Beach gets cold
shoulder As wintry rain soaks Grand
Strand, tourism and revenue shrink By Jenny Burns The Sun News
A key indicator that measures the health of the area's tourism
industry showed a slight drop in the last six-week period - the
first time since 2004, economists said Friday.
Revenue per available room for hotels and condo-hotels -
basically the amount of money hoteliers are making per room -
dropped to $25.48 from $25.79, said Taylor Damonte, director of The
Clay Brittain Jr. Center for Resort Tourism.
Experts say cold and soggy weather played a part, especially
during the Thanksgiving holiday.
Four economists presented their Business, Investment, Tourism and
Economics reports on Friday at Coastal Carolina University.
Damonte says the measure has dropped in one- to two-week periods,
but then would bounce back.
"The weather in November hit at the most inopportune times, like
Thanksgiving weekend," said Gary Loftus, director of The Coastal
Federal Center for Economic and Community Development.
Damonte said the slight drop doesn't mean as much as it would if
it happened in the middle of the summer. The number is a combination
of occupancy, which was up, and the daily room rate, which was
down.
"Up until that time we had a pretty healthy increase in [revenue
per available room]," he said. "As I recall, we had a pretty strong
early fall, which was good to see because we had a soft second half
of the summer."
During the seminar, Loftus also announced results of a Grand
Strand Leadership survey of 1,200 Horry County voters.
The voters said the top issues facing the Grand Strand are roads
(81 percent), the rapid pace of development (47 percent) and
education (26 percent).
The fourth and fifth issues were affordable housing and property
insurance premiums.
The survey will be shown to Horry County Council next week,
Loftus said.
Nationally, the economy is doing well with gains in employment
and moderate economic growth, said Yoav Wachsman, assistant
professor of economics at CCU.
But consumer confidence is falling due to a housing market slump
and the ongoing war in Iraq, Wachsman said. So far, real estate
prices have fallen by 3.5 percent, the largest annual drop in
recorded history, following the largest historical increase in
prices last year, he said.
Some economists predict that housing prices will continue to fall
in 2007, but Wachsman said this depends on if economic growth slows
down next year.
In South Carolina, the state saw moderate economic growth in 2006
and job gains above the national average, but unemployment is still
well above the national average, Wachsman said. He projects
employment will rise 1.7 percent in 2007.
Horry County's population growth and job growth remains high.
Employment grew by 6.6 percent in 2006, the highest rate in the
state and well above the national average. Unemployment was 4.8
percent in October, but it tops 7 percent in January - the slowest
time of the tourism year.
Wachsman said seasonal jobs, low wages and low college graduation
rates remain the biggest economic problems for Horry County. The
median wage is $10.54, below the state average of $12.43 or the
national average of about $15.
The county has a good high school graduation rate, but only 18.7
percent of students earn a bachelor degree, compared to 24 percent
nationally.
Mark Mitchell, chair of the Department of Management, Marketing
and Law, asked professors to think about the possibility of growing
tourism through "agri-tainment," a growing trend of farmers who use
their land to attract visitors.
Boone Hall Plantation in Mount Pleasant is an example and La
Belle Amie Vineyard in North Myrtle Beach is another.
Mitchell said this could be a way for farmers who need to
supplement their income - and don't want to sell their land to
developers - to make extra money on some type of farming tourism
like a pumpkin patch or berry-picking farm.
These types of attractions provide family-friendly entertainment
and educate people too, he said.
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