Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction


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146 Part II - Chapter 9
9.3
Who pays the costs?
As tourism investment attracts further business investments, generates jobs and with it results in the build-up of housing development and road infrastructure, the ownership of risk is usually not well defined. As a result, risks from new
investment become shared costs borne often by those who benefit least from the return on this investment.
Losses in the tourism sector in SIDS can rapidly translate into impacts on employment and disproportionally affect small and medium enterprises (ECLAC, 2003

ECLAC (United Nations Economic Commission for Latin America and the Caribbean). 2003.,Handbook for Estimating the Socio-economic and Environmental Effects of Disasters., LC/MEX/G.5 LC/L.1874.. .
). For example, after the Indian Ocean
Box 9.3 Tourism investment, coastal erosion and rapidly increasing coastal disaster risk in Southern Viet Nam
(Source of data and figures: Takagi, 2012)
Mui Ne is located east of Phan Thiet, the capital of Binh Thuan province in southeast Viet Nam. Increased investment in tourism infrastructure on Mui Ne’s beachfront, including construction of a large jetty, seems to have resulted in coastal erosion of Phan Thiet shores with resulting increased storm surge and flood risk. Obstruction of shoreline sediment transport by the jetty may be the main reason. The first photograph of Figure 9.4 shows sandy beaches in front of two hotel developments (depicted here as Hotel West and Hotel East) as well as sand accumulation at a jetty west of the hotels towards Phan Thiet.

To retain sand at the hotel beach, Hotel East invested in the construction of a large jetty that was successful in protecting erosion and even increasing the beach area in front of the hotel. However, the lack of sediment transportation from east to west, following the construction of the jetty, resulted in loss of beach area for Hotel West and coastal erosion further along the coast to Phan Thiet (Figure 9.4, large photograph), leaving those areas more vulnerable to storm surges and floods.

Figure 9.4 Relationship between investment and erosion in coastal southern Viet Nam
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