Oil spill to harm restaurants, hotels for months, years

Rep. Allen Boyd (D-Fla.)Restaurants and other tourism businesses in the Gulf Coast are raising their voices about the impact of the BP oil spill.

In a July 29 Capitol Hill briefing, tourism-industry representatives gave key members of Congress an overview of how the BP oil spill has affected restaurants, hotels and the Gulf Coast tourism industry. The briefing, sponsored by the National Restaurant Association, U.S. Travel Association and American Hotel & Lodging Association, was directed at the Congressional Travel and Tourism Caucus and legislative staffers.
The speakers called for a multi-million dollar marketing campaign to help small businesses recover from disaster this summer, as well as in the long-term. They said they expect businesses to suffer for months or years from perceptions that tourist destinations remain affected by the disaster. The long-term perception problems likely will be more costly to tourism than the immediate damage, they said.

“We’re all terrified,” said Rep. Allen Boyd (D-Fla.), a member of the travel caucus (pictured).

At stake: a broad array of recreation, retail and business services, the lodging and restaurant industries, and businesses that supply them, said Adam Sacks, managing director, Tourism Economics.

“It’s unlike any crisis we’ve faced,” said Chris Thompson, president and CEO, Visit Florida. Hurricanes, tornadoes and wildfires come and go, and the state recovers, he said.

Tourism is the state’s No. 1 business, Thompson pointed out. Its 80 million visitors pump $60 billion into the economy annually and $4 billion in state sales tax, more than one-fifth of the state’s income from sales tax. About a fourth of the visitors come in summer.

In those three months, most restaurants, lodging operations and charter boat companies take in 70 percent of their annual income. And the majority are small businesses, Thompson said.

“A whole lot more has to be done to ensure the sustainability of all the small businesses along the Gulf Coast,” he said.
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