The economic impact of tourism, the state's biggest industry, barely grew last year, while the number of jobs in the field declined for the second consecutive year.

Tourism pumped $14.4 billion into the state's economy last year, just $4.4 million more than in 2001, according to figures from the S.C. Parks, Recreation and Tourism Department.

Employment in tourism, which covers everything from museums to hotels, fell by 1,634, leaving an estimated 207,000 people in the industry.

More narrowly, figures from the S.C. Employment Security Commission showed that there were 22,100 people employed statewide in the hotels and lodging category at year-end 2002. That was 2,900 fewer people than in 2001, an 11.6 percent decrease.

Marion Edmunds, spokesman for PRT, said the work force reductions can be attributed to a drop-off in business travel.

"When you look at all of the hotels trying to compete in this difficult environment," it's easy to understand why they cut employee rolls to protect profits.

Despite the less-than-stellar results, South Carolina's tourism business is doing pretty well in comparison to other locations, according to Bobby Bowers, an analyst with Smith Travel Research, which compiles statistics for the travel industry.

Hotel occupancy rates in the state were up by 0.4 percent last year to 55.6 percent, nationally, they were down 1 percent to 59.2 percent, Smith Travel said. Hotel room rates in the area were up by 1.4 percent while nationally they fell.

Industry leaders said the drop in employment was noticeable.

"It was easier finding people," when employers needed them, said Kerry Gionis, president of the Charleston Restaurant Association and owner of the Starfish Grille on Folly Beach.

Tom Sponseller, president of the Hospitality Association of South Carolina, said hotels had to lay off workers because corporate travel was down.

"Business people aren't traveling like they used to," he said. He said when the business market is down, it affects everything from hotels to gas stations. "It impacts jobs."

He said that the Grand Strand, which accounts for about one-third of the state's tourism economy, may have been responsible in part for helping to maintain business levels because of the additional marketing it did aimed at regions where schools start after Labor Day. "Revenues were up 16 percent" on the Grand Strand in August, he said.

Lanneau Siegling, incoming president of the S.C. Hotel and Motel Association and general manager at the Embassy Suites Historic District in downtown Charleston, said business has been steady but tough.

"Thank goodness we're in Charleston. I've heard horror stories about other markets" elsewhere in the nation, he said.

He said that while he hasn't had to lay anyone off yet, he has had to adjust some workers' hours.

"He said he doubted that many hotels were spared from having to adjust employees' hours.

Charles deV. Williams covers tourism and hospitality. Contact him at cwilliams@postandcourier.com or 937-5541.