By Kim Chen Wiseman
Contributing Writer

It is still seven years away, but local business experts are anticipating a large economic impact from hosting the 94th PGA Championship in 2012 at Kiawah Island Golf Resort.

PGA and resort officials estimate the event could pump as much as $100 million into the Charleston region’s economy, says Matt Owen, spokesman for Kiawah Island Golf Resort.

Frank Heffner, a professor of economics at the College of Charleston, says while these one-time boosts of dollars in the regional economy are important, the name recognition that these high-profile events bring to the region and the state are far more valuable.

“The one-time infusions are great for our economy, but it’s what happens next that’s most important,” says Heffner. “(The Championship) puts the stamp of approval on the area and brings intangible benefits. It enhances our tourism base in Charleston and can help put us on the business site-relocation screen and bring the kinds of companies we’re looking for…the higher-tech, higher wage and smart industries.”

But Heffner warns that as Charleston continues to pull in major events like the PGA Championship and grows as a year-round destination, the city will need to improve its infrastructure to accommodate the crowds. Roads, parking and mass transit systems will have to be able to handle the economic development, he says.

The 2012 PGA Championship is calculated to draw between 30,000 and 40,000 people a day. For area businesses, the influx of visitors will mean a boost in revenue for restaurants, hotels and vendors.

Many of the guests attending the event will stay in Charleston area hotels because lodging is limited to The Sanctuary at Kiawah Island and its neighboring Seabrook Island Resort.

Last year, the PGA Championship broke attendance records and spending records by more than $25 million in Wisconsin when it reportedly generated more than $76 million.

An economic impact study focusing on spectators and PGA employees alone estimated that the event created $46 million in direct spending by out-of-state spectators, $9.8 million of in-state spending by the PGA and $2.7 million in sales tax revenue.

In North Carolina, where the U.S. Open Championship took place at Pinehurst Resort this year, organizers estimate an economic impact of $124 million, making it the single most lucrative sporting event in the state’s history.

John Crotts, a professor of hospitality and tourism management at the College of Charleston, says such prestigious events bring national and international image advertising that the state could not otherwise afford.

The demographic of people drawn by these types of events also tends to have high median incomes, says Crotts, citing that spectators for the annual Family Circle Cup at Daniel Island have an average family income in the six digits.

Hospitality and tourism can help recruit business relocations, and meetings and conventions as well, says Crotts. “Business executives are often tourists first, and we need to seize upon that,” he says.

David Ginn, president and CEO of the Charleston Regional Development Alliance, a nonprofit group that helps to recruit and assist incoming businesses, remembers hosting a group of business prospects at the World Cup in 1997 at Kiawah.

“Of the dozen clients who we hosted during that event, about half of them later said ‘yes’ and announced new business in the region,” Ginn says.

Ginn’s clients typically enjoy playing golf and readily agree to attend these top-tier events. “It was probably the most productive recruiting event we’ve had,” he says.

PGA of America Chief Executive Officer Jim L. Awtrey says the PGA and Kiawah Island have enjoyed a great relationship since Kiawah’s Ocean Course hosted the Ryder Cup in 1991.

“This was a natural progression given that we hosted the Ryder Cup in 1991, the World Cup in 1997 and 2003, and have also been selected to host the Senior PGA Championship in 2007,” says Owen.

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