New wave of
tourists expected along S.C. beaches Improved economy means more will travel, but they’ll pay
higher prices for hotel rooms, gasoline By JIM DuPLESSIS Staff Writer
Hotels on the S.C. coast have been in summer doldrums for the
past two years, but tourism officials hope a stronger economy will
draw more vacationers to the state’s beaches and historic sites.
The Travel Industry Association of America predicts the number of
vacations and excursions will rise 2.3 percent nationwide this
summer.
The association also said 6 percent of people surveyed included
South Carolina on their list of places they would most like to visit
if they could go anywhere. South Carolina was followed by
Washington, D.C., which fell just shy of 6 percent of dream
destinations.
Marion Edmonds, spokesman for the S.C. Parks, Recreation and
Tourism Department, said the survey shows the conditions are
favorable for the state to attract more visitors this year, but he
wouldn’t predict how many.
“The general economic indicators are stable to positive,” Edmonds
said. “People are driven by their general sense of how the economy
is doing, and how they individually are doing in the economy.”
Vacationers will spend more this summer for hotels and gas than a
year ago, the travel association predicted. Average nightly rates
for May 15-21 were $87 in South Carolina, 14 percent higher than a
year ago. Rates nationwide were $93 a night, up 8 percent.
For families headed to the beach, higher prices likely will mean
fewer T-shirts, ice cream cones, and a shorter trip, Edmonds said.
The travel association found most people expected to spend $1,019 on
their longest trip, $82 less than last year. Vacationers planned to
stay an average of seven nights, down from 7.6 nights last
summer.
STAYING IN THE STATE
Tourism brings a small wave of cash to South Carolina every
summer, when the state’s six coastal counties draw 85 percent of
hotel revenues, up from 68 percent during the off season.
Many of those vacation dollars merely move from one side of the
state to another. South Carolina residents account for about a
quarter of overnight stays at S.C. hotels and resorts each year,
according to the S.C. Parks, Recreation and Tourism Department.
And the money the state earns from neighbors is lessened as some
S.C. residents cross the border. The state tourism agency estimates
that out-of-staters make 24 million trips to South Carolina each
year, while S.C. residents make 10 million to 11 million trips out
of the state.
The vacation wave produces a small ripple in South Carolina’s
overall economy:
• In 2002, the state produced $122
billion in goods and services. Of that, about $4.7 billion came from
hotels, restaurants, arts, entertainment and recreation
establishments across the state, according to the latest detailed
gross state product data from the U.S. Bureau of Economic
Analysis.
• South Carolina’s leisure sector
accounted for about 4.2 percent of its gross state product, about
the same as the rest of the nation.
• Over the past five years,
restaurants, hotels and other leisure businesses have hired about 7
percent more workers in the summer than in the off-season months. If
that trend holds this summer, the state would gain about 14,000
seasonal jobs. That’s a bump of less than 1 percent in a state with
about 1.8 million jobs.
TURNING AROUND
Still, summer at the beach is one of the state’s most visible
features, and millions savor memories of vacations there. And the
money makes a difference along the coast in key destinations from
Myrtle Beach to Hilton Head.
Hotel revenues on Hilton Head Island and the rest of Beaufort
County were flat after the 2001 recession, but rose 5 percent last
summer to $45 million, finally nosing ahead of 2001 after adjusting
for inflation.
It’s about time, says Bob Pfeffer, who came to the Hilton Head
Marriott Beach and Golf Resort in January 2001 as head of sales and
marketing. Occupancies and room rates fell after the recession that
year and the Sept. 11 terrorist attacks.
“In 2004, things really started to turn around for the better in
both occupancies and rates,” Pfeffer said.
Room rates for June and July average about $200 to $250 per
night, about $25 more than last summer. He said he expects occupancy
rates will exceed 90 percent.
About half of the 512-room hotel’s business comes from
association and corporate groups, which are particularly important
in the off-season. Revenues per room from January through April were
22 percent higher than a year ago, and this fall’s bookings are up
substantially as corporate events rose for the first time in years,
he said.
Georgia has been the hotel’s best source of customers. Most drive
from South Carolina and North Carolina or as far away as New York,
Ohio or Canada.
More than 300,000 people came to Myrtle Beach for a motorcycle
rally that ended last weekend. That number rushed the start of the
summer season, when weekend visitors range from 300,000 to
450,000.
About three-quarters of rooms along the Grand Strand were filled
May 15-21, an improvement from a year ago when less than half the
rooms were filled. Room rates were $100 to $124 per night, up 19
percent to 40 percent, according to Smith Travel Research.
“It was great for business,” said Wendy Cogan, director of
research for the Myrtle Beach Chamber of Commerce.
Reach DuPlessis at (803) 771-8305 or jduplessis@thestate.com. |