HRTM 483: Tourism Economics
Term Project 1
Myrtle Beach, South Carolina
The thriving industry of tourism found in Myrtle Beach, South Carolina economically contributes to the gross domestic product, employment, foreign exchange, earning, investment, regional impacts, contribution to taxation, and impact on other industry sectors within the state of South Carolina
According to the Myrtle Beach Chamber of Commerce, in 2006 the state of South Carolina spending on travel and tourism reached $16.7 billion, growing 5% over 2005. This supported employment of 198,900, or 10.5% of total state employment. The tourism industry alone generated total wages and salaries of $5.4 billion in 2006. Total tourism value added (direct, indirect, and induced) attested for $8.9 billion, or 5.9% of the state economy. The fiscal impact was $1.1 billion in state and local tax revenues, as well as $1.3 billion in federal revenues. Out-of-state domestic visitors spent $7.7 billion, or 46% of all tourism sales. International visitors added another $586 million to the total. SC residents and businesses spent $4.9 billion on travel goods and services within and outside the state. Over $1.1 billion was spent on tourism capital investment. The government spent $420 million in support of tourism. SC-manufactured goods consumed by the tourism industry generated $1.9 billion in sales.
Travel spending generated the core tourism industry economic impact. The direct impact of these expenditures can be compared to other sectors of the economy. Tourism-related government, investment and merchandise trade expenditures add to the core impact to give a picture of the entire tourism-generated economy—including direct, indirect, and induced impacts.
Various industries benefit significantly from direct tourism sales. Hotels and Airports depend almost entirely on Tourism. Amusement & Recreation venues depend on half of their sales from Tourism. Nearly a third of Food & Beverage business comes from Tourism. Various industries benefit significantly as tourism industries and tourism employees purchase goods and services. $3.6 billion in Gross State Product is generated though the tourism supply chain and tourism employee spending in the SC economy. Tourism directly generates 6.3% of the state’s employment base, or 119,800 jobs with the inclusion of indirect and induced impacts generated by all of tourism spending; tourism is the catalyst for 198,900 jobs, or 10.5% of all non-farm employment. Tourism also generates $1.1 billion in State and Local taxes. Making the ratio of State and Local tax revenues to public operational expenditures related to travel and tourism is $2.50 to $1.
In reference Myrtle Beach, South Carolina, more than 13 million tourists visit the Grand Strand each year. Horry County leads the state in tourism, accounting for over 38% of revenues. The traditional tourist season (the summer months) is continually expanding, resulting in a more even distribution of visitors throughout the year. The county's rapid growth is expected to continue, in the tourist sector as well as in other business sectors. Horry County is forecasted to gross approximately $7 billion in sales this year. Retail sales rate grew at more than 150% of the national annual rate, with tourism accounting for over 50% of retail sales. Retail sales, employment and construction are all intimately tied to the tourism industry. The Grand Strand is attracting a wider variety of tourists, both geographically and socio-economically, and this diversity helps cushion the region from any downturns in the national economy. During 2002, average lodging occupancy rate rose to slightly over 62% despite an increase in the number of rooms available with new lodgings. During that same period, admissions tax revenues rose by over 20% (based on preliminary figures). Admissions tax is paid on any recreational activity including golf and recreation parks.
Golf is an important segment of...
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