Impact on South Carolina’s Tourism Industry

Duane ParrishDirector

SC Dept. of Parks, Recreation & Tourism

COVID-19

SC Hotel Occupancy & Percent ChangeWeekly: 3/07 – 8/01

Source: Smith Travel Research

-5.4%-17.2%

-47.7%

-65.2%-69.1% -71.2%

-67.0%-62.4%

-54.9% -52.2%-44.4%

-34.9% -31.1%-29.4%

-26.4%-26.4% -24.8%

-23.9%-33.1% -33.6%

-30.9% -25.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3/07 3/14 3/21 3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16 5/23 5/30 6/6 6/13 6/20 6/27 7/04 7/11 7/18 7/25 8/01

Note: Dark green bars represent weeks in 2020. Light green bars are weeks in 2019.

Week Ending

Occ

upan

cy

SC Tourism Revenue & Percent ChangeWeekly: 3/07 – 8/01

Source: Tourism Economics

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

3/7 3/14 3/22 3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16 5/23 5/30 6/6 6/13 6/20 6/27 7/4 7/11 7/18 7/25 8/01

Mill

ions

Estimated South Carolina Tourism Revenue and Percent Change by Selected Week in 2020

-40% -37%

-4%

-21%

-62%

-79%

Note: Dark purple bars represent weeks in 2020. Light purple shaded bars represent weeks in 2019

Week Ending

-84% -87% -88% -88% -85%-83% -79%

-65%

-48%-45%

-40% -38% -35% -35% -42% -42%

Number of Leisure & Hospitality Jobs in SCFebruary - June 2020

Source: Bureau of Labor Statistics

June 2020 (P)2,059.4 -7.1% -5.8%108.3 -1.5% 1.7%247.4 -4.2% -4.3%400.1 -2.5% -1.8%102.9 -1.1% -1.6%281.9 -7.7% -5.4%244.7 -5.8% -5.3%206.3 -26.8% -23.3%357.2 -5.2% -4.0%

% Change Feb-June

% Change June 2019-June2020

377.6 363.2 357.0267.7 139.9 176.7

303.8 264.9258.3 228.5 238.3259.7

100.0 102.1Financial ActivitiesProfessional & Business Services 305.4 268.2Education & Health ServicesLeisure & HospitalityGovernment

106.9244.8388.2

ConstructionManufacturingTrade, Transportation & Utilities

109.0258.4408.7

104

South Carolina 2,197.7State Mar. 2020

281.7376.6

Feb. 20202217.1109.9258.2410.2

Apr. 2020 May-201,921.8102.7244.9376.6

1,986.9

103.4

Projected SC Tourism Revenue2020

CY2019 Estimated

CY2020 Projected

2020 vs 2019 % Change

Domestic Visitors Travel Spending $16.5B $9.9B -40%

International Visitors Travel Spending $930M $90M -90%

State & Local Government Spending on Tourism $530M $213M -60%

Tourism-Related Capital Investment $910M $544M -40%

Exports of Manufactured Tourism Merchandise $5.7B $1.4B -75%

Total Gross Tourism-Related Spending $24.5B $12.2B -50%

Source: Tourism Economics

Impact on Consumer Travel SentimentNearly half of all Americanscancelled a planned trip due toCOVID-19

44% reduced their travel plans as aresult of the virus, with manychanging from a fly-in to a drive-indestination

The status of COVID-19 andeconomic concerns are two primaryfactors that will influence consumertravel decisions in the short term

Statewide Recovery MarketingApproximately 88% of South Carolina’s domesticvisitors arrive by car

COVID-related travel cancellations or reductionshave yielded pent-up demand for travel

An overwhelming percentage of consumers planto travel by car for their first trip within the nextsix months

SCPRT’s Tourism Recovery Marketing focuses onconsumers within a 350-mile radius and utilizeeasily adaptable media placements

Statewide Recovery Marketing

Phase OneMaintaining Consumer Awareness

Statewide Recovery Marketing

Phase TwoResuming Active Consumer Engagement

Phase TwoResuming Consumer Engagement

Statewide Recovery Marketing

CARES Act Funding Requests

Activity AmountSCPRT Statewide Recovery Marketing $10,000,000.00Major Destination Recovery Marketing Grants(Myrtle Beach, Charleston, Hilton Head Island, Greenville, Columbia)

$30,000,000.00

Tourism Economics forecasts that it may take between one to three years for visitor spending to return to pre-COVID levels.

How quickly South Carolina’s $24 Billion Tourism Economy recovers depends on the actions we take to aid this recovery.

SCPRT is requesting $10,000,000 for Statewide Recovery Marketing and $30,000,000 to use as Recovery Marketing Grant Funding for the state’s five major destinations.

Slide Number 1SC Hotel Occupancy & Percent Change�Weekly: 3/07 – 8/01Slide Number 3Slide Number 4Projected SC Tourism Revenue�2020Impact on Consumer Travel SentimentStatewide Recovery MarketingStatewide Recovery MarketingStatewide Recovery MarketingStatewide Recovery MarketingCARES Act Funding RequestsSlide Number 12