An Analysis of the Economic Impact of Hurricanes Dennis, Floyd, and Irene on North Carolina's Lodging Industry

Abstract

During September and October of 1999, the state of North Carolina was ravaged by the effects of successive hurricanes, followed by the worst flooding in 500 years. At the request of the state hotel association and the division of tourism, a statewide study was conducted to determine the economic impact of the natural disasters on the lodging industry. Based on data provided by responding hotels, the physical damages suffered and lost room revenues were estimated to be between $96 million and $125 million for September and October alone. However, there were important questions that could not be answered by this limited study. To make accurate predictions about the future economic trends of the hospitality industry, an extensive time-series analysis over the next decade will be required.