Estimating the economic impact of natural hazards on shared accommodation in coastal tourism destinations

Abstract

The increasing number of natural hazards in coastal tourism destinations has negatively affected their local lodging industries. The recent boom in shared accommodation in coastal destinations is also under threat due to increasing sea levels and extreme weather events. Thus, estimating the economic impact of natural hazards on shared accommodation is a critical prerequisite for effective tourism destination crisis management. This study aimed to estimate the economic impact of natural hazards on shared accommodation. To achieve this purpose, HAZards U.S. MultiHazard (HAZUS-MH) hurricane/flood models were employed in a case study of Hurricane Irma and 822 Airbnb properties in Collier County, Florida, for 2017. The estimated direct combined losses from wind gusts and storm surge flooding were $22, 683, 054, and the indirect losses to rental income were as high as $19,120 per day. This estimation method can help individual owners and local government managers predict problems related to natural hazards and more effectively prepare for future hazardous events in coastal tourism destinations. • This study estimated the economic impact of Hurricane Irma on shared accommodation. • HAZUS-MH hurricane and flood models were employed. • The estimated direct losses of Airbnb properties were $22, 683, 054 • The estimated indirect losses of Airbnb properties were up to $19,120 per day. • Findings are helpful to prepare for future hazardous events in coastal tourism destinations.