Studies have showed that the fires that ravaged Hawaii in August of this year has caused between $4 billion and $6 billion in losses. Losses show up not only in the land that has been destroyed but it also has an effect on the businesses that are still there. When it comes to the land itself, it is estimated that more than 2,170 acres, or 3.4 miles have been damaged due to these fires More than 100 people have been confirmed dead as a result of the catastrophe, while more than 1,000 remain unaccounted for.
The state's economic losses using building-level damage assessments from multiple sources, in addition to damage maps from the Maui Emergency Management Agency. The estimate of Hawaii's economic losses does not factor in the blaze's effect on the state's gross domestic product; government spending on the response to the catastrophe or the social cost of the fires, as the daily lives of families and communities are forever changed.
With the fires comes rebuild which will is estimated to cost around 5.5 billion dollars at the moment. Insurance is expected to pay up to 75% of this cost, but funds will still be needed to raise to complete the rebuild. The businesses however that were able to avoid the fire have been seeing a decline in sales due to the effect the fire has had on tourism. With tourism down businesses will need to find a way to survive until the rebuild is complete and tourism rises again.
Sources: Hawaii's economic toll from wildfires is up to $6 billion, Moody's estimates - CBS News
I was completely unaware of how destructive these fires were, mostly in terms of human loss. 100 people confirmed dead and 1000 unaccounted for in a wildfire is something you hear about very infrequently and its a shame that this happened. I think that the economy has obviously taken a hit due to the loss of human capital and the substantial loss of physical capital, but this will sort itself out. I think the main economic tamper here is going to be how long it takes for 1, tourists to begin coming again, and 2, how long it takes the environment to bounce back. Hawaii is rich in natural beauty, and this took some of that away.
ReplyDeleteI was unaware of the wildfires. Although I had heard about it, I had no idea that Hawaii was experiencing such a severe loss of human life. Given that 3.4 acres were burned and that tourism accounts for a large portion of earnings, the economy is certain to decline but, it will take time and patience for the economy to recover.
ReplyDeleteThis is a very important topic to bring to peoples attention. I feel that many people are very unaware of how much damage these wildfires do, and it is incredible how much of a loss Hawaii intakes from this. Losing 4-6 billion is more than anyone would ever imagine. I wonder if the businesses in Hawaii gets any help financially because of this.
ReplyDeleteAustin, this is definitely an expensive natural disaster and one of many in the last 20 years which leads me to the question of who insures Hawaii in terms of when a natural disaster occurs who pays that money? Is it individuals that take out insurance or does the island itself have insurance of sorts for these kinds of situations.
ReplyDeleteAustin, after spending time in Hawaii in the Summer of 202, I think that this devastating natural disaster will take a bigger toll on the people who live in the communities that are affected. People who live in Hawaii are generally poor and it is common so see people living alongside beaches among other places of public property. Therefore, the economy will likely take a long time to recover, as well as the ability to make up for the loss of human lives. This is truly devastating for one of the most beautiful places on earth.
ReplyDeleteI don't think this topic gets as much spotlight as it needs. People are dying in these fires and it is costly to not only maintain families in homes but also fix damages. I think this was a great topic and article that touches all sides of that.
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