the hilton head island tourism industry - lriti · the hilton head island tourism industry prepared...

The Hilton Head Island Tourism Industry

Prepared by:John Salazar, Ph.D.

Professor of Hospitality ManagementDirector, Lowcountry and Resort Islands Tourism Institute

USCB’s Lowcountry and Resort Islands Tourism Institute

• The primary goal of the LRITI is to investigate, examine, and interpret tourism information that will support the tourism directives for Beaufort, Jasper, Colleton, and Hampton Counties

• Collaborates with faculty throughout USCB, South Carolina, and the US

• Employs 9 undergraduate research assistants• Has conducted research for organizations such

as the Hilton Head Island‐Bluffton Chamber of Commerce, Heritage Golf Tournament, Town of Hilton Head Island, Beaufort Regional Chamber of Commerce, Bluffton, City of Savannah, Sea Pines Country Club, Sun City Hilton Head, and many other organizations

2USCB LRITI © 2015

Beaufort County Tourism

$1,026 $1,020

$957 $957

$1,029

$1,081

$1,132

$850

$900

$950

$1,000

$1,050

$1,100

$1,150

2007 2008 2009 2010 2011 2012 2013

2007‐2013 Domestic Travel Impact on Beaufort County ($ Millions) (US Travel Association)

4USCB LRITI © 2015

The HHI Economy

2007‐2013 HHI Gross Regional Product (IMPLAN)

$3,235,393,856

$3,409,738,960

$3,194,076,541

$2,918,576,653

$2,957,270,699$2,973,978,015

$3,796,015,681

$

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

$4,000,000,000

2007 2008 2009 2010 2011 2012 20136USCB LRITI © 2015

2013 Top HHI Industries by NAICS Category (2013 IMPLAN)

By Employment1. Real estate2. Full‐service restaurants3. Limited‐service restaurants4. Labor and civic organizations5. Retail ‐ Food and beverage stores6. Scenic and sightseeing transportation and 7. All other food and drinking places8. Landscape and horticultural services9. Offices of physicians10. Services to buildings11. Hotels and motels, including casino hotels12. Other amusement and recreation industries

By Commodity Output1. Monetary authorities and depository credit

intermediation2. Real estate3. Owner‐occupied dwellings4. Scenic and sightseeing transportation and

support activities for transportation5. Full‐service restaurants6. Wholesale trade7. Electric power generation ‐ Fossil fuel8. Labor and civic organizations9. Offices of physicians10. Limited‐service restaurants11. Management of companies and enterprises12. Hotels and motels, including casino hotels

USCB LRITI © 2015 7

The Hilton Head Island Tourism Industry

$5,314,660 $6,058,319

$6,168,555 $6,404,449

$6,010,356

$5,469,447 $5,948,685

$6,099,093

$6,995,760

$7,735,390

$2,991,110

$5,086,678

$5,108,528 $5,232,837

$4,826,318

$4,708,807 $4,917,591

$5,160,134 $5,250,995

$5,633,430

$‐

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

FY2005

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

Accommodations Tax

Hospitality Tax

2005‐2014 Accommodations and Hospitality Tax (Town of Hilton Head Island)

9USCB LRITI © 2015

US Hotel Occupancy: 2011 thru 2014 (www.statista.com)

52%60%

65% 66% 67% 72% 74%72% 66% 68%

59%53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2013 2012 201110USCB LRITI © 2015

754,649 , 28%

440,944.59 , 17%

465,136 , 18%

598,777 , 23%

159,137 , 6%

225,950.70 , 8%

Villa

Hotel

Timeshare

Secondhome

Non Paying Guest

Day Trippers

2014 Visitor Volume by Lodging Segment: 2.64 million visitors

11USCB LRITI © 2015

The HHI Tourism Economy (USCB Economic Impact of Tourism on Beaufort County)

• 2013– $939.5 million in total economic output– 15,318 estimated jobs– $435.9 million in employment compensation

• 2014– Hospitality Tax $5,633,430 – Accommodations Tax $7,735,390– Total Tourism Related Taxes $13,368,820

Based on a 16,781 occupied HHI households (or housing units), each household would be paying an additional $796.66 in taxes if the hospitality and accommodations taxes weren’t paid by

visitors.


