Credit Herald

MIAMI — Using aggressive promotions like free golf and even complimentary room nights, Gulf Coast resorts are luring visitors despite a massive oil spill that threatens beaches and salt marshes from Texas to Florida, but it’s too early to say whether the disaster will leave a more permanent stain on Southeastern tourism.

During the first two weeks of May, hotels within 10 miles of the coast in Louisiana, Mississippi and Alabama saw occupancy rates rise dramatically — in some cases by a third or more over the same time last year, according to an industry data firm. And many hotels across the region are reporting greater than 90 percent occupancy rates for the crucial Memorial Day weekend.

Those are positive omens for nervous hotel and restaurant owners. Despite an initial wave of cancellations following the April 20 explosion of the Deepwater Horizon oil rig and subsequent spill, potential visitors have been persuaded that most areas remain unaffected by the gushing crude.

But the data could be misleading — partly because 2009 was such a miserable year for hotels — but largely because occupancy rates often swell with workers after disasters.

The occupancy bubble "lasts from the first week to a month or eight weeks, 12 weeks maybe," said Jan Freitag, vice president of global operations for STR Global, the firm that conducted the survey. "By that time, word has gotten out on how good or bad the situation is, and tourists return or they don’t. That verdict is still out."

The Gulf Coast states depend on millions of travelers who fish, patronize restaurants, picnic, snorkel and swim in the oil-endangered areas. BP-PLC, the owner of the well, has pledged $70 million to promote tourism. But hoteliers also are doing their own public relations work.

"It’s almost like crisis management — just constantly trying to manage the information the guests are receiving," said Kathleen Williams, general manager of Spectrum Resorts in Gulf Shores, Ala.

Source