Friday, July 23, 2010

U.S. Travel Association Wants $500 Million from BP (NYSE:BP)

Based on a study by the U.S. Travel Association and research group Oxford Economics USA, they've come to the conclusion BP (NYSE:BP) should pay them $500 million to help with the alleged potential losses of $23 billion over the next three years in the Gulf region.

Roger Dow, CEO of the U.S. Travel Association, said, "(BP's) oil spill will have long-term effects on businesses and jobs in the Gulf Coast region unless we counteract the usual course of events with an unprecedented response."

The hired company, Oxford, determined losses for the area could be from $7.6 billion to $22.7 billion. Gee, I'd think they could get a little closer in range than that.

Evidently the Association has already petitioned the government to secure the funds for them, although there's nothing in place to disperse the funds or protect from abuse even if the idea were to be agreed to.

While BP deserves a lot of blame, this is a ridiculous demand, and the numbers extremely far-fetched, and can't be taken seriously when being that far apart.

The money would supposedly be used in marketing, but Florida when through $25 million so quickly for the same purpose that it seems to be a waste of money, as governments only know how to spend and not stretch their dollar for best use.

Others like Douglas Shifflet of travel research firm D.K. Shifflet & Associates, said the numbers related to the impact of the spill are difficult to determine, as something on this scale has never happened before. So throwing around numbers like $500 million may get you attention, but it's based on smoke and mirrors and not any reflection of reality.

Then you would also have to factor in the slow economy, and not what would be happening if there wasn't a recessionary period we were going through. To garner numbers from the past wouldn't make any sense, as they are meaningless as to averages, with people holding on to their money and staying close to home. That would have happened whether there was an oil spill in the Gulf or not, so would have to be part of the process.

This is probably more of a stunt to bring the Association and its members into the awareness of those handling the BP escrow fund, as tourism marketing probably isn't at the top of their list of priorities when doling out the money for claims. And it definitely isn't when considering the $500 million being thrown out by the U.S. Travel Association.

1 comment:

Anonymous said...

While Shifflet did say 'the numbers related to the impact of the spill are difficult to determine, as something on this scale has never happened before.' He further said that '$500 million may well not be enough to counter the simplistic over generalization people make that the oil impact may ruin the whole area and vacations there, so why not just go elsewhere.'