ASHEVILLE – The physical damage from Tropical Storm Helene might be slowly disappearing, but some worry another disaster looms on the horizon.
Economic challenges from the loss of revenue during a typically busy time of year may have far-reaching consequences, business groups and employees say. Businesses that rely on tourism have been slow to reopen, and those that do reopen can only afford to rehire a fraction of their staff.
Buncombe County could experience a 70% decline in tourism over the last three months of the year, the Buncombe County Tourism Development Authority told the Citizen Times in an email — translating to more than $584 million in lost revenue. The travel and hospitality industries generate $3 billion in local spending, representing 20% of the local economy, the agency says.
About 44% of businesses that shared their status with the TDA have reopened. Those that have reopened have not returned to pre-Helene staffing levels.
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Both businesses and service workers rely on income made during this time to sustain them during the slower months of January, February and March. With tourists largely avoiding Western North Carolina in the wake of the storm, some worry the region will not be able to handle the economic challenges ahead if more aid is not made available.
“There are very deep concerns about first quarter, not having the revenue to get through that,” said Meghan Rogers, executive director of the Asheville Independent Restaurant Association. “We’re figuring out how to bring our tourism back in a way that’s thoughtful and also supportive of our business community. There’s a lot of uncertainty in the business community in general.”
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‘Major crisis’ looming
Service workers — those who cook, clean and serve in hotels, restaurants and shops — have in many cases been laid off since Helene closed their workplaces in late September.
Miranda Escalante is furloughed from her job as a bartender at The Flat Iron Hotel. She said she has earned some income as a part-time consultant for the restaurant industry and has an understanding landlord.
“Service people make most of their money in Asheville in fall,” said Escalante, co-chair of Asheville Food and Beverage United. “Fall is busier than summer, so people use that financial nest egg to get them through January, February and March. I don’t think we’re even seeing the impact of the financial crisis for service workers now.”
Ichiban restaurant is just one of many businesses in the Biltmore Station complex whose future remains murky because of massive damage caused by Swannanoa River floodwaters during Tropical Storm Helene. The complex was filled with piles of debris on Sunday, Oct. 27.
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Asheville Food and Beverage United estimates only a handful of its nearly 90 members have returned to work. The union has advocated for an eviction moratorium to aid workers through this tumultuous time.
“I think it’s really important that people understand the gravity of the situation here,” said union Co-Chair Jen Hampton. “We’re going to have a major crisis in the next few weeks if we don’t get this rent situation taken care of and get resources to people.”
Union leaders worry service workers will be forced to leave the area if the economic situation does not improve, taking with them valuable knowledge and experience that helps make Asheville a unique tourist destination.
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Water is one of the chief challenges for businesses in reopening. Asheville and the surrounding area have been under a longstanding boil water notice since Tropical Storm Helene stirred up sediment in the North Fork Reservoir. City officials believe drinkable water will return around Nov. 20.
The lack of potable water has added significant costs to business for local restaurants and hotels that have reopened by shipping and pumping the water into their locations. Costs per business vary, but can reach $17,000 per week for a small hotel, according to the North Carolina Restaurant and Lodging Association.
NC Gov. Roy Cooper is with FEMA Administrator Deanne Criswell speaking with a restaurant worker at Flour in downtown Asheville
“This is not a real sustainable business model long term,” said association President and CEO Lynne Minges. “We are going to have to have some support to offset the cost of water to help these businesses continue to operate.”
Advocacy groups and business organizations have sought government aid to help businesses and their employees through this difficult time, but lawmakers’ cooperation is not a given.
In the meantime, charity groups and even national corporations have stepped up grants for individuals and businesses. The Buncombe County TDA points to steady growth in customers for businesses that have reopened as a reason for hope.
Still, it could be a year before the Asheville economy returns to where it was pre-Helene, and perhaps even longer.
“There has been no comparison in the United States to a total water system failure following a natural disaster, so we are in uncharted territory,” a tourism development authority spokesperson said in an email. “The resolve of Asheville and Western North Carolina to recover has been unrivaled.”
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Sam Morgen is a journalist with the USA TODAY Network reporting for the Asheville Citizen Times in the wake of Tropical Storm Helene.
This article originally appeared on Asheville Citizen Times: Asheville could see crippling 70% decline in tourism after Helene
