As Hurricane Sandy roars up the East Coast, residents all along the Eastern Seaboard are preparing for the worst. New research suggests that businesses may also have to prepare for the worst as well.
In particular, research says that business travel will be affected greatly by Sandy. The Global Business Travel Association estimates that Hurricane Sandy will cancel or interrupt more than 500,000 trips and cost businesses more than $600 million in canceled flights. Businesses in the affected states may see business travel losses of up to $58 million a day.
Those affected businesses will affect the economy in a big way, the Global Business Travel Association says. Interrupted travel is expected to cause a loss of $675 million to the GDP and potential losses in federal, state and local tax revenues of $176 million.
In addition to business travel losses, the researchers suggest there could up to $11 billion in property damage from Hurricane Sandy. That number takes into account damage to residential, commercial, communications and transportation infrastructure, and agriculture.
The information in this research was based on projections from the GBTA's Business Travel Quarterly. The research used projections to determine how a theoretical Category-3 hurricane would impact the East Coast. The report took into account widespread shutdowns and canceled travel plans that would occur in a hurricane.