06:57 PM CST on Wednesday, December 7, 2005

Cain Burdeau / Associated Press

In a brewing dispute over next year's Mardi Gras, the hotel and tourism industry on Wednesday spoke out against Mayor Ray Nagin's suggestion that hotels donate a portion of their profits from Mardi Gras to help refugees return to the city.

Darrius Gray, the head of the Greater New Orleans & Lodging Association, belittled Nagin's suggestion, saying hotels have been losing money since Hurricane Katrina and are in no position to hand out money.

"Profits are hard to come by these days to tell you the truth," Gray said.

Nagin made his comments on Tuesday after a news conference, but did not specify how much he thought hotels should contribute. The mayor's press secretary and communications director did not immediately return messages.

The mayor also said the city's hotels could do more for the refugees scattered throughout the country by putting aside a quarter of their rooms for refugees.

Gray said hotels are doing their part already and that between 25 percent and 30 percent of hotel rooms are occupied by people with Federal Emergency Management Agency housing vouchers.

J. Stephen Perry, president of the New Orleans Metropolitan Convention and Visitors Bureau, lashed out at the mayor for suggesting that the tourism and hospitality industry has not done enough to help the city recover.

Perry said hotels played a key role in the early days after Katrina hit when they were able to provide housing to recovery workers by bringing in potable water and generators.

"Many of the hoteliers were on the ground when water was lapping down Canal Street and parts of Poydras (Street), and I'll tell you, they'll be here forever," Perry said.

Perry attacked Nagin for what he called his "fractured message." He challenged Nagin to send a more positive message to the country about the viability of holding Mardi Gras and enjoying the city for its touristic value.

"There's frankly no more patriotic message in America than to come and enjoy the most unusual, authentic, historic, walkable city on this planet -- New Orleans," Perry said.

Whether to hold Mardi Gras next year has become a highly emotional and politicized issue in recent weeks because groups of refugees have threatened to protest celebrating Mardi Gras while so many people are displaced.

The city has agreed to hold a truncated Mardi Gras, but questions over parade routes and policing remain.

(Copyright 2005 by The Associated Press. All Rights Reserved.)