Tourism industry adds $3.09B to local economy

By Karen H. Kaplan , Daily Journal Editor

Visitors to the Charleston area last year helped pour some $3.09 billion into the local economy, according to a new report, which said that tourism’s local economic impact increased by about 1% from 2006.

The report by the Office of Tourism Analysis at the College of Charleston also said that 4.33 million out-of-towners descended on the tri-county region in 2007, an increase of 3% over the 4.21 million who visited the area in 2006.

That visitation figure is the high mark for the past few years, when the numbers began dropping after a spike up to 4.45 million in 2003. The following year, that figure dropped by 7.6% to 4.11 million visitors, and fell again in 2005 by another 1.2% to a low of 4.06 million.

The 2007 numbers show the region and its tourism industry continues to grow even in a sluggish economy, industry officials said.

“This is an important benchmark for the health of our region’s tourism economy,” said Rick Mosteller, immediate past chairman of the Charleston Area Convention & Visitors Bureau. “It continues to indicate consistent and sustainable growth of our region’s largest industry.”

Of the $3.09 billion added to the region’s coffers, about a third, or $1.1 billion, represents wages earned by workers in the tourism industry. That figure is unchanged from 2005 and in 2006 but is up by 38% from 2003 and 2004, when tourism-related wages totaled $800 million.

Hotel occupancy was 71% in 2007, up 3% from 2003 through 2006 when the rate remained at 68%. Meanwhile, inventory increased by 11.4%, going from 14,963 rooms in 2005 to 16,669 in 2007, meaning that the occupancy rate would have risen by 11% if the number of rooms had stayed the same. 

“Despite all the doom and gloom, from a visitation perspective, there are still lots of people coming to town,” said Perrin Lawson, deputy director of the visitors bureau. “More people are coming and spending more for the privilege of doing so.”

Travel and tourism-related sales accounted for an average of 12% of all 2007 sales in the tri-county area, but represented 16% of all sales in Charleston County. Comparatively, tourism-related sales accounted for 3% of all sales in Berkeley County and 2% of all sales in Dorchester County, the report said.

Lawson said the percentages reflect the rate of visitation to the three counties and that he doesn’t think the numbers should necessarily be higher or lower.

“We have a diversified economy and (tourism) is not the only industry here,” he said. “It can also be leveraged to recruit other types of businesses and further diversify our economy. But if (those sales) were to go away, we’d be in big trouble.”

Visitors in 2007 each spent an average of $235 in the area. Of that figure, $122 went for lodging, $104 for shopping, $51 for food, $38 for tours and attractions and $28 for local transportation. The report said visitors spent $42 on other expenses, which could include such items as gasoline or magazines.

Travelers cited the area’s history and food — which were tied for first place — as its top assets, the report said, while the area’s attractions came in third. Next were local hospitality, beaches and the waterfront, atmosphere, tours and shopping.

Poll: Mother’s Day spending thrifty this year

By Daily Journal Staff

Mother’s Day may not be a great day this year for Mom — or for retailers or restaurateurs.

A national survey by the National Retail Federation, the trade group for the retail industry worldwide, predicts that Mother’s Day spending will be a bit cautious. About 84% of adults 18 or older plan to buy a gift this year for Mother’s Day, and they’ll spend less than they did last year — $138.63, compared to $139.14 in 2007.

Just over half of those polled, about 56%, said they plan to take out Mom, their wife or another mother in their life for brunch or dinner. But the meal probably won’t be of the champagne-and-caviar variety; respondents said they will spend a total of $46.

“Mom has been saying for decades that it’s the thought that counts on Mother’s Day, and this year, kids might actually be listening,” said NRF President and CEO Tracy Mullin. “Retailers will offer specials on popular items such as digital cameras and gardening tools to make it easy for those who want to surprise Mom with a gift.” 

The National Retail Federation 2008 Mother’s Day Consumer Intentions and Actions Survey, conducted for NRF by BIGresearch, was designed to gauge consumer behavior and shopping trends related to Mother’s Day. The poll of 8,180 consumers was conducted from April 1-8. BIGresearch is an Ohio-based national consumer market intelligence and marketing research firm.

Phil Rist, the company’s vice president of strategy, said high fuel costs and other rising expenses are cutting into people’s gift budgets for Mother’s Day.

“Consumers will be very cautious with their wallets this Mother’s Day, heeding Mom’s advice that she really doesn’t need much,” Rist said. “Gas prices and other economic issues will still be at the forefront of people’s minds as they shop around for the perfect gift.”

