of losses caused by covid . In may, traffic was, what, 96 of pre covid levels . Is that recovery now complete or notjust yet . No, not just yet. Were still waiting to recover traffic within asia and traffic between europe and asia, North America and asia. Thats slowly recovering. Its at about 70 of where it was in 2019, so theres still room for recovery there. And i think the recovery there has been a bit slower than we had expected at one level, but surprising at the other because we didnt expect china to open in january. All of the expectation was china wouldnt reopen until around now, so i think that took people a little bit by surprise. And there are still some. Not so much restrictions, but a lot of paperwork to fill in if youre travelling to china. But, you know, there is scope for further recovery in the industry and thats, i think, positive going into 202a. You recently doubled your forecast forjust how much profit the Airline Industry is going to make this year to. I think its around 9. 8 billion. But, willie, ive got to ask you this. With Interest Rates still going up, inflation continuing to add to the cost of living crisis, willie, i got to ask you, why are you so confident people will continue spending on air travel when, for many and lets be frank its not really a basic need . Well, what were seeing, which is, i think, unusual you know, ive been in this industry a long time were seeing very high levels of employment, which typically we dont see when youre looking at softening macroeconomic issues. You would normally associate that with higher levels of unemployment. People in work tend to be more confident about spending money and will continue with. Generally as close as possible to their normal patterns. And all the research we do, people still want to take a holiday and still want to travel and experience that. It certainly doesnt appear to have any impact on this Summer Travel, where demand remains very, very strong. And, willie, you recently said that the higher profits for the industry that youre forecasting now would, and i quote, reward investors, Fund Sustainability and invest in efficiencies to connect the world even more effectively. Given the world is experiencing such extreme weather events and the disruption all of that causes, do you think enough priority is being given by your members, willie the airlines, of course to funding the sustainability on which their future depends . I believe it is. You know, our industry has for a long time recognised that we do have an impact and effect on Climate Change. So we have committed to achieving net zero by 2050. There are a number of steps being taken now to ensure that were on the right path to that. Now, the principal way for our industry to get to net zero in the short to medium term will be through the use of greater volumes of Sustainable Aviation fuel. Unfortunately, you know, were not seeing enough production of that fuel, and were encouraging governments and other regulators to put in place a framework that would incentivise the production of Sustainable Aviation fuel. And, willie, let me just end on this. Is the real problem the lack of a Binding International agreement on cutting Carbon Emissions for the industry . And weve been saying the industry is responsible for 2. 3, 2. 4 of the total. I mean, the uns icao the International Civil aviation 0rganisation they agreed on an aspiration of net zero by 2050. But, again, this is not a Binding International agreement. I think it is a bit of a challenge. I think its a very positive step that icao has agreed on this long term aspirational goal. Now, we would like to turn that aspiration into harder measures, and i know that thats what icao is working on. But it reflects the fact that, globally, not everybody is in the same position. There are many economies Around The World looking to grow their economy and understand the importance of aviation to enable them to do that. And i think its very important that we do acknowledge our impact and demonstrate our commitment to addressing it. Well, on that point, willie walsh, the big boss of iata, always great to talk to you, my friend. Good luck with everything. And ill check in with you soon. Thank you. Good to talk to you. You know, the Global Travel insurance business, its thought to be worth around 20 billion a year. And of course, its another part of the travel and Tourism Industry that suffered because of the pandemic and still faces yet more turbulence because of Climate Change. Well, Germanys Allianz is one of the biggest names in the business, so i decided to catch up with the man who runs its Travel Insurance. Tomas kunzmann, a real pleasure having you on my show. Tomas, lets just start with this how has your business changed over the past year . Quite tremendously, aaron. Quite tremendously, because we as customers and consumers have changed. We have changed the way we expect a Travel Insurance to work. And you will recall in the past, Travel Insurance, maximum expectation from customers was, pay my claim. Today, 80 of our customers tell me, we want more from you as a travel insurer. We want that you are the peace of mind button, the problem solver. We want to know a travel guide. We want to know and give you all my documents, to give us, really, the full journey, and notjust like airlines, focusing on the flight or the hotel on the route. Give us, really, something that is holistic for my whole holiday, and that has changed through covid tremendously. And, of course, we know travel is a sector thatjust rebounded like theres no tomorrow the demand has been huge. But were also living in a period of huge cost of living crisis. Im just wondering if thats had an impact, the cost of living crisis has had an impact on the number of claims that you have to handle . Interestingly, not that much the amount of claims, per se. Mm hm . Clearly, as you said, there was a rebound last year, but we are normalising in the amount of claims quite quickly. What has really changed is the average payout of a claim. That went up almost 25 . Wow and the reason is that customers tend to cancel their holiday much later, aaron. And that increases the amount we are paying out as an insurer. And that is where we as well come into the game to be much more for our customers, really that problem solver. Last minute cancellation, what happens . We are there. So during the pandemic, people became used to having to cancel bookings and to make claims. Does that continue, tomas, Post Pandemic . Its quite interesting how we as customers have adapted quickly to be again normal. We see a huge difference in one element customers expect much more digitalisation, much more technology and much more service. So to make that more quantitative, 85 of my customers want that their claim is paid fully automatically within a few minutes, and nobody wants to wait any more hours and hours to discuss with the insurance company. And thats what we are doing today. 