Tourism and its hypersensitivity to oil spills

The sinking of the Don Pedro merchant ship in 2007 near the island of Ibiza is a good example of the extreme sensitivity of the tourism sector to oil spills. Despite the limited scale of the spill (only some 20 tonnes), its minimal ecological impact, and the rapid deployment of personnel and equipment to contain it, the accident nonetheless caused significant economic damage to the island's tourism sector. This particular case demonstrates the importance of the beach as a factor of production in the holiday tourism sector, and the capacity of even small amounts of oil to render it unusable and cause heavy losses to holiday firms.