A hurricane in Florida forces Disney World to shut down for a month, what happens to the real GDP?
Answer:
Down; Disney's revenues are considered wealth creating, believe it or not.
The GDP will take a heat. Less earning to the corporation and less rewards for local suppliers and workers.
The hurricane is likely to cause much much more damage than just to DisneyWorld. So resources will have to be diverted from productive uses to doing a clean-up. Definitely the real GDP will fall due to this diversion of resources.
Now, if you take a narrower view of a hurricane that starts and ends un Disney World, then the revenues of Disney World wil fall. On top of just Disney Corp, all business involved with them as well as those who benefit from the flow of tourists will suffer. Hence the area around Disney World will find itself in a little slump.
On the other hand, after all Disney World isn't the only place people can go to. Tourists will change their destinations. Now the key will be where they change to. Local tourists could go to some other theme park, therefore real GDP need not take a hit.
However, Disney World certainly attracts tourists, and these are more likely than local tourists to go to some other international theme park, or any other destination outside the USA, therefore revenues to Disney and the other businesses around Florida will fall without any compensating increase elsewhere in the US, This is what will cause a decline in GDP.
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