Page 93 - claims information pack ebook_e

Guidelines for presenting claims in the tourism sector

and/or incurred additional costs. Lost Explanatory notes:
profit normally arises when revenues are A Loss of revenue: This should be demonstrated
reduced and the level of gross profit by showing the difference between revenues in the
(revenue less direct costs such as wage claim period and those normally generated in a
costs and costs of sale) is less than it would comparable period of the previous year(s).
normally be expected to be. In both cases
you will need to show your calculation B Variable costs: This should include cost of sales
of loss and enclose documentation and such as food or drink, a share of energy costs and
evidence to prove your loss. It is normal other costs incurred through the supply of the
16 for tourism and leisure visitor businesses product or service.
to incur costs depending on the volume of C Loss of gross profit: Loss of revenue less
the business. Those costs, referred to as variable costs (A – B)
variable costs, differ depending on the type
of business you operate. For instance, to let D Additional costs incurred: This may include
a room will result in cleaning and laundry additional marketing costs, purchase/hire of
costs, a restaurant meal will include direct equipment to replace equipment damaged or lost as
food and service costs. Any loss of revenue a result of the spill, additional labour and equipment
will therefore lead to a reduction in variable required to clean the property. Please explain the
costs and this saving needs to be taken into reason for the additional costs.
account. The calculation for the economic
loss will therefore be: E Subtotal: Loss of revenue plus additional costs
incurred (C + D).
Loss of revenue A
F Additional income: This may include additional
Saving of variable costs B rentals paid by clean-up companies for the hire
of a car park or other area of land, the gross profit
Loss of gross profit (A – B) C
generated by the supply of meals to volunteers
Additional costs D and professional clean-up workers, additional

Subtotal (C + D) E accommodation supplied to oil spill related
visitors not otherwise included in general revenue.
Additional income F
G Economic loss: Subtotal less additional
Economic loss (E – F) G
income (E – F).