Hurricane Marilyn - Economic Impact

Economic Impact

The exact figure for damages in the U.S. Virgin Islands and Puerto Rico is not available, although the American Insurance Services Group set the combined damage at $875 million USD. However, the Federal Emergency Management Agency (FEMA) estimated the damage cost as $1 billion USD while an economic research group in the U.S. Virgin Islands estimated the damage to be at $3 billion USD. As of 1995, the estimated damages to St. Thomas were set at $1.5 billion (1995 USD).

The economic impact to the islands was severe in St. John and particularly to St. Thomas, which are heavily dependent on tourism.

Aside from high winds and seas, one possible explanation for the storm's heavy damage may have been complacency on the part of local island populations. Marilyn followed on the heels of Luis, a more powerful Category 4 hurricane initially predicted to pass very close to St. Thomas. This prediction prompted locals to be particularly thorough in their pre-storm preparations; however, the hurricane passed further away from the island and caused relatively moderate damage. This may have caused islanders to prematurely relax, as Marilyn was a much smaller hurricane in appearance than Luis. Another factual reason was substantial difference in wind speed forecasts measured at sea-level, Cyril King Airport on St. Thomas and those measured on homes throughout the Island hillsides & broadcast from sites off the Island, such as Puerto Rico and the US Mainland. Sea-level Airport readings showed 75-85 MPH gusting winds, whereas measurements on hillside homes showed 100-130 MPH gusting winds, similar to Mainland wind forecasts. Some neighbors with hurricane devastated homes in St. Thomas compared wind charts of their homes'smashed wind meters indicating 120 - 140 MPH.