Kathmandu— Wildfires ravaging southern Europe are causing significant damage to Spain's economy, with billions of euros lost annually due to forest destruction, infrastructure damage, and disrupted tourism. According to the European Commission, wildfires cost Spain approximately €7.1 billion in 2022, representing about 4.5% of its GDP.

Economic Impact on Tourism

Spain's economy is heavily reliant on tourism, and wildfires are severely impacting this sector. Emilio Vizuete Luciano, an economist at the University of Barcelona, explains that the disappearance of tourist activities in fire-affected regions has significant economic repercussions. Sarah Meier from ETH Zurich found that wildfire-impacted areas experience a decline in growth rates by between 0.11% and 0.18%, with simultaneous wildfires causing even greater losses.

Cost of Prevention vs. Suppression

While the cost of fighting wildfires is substantial, investing in prevention would be far more economical. Spain's spending on wildfire prevention has been declining since 2009, despite an increase in fire occurrences. Maria Inmaculada Marmol Tardaguila from MATS argues that relying solely on firefighting efforts is both ecologically reckless and fiscally irresponsible. She suggests removing combustible materials like deadwood before fires start as a more effective strategy.

(With inputs from DW)

Originally published on abcnews.com.np.