Travelers' spending down on Gulf Coast

Spending by travelers from overseas plummeted in Gulf Coast states beginning in June, about six weeks after oil began gushing into the Gulf of Mexico.

That is what numbers from Visa cardholders show, according to a report issued recently that detailed spending numbers in a variety of locations.

During May, spending by international travelers was up compared to the same time period a year earlier. That is perhaps because people had not begun changing their travel plans so soon after the April 20 Deepwater Horizon explosion and collapse that led to the worst oil disaster ever in the United States.

By a month later, however, the story was far different.

"It does take a while for there to be an impact when something like that happens," said Paul Wilke, spokesman for Visa. "You have people who have booked their travel and they come anyway."

But not for long.

The Gulf Coast region saw spending plunge 42 percent - or $21.7 million - during June.

Spending on lodging was down by 50 percent during that month, while spending on gasoline was down 42 percent.

From May to June, overall tourism spending fell in all Gulf Coast states with impact from the oil.

In Louisiana, the decline was 65 percent. In Mississippi, the drop was 56 percent. In the Florida Panhandle, which started seeing signs of oil on the beaches in early June, there was a 35 percent reduction. In Alabama, the decline was only 8 percent.

The Panhandle numbers saw spending drop from $38.3 million in May to $24.9 million in June. That includes a drop in spending for lodging from $6.6 million to $4 million.

Wilke is hopeful, however, that the numbers will turn around soon.

"What's encouraging is that the tourism industry after a disaster is fairly resilient," he said.

After the massive tsunami in Thailand at the end of 2004, visitors started coming back to the area in normal numbers in about 12 weeks, Wilke said.

"People want to travel," he said. "People want to come back."