Some More Gulf Oil Spill Economic Loss Estimates

Bloomberg is reporting on more economic fall out from the oil spill. The tourism costs, now at $22.7 billion, exceed the $20 billion put into escrow. 300,000 jobs will be lost.

Subcommittee Chairman Bobby Rush, an Illinois Democrat, said various studies estimate that the oil spill has put 300,000 jobs at risk, or 15 percent of the total in the region.

Roger Dow, president and chief executive officer of the U.S. Travel Association in Washington, gave the estimate in written testimony for a hearing today by the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection on the impact of the spill on tourism. The figure comes from Oxford Economics, a U.K. consulting firm, and was based on 25 previous disasters, including oil spills, hurricanes and terrorist attacks.

The estimated cost exceeds the $20 billion BP has agreed to put into an escrow account to pay spill victims. Tourism generates $94 billion in revenues for Louisiana, Mississippi, Alabama and Florida, Dow said.

“This large and vital sector of the Gulf Coast economy is in jeopardy,” Dow said.

According to the BBC, BP has set aside, including the $20 billion escrow account, $32.2 billion for the gulf oil disaster clean up.

Spillonomics - Some Job Loss Estimates on the Gulf Oil Spill

The Atlanta Federal Reserve gives some estimates on the jobs at risk from the Gulf Oil Spill disaster. They are saying it's 132,000. That said, there are 2.8 million jobs in the region associated with tourism in 2008. In 2003, 71% percent of the jobs in the region are associated with tourism and recreation along the Gulf.