CHARLESTON, S.C. - War in Iraq and the sluggish economy at home have slowed South Carolina's largest industry as the busy summer tourist season approaches.

But there's reason to believe things are looking up for tourism and travel, which pump $15 billion a year into the state economy.

"Things are slower, that's my honest opinion. Hotel occupancy is down, and I see fewer people on the streets," says Ruth Miller, owner of Charleston Strolls, which gives walking tours past the old homes and pastel buildings in the city's historic district.

Since the war began last month, visitation is off about 15 percent at the South Carolina Aquarium, which extends over the gray-green waters of the Cooper River on Charleston's waterfront.

"I think it's an accumulation of weak consumer confidence, the fact we did go to war and that more folks are being influenced by gas prices," says Scott Blue, the attraction's director of sales and marketing. "It's an accumulation of everything."

Greg Olinde, a banker from Fruitland, Md., visited the aquarium one recent gray day with his wife, Emmajane, and their three children. The family stopped by during a Charleston port call by the cruise ship Galaxy, which was on an 11-day trip to the Caribbean.

Olinde says he was a bit concerned about safety when the war broke out just before their vacation.

"But we talked to our travel agent and some other folks and felt like it was very safe to be on the cruise ship," Olinde says. "It's been a while since I've been on a cruise, and since 9/11 there is more security to get on and off the ship. So I noticed some big changes, but to me they're welcome changes."

Tourism was off in January and February along the Grand Strand, the stretch of beaches from Georgetown to the North Carolina state line and a focal point of the state's tourism industry.

March was up a bit and "April should be a good month, if this rain doesn't last forever," says Ashby Ward of the Myrtle Beach Area Chamber of Commerce. "Bookings for June, July and August are running ahead of last year, so we should be in good shape."

Ward said the war appears to be winding down, which should help, too.

"Things psychologically are improving because of the success of the war," he says. "This war, at least the shooting, should be over very soon, and I think that will restore a great deal of confidence."

Miller noted a drop in her business when the bombs started falling on Baghdad.

"The day the bombing started, everyone became concerned about traveling in this country," she says, adding her business took a hit because some school groups, especially from North Carolina, canceled visits to the city. Some districts, she says, instituted policies that students couldn't leave the state or their districts.

"That's because of the war," she says.

Charleston has been hurt because many visitors fly to Charleston and people are cautious about flying, says Helen Hill of the local convention and visitors bureau.

"The first part of the year was sort of flat for us," she said. "The spring is looking better and our outlook for summer is cautiously optimistic."

Indeed, those who rent beach properties along the coast say that summer bookings are running ahead of last year, partly because the economy has kept prices down and people want to vacation closer to home.

Myrtle Beach's efforts to attract more conventions are paying off with the number of room nights booked for group business this year running ahead of last year, Ward says.

Despite the 2001 terrorist attacks, the uncertain economy and the war, tourism has never stopped growing South Carolina, although the rate of growth has slowed. During the early 1990s, it was not unusual for the industry to grow at 9 percent a year although Ward doesn't expect to see such rapid growth again.

"In a year or two, when the economy does a flip-flop, we'll likely get back to acceptable figures of around 5 percent," Ward says.

Hill expects tourism to improve in the coming weeks as the war winds down because of a pent up need for travel. The visitors' bureau plans to put additional money into advertising to lure visitors, especially those within driving distance.

"People will still want to take vacations. We want to make sure that when they decide to take a vacation, they take it with us," Hill says, adding while officials hope the extra advertising brings visitors, "it's not a slam dunk."

But one visitor who won't need convincing is Olinde, who vacations with his family on Hilton Head Island every year.

"With three kids, it's perfect for us. We can drive to and from in one day, and the rest of the time we're actually having fun. It works out well for them," he says. "When they get older, perhaps we'll travel farther, but my wife doesn't like to fly - period."

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