Kathmandu— Wildfires ravaging southern Europe are leaving a trail of devastation and causing billions of euros in damage, with Spain bearing the brunt of economic losses. According to the European Commission, wildfires cost Spain approximately €7.1 billion ($8.1 billion) in 2022, reflecting both direct firefighting costs and long-term recovery expenses.

Tourism Takes a Hit

Spain's economy is heavily reliant on tourism, which has been severely affected by the wildfires. Emilio Vizuete Luciano, an economist at the University of Barcelona, explains that the disappearance of tourist activity in fire-affected regions has significant economic repercussions. The fires not only destroy infrastructure but also disrupt local economies and trade.

Economic Growth Slows

Climate economist Sarah Meier from ETH Zurich found that wildfires can significantly slow down regional economic growth. Her study shows that the growth rate in regions affected by at least one wildfire fell between 0.11% and 0.18%. When multiple fires occur simultaneously, this decline can rise to as much as 4.5%, depending on the extent of the damage.

Prevention vs. Suppression

There is a heated debate in Spain over the cost-effectiveness of wildfire prevention versus suppression. Since 2009, investment in fire prevention has been declining despite an increase in wildfires. Maria Inmaculada Marmol Tardaguila of MATS warns that continuing to rely on firefighting crews without addressing underlying issues is both ecologically reckless and fiscally irresponsible.

(With inputs from DW)

Originally published on abcnews.com.np.