There is little doubt that global warming is accelerating, with climate-related disasters increasing in intensity and frequency, resulting in loss of life and significant economic consequences for areas impacted.
According to the National Oceanic and Atmospheric Administration (NOAA), between 1980 -2023 an average of 8.5 climate-related disasters that exceeded $1 billion in damages occurred annually, but over the most recent five years, 2019-2023, the annual number of events was more than 20. Over the last seven years , in fact, 137 separate billion-dollar disasters have killed at least 5,500 people and cost more than $1 trillion in damages, according to Climate.gov.
As of Nov. 1, the United States has experienced 24 weather/climate disaster events, including four major hurricanes (Beryl, Helene, Kirk and Milton) so far, with an estimated cost of between $127 billion and $129 billion, reported USA Today. Meanwhile, there are six large wildfires burning in California, Oregon, Texas, Wyoming and New York, reported the New York Times.
These events represent short-term and on-going impacts on the hospitality industry, with storm damage resulting in short-term or permanent loss of lodging units and lost tourism revenue, as well as higher operating costs over the long-term, particularly in regard to higher insurance premiums and property taxes.
Read the full article on our sister site, Hospitality Investor.