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A New Report Says Spill Hasn't Emptied Gulf Coast Hotels - Yet

Miami, FL – Dramatic rate cuts are steadily luring visitors to Gulf Coast resorts despite a catastrophic oil spill threatening beaches from Texas to Florida.

But it's too early to say whether the disastrous offshore rig explosion will leave a more permanent stain on Southeastern tourism.

During the first two weeks of May, hotels within 10 miles of the coast in Louisiana, Mississippi and Alabama saw occupancy rates rise dramatically over the same time last year - in some cases by a third or more. That's according to a report issued by the hotel data firm STR Global.

Despite some initial cancellations, visitors have been persuaded most areas remain unaffected. But officials say that could change if the oil actually washes ashore on more popular beaches.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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