A wildfire near a national park in Alberta, Canada, will have severe financial repercussions across several industries, costing the region and province hundreds of millions of dollars — and between three recent wildfires in the country, the economic damage is estimated in the billions.
What's happening?
Global News cited a study published by Verum Consulting that found that the towns of Banff, Jasper, and Canmore generated 2.3 billion Canadian dollars (nearly $1.7 billion) in visitor expenditures, CA$2 billion ($1.4 billion) for the provincial gross domestic product, and 24,000 jobs in 2019.
Jasper and its national park were responsible for about a quarter of expenditures in the Canadian Rockies, contributing CA$523 million in spending and CA$540 million in GDP ($378 million and $390 million, respectively).
The outlet interviewed Concordia University economics professor Moshe Lander to better understand the financial fallout from the Jasper Wildfire Complex.
"When you multiply that over the number of days that the park is gonna be closed or inaccessible or until it's safe to back, it's not an insignificant number," Lander said about the 15,000 tourists who evacuated the area.
"There's also demolition, reconstruction, rebuilding; this is going to take a long time, and it's gonna be a lot more than $2 billion by the time everything is done," he added, referring to the Verum Consulting figure for all three of the Jasper, Banff, and Canmore wildfires. He questioned whether locals would want to return and start from scratch.
Why is the fire concerning?
The wildfire, which has burned 79,000 acres and 30%-50% of structures in Jasper, has created a ripple effect that could disrupt more than just the tourism industry.
Global News and Lander discussed concerns that the blaze will drive up insurance premiums for residents living in an area where extreme weather events have become a "way of life."
It has affected the transportation of goods and services by shutting down a route for the Canadian National Railway's main line and nearby highways, prompting Lander to consider it a "supply chain issue."
If companies begin to seek alternatives to bypass Jasper, it could force other rail lines to shoulder more of the burden and ultimately drive up inflation. That could give the Bank of Canada pause on cutting interest rates, impacting the mortgage, credit line, and debt of Canadians across the country.
There are also the environmental and health impacts of the Jasper Wildfire Complex, which the government of Alberta reported is still out of control. The smoke can create conditions that can trigger more fires while causing respiratory and cardiovascular problems.
What can I do to help mitigate the severity of fires?
Though wildfires can occur naturally, there's no doubt that human activity has increased their severity and frequency.
Pollution created from dirty energy sources like coal, gas, and oil can cause the Earth to overheat. This can lead to droughts and heat waves, which can dry out vegetation and provide more fuel for fires.
That's why changing our habits and transitioning to eco-friendly products, like riding a bike instead of driving or ditching single-use coffee products in favor of reusable cups, can make all the difference.
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