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A32 FEATURE
Saturday 9 September 2017
Tourism, agriculture businesses brace for Irma’s impact

By DAVID KOENIG area. In Florida, “People
AP Business Writer are driving their cars away.
After knocking down parts Look at I-95 — they’re leav-
of the vital tourism indus- ing,” said Brian Meredith,
try in the Caribbean, Hur- an insurance analyst with
ricane Irma is spinning to- UBS. “Houston was different
ward Florida, another va- because people hadn’t
cation haven. left.”
Tourism accounts for 1.4 — INSURANCE: The industry
million jobs in the Sunshine is in good financial shape
State, where more than 112 because insurers haven’t
million people visited last had to pay out for mam-
year and spent $109 billion. moth losses like back-to-
Resorts and hotels there back hurricanes in over a
could suffer instant destruc- decade, analysts say. But
tion from Irma’s winds or they are wary of Irma’s pre-
lingering damage if vaca- dicted path, which would
tioners stay away. “We will mean landfall in the dense-
still have our beaches after ly populated area from Mi-
Irma, but some people who ami to Fort Lauderdale.
were planning to come to “This is the sort of path that
Florida will change those could constitute the elusive
plans,” said Sean Snaith, an 1-in-100 year event” that
economics professor at the Few cars traversed the normally rush hour traffic gridlocked streets in downtown Miami, Friday, insurers use to judge catas-
University of Central Florida. Sept. 8, 2017. trophes, Matthew Carletti,
“They may postpone, or Associated Press an analyst for JMP Securi-
change destinations.” Here is a snapshot of Irma’s gory 4 hurricane on Aug. 25 Among the larger carriers, ties, wrote in a note to cli-
In the Caribbean, at least likely effects on other key near Corpus Christi, Texas. American Airlines has the ents. RMS, a company that
21 people were killed when industries: It weakened to a tropical most exposure to Irma, Syth advises insurers, estimates
Irma slammed into the is- — AIRLINES: More than storm but lingered in South- said. Irma could cause wind
lands as one of the stron- 4,600 flights in the storm’s east Texas for days, dump- — AUTOS: Irma won’t dam- damage of up to $70 billion
gest Atlantic hurricanes path have been can- ing torrential rainfall in the age as many cars and in the U.S., almost all of it in
ever. Heavy damage was celed, including flights this Houston area that flooded trucks as Harvey did, but Florida. Meredith, the UBS
reported on St. Martin, St. weekend in Florida, and homes and highways. the toll is still expected to analyst, said some insurers
Barts and other famous the number is expected to United Airlines and South- be extensive, according to and re-insurers might need
beach destinations. soar, according to tracking west Airlines were hit hard- analysts from Cox Automo- to issue debt or equity to
Roads and airports will service FlightAware.com. est by Harvey. Savanthi tive, which publishes Kelley raise more capital after
need to be repaired or That means more lost rev- Syth, an airline analyst for Blue Book and Autotrader. getting hit with Harvey and
even rebuilt, and it’s uncer- enue for the airlines, which Raymond James, said Jet- Cox said 130,000 to 200,000 Irma claims. Homeowner
tain whether that can be policies could become
done in time for the winter more costly but not by a
high season on the hardest- great deal, he said, be-
hit islands. Wealthier islands cause premium increases
with more private insur- require approval from reg-
ance will fare better, said ulators.
Gabriel Torres, an analyst — AGRICULTURE: Irma
for Moody’s Investors Ser- could be a devastating
vice who has studied the blow to a Florida citrus in-
effect of storms in the Ca- dustry that is already reel-
ribbean. “It has an impact ing from a decade-long
on tourism because some infestation of citrus green-
hotels will decide not to ing disease, which leads
rebuild or take a long time to fewer and bitter-tasting
to rebuild, and that’s lost fruit. If the storm’s path
revenue,” Torres said. “That takes it through the center
can take years to recover.” of the state — the citrus-
Torres said St. Martin, which growing region — it could
is divided into Dutch Sint rip oranges and grapefruit
Maarten and French Saint- from their branches or even
Martin, will benefit as their uproot trees, said Lisa Lo-
European patrons provide chridge, spokeswoman for
aid for rebuilding. the Florida Fruit and Vege-
If there is any consolation, it A worker carries a ladder to dismantle attractions at an amusement park along the boardwalk table Association. “This has
may be that “the damage ahead of Hurricane Irma in Daytona Beach, Fla., Thursday, Sept. 7, 2017. the potential to be devas-
to tourism is going to be Associated Press tating,” Lochridge said.
less than feared because — OIL AND GAS: One-third
a great many popular is- canceled about 11,000 Blue Airways, Allegiant Air vehicles will be lost in Miami, or more of service stations
lands have been spared,” flights when flooding from and Spirit Airlines were most West Palm Beach and Fort were out of gas in several
including Aruba, Bonaire Hurricane Harvey shut vulnerable to Irma because Myers-Naples in south Flori- Florida cities including Mi-
and Curacao, said Arthur down both main Houston of their higher concentra- da. By comparison, 300,000 ami, West Palm Beach, Fort
Frommer, the founder of airports for several days. tion of flights that touch to 500,000 vehicles were Myers and Tampa, accord-
Frommer’s travel guides. Harvey landed as a Cate- Florida and the Caribbean. damaged in the Houston ing to GasBuddy.q