Two years after Tropical Storm Helene devastated Western North Carolina in September 2024, Asheville and the surrounding region are experiencing a mixed economic recovery, largely driven by local persistence. While many businesses have reopened and public spaces are restored, the recovery is uneven, with some areas still struggling to regain pre-storm levels. The storm caused widespread flooding, destroyed homes, and resulted in over 100 fatalities, prompting immediate community support from local businesses.
Despite the reopening of most businesses, a significant portion, nearly 75%, are still working to regain financial stability, with almost half operating below 80% of their pre-storm revenue. Businesses also face new challenges beyond physical damage, including reduced tourism, increased supply costs, and broader economic uncertainty. Many business owners, though optimistic, anticipate needing additional capital to fully recover, as initial emergency relief funds have been depleted or are no longer available. This highlights a critical need for new financial support mechanisms, such as the proposed $60 million fund for affordable commercial space outlined in the September 2026 GROW NC Western North Carolina Economic Recovery Plan.
Tourism, a cornerstone of the region's economy, presents a complex picture. While North Carolina as a whole set a tourism record in 2025 with $37.2 billion in visitor spending, the recovery in Western NC has been inconsistent. Visitor spending in 16 of the hardest-hit counties declined by over $300 million between 2023 and 2025. Specifically, Buncombe County, home to Asheville and a major tourism hub, saw visitor spending in 2025 at $2.6 billion, a 2.1% decrease from 2024 and approximately 13% below its 2023 peak of $2.97 billion. This translates to about 2,500 fewer tourism-supported jobs across the region, with Buncombe County experiencing the most significant job losses.
Vacation rental revenues in the Asheville area remain down by 19% from summer 2024 levels, although vacation rental occupancy in July 2026 was slightly above 2019 levels. Hotel occupancy, however, was 9 points below 2019 levels during the first seven months of 2026, indicating an uneven recovery within the lodging sector. Despite these challenges, North Carolina's small business community growth has been robust, with new business startups in Western NC outpacing other parts of the state since Helene. Governor Josh Stein has also requested over $10 billion in additional federal recovery funding to support rebuilding efforts.
Local officials and business owners emphasize the need for continued community support, encouraging residents and visitors to patronize local establishments. While significant progress has been made in physical rebuilding, and some areas have even surpassed pre-Helene tourism numbers, the economic recovery remains a long-term process. The most recent GROW NC Western North Carolina Economic Recovery Plan identifies access to capital as the primary challenge for small businesses in recovery, underscoring the ongoing need for targeted financial assistance and strategic initiatives to support the region's entrepreneurs and tourism sector.
