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1992 Fund Claims Manual       October 2016 Edition









                 sector. All sets of guidelines are available    opportunities (for example whether a
                 on the IOPC Funds' website.                   reduction in income from tourists was
            3.4 CLAIMS FOR                                     offset by income from those involved
                                                               in the response to an oil pollution
            ECONOMIC LOSS IN                                   incident, such as clean-up personnel and
            THE TOURISM SECTOR                                 representatives from the media).

                                                              ●  The extent to which the claimant’s
            Scope of compensation                              business forms an integral part of the
                                                               economic activity within the area affected
            3.4.1     Businesses in the tourism sector, or     by the spill (for example whether the
                 that derive a large part of their income      business is located or has assets in the
                 from tourists, which are located close to     area, or employs people living there).
                 contaminated public amenity beaches
                 may suffer loss of profit because the   3.4.2      A distinction is made between (a) claimants
                 number of guests falls during the period     who sell goods or services directly to tourists
       36        of the pollution. However, claims for such   (for example the owners of hotels, campsites,
                 economic loss (normally referred to as       bars and restaurants) and whose businesses
                 pure economic loss, see paragraphs 1.4.9–    are directly affected by a reduction in visitors
                 1.4.10) qualify for compensation only if     to the area affected by an oil spill, and (b)
                 the loss was caused by contamination. In     those who provide goods or services to other
                 other words a claim is not accepted solely   businesses in the tourist industry but not
                 on the grounds that a pollution incident     directly to tourists (for example wholesalers,
                 occurs. All claims in the tourism sector     manufacturers of souvenirs and postcards
                 should satisfy the general criteria set      and hotel launderers). It is considered that
                 out in Section 2. However, in order for      in the case of category (b) there is not a
                                                              sufficiently close link of causation between
                 a claim within this sector to qualify for
                 compensation there should be a sufficiently   the contamination and any losses suffered by
                                                              claimants. Claims of this type will therefore
                 close link of causation between the          normally not qualify for compensation in
                 contamination and the loss or damage.        principle.
                 When considering whether such a close
                 link exists, account is taken of the    Presentation of claims
                 following factors:
                                                         3.4.3      The assessment of claims for pure economic
                 ●  The geographic proximity of the claimant’s   loss in the tourism sector is, whenever possible,
                   business activity to the contaminated      based on a comparison between the actual
                   area (for example whether a tourist hotel,   financial results during the claim period and
                   campsite, restaurant or bar is located on   those for previous periods, for example in the
                   or close to the affected coast).           form of audited accounts or tax returns of the
                                                              individual claimant for the three years before
                 ●  The degree to which the claimant’s
                   business is economically dependent         the incident. The assessment is not based on
                   on an affected coastline (for example      budgeted figures. The criterion is whether the
                                                              claimant’s business as a whole has suffered
                   whether a hotel or restaurant located      economic loss as a result of the contamination.
                   close to an affected coast caters solely    The purpose of examining historical financial
                   or predominantly for leisure visitors      results is to make it possible to determine the
                   or for the business community).
                                                              revenue that could have been expected during
                 ●  The extent to which a claimant had        the period covered by the claim by taking into
                   alternative sources of supply or business   account the past economic performance of the
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