Oil Slick Impedes Industry

Warm weather, beautiful beaches and great seafood are just a few of the Gulf Coast's assets that attract visitors from all over. However, since the April 20 Gulf oil spill, times are changing.

Leaking up to about 800,000 gallons per day, the Gulf oil spill is now the worst oil spill in United States history. So far shores along Texas, Louisiana, Mississippi, Alabama and Florida have been impacted.

Other than the obvious concerns to the environment, these Southern states have a lot to worry about.

The U.S. government has declared a "fishing disaster" in Louisiana, Mississippi and Alabama. The Gulf region has to date closed more than 25 percent of its federal waters to fishing, posing a threat to fishermen, businessmen and consumers everywhere.

According to a CNN article, in 2008 the Gulf of Mexico's fishing industry harvested about 40 percent of the nation's commercial seafood. A Wall Street Journal article stated that Louisiana alone supplied a third of the seafood consumed in the United States.

Many fishermen in the Gulf have been fishing their entire lives, and their sole income depends on fishing. As oil continues to leak, many continue to hope for a miracle. But as they do, the reality of this catastrophe begins to set in.

Already, prices of seafood are on the rise.

"It is a nightmare," said Bret Blackburne, owner of Blackburne Brothers Seafood based in North Carolina. "So far the prices of shrimp have increased one to three dollars a pound."

Blackburne said he expects prices to skyrocket in the future as the Gulf keeps restricting fishing availability and seafood from the area is even harder to obtain.

Outside the fishing industry, restaurants brace for a big hit.

Hudson Riehle, senior vice president of the National Restaurant Association, said in an interview with QSR Magazine that "the oil slick's potential impact on the industry is enormous."

However, some of the industry has already seen that impact.

On May 10, about eight seafood restaurants filed a lawsuit against BP for damages from the spill. The restaurants complained of fewer customers due to fears of high prices and seafood contamination.

Bill Baynes, owner of Fish City Grill, headquartered in North Carolina, said even they have been affected by the spill.

"It has been harder to get oysters and some of our customers have come in with many questions," he said.

Business for the grill has not been unordinary but Baynes said that he too expects an increase in prices in the future.

In close connection with the restaurant industry, the tourism industry is also taking a big hit.

In Florida, tourism is the state's largest industry, generating $60 billion a year and bringing in about 80 million visitors.

Even though Florida has not yet seen any physical impact from the spill, the Sunshine State is already in trouble.

"The state's tourism industry, especially in the Panhandle, has already felt a very real economic impact," said Florida Gov. Charlie Crist in a news conference.

Hotels and boat charters have seen less business. Some companies have reverted to changing their inventory. According to a Wall Street Journal article, boating-parts company West Marine switched its normal sales from boat barbecues and floats to anchors and life jackets.

However, hotels aren't as lucky.

"We've already seen about a 10 percent decline in call volume for future reservations looking into June and July," said Clyde Smith, general manager for the Bilmar Beach Resort in Treasure Island, Fla.

Bilmar Resort is only one of many hotels that are seeing increased cancellations and concerned phone calls as a result of the oil spill catastrophe.

In an attempt to decrease the effect on the tourism, Governor Crist is launching a $7-million advertising campaign paid for by BP. Florida hotels in the Tampa Bay area have adopted an advertising ploy called "Book with Confidence."

About 30 hotels in the area have joined the movement, trying to get the message out that the Florida beaches have not yet been impacted and hopefully will not be. "Book with confidence" guarantees the first night free of charge to customers who have made reservations but arrive to affected beaches.

"We are willing to put our money out to ensure customers' confidence in our beaches," Smith said.

Even with all the deals and advertising, no one knows how just how much the industry will be affected. In the meantime, everyone will have to play the waiting game.

Related to the Story:AccuWeather.com Oil Spill Center

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