Florida Tourism Demanded $100M for Literally Nothing -- and BP Actually Paid Up
You really have to admire Florida. When the BP oil spill bled all over the Gulf of Mexico and irreparably damaged Louisiana's ecosystem, it was Florida that demanded $100 million from BP to repair the damage done to its reputation, not its beaches. More astonishing yet is the fact that BP paid up -- not in full, true, but not with pocket change, either.
Of course, Florida politicians now realize that it's open season on BP, and the vultures are circling. The lesson for managers is that managing crises doesn't just involve quick action and compassionate outreach -- it also means knowing when to say no to outrageous demands.
Neither Florida's beaches or surf have been damaged by the oil spill -- although lately there have been some unsightly tar balls in the Keys. Florida officials, however, insisted that the oil giant owed them because news of BP's oil spill would scare away tourists and affect the state's $60 billion tourism industry.
Gov. Charlie Crist secured the first $25 million from BP -- when hard-hit states like Louisiana, Alabama and Mississippi only scored $15 million each. But that's not enough, said Rep. Kendrick Meek, they need another $75 million just to get the word out:
"Twenty-five million is a drop in the bucket as far as I'm concerned,'' he said. A 12-week advertising campaign in major markets, including New York, Los Angeles and Chicago, would cost about $100 million, Meek added.(Let me reiterate, there is no oil damage to Florida beaches at this time.)Gov. Charlie Crist, who is running as an independent for the Senate, secured the $25 million from BP. Visit Florida, the state's tourism board, had estimated a marketing campaign would cost about $35 million.
Meek did not mention Crist but said $35 million would not counter daily images of oil possibly moving toward Florida. "We have to push back on the perception that we have oil on the beaches -- and BP needs to pay its fair share of that,'' Meek said.
Meek wants BP to cough up more money for the state or at least equal to that of Crist, because both are attempting to run for a Senate seat. Meek wants to appear just as influential as Crist, and grabbing some more BP cash to wave in front of reporters could do that. And with the way BP seems to be handing out money, it may happen.
The newly acquired $25 million will go to flashing "Clean Beach" and recently uploaded beach photos on 25 digital billboards across the southeast United States as well as pay for commercials, radio spots and print ads. Some critics are arguing that Florida tourism was already hurting before the oil spill and that the state is using the environmental disaster to its advantage.
Obviously BP threw money at Florida to make its lawmakers go away, but it looks bad when a company pays more money to a state that wasn't affected by an oil spill than to ones that actually were. In this instance, Florida did get money for literally nothing.
Either way, you have to admire the diplomatic skills and chutzpah of the Sunshine State.
Photo: Kelly Harrington