Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

US Government must insure hotel businesses disaster areas

20 April 2006 by
US Government must insure hotel businesses disaster areas

A leading banker called on the US government to insure hotel businesses rebuilding properties in disaster zones, or risk leaving affected areas derelict, at the Global Travel and Tourism Summit in Washington last week.

Henrick Barti, managing director of Aareal Bank said that following Hurricane Katrina insurance companies had withdrawn their cover of properties in affected areas for events such as the levee breaking.

He warned: "This could severely hinder the redevelopment of properties in risky areas. The government needs to intervene and provide coverage before the private sector will cover these eventualities again."

The expectation, he added, had been that insurance companies would demand higher excesses. But, because of the high risk of further hurricanes and natural disasters in the region, companies had begun excluding these eventualities from their cover.

"It becomes very difficult to get investors into areas insurance companies won't cover," Barti said.

Michelle White, manager of environmental affairs at Fairmont Hotels and Resorts, added: "With the environmental changes we will get more hurricanes and it is creating a new working environment. This is becoming more of an issue."

By Emily Manson

Fairmont hotels
Aareal Bank
Hurricane Katrina Tragedy hits hotels
Staff and guests weather Orleans storms at Windsor hotel
World Travel & Tourism Council

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking