Can South Carolina’s Tourism Trade Bounce Again From Covid-19?

It is officially South Carolina’s tourism industry crisis time, which was primarily to blame for last month’s deeply disappointing Palmetto State Job report.

This Monday (May 31, 2021) is Remembrance Day – the start of the industry’s peak season. The fourteen weeks between now and Labor Day, September 6, 2021, will determine how far this job-creating, revenue-generating sector of the South Carolina economy bounces off the world devastating effect the coronavirus pandemic and its subsequent social shutdowns.

How are you doing so far? Not good …

According to the latest data from the SC Department of Parks, Recreation and Tourism (SCPRT) the revenue per available room – or “RevPAR” – was only $ 56.80 for the year ending May 15, 2021. While that number is 47.7 percent higher than at this point a year ago, it remains 19.2 percent below, where things were in 2019 at that point.

What number do we need to refer to for a useful comparison …

(Click to show)

(Via: SCPRT)

Likewise, the hotel occupancy that has existed since the beginning of the year – the at 54.2 percent until May 15th – is 27.7 percent above 2020 levels, but still 14.3 percent down where it was two years ago.

Where are the numbers going?

The American Automobile Association (AAA) recently projected a 60 percent Increase in travel on Memorial Day – by more than 37 million People expected to be more than fifty miles from their homes by May 27th through May 31st. Of course, those numbers would stay 13.3 percent lower than before the pandemic – provided they materialize.

“As more people get the Covid-19 vaccine and consumer confidence grows, Americans show a strong desire to travel on Memorial Day,” said AAA senior vice president Paula Twidale said in an explanation. “This pent-up demand will result in a significant increase in Memorial Day travel, which is a strong indicator for the summer, although we must all remember to continue to take important safety precautions.”

The AAA report specifically named Myrtle Beach, SC – the heart of Palmetto State’s Grand Strand – the No. 3 destination for road travelers, following only Las Vegas, Nevada and Orlando, Florida.

That could be a good sign for Grand Strand – assuming local law enforcement agencies are able to contain the violence involved plagued the area a year ago.

As part of that effort, Myrtle Beach Mayor Brenda Bethune and her city council colleagues earlier this week gave the first reading on a proposed budget for 2021-2022, which aims to add ten new police officers to the city’s current force starting July 1.

“Our council was very determined to support our public safety,” said Bethune told WBTW TV-13 (CBS – Florence / Myrtle Beach).

As I’ve said many times, I believe South Carolina is well positioned to make up for its tourism losses in 2021 – provided state and local leaders are committed to it lower taxes, Diversification of our goals, Cleaning up our beaches, Protect our history and refocusing on public safety as a core function of government.

To her credit, Bethune seems to be doing the latter – albeit belatedly.

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I predicted months ago that 2021 would bring “fewer, less spending,” guests to South Carolina – and that local businesses should adapt to these realities. Still, I was hoping the industry would continue to recover than it is now.

“South Carolina’s 187-mile coastline, anchored by scenic Hilton Head, historic Charleston, and the inimitable Grand Strand, is a huge competitive advantage,” I said written down last fall. “It offers the palmetto state a tremendous opportunity to get out of the coronavirus recession on a more solid economic footing than many other states.”

I will continue to keep an eye on the data from SCPRT – as well as the updated license and housing tax receipts reported monthly by the SC Department of Revenue (SCDOR). Taken together, these data points – and other indicators compiled from local and regional sources – show how well (or poorly) the palmetto state is holding up to the macroeconomic forces that invariably drive the expansion or contraction of tourism.

Unfortunately, SCPRT no longer publishes weekly sales estimates for Tourism economy – Data that helped us and other media outlets record the statewide tax impact of Covid-19-related societal shutdowns. Hopefully the agency will reconsider this decision and begin publishing weekly sales estimates in the crucial months ahead …

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ABOUT THE AUTHOR …

(Via: FITSNews)

Will folks is the founding editor of the news agency you are reading right now. Prior to founding FITSNews, he was the South Carolina Governor’s press secretary. He lives in the state’s Midlands with his wife and seven children. And yes, he has LOTS of hats (including the gorgeous Fall Classic 2013 St. Louis Cardinals lid pictured above).

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