Remediation work and damage inventory are continuing Acapulcosix days after the hurricane hit Go awaywhile companies, insurers and the Mexican government assess the factors necessary for the economic recovery of one of the country’s main tourist destinations, which, according to initial estimates, could reach 15,000 million dollars.
Almost a week after the attack, the risk analysis company specializes in natural disasters and wars Enki research estimated that the impact would reach 15 billion dollars and the least 3 million Mexicans located on the coasts of the southern state of Guerrero, in the Mexican Pacific, which is mainly dependent on tourism activity and services in the country, are affected.
“In this case, nearly 3 million people experienced strong tropical storm winds, and the damage is likely close to US$15 billion,” says the latest report on the phenomenon.
Recovery for Christmas
In this framework, the Mexican president, Andrés Manuel López Obradorthis Tuesday he promised to “get Acapulco back on its feet” by Christmas after Otis left so far 46 dead, 58 missing and numerous damages that have not yet been officially quantified.
secretary for tourism, Miguel Torrucohe said in an appearance with members of the Mexican Congress last Monday that it will not be announced until next week how much it will cost to rebuild the infrastructure on the coast of the southern state of Guerrero.
“In a week we will be in a position to say more or less how much it will cost to rebuild,” he said, reporting that progress is being made hand in hand with Mexico’s insurance sector to speed up the compensation process for those affected by the Otis strike.
Likewise, the Government of Mexico reported that it is holding daily meetings with the business sector to assess, identify and calculate the damages, demands and needs of the areas affected by Otis.
“It should be noted that at this moment the priority is still the preservation of the lives and physical integrity of the people in Acapulco and the supply of water, food and medicine, mostly in a constant and orderly manner,” the Ministry of Economy announced in a statement.
In this regard, the Mexican authorities detailed that the various mechanisms were designed with resources from the three levels of government and the support of Mexican private initiative.
While in the port of Acapulco, rehabilitation plans are expeditiously implemented in order to achieve a quick recovery of business and jobs.
Serious effects
According to official data, Hurricane Otis hit 98% homes and 80% of hotels in Acapulco, along with 65% of the coastwhich corresponds to more than 4,685 hectares and is damaged on 865 kilometers of roads and more than 2,487 hectares in Acapulco alone.
On its part, Mexican Association of Insurance Institutions (Amis) announced that in Acapulco there are 16,000 insured assets, as well as their contents, in addition to 20,000 vehicles with a current policy.
“Otis will most likely be on the list of the 10 most catastrophic events in the sector,” commented Norma Alicia Rosas, CEO of AMIS.
Social risks after Otis
Meanwhile, the consulting firm Integralia also assessed possible social and political problems that could lead to a worsening of the problem, such as, for example, the poor reaction of the Mexican government to the tragedy.
In addition, he predicted the risk of social disruption, as Acapulco, the city hardest hit by Otis, contributes 80% of tourism activity and six out of every 10 Mexicans in this area live in poverty.
“Given the effects on tourism and public infrastructure, episodes of ‘social conflict’ cannot be ruled out as the region recovers (the looting of businesses is a manifestation of this),” he noted in his report.
Furthermore, Integralia considered it “foreseeable” that López Obrador and other powerful actors, such as criminal groups, would seek to monopolize the reconstruction in order to gain political advantage.
“If this happens like this, the recovery capacity of Acapulco will be slow and limited, and the precarious social conditions of Guerrero will worsen even more,” he said.
He also assessed that the eventual obstruction of some opposition actors could undermine the reconstruction efforts; although he predicted possible political effects on the social base of the ruling party National Reconstruction Movement (Morena)although not necessarily about López Obrador, “whose popularity is solid and almost always manages to avoid the cost of the crisis”.
Source: Panama America
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
