Clear For Now
The tourism industry in the Gulf Coast states is coming under pressure as the oil spill continues to expand its coverage area. Consumers are understandably reluctant to go forward with their vacation plans owing to concerns that oil slicks may effectively close the beaches. In Florida and Alabama, vacation resorts are changing their cancellation policies and offering oil-free beach guarantees, by which guests who see oil on the beaches may claim full refunds for their stay. It is similar in concept to the sunny day guarantee, whereby hotels comp guests when rain or inclement weather interferes with their plans. The Resort Collection of Panama City Beach proclaims on its Facebook page “The only oil on our beach is suntan oil!” The tourism in Louisiana is harder hit, as vacationers to that state don’t typically relax on the beach, they engage in activities such as sport fishing, which take them into deeper waters. Recreational fishing is closed for the moment. The hotels are occupied, not with tourists, but with recovery workers and journalists who are there because of the oil spill. Most of our tourism industry is in the small business sector, with individually owned, managed or franchised hotels, restaurants and tour operators. No doubt these businesses were under pressure to begin with as the recession is crimping consumer spending. On top of the economic disaster, the oil spill is another blow.