Abstract

The authors quantify the impact of hurricane strikes on the tourism industry in the Caribbean. To this end they first derive a hurricane destruction index that allows them to calculate the actual wind speed experienced at any locality relative to the hurricane eye of a passing or land falling hurricane. They then employ this hurricane index in a cross-country panel data context to estimate its impact on country-level tourist numbers. The results suggest that an average hurricane strike causes tourism arrivals to be about 2% lower than they would have been had no strike occurred.

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