Urban Transformation

The rise of 'coolcations' and other urban transformation stories you need to read

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Airplane taking off.

Heatwaves are driving tourists to cooler destinations. Image: Unsplash/Niels And Marco

Lisa Chamberlain
Communication Lead, Urban Transformation, World Economic Forum
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This article is part of: Centre for Urban Transformation
  • This monthly round-up brings you some of the latest news on cities and urbanization.
  • Top city and urbanization stories: 'Coolcations' on the rise as tourists avoid the summer heat; Urbanization in China to reach 70% in next five years; First urban beavers born in London in 400 years.
  • For more on the World Economic Forum’s city-focused work, visit the Centre for Urban Transformation.

1. 'Coolcations': How climate change is changing tourism

Climate change is driving a shift in tourism patterns as travellers seek cooler destinations amid extreme weather conditions - a trend the tourism industry has dubbed 'coolcations'.

This summer, record-breaking heatwaves across Europe and North America have prompted tourists to reconsider their travel plans, opting for destinations with milder climates.

Countries in Northern Europe, such as Norway and Denmark, have seen an increase in tourist numbers, benefiting from their cooler temperatures.

In July, Norwegian Air added 10 new routes between northern Norway and European cities, Reuters reports, while international arrivals to Norway, Ireland and Sweden were all up by more than 10%.

Flight-ticketing data firm ForwardKeys reported that domestic air arrivals to Alaska had increased 10% year-on-year, driven by a 30% increase in arrivals from Dallas, Texas, as residents looked to escape the heat.

2. Urbanization rate to reach 70% in China by 2030

Within the next five years, the urbanization rate of China's permanent population is expected to reach 70%, the country's state council has announced.

As of late 2023, 66.16% of the resident population lived in urban areas, according to state figures.

China's state council has released a five-year action plan focused on urbanization to "fully realize the huge potential of domestic demand" linked to urbanization, Reuters reports.

The plan includes measures to grant urban residency to rural inhabitants who have relocated to cities.

It comes as megacities in China's eastern seaboard struggled with a surge in demand for power to cool homes and offices amid extreme temperatures.

In Hangzhou, a tech hub that's home to 12.5 million residents, the mercury went above 40°C in August, and the local government banned all non-essential outdoor lighting and light shows to conserve energy.

Meanwhile, in Shanghai, a city of almost 25 million people, the maximum load exceeded 40 million kilowatts for the first time on 2 August.

Degree of urbanization in China from 1980 to 2023.
How urbanization has grown in China since 1980. Image: Statista

3. News in brief: Other top city and urbanization stories this month

The first beavers have been born in London in more than 400 years, in a project hailed a success for urban conservation. The Ealing Beaver Project released five beavers at Paradise Fields – a woodland, wetland and meadow conservation site in west London in October 2023 – and they have had at least two 'kits'.

The Paris Olympics brought a much-needed boost to the country's economy. Tourism Minister Olivia Gregoire said hotel occupancy in French cities hosting Olympic events had risen 16% year-on-year, while visitors to the capital's museums, bars and restaurants had also increased by 25% on average.

A new study has found that more than half of Americans surveyed spend more than 50% of their income on housing costs including mortgage and utilities.

New home prices in China fell 4.9% from a year earlier – the sharpest drop in nine years, according to Reuters' calculations based on National Bureau of Statistics data.

China's low-altitude economy is taking off after a successful test run of the country's largest cargo drone and the launch of a helicopter taxi on a new 100km route from Kunshun to Shanghai, which cuts the journey time from several hours to 20 minutes.

Discover

What is the World Economic Forum doing to promote sustainable urban development?

4. More on urban transformation on Agenda

An exhibition has opened in London to improve the UK’s ‘understanding of homelessness and inspire optimism that it can be ended’. It’s estimated that more than one in five people globally live in inadequate housing. The World Economic Forum’s Reshaping Affordability: Interventions for Inclusive and Liveable Cities report brings together ideas on how to make cities affordable through land use, sustainable communities and inclusive design.

While smart cities already harness artificial intelligence (AI), some urban centres now incorporate generative AI into their operations. The World Economic Forum’s G20 Global Smart Cities Alliance has developed guiding principles for the responsible use of smart city technologies. From self-driving trucks to versatile chatbots, here’s how five global cities are embracing gen AI.

The increase in global temperatures has led to a significant rise in heat stroke-related deaths in Japan, with numbers escalating from an average of 67 per year before 1993 to 1,253 annually from 2020 to 2022. New technologies are being developed to mitigate the effects of extreme heat on people and crops, including heat-releasing clothes, ultraviolet and heat-blocking parasols and agricultural sheets. Collaboration between the public and private sectors is crucial in developing and disseminating heat-protective products.

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Contents
1. 'Coolcations': How climate change is changing tourism2. Urbanization rate to reach 70% in China by 20303. News in brief: Other top city and urbanization stories this month4. More on urban transformation on Agenda

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