NATURAL DISASTERS
The frequencies of earthquakes are high in Chile. Recently on November 7 2015, an earthquake of a magnitude 6.8 struck north central Chile, causing buildings and properties to sway in the capital of Santiago. Due to the expertise of the government in handling earthquakes, there was no casualty. On February 27, 2010, Chile experienced the most severe earthquake of a magnitude of 8.8. This earthquake has caused a loss of US$2 billion and has affected the tourism industry greatly. Travelers cancelled their reservations at hotels and even after a few months, the Easter holiday vacations still did not help improve the industry.
Hence, the government came up with a campaign called ‘Chile Prepares’ to minimize the damages and losses …show more content…
In recent years, there have been 3 cases of forest fires caused by visitors .One of them caused the closure of Chile’s Torres del Paine National Park between Dec 29 2011 and January 4 2012. The forced closure of the park affected the local economy as lesser people visit the park. It is because the country’s main income is mainly from tourism. Tourism business owners lost an estimated US$2 million and many local businesses had made great efforts to avoid layoffs. Chilean government has allocated resources to small tourism enterprises in the area and has launched an aggressive international campaign to promote the flow of visitors to the park in 2012 and 2013.
4000 people die in Chile each year due to cardiopulmonary disease caused by exposure to harmful air. This greatly decrease the labor size of the country and deter chances of businesses being set up. Companies may not set up businesses as there is a shortage of talented workforce. Health problems are also on the rise due to the polluted air and this might incur rising costs for the company. For example, insurance premiums for workers. These additional costs will decrease profits earned by the company, companies will be not be confident and willing to set up businesses in Chile. Hence, if we do invest in Chile, we will set up business where there it is further away from the air
The frequencies of earthquakes are high in Chile. Recently on November 7 2015, an earthquake of a magnitude 6.8 struck north central Chile, causing buildings and properties to sway in the capital of Santiago. Due to the expertise of the government in handling earthquakes, there was no casualty. On February 27, 2010, Chile experienced the most severe earthquake of a magnitude of 8.8. This earthquake has caused a loss of US$2 billion and has affected the tourism industry greatly. Travelers cancelled their reservations at hotels and even after a few months, the Easter holiday vacations still did not help improve the industry.
Hence, the government came up with a campaign called ‘Chile Prepares’ to minimize the damages and losses …show more content…
In recent years, there have been 3 cases of forest fires caused by visitors .One of them caused the closure of Chile’s Torres del Paine National Park between Dec 29 2011 and January 4 2012. The forced closure of the park affected the local economy as lesser people visit the park. It is because the country’s main income is mainly from tourism. Tourism business owners lost an estimated US$2 million and many local businesses had made great efforts to avoid layoffs. Chilean government has allocated resources to small tourism enterprises in the area and has launched an aggressive international campaign to promote the flow of visitors to the park in 2012 and 2013.
4000 people die in Chile each year due to cardiopulmonary disease caused by exposure to harmful air. This greatly decrease the labor size of the country and deter chances of businesses being set up. Companies may not set up businesses as there is a shortage of talented workforce. Health problems are also on the rise due to the polluted air and this might incur rising costs for the company. For example, insurance premiums for workers. These additional costs will decrease profits earned by the company, companies will be not be confident and willing to set up businesses in Chile. Hence, if we do invest in Chile, we will set up business where there it is further away from the air