As Zika spread around South Florida, health officials warned people--especially pregnant women--to stay away from Wynwood. While getting that message out was good to help stem the spread of the virus, it was certainly bad for local business.
A new study released by FIU’s Robert Stempel College of Public Health & Social Work found that last year’s Zika outbreak hit the bottom line of Wynwood businesses hard, with some reporting losing as much as 40% of their revenue compared to the year before.
The study, which was led by Department of Health Policy and Management Associate Professor Timothy Page, found that despite declines in revenue, few businesses changed their prices, inventories or staff levels. This was consistent with the belief that the downturn would be temporary and business would return once the outbreak was over.
“As rainy season returns to South Florida, so does the need for public health and medical authorities to be strategic and forward thinking in preventing and responding to outbreaks,” said Page. “Zika is imminent, and the time for planning and collaboration with local businesses is right now.”
The report reveals decreased revenues, profits and customer traffic in the period following the Zika outbreak compared to the same time the prior year:
- 8% of businesses reported revenue declines of 1-10%
- 28% of businesses reported revenue declines of 11-20%
- 53% of businesses reported revenue declines of 21-30%
- 13% of businesses reported revenue declines of 31-40%
“Disease outbreaks can cause localized, short-term economic shocks and the impact of these shocks can be severe," said Page. "Balancing public health needs with the financial well-being of the community is at the heart of the issue."
The report, which publishes later this summer in Disaster Prevention and Management: An International Journal, offers feedback from owners and managers of businesses in Wynwood following the Zika outbreak. Page and his team found that business leaders in the arts district believed that media reports and uncertainty about the virus or an action plan contributed to the declines.
Those issues should be mitigated if the virus should make a return this year as more businesses follow Page's advice of preparing early. Officials have already started aggressive mosquito control measures as the rainy season picks up around South Florida to reduce the chance of a large mosquito population carrying the virus.