Importance of HHI Attributes to HHI Visitors: From the 2013‐14 Hilton Head Island Visitor Profile Study

Please rate HOW IMPORTANT the following attributes were in choosing Hilton Head Island for your leisure trip.

Not at all Important Unimportant Neutral Important Very

Important

Somewhat Important/Very Important Total

Rating Average

Rating Count

Beaches 2.2% 1.4% 8.1% 30.9% 57.3% 88.2% 4.40 2,009

Natural Beautyof the

Destination1.9% 1.1% 10.3% 46.8% 40.0% 86.8% 4.22 1,981

Quality of Dining Options 2.6% 1.9% 12.6% 50.8% 32.2% 83.0% 4.08 1,980

Quality of Lodging Options 4.8% 2.5% 12.5% 40.5% 39.6% 80.1% 4.08 1,985

Diversity of Dining Options 2.7% 2.8% 16.3% 49.3% 29.1% 78.4% 3.99 1,993

Ease of Access 3.4% 2.6% 19.0% 50.8% 24.2% 75.0% 3.90 1,986

Affordability 2.4% 2.5% 21.8% 46.5% 26.8% 73.3% 3.93 1,988

Seafood Dining Options 5.1% 3.8% 18.2% 43.3% 29.6% 72.9% 3.88 1,919

Culinary Experiences/Restaurants

4.1% 3.3% 20.5% 47.1% 24.9% 72.0% 3.85 1,986




Important

Somewhat Important/Very

Important Total

Rating Average

Rating Count

Travel Distance 4.9% 5.4% 24.2% 43.3% 22.2% 65.5% 3.73 1,993

Diversity of Activities and

Places4.8% 3.4% 27.4% 49.0% 15.4% 64.4% 3.67 1,966

Active Outdoor Activities

5.8% 4.7% 25.5% 43.9% 20.1% 64.0% 3.68 1,975

Access to visiting cities

in the surrounding area (e.g. Savannah

and Charleston).

6.6% 6.0% 26.3% 42.8% 18.3% 61.1% 3.60 1,979

Diversity of Lodging Options

9.6% 5.0% 26.4% 39.3% 19.7% 59.0% 3.55 1,971

Bicycle Trails 10.8% 8.7% 27.3% 31.6% 21.6% 53.2% 3.44 1,982

Water Sports 13.7% 6.9% 38.3% 36.6% 10.9% 47.5% 3.37 1,967

History/heritage 7.3% 6.9% 38.3% 36.6% 10.9% 47.5% 3.37 1,967




Important

Somewhat Important/Very Important Total

Rating Average Rating Count

Environmental/ecologicalsensitivity

9.4% 8.2% 36.7% 33.1% 12.5% 45.6% 3.31 1,977

Diversity of ecotourism

related activities (e.g. kayak tours, nature tours,

etc.).

10.3% 10.4% 37.2% 31.0% 11.0% 42.0% 3.22 1,964

Golf 26.9% 11.2% 24.4% 19.4% 18.2% 37.6% 2.91 1,983

Nightlife Activity Options

15.6% 14.7% 38.0% 23.4% 8.4% 31.8% 2.94 1,957

Cultural Arts Exhibits and

Shows13.9% 13.3% 44.8% 20.8% 7.2% 28.0% 2.94 1,974

Performing Arts, Exhibits,

and Shows15.8% 15.0% 47.0% 16.8% 5.5% 22.3% 2.81 1,965

Spa 25.5% 18.8% 36.4% 13.7% 5.6% 19.3% 2.55 1,969

Tennis 35.8% 18.8% 29.7% 10.2% 5.6% 15.8% 2.31 1,970

Volunteer Opportunities 38.2% 18.4% 32.9% 6.4% 4.0% 10.4% 2.20 1,955


Types of Vacations that Appeal to All Visitors and Potential Visitors: From the 2013‐14 Hilton Head Island Visitor Profile Study

To what extent do the following types of vacations/leisure trips and/or travel experiences appeal to you?

