New Research Reveals Economic Fallout of 2025 Fires and Road Closures for Malibu Businesses
MALIBU, Calif. – A new report released by Beacon Economics and the Pepperdine School of Public Policy reveals the economic impact of the 2025 Palisades and Eaton Fires on businesses in Malibu.
Titled “Assessing the Ongoing Impact of the 2025 Los Angeles Fires on Malibu Business,” the analysis examines the widespread damage and long-term economic strain caused by the fires and the resulting infrastructure closures that continue to choke local commerce.
“Recovering from the wildfires was always going to be a long process, and this research highlights the true scope of this disaster’s impact,” said Pete Peterson, Braun Family Dean’s Chair and Dean of the School of Public Policy. “It has been especially challenging for the business and tourism industries, which are the backbone of the Malibu economy. The protracted clean-up and prolonged road closures have perpetuated the negative impact of the fires, making it impossible for businesses to return to any semblance of normalcy, whether or not they were directly affected by the fires. The recent announcement by Governor Newsom regarding the partial reopening of PCH by Memorial Day is helpful, but our research shows it can’t happen soon enough for many in Malibu.”
The economic impact of the fires on Malibu has been devastating. The fires damaged 234 businesses in and around Malibu and completely destroyed 99. These 99 properties supported nearly half of all jobs in the city.
“The aftermath of the Pacific Palisades Fire has a death grip on the remaining Malibu businesses who, after five months of an average 70% decline in business, are on the brink of closing down,” said Barbara Bruderlin, CEO of Malibu Pacific Palisades Chamber of Commerce. “The Pacific Coast Highway is the main artery feeding Malibu's businesses and workers, and the ongoing repairs and relief efforts mean businesses must wait another five weeks before the public is allowed access. Some of them may not survive.”
Access to the city has also been severely disrupted due to the ongoing partial closure of the Pacific Coast Highway. Although the road is undamaged, detours for cleanup crews have made it difficult for customers to reach local establishments, which has significantly hampered Malibu’s tourism-driven economy.
This disruption has caused sharp declines in revenue for many businesses, particularly those in the food and hospitality industries. Sales in restaurants and bars alone are down an estimated $7.6 million per month, making up nearly 80% of the city’s total monthly sales loss.
"Regional authorities need to appreciate that not only should the rebuilding be rapid, but it also needs to be accomplished without causing even more damage to those businesses struggling to make it through," said Christopher Thornberg, Founding Partner of Beacon Economics.
City services are also at risk. Sales Tax and Transient Occupancy Tax, which together make up nearly half of Malibu’s non-property tax General Fund revenue, are both expected to fall sharply. As a result, essential services like police, fire, and emergency response may soon face budget shortfalls just when they’re needed most.
Read the full report here.
About Beacon Economics, LLC
Beacon Economics, LLC is a non-partisan, independent research and consulting firm
dedicated to delivering accurate, insightful, and objectively-based economic analysis
that enables its clients to make informed decisions about investment, growth, revenue,
and policy. The company is based in Los Angeles and is certified as a Small Business
Enterprise (SBE) within the state of California. Learn more at www.BeaconEcon.com
About Pepperdine University School of Public Policy
Pepperdine’s School of Public Policy (SPP) is built on a distinctive philosophy of nurturing public leaders to use tools
of analysis and policy design to effect real change. Grounded in understanding policy's
moral and distinctly American elements, SPP prepares graduates for careers as leaders
by offering a master’s degree in public policy and three joint-degree programs. The school’s Davenport Institute for Public Engagement and Civic Leadership promotes citizen participation in governance through major conferences, trainings,
seminars, and published research. Follow SPP on Facebook, Twitter, Instagram, LinkedIn, and YouTube.
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