The economy took its toll on tourism in 2002, creating a $200 million dip in the state's top industry and leaving 40,000 fewer people working in hospitality than in the previous year, according to statistics released Thursday.

Tourism's economic impact in South Carolina dropped to $14.4 billion last year, employing about 207,000 people directly and indirectly, according to preliminary 2002 estimates by the S.C. Parks, Recreation and Tourism department.

Industry leaders say that's pretty good considering the lagging economy and the double-digit drops of other destinations. The Grand Strand accounts for a third of the state's tourism economy.

"I think we are going to be heading back toward a growth cycle," said Chad Prosser, PRT's director-designate. "I'm optimistic about where we are going."

So are many of the other 500 tourism leaders from across the state who are gathered in Greenville for the S.C. Governor's Conference on Tourism and Travel, which started Thursday. Many are encouraged by the pledges from Prosser and Gov. Mark Sanford to raise the level of attention tourism gets in the state.

"[The tourism industry] is gargantuan by any measure," Sanford told the crowd during the first session of the two-day conference. "Chad, myself and this entire administration are going to be on y'alls side."

That backing likely won't result in more dollars for PRT because of the state's tight budget but will lead to smarter marketing, Sanford said. He also wants more of the money put into PRT to be used for advertising. The agency uses about $10.5 million of its $56 million budget for marketing.

"That number is surprisingly small," Sanford said. "We want more of the resources making the way to potential customers."

Despite the drops in 2002, tourism's influence grew in South Carolina, surpassing textiles in bringing the most new money into the state. Tourism also is the state's No. 1 employer and the third-largest contributor of private capital investment.

"We still remain the strongest industry in the state," said Isabel Hill, director of PRT's Division of Business and Community Development.

Still, the drops hurt individual businesses the most, Prosser said, tapping his golf background as managing partner of Wachesaw Plantation East in Murrells Inlet.

"That little bit of a dip is more profound to them because we've had more competition enter the market," he said.

The drops didn't cause concern from Grand Strand leaders, who are optimistic about this year after estimating about a 3 percent growth in area tourism in 2002. The area's strength as a drive-to destination combined with new hotel and residential construction bodes well, said Dennis Wade, chairman of the Myrtle Beach Area Chamber of Commerce.

"We are positioned extremely well," he said.

That, along with the commitment by Sanford and Prosser, encourage Mickey McCamish, president of marketing group Myrtle Beach Golf Holiday.

"You've got two people who understand tourism," he said. "It is really getting its day of recognition."