Kingsview CIO Scott Martin On Fox Weather First – 10.19.24
Click here to listen to the full interview.
KENDELL SMITH: We can’t forget the ongoing recovery efforts from the recent hurricanes this season, not to mention the economic challenges ahead. Helene roared into the mountainous areas of Western North Carolina, and historic cities like Asheville took a major hit. This happened right before the peak of the tourism season. Buncombe County brings in billions of dollars from visitors—last year alone, they brought in nearly $3 billion from 14 million visitors, a record for them. Now, Western North Carolina’s economy could lose as much as $1.8 billion if tourism doesn’t pick up this fall, which, unfortunately, seems very unlikely. Meteorologist Steve Bender spoke to Fox Business contributor Scott Martin yesterday on Fox Weather Live to analyze the numbers.
SCOTT MARTIN: It really shows just how bad these storms can be and how prepared we try to be but still can’t fully account for the impact. There’s so much economic activity and population growth in these areas, especially along the coasts, where we’re seeing the most damage. I appreciate you bringing me on to talk about this because we’re talking about billions of dollars here. You mentioned an interesting stat, that $1.8 billion is just for this year. We also have to think about next year and beyond if the landscape changes. You and I know Florida well—Hurricane Ian and Milton have already changed the coastline down there. So, we’re talking about changing the very environment people live in, with an almost immeasurable impact, both emotionally and economically, in the years ahead.
STEVE BENDER: Scott, comparing that to North Carolina, over 800 landslides have been reported. Everyone who goes to the mountains to make memories or lives there for the scenery has been affected, and we have no idea when the area will recover. I want to ask you, though, when we think about tourism, we think about visitors bringing in money. But when I was there, I spoke to people whose entire livelihoods depend on tourism—jobs that have essentially been wiped out. Asheville itself has about 29,000 tourism-related jobs, with over 47,000 tourism workers in the region. They are all deeply affected. The North Carolina Governor, Roy Cooper, issued emergency unemployment payments, which are almost double the state’s typical payments, increasing from $350 to $600. But as you mentioned, this isn’t just about one year or season; it’s going to take multiple seasons to recover. What does this mean for not only Western North Carolina but the entire state?
SCOTT MARTIN: Well, there are both positives and negatives here. On the one hand, yes, businesses are being washed away, and lives are being changed forever, and you can’t put a price on that. But some good news is that, as we’ve seen in Florida, some of the economic activity is fungible—it may move from Asheville to other parts of North Carolina, like Charlotte or the coast. How much of that returns will depend on how they rebuild. The government is reaching out, but they still don’t fully grasp the damage yet. The numbers we’re seeing from Hurricanes Milton and Helene are historic, and we’ll be talking about this for months and years to come. I just hope the people get the help they need so that businesses can eventually return and tourists will follow. Asheville is a beautiful place, and I hope we can all visit again, but it may take a couple of years.
STEVE BENDER: I’ve been to Asheville five or six times, and while I was there reporting, I learned that my parents honeymooned in Asheville. They went to Biltmore Village and hiked in the mountains. It’s such a beautiful area, and what’s heartbreaking is that this region wasn’t prepared for this kind of flooding. Buncombe County, where Asheville is located, had less than 1% of its businesses insured for flood damage. So, when we talk about reopening businesses, it’s an uphill battle without insurance. How difficult is it for businesses to recover without that financial safety net?
SCOTT MARTIN: It’s incredibly difficult, and now, with the damage done, it’s likely that flood insurance will be even harder to obtain. After Hurricane Ian, many companies either stopped offering coverage or made it prohibitively expensive. So the question is, how will Asheville rebuild? What kind of state and federal assistance will be available? Unfortunately, Asheville is unique—there isn’t another city like it in the country. While some people may move elsewhere, the loss for Asheville is enormous, and the path to recovery is long.
STEVE BENDER: There’s no way to fully prepare for something like this. The last major flooding event in Asheville was in 2004, and it only reached four feet. This time, we’re talking about the Swannanoa River rising by 30 feet. The numbers are mind-boggling. When I was there, I saw how much of the infrastructure was damaged. Without access points, rebuilding is impossible. For example, I-40, the main artery through the mountains from Tennessee to North Carolina, isn’t expected to reopen until October 2025. That impacts not only tourism but supply chains as well. I spoke to a general contractor working to revitalize 15 businesses in Biltmore. He’s optimistic about getting them back in a year, but even that feels uncertain. Do you think that’s realistic?
SCOTT MARTIN: Unfortunately, some businesses might be gone for good. Many rely on consistent economic activity and run on thin margins. Without rebuilding soon, cash flows dry up. And it’s not just roads—I’ve seen pictures of washed-out train tracks, which means goods can’t move by rail, and air traffic is also down. The entire supply chain is affected. This just shows how fragile things are. We talk about economic growth in states like Illinois, Florida, and Ohio, but here in North Carolina, we went from a relatively quiet hurricane season to a disaster in just two storms. It’s a very scary situation.
KENDELL SMITH: It is. And right now, damage estimates are already in the billions of dollars.
