Measuring the BP Oil Spill Impact on Tourism
 
By Mary Klugherz, Principal at GDS
 
I remember exactly where I was and what I was doing when I heard the news about the Exxon Valdez running aground on Bligh Reef on March 24, 1989. Every Alaskan does. Our worst fear had become a reality and our worst nightmare. Millions of gallons of oil pouring into Prince William Sound, a pristine natural environment that was home to some of our most precious species of birds and marine animals. 
 
Now, we watch as the British Petroleum oil spill pours into the Gulf of Mexico at an alarming rate, dwarfing the Exxon Valdez disaster.   What will this mean environmentally and economically for the future of the Gulf States and the region as a whole?
 
No one really knows the answer that question. Following the Exxon Valdez spill in Alaska, my business partner, John Kelsh, and I had central roles in analyzing   the impact of the spill on the Statewide Alaska tourism industry. At that time I was the Senior Marketing Consultant for the McDowell Group, a statewide management consulting firm, a position I had taken after several years as Marketing Director for the Alaska Division of Tourism. John was the Marketing Facilitator for the Alaska Visitors Association, the statewide industry association, (which is now known as the Alaska Travel Industry Association). We designed, developed, and managed assessments of the economic impacts on the Alaska visitor industry, from the standpoint of the businesses affected within the State and the market’s perceptions outside the State.
 
The McDowell Group had been contracted by the attorneys hired by the State of Alaska in its case against Exxon to develop an initial assessment of the impacts the Exxon Valdez oil spill had on the Alaska tourism industry. I was the Project Manager for this study and worked closely with the State of Alaska and the law firm of Preston, Thorgrimson, Shidler, Gates, and Ellis in Seattle, Washington to design and implement this analysis. Our work included a review of related research and visitor statistics, as well as a comprehensive survey of government agencies, organizations, and tourism-affected businesses both within and outside the spill area. Our results formed an important component of the civil settlement between Exxon and the State of Alaska.
 
The Alaska Visitors Association (AVA) was concerned about the impact of the oil spill with regard to perceptions, image and attitudes toward Alaska and planned visits. The purpose of their analysis was to measure these perceptions over time. As the AVA’s primary marketing consultant, John Kelsh was involved in the design and analysis of the data collected.   This effort provided another measure of the potential economic loss in the visitor industry due to the oil spill.
 
Since the time of the Exxon Valdez oil spill, John and I have provided consulting services to destination clients around the world focusing on destination branding, product development and marketing campaigns. As we watch the BP oil spill drama unfold in the Gulf, we have grown increasingly concerned about overall impact this spill will have to the economies of Louisiana, as well as the neighboring states along the Gulf. Because we know tourism, have studied tourism economies for decades, and have the unique experience of working with a major tourism destination before, during and after a major oil spill, we know only too well the challenges ahead.
 
If you are located in a spill-affected area our team is available to help you assess the damage to your visitor industry. We can assist you with any studies to assess the economic impact to tourism of the BP oil spill, assess the attitudes and perceptions of your target markets with regard to travel plans, and the overall impact of the spill on your destination’s brand.   We can also help you develop strategies to mitigate the impacts of the spill on your destination through strategic planning, brand development, destination positioning, and marketing strategies.