Nearly two-thirds of respondents, or 61%, of those who said they’ll be buying a Mother’s Day present, said they plan to buy a gift for their mother or stepmother, but one of five said they’ll spend money on their wife.

A quarter of those polled said they’ll buy a gift at a discount store and 29% plan to get a present at a department store. More than a third, 35%, expect to buy a gift at a florist, jeweler or electronics store.

Total consumer spending for Mother’s Day is expected to reach $15.8 billion.

Port to get boost from increased shipping service calls

By Dan McCue , Staff Writer

The Port of Charleston anticipates a boost in business this month, thanks to new or returning port calls by an upgraded South America service and a relaunched Asian service.

On May 21, Charleston will see the return of a weekly all-water service from Asia that was suspended in December because of the market slump.

The service is a joint operation of the CKYH alliance, which consists of Cosco, K-Line, Yang Ming and Hanjin Shipping. Eight vessels with an average capacity equivalent to 4,014 20-foot containers will be deployed on the service.

Port coverage includes Xiamen, Yantian, Ningbo and Shanghai, China; and Busan Metropolitan City, South Korea.

Hanjin Shipping, K-Line and Yang Ming are also joining CSAV Norasia to introduce a new service that will provide additional capacity from the East Coast of South America to the U.S. East Coast.

The service will deploy five ships with an average capacity equivalent to 2,500 20-foot containers traveling between North and South America. The service replaces the existing service, which was operated by Hanjin, K-Line, Yang Ming and Hyundai Merchant Marine Co. Ltd. and employed four vessels with an average capacity equivalent to 1,800 20-foot containers.

The service offers calls in Sao Francisco do Sul, Santos and Salvador, Brazil; Puerto Cabello, Venezuela; and Rio de Janeiro. Charleston is the last U.S. port outbound, and the service is expected to be a boon to exporters seeking quick transit times to South American markets.

Medical device developer gets OK to trade stock

By Daily Journal Staff

Revolutions Medical Corp., a Mount Pleasant-based medical equipment developer, has received regulatory approval to start trading its stock on the over-the-counter bulletin board, the quotation system on which microcap stocks are bought and sold.

The company said the Financial Industry Regulatory Authority, the nation’s largest non-governmental regulator of investment firms, has given the OK for Revolutions Medical Corp. stock to trade on the system. The company applied five months ago for the right to issue and trade stock, said Scott Key, investor relations representative.

Company CEO Ron Wheet said he expects OTC trading to begin this week.

“This is such an important step for our company,” Wheet said. “Doors that were once closed to us for corporate finance, market exposure and market credibility will now swing wide open. Now the financing falls into place.”

Key said once the company begins selling shares, the additional capitalization will make it easier to bring its products to market.

He said Revolutions Medical Corp. will apply soon for regulatory approval from the Food and Drug Administration for three of its products, including the Rev Vac safety syringe, safety blood drawing device and safety IV catheter. The company is preparing to bring other products to market that don’t require regulatory approval.

Chamber honors local members of military

By Daily Journal Staff

Twelve members of the region’s defense community have been honored by the Charleston Metro Chamber of Commerce, receiving awards in recognition of their contributions to family, their communities and the nation.

Award recipients and their honors follow:

·        Tech. Sgt. Nina Murphy: U.S. Air Force Service Member of the Year.

·        Master Sgt. Connie Danbury: U.S. Air Force Reservist of the Year.

·        Lt. Col. Michelle Crawford: U.S. Army Reservist Member of the Year.

·        Boatswains Mate 1st Class William Hayes: U.S. Coast Guard Service Member of the Year.

·        Boatswains Mate 1st Class Kevin M. Dutrieux: U.S. Coast Guard Service Member of the Year.

·        Petty Officer Patricia Johnson: U.S. Coast Guard Reservist of the Year.

·        Staff Sgt. Christopher Marsh: U.S. Marine Service Member of the Year.

·        Leading Petty Officer James Fuller: U.S. Navy Service Member of the Year

·        Gunnersmate 2nd Class Ronnie Blevins: U.S. Navy Reservist of the Year.

• Linda Miller, housing manager, Naval Weapons Station: Outstanding Civilian Award.
   
• James Hadden, U.S. Army Corps of Engineers: Outstanding Civilian Award.
   
• Jim Geffert, owner and CEO of Dale Carnegie Training of South Carolina; honorary commander, Charleston Air Force Base: Business Military Support Award. 

Award recipients were honored May 1 at the chamber’s annual Armed Forces Dinner, organized to recognize the strong relationship between the Charleston business community and the local defense community. The chamber’s military relations committee selected the award recipients.

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