90 of our claims is paid digitally out to our customers. Wow, and so your customers are happy to deal with everything digitally . Its not that they want more of a personal service . It is a combination. We internally call it, the human touch remains. And it is obviously that we are balancing both, but it is as well clear that customers. And there are certain customer groups that ask for a Digital First solution, but there are moments when you are in an emergency, you still want to have somebody on the phone. And thats why we pick up, every single day, 250,000 calls. So you clearly see the human touch is still something customers ask for. Tomas, as we look forward, is Climate Change a major factor of your business . Because we look at these extreme weather events hugely disruptive to, well, businesses and your consumers, right . Clearly yes, clearly yes. And again, let me share with you how 58 of all our customers are checking before they go to their destination for the holiday if there are environmental risks. I was really surprised. Ifelt, that number is gonna be much lower. So its almost two thirds of all travellers and Holiday Makers who check that, and they have a look, is there wildfires . Is there risk of any other environmental change . And that has shifted tremendously. That number was. Before the pandemic, it was below the 20s. How do you know that theyre checking, that 50 are checking . We ask them. Right. We ask them. We ask our customers and we ask, what kind of behaviour you are changing . And they are telling us, we want to know about environmental risks. And that is as well the reason why we embedded into our solution and the services i mentioned that i envision one day to be as well on your home screen, that you press the button and you tell us, 0k, im flying to paris, and if there is anything, were going to send you an alert, watch out. There is something happening. There are wildfires in the area of the cote dazur. And you can really enjoy these services. And that Customer Behaviour has dramatically changed. Well, let me just stay on Climate Change. Im looking at some of the details here, tomas, because the net zero insurance alliance, right its a un backed group aims to speed up to scale up the action on Climate Change for your industry, to cut it requires its members, of course, committed to cut Greenhouse Gas emissions. Your company was a founding member. If Climate Change is a very important issue for you, why did you recently withdraw from that . For us at allianz group, the whole topic about Climate Change and esg remains a huge priority, and we are doing a lot in order to confirm that we, for instance, in 2030, want to be Greenhouse Gas neutral, and that is focusing us in both areas in underwriting the Property Casualty business and as well in the investment area. In both areas, allianz is committed to really step out of underwriting new sites around oil, heavy oil, or deep ocean and sea risks. On that point, tomas kunzmann, a real pleasure having you on the show. Thanks very much for your time. Thank you. Thank you, aaron. Well, thats it for this weeks show. I hope you enjoyed it. Dont forget, you can keep up with the latest on the Global Economy on the bbc news website or the smartphone app. Of course, you can also follow me on twitter tweet me, ill tweet you back you can get me bbcaaron. Thanks for watching. Ill see you soon. Bye bye. Hello. After saturdays weather, ill tell you straight away that the outlook is looking significantly better for many parts of the uk over the coming days. Even sunday will bring a delightful start to the day with some sunshine. Now, storm antoni swept across southern parts of the uk, but affected mostly the southwest in terms of the severe gales. Its still clipping early in the morning, east anglia and the south east. So more of a breeze here, perhaps a few showers through the early hours and maybe through the morning into the afternoon, but for the vast majority of us, its a quiet start to the day. These are the temperatures around 8am, a little fresh out there, ten in the lowlands of scotland, 12 or 13 in the south. So through the morning and the afternoon, a bit of a breeze there on that lincolnshire coastline and into the south east and east anglia. Showers will develop through the course of the morning into the afternoon. But many of us should miss the showers and, actually, compared to what weve had, it wont be bad at all. Temperatures still a little low, around 16 18 degrees, maybe 20 or 21 in the southeast. But the good news is that sunday evening is looking fine and it should be a calm end to the weekend. How about monday . Well, High Pressure is trying to push in that weather. Its trying to settle down. But this little area of low pressure is also sneaking in at the same time. Now, this isnt gale force winds, but it is a fair amount of cloud and perhaps some rain reaching south western parts of the country. I dont think its going to be particularly heavy. And, actually, for many of us, mondays looking absolutely fine across scotland all through Northern England and into central parts of britain as well. Sunny spells and just a few showers. Now, lets take a look at that jet stream, because its all about the jet stream, isnt it . Its sort of meandering across the atlantic, pushing the weather systems. But look what happens through the middle to end of the week. It sort of diverts to the north and it opens up the doors to warmer air. A little more settled weather coming in from the south. Now, were not expecting anything particularly extreme in terms of the temperatures, but they are going to rise, perhaps mid or high 20s. Doesnt always mean itll be sunny, but at least better compared to what weve had. Bye bye. Live from washington, this is bbc news. Pakistans former Prime Minister calls for peaceful protest, after he receives a three year Jail Sentence on Corruption Charges. Ukraines president says another medical facility has come under russian attack this time, in the countrys north east. And three african teams make world cup history, as the Knockout Stages get under way. Hello, im carl nasman. Pakistans former Prime Minister imran khan has called on his supporters to protest peacefully, after he was found guilty on Corruption Charges and sentenced to three years in prison. An Islamabad Court ruled he failed to declare income from the sale of gifts he received while in office from 2018 to 2022