Gulf’s Biggest Problem is Perception Not Oil

Cheap fares and discount hotel rooms are doing little to draw tourists to Americas Gulf Coast region. There is so much good news that one might think that tourism would be better. Beaches where oil came ashore have been cleaned, the oil leak has been plugged, and most cities never had to deal with oil on their beaches. Unfortunately tourists are staying away from what is feared to be oil coated coastlines.

BP has distributed millions to the region to promote tourism. Florida received $25 million, with Alabama, Louisiana, and Mississippi receiving $15 million each. Most of that money has been spent with little result.

Gulf Coast tourism will not rebound until 2013 at the very earliest, according to a study by the Oxford Economics forecasting group. They estimated that if BP spends $500 million to promote area tourism that the oil disaster might ultimately only cost $15 billion by 2013 vs. almost $23 billion without that advertising.

Cities known for their beaches or charter fishing appear to be having the worst time attracting tourists. Summer occupancy has fallen 30 percent for the Beaches of South Walton on Floridas Gulf Coast. Alabamas Dauphin Island, which previously enjoyed a reputation for great beaches and bird sanctuaries, has seen 90 percent less guests reserve summer rentals vs. last summer.

Some communities that have experienced high hotel occupancy rates are very concerned because their visitors consisted largely of BP and federal officials who were working nearby.

Recovering a lost reputation for beautiful beaches and clear waters will take time. How much time, and how much will be lost in the interim remains to be seen.

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