In a country visited by an average of 20 typhoons a year, preparedness is not just a safety net, it’s smart economics. In my work with community-based tourism projects across the Philippines, I’ve seen how Anticipatory Finance (AF) can protect not only lives but also local economies built on tourism.
Local government units (LGUs) and the private sector can drive this shift. Policy tools like tax incentives for disaster-proofing homestays, tour facilities, and small enterprises can make preparedness more attractive. Public–private partnerships can pool resources for early action. LGUs can even create their own reserve funds for anticipated crises, much like the Philippine Red Cross’ Early Action Protocol, which ensures financial readiness for high-risk municipalities in the path of typhoons. When communities are informed and involved, participation follows not just from residents but from both government and business. In Uganda, for instance, a multi-stakeholder partnership didn’t just stay on paper; it built local markets, with private investors footing much of the bill.
I’ve witnessed how crucial AF is in the tourism industry. In Oslob, in the aftermath of Typhoon Odette, resorts and whale sharks watching boats were destroyed. Instead of depending on “soft loans” from banks, the local government could have anticipated the risks and could have typhoon-proof businesses.
In Polillo Island, Quezon, where abaca-based agritourism is emerging, anticipatory financing could help women-led cooperatives secure crop insurance and emergency seed funds. This means that when a typhoon threatens, they can act immediately harvesting early, storing fibers safely, and ensuring that supply chain can continue after the storm.
Skeptics ask: “What if you prepare and nothing happens?” The global evidence says it’s worth it. In anticipatory finance, the “no regrets policy” means that the money invested in preparedness should generate benefits whether the anticipated disaster happens. In other words, even if the typhoon veers away, or the drought isn’t as severe as predicted, the funds spent are not wasted because they still strengthen communities, improve infrastructure, and support livelihoods. In Bangladesh, every dollar in Forecast-based Financing saved beneficiaries three times more in avoided losses. In Sudan, early drought action meant an extra liter of milk per household daily, boosting nutrition and income.
In our own tourism communities, that could translate into something as simple and vital as ensuring fresh seafood remains available in restaurants after a typhoon, because fishers had funds to repair nets and boats in advance. Or keeping guesthouses open in Malapascua’s dive shops because water tanks and solar power systems were secured ahead of time.
Studies in 10 countries show anticipatory action returns seven times the value invested through avoided losses and added benefits. Better yet, these funds can be repurposed. Cash transfer systems used for typhoon relief can just as easily support local guides during an economic slowdown, as we saw during the pandemic when tours stopped but bills kept coming.
AF is not purely a disaster management tool. It is also essential for community-based tourism resilience. It’s the triple dividend of preparedness: securing funds before a crisis, sustaining livelihoods during the shock, and strengthening tourism economies for the long haul.
AF is not just about surviving storms, it’s about ensuring that when the skies clear, our tourism villages are still ready to welcome visitors, tell their stories, and keep their communities thriving.
