Financial Damage Beginning to Seep from Gulf Disaster

http://washingtonindependent.com/84074/financial-damage-beginning-to-seep-from-gulf-disaster


Financial Damage Beginning to Seep from Gulf Disaster
Energy Likely to Emerge Unscathed, While Tourism, Fishing Take Hits
By Annie Lowrey 5/6/10 6:00 AM

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The Gulf Coast generates 40 percent of the lower 48 states’ annual commercial fishing catch. To Louisiana, the state with the biggest commercial fishing industry on the Gulf Coast, that is worth $2.4 billion. Right at the beginning of the shrimping season, losses are at least $8 million a day. David Yoskowitz, a professor of socioeconomics at the Harte Research Institute for Gulf of Mexico Studies at Texas A&M University, says the region’s catch is expected to fall by hundreds of millions of pounds, costing hundreds of millions of dollars.

And of all the industries effected, tourism — hotels, restaurants and tour-guides — might be worst-hit. In Louisiana and Mississippi, hotels are reporting cancellations in droves. Industry experts there point to the problem of perception: Beaches from Texas to Florida might be viewed as contaminated, and the thought of the spill is enough to convince tourists to rebook elsewhere. Janice Jones of the Mississippi Gulf Coast Convention & Visitors Bureau, based in Gulfport, says, “The sound is open for all types of recreation, including fishing. I know some folks who were out this morning on charter boats, and said they came back with awesome catches.” She notes, still, “The issue is definitely more of perception,” and says that the state is launching a massive public-relations campaign to convince holidaymakers to come, including offering $75 gift cards to hotel guests.

Wall Street analysts have also extrapolated that the perception of oil wash-up on the coast — again, the extent of which is unknown as of now — will severely strain the industry. For instance, Neil McMahon of Bernstein Research recently estimated the exposure of Florida’s tourism industry alone to be $3 billion, even though the state has not seen a drop of oil yet, and might not. (The Florida Tourism Board is blaring the message that, “There are no impacts on travel in the state of Florida” and that “beaches are clear and open.”)

Yoskowitz points to one further cost, as of yet unknown and worrisome. It is with the “multiplier effect” that hurting the coastline and damaging the environment will have. And as fishing and tourism turn down along the coast, selling fewer goods and hiring fewer workers, businesses that support them, from shipping to restaurants to tackle sales, look certain to suffer as well. “If you have a fisherman who can’t go out and bring shrimp or oysters, there’s a processor who isn’t processing, a shipper who isn’t shipping, a gas salesman selling less gas. It also means that all of those families impacted are spending less money, further hurting the economy” — underscoring that the worst effects of this disaster will be local.

a 'act of Gawd.' They should go the churches and demand recompense. All the televangelists should start a relief fund. They have a LOT of ill-gotten gains.

if the economy is actually affected vs. the perception, someone could yank $ out of BP (but don't count on Landrieu to do anything).