Coastal Businesses Slash Prices to Lure in Memorial Day Visitors

GALVESTON, Texas - With a massive oil spill still seeping into the gulf, an economy still struggling with high unemployment, and a community still rebuilding 20 months after hurricane Ike slammed into Galveston Island, it's not hard to understand why hotels are slashing prices to lure in Memorial Day visitors.

"Rates starting at $99 at Casa Del Mar," said RoShelle Gaskins, spokesperson for the city of Galveston. "If you stay two nights at the San Luis, you're gonna get for your third night a $75 gift card to use anywhere in the resort. At Hotel Galvez you get free bikes with your stay."

It’s a smaller, less expensive version of what the state of Florida is doing to hold on to tourist dollars.

Just this week British Petroleum gave Florida $25 million to help boost tourism in light of the gulf spill.

Using BP's money, Florida is now touting their oil free beaches on radio stations nationwide, advertising cheap rooms and money back guarantees.

Fuel prices add to the savings.

"I have noticed them falling, but I've also noticed they're going back up too," said Carol McWilliams, as she was filling up her gas tank.

Experts predict a 10 cent drop at the pump by July 4, but if you'd rather travel by air, cheap fares are also available online.

Expedia, Orbtiz, and Travelocity are all advertising last minute Memorial Day sales and deals on summer vacations. Southwest Airlines is offering one way flights from Houston to Panama City, Florida for less than $100.

But the merchants in Galveston hope you'll stay close and spend your money locally. Online web cams show an oil free coastline, and just in case that changes in the upcoming summer months, beach house rentals are already offering special guarantees for renters.

"The guarantee is if the beaches need to be cleaned, if they're closed for whatever reason, you will get a refund to be able to use that stay within the next year," said Gaskins.