economically, how do hurricanes affect tourism? prices rise or fall?
The shift in supply and demand will go left I believe because of fewer tourists. But what changes to the equilibrium? Do prices rise or fall?
*I am confused because I know that hotel rates go down during hurricane season, but from what I have learned, when the curve goes left the prices should increase and quantity should decrease*
Can anyone clear this up for me? thanks 
Tagged with: curve • equilibrium • hotel rates • hurricane season • supply and demand • tourists
Filed under: Hurricane Questions
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The part you’re missing is that for most of the year, hotel rooms are in surplus in resort destinations. Thus, even if a hurricane destroys hotel rooms, there are likely more than enough available, especially when demand drops as tourists stay away. As an example my sister went to the dominican republic for half price after a hurricane there three years ago. Even with the low price the resort was still half empty, showing that the supply outstripped the decreased demand at that time. By Xmas of the next year the resort of 85% full, charging full price, showing that an increase in demand from the tourists who were no longer afraid of hurricanes returned the market to equilibrium.
depends on where they were/are when it hits. Are they visiting or do they live there??
Were they planning on vacationing there
were they there when it hit.
No matter what the variables are the prices will rise
For some it’s an opportunity that didn’t knock exactly.
It’s an opportunity that was so close, they opened the door and dragged it inside kicking and screaming