Both the parties plan to invest in energy efficiency and renewable energy solutions that will lower the fossil fuel dependence of islands.
IRENA said islands are affected by high energy costs as they depend on costly imported diesel fuel.
Over 90% of Small Island Developing States (SIDS) energy consumption is currently met via oil imports, which represent around 20% of their imports per year.
Most of the islands plan to expand the utilization of renewable energy and reduce their dependence on oil.
IRENA director-general Adnan Amin said: "Investment by island hotels is vital to demonstrating the business case for renewable energy, which is essential to addressing the burden of costly fossil fuels that inhibits islands’ economic and social development."
UNWTO Secretary-General Taleb Rifai said: "Tourism is a primary economic sector for many SIDS and a dominant force driving inclusive socio-economic growth. Yet, sustainable tourism development in small islands continues to face many challenges; one of the major ones is their high dependence on fossil fuel.
"The synergy of tourism and renewable energy represents a powerful force that will pave the way for win-win solutions in driving the sustainable agenda of islands forward."