Not at all appealing Unappealing

Neither unappealing or appealing

Appealing Veryappealing

Appealing/VeryAppealing Total

RatingAverage

Rating Count

Relaxation & rejuvenation 1.1% 0.9% 6.6% 40.7% 50.7% 91.4% 4.39 4,952

Beach/island 1.4% 1.8% 8.3% 34.7% 53.7% 88.4% 4.38 4,959

Historical locations 2.6% 3.4% 18.0% 51.3% 24.8% 76.1% 3.92 4,944

Passiveoutdoor

adventures (viewing wildlife, walking

outdoors)

3.3% 4.3% 18.6% 51.1% 22.7% 73.8% 3.86 4,938

Romanticcouple

getaways5.2% 4.7% 22.4% 42.5% 25.2% 67.7% 3.78 4,944

Learning while

traveling experiences

3.6% 4.4% 25.5% 47.9% 18.7% 66.6% 3.74 4,927

Warm weathersports

7.2% 7.0% 26.0% 40.2% 19.5% 59.7% 3.58 4,931






Appealing/VeryAppealing

Total

RatingAverage

Rating Count

Exploration(discovering

unexploited areas)6.0% 7.7% 26.9% 41.7% 17.7% 59.1% 3.57 4,923

Culinary focused 7.1% 9.3% 31.4% 38.6% 13.7% 52.3% 3.43 4,922

Theme parks 12.0% 12.0% 29.1% 33.0% 13.9% 46.9% 3.25 4,927

Active outdoor adventures

(mountain biking, whitewater kayaking,

windsurfing)

12.6% 14.2% 30.1% 31.0% 12.1% 43.1% 3.16 4,926

Water sports 12.1% 13.% 31.9% 32.1% 10.9% 43.0% 3.17 4,916

Preforming/cultural arts getaways 8.8% 11.8% 36.6% 33.0% 9.8% 42.8% 3.23 4,910

Quality nightlifeoptions 11.1% 12.4% 35.5% 31.0% 10.0% 41.0% 3.17 4,928






Appealing/VeryAppealing Total

RatingAverage

Rating Count

Immersionexcursions (living

like locals)9.7% 13.5% 37.3% 30.5% 8.9% 39.4% 3.15 4,922

Spectatorsporting events 14.5% 12.3% 34.3% 29.9% 9.1% 39.0% 3.07 4,917

Waterparks 16.3% 16.2% 32.0% 26.2% 9.3% 35.5% 2.96 4,921

Medical/wellness 12.8% 14.4% 44.8% 21.2% 6.8% 28.0% 2.95 4,911

Golf getaways 34.9% 16.7% 21.5% 16.4% 10.5% 26.9% 2.51 4,929

Winter sports (downhill skiing, snowboarding

28.4% 22.1% 26.2% 17.0% 6.3% 23.3% 2.51 4,924

Voluntourism 19.2% 20.1% 43.4% 13.3% 4.0% 17.3% 2.63 4,908

Tennis getaways 39.4% 23.2% 25.5% 8.2% 3.8% 12.0% 2.14 4,920


Conclusions• Accommodations and hospitality tax revenues are the highest

since 2005• Hotel Average Daily Rate and Revenue Per Available Room are the

highest since 2005• Annual hotel occupancy is nearing prerecession levels• In 2014, for five months out of the year HHI hotel occupancy beat

the US national average• In 2014, timeshare occupancy outperformed condo/villa and hotel

occupancy• In 2014, the condo/villa segment housed the largest portion of

overnight visitors• In 2014, if it were not for the Accommodations Tax collected each

HHI household would pay $796.66 more in taxes to replace that tax paid by visitors (based on 16,781 HHI households)

• In 2015, both hotel occupancy and RevPAR are beating 2014• HHI visitors rank beaches, natural beauty, and quality of dining as

most important when choosing HHI as a destination• Relaxation, beach, and historical interests are appealing to both

visitors and potential visitors• The research domain is dynamic and constantly changing


Report Prepared By:

John Salazar, Ph.D.

Contact Information

843‐208‐8217

[email protected]

Visit us at

www.lriti.org


the hilton head island tourism industry - lriti · the hilton head island tourism industry prepared...

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