— This is the script of CNBC's financial news report for China's CCTV on September 30, 2022.
According to Enki Research, the economic damage caused by Hurricane Ian could range from $60 billion to $70 billion, hitting many key local industries such as tourism, agriculture, etc.
The first thing is that damaged homes need to be repaired. According to an analysis released Monday by Core Logic, a residential property information services company, about 1 million properties on Florida's West Coast will be damaged by the hurricane and will cost up to $258 billion to repair. And experts also caution that the cost of rebuilding could be significantly higher than market value because new flood regulations must be met, and it could cost $400,000 to refurbish a $200,000 beach house.
In terms of tourism, Florida is one of the most visited states in the U.S. by domestic and international tourists, and the damage caused by Hurricane Ian to the local tourism industry may reach about $7 billion.
On the one hand, physical damage to hotels could reach $5 billion; on the other hand, many famous tourist attractions such as Disneyland and Universal Studios were forced to close this week due to the hurricane's landfall. The loss of revenue for the tourism industry could be as much as $2 billion as visitors are unable to ride rides, rent boats, or buy drinks, etc.
On the agricultural front, the citrus fruit harvest is now in full swing, and according to meteorologists at Maxa-Tech, at least 75 percent of Florida's orange groves will be affected by the hurricane. And it's worth worrying that not only will most of the crop be affected, but a large number of orange trees will also collapse. Experts expect this could take four to five years to recover.
This is reflected in the trading of Frozen Concentrate Orange Juice futures on the Intercontinental Exchange, where prices can be seen rising this week.
Analysts believe that this hurricane would have ripple effect, from affecting supply, downstream companies, and then the consumer end. According to an expert, It will take about nine weeks or so to be felt directly by consumers.
Finally, let's take a look at a chart that shows the ranking of tropical cyclones that have caused significant economic damage to the United States, according to the National Oceanic and Atmospheric Administration. If the estimation at the beginning is accurate, the economic damage caused by Ian may be the sixth highest in the history of the United States.