This study explores the relationship between climate vulnerability and capital investments in tourism across 165 countries, considering the moderating role of readiness. Findings reveal that an increase in vulnerability imposes a substantial economic toll, reducing capital investments. However, a country's preparedness mitigates and sometimes nullifies these adverse effects. Moreover, the improvement in vulnerability presents greater prospects for countries with low readiness, as they benefit more by mitigating the vulnerability.
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Er et al. (2024) studied this question.
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