Typhoons and Taiwan’s Economy: The Cost of a Day Off

Typhoon "Krathon" recently struck Taiwan, renewing debate over typhoon holidays. While welcomed by workers and students, these breaks cost Taiwan up to NT$31.5 billion each, with political pressure often influencing holiday declarations. Are typhoon holidays worth the economic impact? Read more to find out.

Author｜Bernie Lin

Editor｜Sophia Wu

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In early October 2024, Typhoon "Krathon" (山坨兒) made landfall in Taiwan, bringing heavy rain and destructive winds to the island. While this disaster posed a significant threat, it also led to a widespread two- to three-day typhoon holiday, a phenomenon that has become quite common for the Taiwanese population.

For most salaried workers and students, whenever a typhoon makes landfall, it often means a day off. Time and again, the Taiwanese have come to equate typhoons with holidays. If the government doesn't announce a holiday, some people might even express frustration!

Given the unpredictability of weather data, leaders face many challenges when deciding whether to announce a typhoon holiday. However, there are times when certain areas experience clear skies with no wind or rain, yet the government still declares a typhoon holiday. What are the consequences of this? Is a typhoon holiday really as beneficial as it appears on the surface?

The chairman of Fubon Group questioned the idea that typhoon holidays only negatively impact the economy in a statement on October 4th. According to The Third Wednesday Association, it is estimated that Taiwan loses at least NT$31.5 billion for each typhoon holiday.

For many businesses, typhoon holidays that many people get for free actually result in significant losses for the corporate world. Production lines come to a sudden halt for two days, leading to lost revenue and increased costs, which can be detrimental to the local economy. However, sometimes typhoon holidays seem to become a "tool for vote-buying" used by politicians to win favor with voters. Mayors who declare more typhoon holidays tend to be more popular. When one county or city decides to give a holiday, neighboring mayors immediately feel the "immense pressure."

Recognizing the careful stance of local leaders on typhoon holidays, officials and meteorologists continue to face challenges in balancing public safety with economic concerns, with the protection of life and property remaining their top priority. 

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Reference:

• Davidson, Helen. “Typhoon Krathon hits Taiwan, killing two people and wreaking destruction.” The Guardian, 3 October 2024, 
• “Fubon chairman challenges typhoon holiday economic impactTVBS新聞網.” TVBS新聞, 4 October 2024, https://news.tvbs.com.tw/english/2640406. Accessed 21 October 2024.
• Lee, Yimou, et al. “Taiwan shuts down for Typhoon Krathon, bringing torrential rain.” Reuters, 2 October 2024, 

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