TravelMole Guest Comment: Oil spills over tourism in the Sunshine State

As summer arrives and Florida hopes to make up for the losses seen during the economic slowdown, the US state is threatened by the oil spilling out into the Gulf of Mexico.

According to the US Coast Guard, strands of the spill entered the Gulf’s current and are moving towards popular tourist destinations in Florida including the Florida Keys and even Miami beaches and distressing a US$60 billion tourism industry.

Lisandra Minussi, Travel and Tourism Analyst at Euromonitor International investigates.

Recession hurt Florida first
Before the Gulf of Mexico oil spill, Florida was already struggling due to the major slowdown seen in tourism flows as the global economic crisis hit the US and the “AIG Effect” that severely hurt business tourism to resort areas in Florida in 2009.

Indeed, the number of domestic trips to the Florida state declined 4% in 2009, from 92 million to only 89 million.

International arrivals were also impacted in 2009. The city of Miami, for example, saw the number of international tourist arrivals fall 9% in 2009, from 5.7 million to 5.2 million people.
Oil spill impacts consumer perception

So far, there have been no reports of Deepwater Horizon Oil Spill-related oil products reaching the shore beyond Northwest Florida and no indication that the rest of the state will be impacted until the first week of July.

However, cancellations began in June despite the lack of oil on beaches. In West Florida, for example, which takes in 90% of its crucial tourism revenue during the summer, hotels have already seen 50% of bookings cancelled.

Coping strategies
In an attempt to alleviate oil spill concerns, the Department of Tourism in Florida started posting information about its destinations in real time on the web.

Overall, tourists are able to see real-time images, webcams, Twitter feeds, beach condition updates and videos from people in Florida anytime at Florida Live – http://www.visitflorida.com/floridalive.

Additionally, the Department of Tourism launched a brand new advertising campaign, featuring two ads entitled “More Than Enough” and “Need to Know” aimed at diminishing consumer skepticism and misinformation in regards to the oil spill and its potential impact in Florida.

In order to avoid losing sales during summertime, travel and tourism businesses have introduced a number of guarantees similar to the ones seen in the H1N1 outbreak. The “Open Beach Guarantee” from Orbitz, for example, offers full refunds on hotel stays if government authorities close a beach within 20 miles of the property or declares it dangerous.

Hilton Worldwide is also offering a “Beach Satisfaction Guarantee” that waives cancellation and early departure fees if guests stay at a hotel that is impacted by the oil spill in the Gulf.

Uncertain outlook
Orlando, in the middle of the state, draws in many tourists to Florida and it will not be impacted by the oil spill. In fact, The Wizarding World of Harry Potter at Universal opened in June to great success, so travel to the city may increase this year thanks to new attractions.

However, it’s not likely to compensate for the loss of coastal tourists. While the oil-spill guarantees and discounts may lure tourists, it is uncertain when and if the oil washes up onto the shore. For now, government authorities have reported a change in ocean currents, which have minimized the impact risks from the oil spill in the Florida Keys and most part of the state peninsula.

If the oil spill reaches the shore, however, it will likely encourage tourists to choose other sun and sea destinations that do not involve this risk. Furthermore, once there, it is uncertain how long it will take for cleanup crews to control the situation and how the environment will react to the chemicals use. This is very concerning as it could cast a shadow over the next two years on Florida’s beach tourism industry.

International Arrivals by City 2007-2009
‘000 People

2007 2008 2009
New York City
8760 9500 8479
Miami
5492.9 5787.2 5241.3
Las Vegas
4703.6 5622.2 4784.3
Los Angeles
4800 4900 4510.4
San Francisco
2895.3 3220.4 2938.5
Orlando
2838 3373 2878.1
Seattle
1992.9 2054.8 1833.6
Chicago
1150 1370 1345.8
Honolulu
1744.4 1638.8 1345.8
Washington DC
1200 1476 1239.1