The Grand Strand must be unified, utilize its wealth of intellectual capital and remain true to its core industry even as it strives for economic diversity, S.C. Gov. Mark Sanford said Friday at the second annual Growth Summit.

The Grand Strand's core is its strength as a tourism destination, he said, saying "I think you've got to continue to play to that."

The Grand Strand has thrived in the past despite a lack of infrastructure and being "outgunned" at the legislative level by regions with larger populations and representation, he said.

Local leaders and residents face challenges, but there's little question the area has a bright future.

"The prospects are great," Sanford said.

Local residents and leaders have recognized this area's primary natural resource - the beach - is its key to growth. An entrepreneurial spirit persuaded residents to use that resource to fuel the local economy, he said.

The Grand Strand grew as a result, often faster than most other areas around the country. Horry and Georgetown counties saw a 33 percent increase in population during the 1990s, compared with 13 percent for the nation as a whole and 19.5 percent for the S.C. coast. The local growth rate was even faster for relocating retirees ages 65 and older.

Horry and Georgetown counties saw that age group grow 56.4 percent in the 1990s, compared with about 22.6 percent for all of South Carolina.

"I think the future is bright when it comes to growth on the Grand Strand. Period and exclamation point," Sanford said.

The growth is a given, but there are potential pitfalls. The push for increased economic diversity might be a good idea, but going too far and altering the Grand Strand's image could get in the way of future growth, Sanford said.

Greenville County has about three times as many high-paying manufacturing jobs as the Grand Strand.

But local leaders shouldn't necessarily try to match Greenville or similar counties, Sanford said.

"Be careful not to lose your brand identity as you diversify," he said, saying the most successful companies in America consistently present clear messages.

"Be careful about sending conflicting signals," he said. "You may or may not like McDonald's, but you know what it's about."

Rapid growth has led to new opportunities the Grand Strand could explore, Sanford said.

The growth of the older population, for example, gives the Grand Strand experience and knowledge other areas don't have, Sanford said.

Many of the people moving here are well-educated and aren't bringing a large number of children, which gives local leaders the chance to be creative with educational funding, he said, saying utilizing the intellectual capital those residents bring must be a priority.

"These people have expertise," Sanford said. "If all these people came to do is play golf, this area will be the worst for it."

Sanford said building community must be a priority and said it can be done with neighborhood schools and neo-traditional developments that encourage interaction between residents.

Changes in the state's income-tax system, a restructuring of state government and direct interstate access also will clear the way for future growth along the Grand Strand, he said.

A modified tax structure, which would include an increased cigarette tax but lower taxes overall, would give more people incentive to take risks, Sanford said, pointing out that risk takers are a big reason the area has thrived in the past.

But the completion of the long-awaited I-73 doesn't yet have a deadline or the necessary funding. Lack of interstate access has made it more difficult for the Grand Strand to attract major manufacturers.

"It becomes clearer and clearer that [I-73] is crucial to this area to sustain growth," Sanford said.