Charleston, SC Economic Development

Tourism industry adds $3.09B to local economy

May 9, 2008
Charleston Regional Business Journal
By Karen H. Kaplan
Visitors to the Charleston area last year helped pour some $3.09 billion into the local economy, according to a new report, which said that tourism’s local economic impact increased by about 1% from 2006.

The report by the Office of Tourism Analysis at the College of Charleston also said that 4.33 million out-of-towners descended on the tri-county region in 2007, an increase of 3% over the 4.21 million who visited the area in 2006.

That visitation figure is the high mark for the past few years, when the numbers began dropping after a spike up to 4.45 million in 2003. The following year, that figure dropped by 7.6% to 4.11 million visitors, and fell again in 2005 by another 1.2% to a low of 4.06 million.

The 2007 numbers show the region and its tourism industry continues to grow even in a sluggish economy, industry officials said.

“This is an important benchmark for the health of our region’s tourism economy,” said Rick Mosteller, immediate past chairman of the Charleston Area Convention & Visitors Bureau. “It continues to indicate consistent and sustainable growth of our region’s largest industry.”

Of the $3.09 billion added to the region’s coffers, about a third, or $1.1 billion, represents wages earned by workers in the tourism industry. That figure is unchanged from 2005 and in 2006 but is up by 38% from 2003 and 2004, when tourism-related wages totaled $800 million.

Hotel occupancy was 71% in 2007, up 3% from 2003 through 2006 when the rate remained at 68%. Meanwhile, inventory increased by 11.4%, going from 14,963 rooms in 2005 to 16,669 in 2007, meaning that the occupancy rate would have risen by 11% if the number of rooms had stayed the same.

“Despite all the doom and gloom, from a visitation perspective, there are still lots of people coming to town,” said Perrin Lawson, deputy director of the visitors bureau. “More people are coming and spending more for the privilege of doing so.”

Travel and tourism-related sales accounted for an average of 12% of all 2007 sales in the tri-county area, but represented 16% of all sales in Charleston County. Comparatively, tourism-related sales accounted for 3% of all sales in Berkeley County and 2% of all sales in Dorchester County, the report said.

Lawson said the percentages reflect the rate of visitation to the three counties and that he doesn’t think the numbers should necessarily be higher or lower.

“We have a diversified economy and (tourism) is not the only industry here,” he said. “It can also be leveraged to recruit other types of businesses and further diversify our economy. But if (those sales) were to go away, we’d be in big trouble.”

Visitors in 2007 each spent an average of $235 in the area. Of that figure, $122 went for lodging, $104 for shopping, $51 for food, $38 for tours and attractions and $28 for local transportation. The report said visitors spent $42 on other expenses, which could include such items as gasoline or magazines.

Travelers cited the area’s history and food — which were tied for first place — as its top assets, the report said, while the area’s attractions came in third. Next were local hospitality, beaches and the waterfront, atmosphere, tours and shopping.

Most of the region’s out-of-town visitors came from North Carolina in 2007, the report said. Second on the list was South Carolina, followed by Georgia, Florida, New York, Ohio, Pennsylvania, Illinois, Kentucky and New Jersey. About 5% were from Canada, the United Kingdom and Germany. 		related information