Economic Impact of Tourism

Local

Dr. Don Schunk, former Research Economist at Coastal Carolina University, estimates tourism accounts for a $6.5 billion economic impact and another $1.8 billion in indirect economic impact and 74,600 jobs throughout our local community. Key statistics from our local market are:

Tourism accounts for 74,600 jobs throughout the Grand Strand. The tourism industry creates 54,500 jobs directly, and an additional indirect/induced 20,100 jobs.
$780 Million spent at Grand Strand food & beverage businesses throughout the Grand Strand are attributed to visitor spending, this represents 71% of total food & beverage expenditures.
Horry and Georgetown counties combined generated $9.2 billion in retail sales in 2009-2010, accounting for more than 9 percent of the state’s retail sales, much of which came from tourism (source: S.C. Department of Revenue).
Horry and Georgetown generated over $9.5 million in admissions taxes in 2009-2010, more than one-third of the state’s total admissions tax collections (source: S.C. Department of Revenue).
Horry and Georgetown generated more than $15 million in accommodations taxes in 2009-2010, more than one-third of the state’s total accommodations tax collections (source: S.C. Department of Revenue).

First Congressional District

Travel is an essential element in the economic activity of the First Congressional District in South Carolina. From Charleston on the south to Horry County on the north, by intuition and objective measurement travel is one of the most important, dynamic factors in generating the prosperity that the First District enjoys.

Travel ranks second throughout the District among all segments of the economy in Charleston, McClellanville, Georgetown, Pawley’s Island, Murrells Inlet, Surfside Beach, Myrtle Beach, Little River—and all points in between

Hotels, golf courses, restaurants, theme parks, airlines, airports, gift shops, service stations, taxies, carriage operators, and tour guides all benefit significantly from travel.

A few statistics make this point quite graphically:

Total economic impact is: $3,215,500.00—an impressive sum of money
Total travel generated payroll: $736,000,000—another impressive figure
Total number of jobs generated by travel: 41,200
Of all economic sectors in the First Congressional District, travel ranks second
Percent of Non-Farm Employment: 14.5 percent—impressive and important

Nationally, travel accounts for 10.1 million jobs, which constitutes 11.0 percent of the total work force. Every region of the county, every state, every city, and almost every community benefits from travel. Some more than others, but clearly the First Congressional District is one of the leading travel destinations in the county.

We all have a direct or indirect stake in promoting travel, which will enhance our economic future in a direct and specific way.

State

A recent study prepared for the South Carolina Parks Recreation and Tourism (SCPRT) agency by the USTA revealed that domestic travel accounted for a direct economic impact of nearly $10 Billion annually and created more than 113,000 jobs. Key findings from that study include:

Domestic travelers directly spent nearly $9.9 billion in South Carolina during 2008, up 1.7 percent from 2007.
Domestic travel-generated employees in South Carolina earned more than $2.0 billion in payroll income during 2008, a 1.3 percent increase from 2007.
Domestic travel expenditures directly generated 113,800 thousand jobs within South Carolina in 2008, a decrease of 1.2 percent over 2007. These jobs generated by domestic travel spending in South Carolina composed 5.9 percent of the total state nonagricultural employment in 2008.
On average, every $86,733 spent by domestic travelers in South Carolina during 2008 generated one job.
Domestic travel spending in South Carolina directly generated nearly $1.5 billion in tax revenue for federal, state and local governments in 2008, up 1.4 percent from 2007. The total tax revenue increase is partially driven by higher state sales and use tax rates started June 1, 2007.

For more information on this study, please click here.

National

National Tourism is one of the world’s largest industries, employing millions worldwide. The United States Travel Association estimates domestic and international travelers spent $704.4 billion in the U.S. in 2009 and created over 10.1 million jobs.

For more information on the USTA and its economic impact study, click here.