Employment shifts in the Leisure and Hospitality sector along the Gulf coast following Hurricane Katrina were explored using spatial shift-share analysis. Using a spatial weights matrix that incorporated relative employment, and distance measures relative to the track of the storm we calculated classical and spatial shift-share components. Each of the spatial components then was regressed on net employment change, and the results were statistically significant, and similar to results obtained by Marquez and Ramajo (2005). These results suggest that spatial interaction between employment centers as well as with the storm track, was a relevant aspect of the employment shifts that occurred following Hurricane Katrina.