Business Economics, B.S.

Advisor: Dr. Todd Yarbrough

Department of Economics

Presented at the 41st Annual Meeting of the Society of Fellows: March 26, 2022

Document Type



Not only do natural disasters cause immediate physical damage to an area, but they often have long-lasting social and economic effects as well. Tourism is a sector of the economy that is relatively fragile and relies heavily on a stable economy. This paper attempts to capture the effect of natural disasters on the tourism industry, specifically tourism employment. This research uses panel data and focuses specifically on 7 metropolitan statistical areas in the United States between 2002-2018. Data collected from the BEA as well as SHELDUS is used in order to quantify this effect. A fixed effects model with a log on the dependent variable finds that for every dollar chance of damage over personal income, tourism employment per capita decreases by about 1.34%. These results are statistically significant at the 5% level.