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South Carolina Tourism Action Plan Volume II

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South Carolina Tourism Action Plan Volume II South Carolina Tourism Action Plan OCTOBER 06 Volume 2 South Carolina Tourism Action Plan Table of Contents CHAPTER ONE 1 ECONOMIC IMPACT MEASUREMENT: GROSS STATE PRODUCT AND EMPLOYMENT. 1 EXECUTIVE SUMMARY 1 INTRODUCTION 3 PART 1 SOUTH CAROLINA TRANSPORT AND TOURISM EXPENDITURES 2003, WITH DERIVED IMPACTS COMPARED 5 PART 2 CONCLUSIONS AND RECOMMENDATIONS 11 CHAPTER TWO 13 ASSESSMENT OF CURRENT TOURISM INDUSTRY ORGANIZATION AND CO-OPERATION; 13 AND PROPOSED ACTIONS FOR THE FUTURE. 13 EXECUTIVE SUMMARY 13 INTRODUCTION 17 PART 1 REVIEW OF PRIVATE SECTOR INSTITUTIONAL ARRANGEMENTS 18 PART 2 REVIEW OF STATE GOVERNMENT POLICIES AND SUPPORT 23 PART 3 REVIEW OF TOURISM-RELATED LEGISLATION 30 PART 4 REVIEW OF CURRENT PUBLIC/PRIVATE SECTOR CO-OPERATION 34 CHAPTER THREE 41 SOUTH CAROLINA: AIR AND SURFACE ACCESS 41 EXECUTIVE SUMMARY 41 INTRODUCTION 43 PART 1 MARKET REVIEW 44 PART 2 ATTRACTING NEW AIR SERVICE 49 PART 3 RECOMMENDATIONS FOR ACTION 56 CHAPTER FOUR 61 TOURISM PLANNING AND PRODUCT DEVELOPMENT. 61 EXECUTIVE SUMMARY 61 INTRODUCTION 65 PART 1 REVIEW AND ANALYSIS 66 PART 2 STRATEGIC PLANNING 90 CHAPTER FIVE 116 MARKET EVALUATION AND PRIORITIZATION 116 EXECUTIVE SUMMARY 116 INTRODUCTION 119 PART 1 DOMESTIC AND INTERNATIONAL TOURISM TRENDS 121 PART 2 TOURISM IN SOUTH CAROLINA 139 PART 3 STAKEHOLDER CONSULTATIONS 162 PART 4 SOUTH CAROLINA’S POSITION IN THE TOURISM MARKETPLACE 169 PART 5 SURVEY OF TRAVEL TRADE 173 PART 6 CASE STUDIES 190 CHAPTER SIX 200 ASSESSMENT OF MARKET PERCEPTIONS, PERFORMANCE, MARKETING APPROACH & ACTIVITIES; AND PROPOSED MARKETING STRATEGY AND PLAN. 200 EXECUTIVE SUMMARY 200 INTRODUCTION 209 PART 1 MARKET PERFORMANCE 210 PART 2 MARKET PERCEPTIONS AND COMPETITIVE STANDING 215 PART 3 REVIEW OF MARKETING PLAN AND BUDGET 218 PART 4 PRODUCT:MARKET MATCHING APPROACH 226 PART 5 MARKETING STRATEGY 230 PART 6 MARKETING ACTION PLAN 235 South Carolina Tourism Action Plan CHAPTER SEVEN 248 DEVELOPMENT OF HUMAN RESOURCES 248 EXECUTIVE SUMMARY 248 INTRODUCTION 253 PART 1 THE HIGH SCHOOLS 256 PART 2 THE TECHNICAL COLLEGES 261 PART 3 THE UNIVERSITIES 265 PART 4 THE PRIVATE SECTOR 270 PART 5 THE RURAL WORKFORCE 277 South Carolina Tourism Action Plan NEW CAROLINA COMPETITIVENESS COMMITTEE Tourism Action Plan 2006 VOLUME II TECHNICAL REPORTS INTRODUCTION The South Carolina Tourism Action Plan (SCTAP) consultancy assignment was contracted to Tourism Development International (TDI) by the South Carolina Tourism Cluster Committee (SCTCC) as part of the South Carolina Competitiveness Initiative (SCCI). It was designed to achieve the goal identified by Professor M. Porter and the Monitor Company Group in its 2004 study of the Hospitality and Tourism Cluster under the SCCI of: increasing gross tourism product per visitor and, in so doing, to respond to the challenges laid down by the Porter group, namely: • to improve collaboration amongst industry & officials, • to identify high spending potential tourist segments, • to develop & package its tourism assets to attract the markets identified, and • to execute an appropriate marketing strategy. Tourism Action Plan The report is presented in three volumes: • Volume 1 – The Action Plan • Volume 2 – The Technical report on which the Action Plan is based • Volume 3 – Technical and Administrative Annexes Volume II – Technical reports This volume contains the detailed reports prepared in respect of Economic Impact & Analysis (Chapter 1), Tourism Industry Organization & Cooperation (Chapter 2), Air & Surface Access (Chapter 3), Tourism Planning & Product Development (Chapter 4), Market Evaluation & Prioritization (Chapter 5), Marketing Strategy (Chapter 6), and the Development of Human South Carolina Tourism Action Plan Resources (Chapter 7).Each of the Chapters is preceded by an Executive Summary that constitutes the “bridge” to this Volume II. The technical reports were compiled by a team of experts who conducted over 400 meetings and site visits with Industry Officials and State Government Officials covering all 11 tourism regions in South Carolina, during the period. November 2005 to May 2006. In state mileage traveled by experts is estimated to have been over 5000. Technical study visits to Ireland and Florida for benchmarking purposes, were also organized during this time frame comprising members of the South Carolina Tourism Cluster Committee (SCTCC) and the expert team. (Details in volume III) These reports address the objectives and challenges identified by the Porter/Monitor group and determine the direction, methodology and actions necessary to be taken by the State and the private sector if tourism is to realize its full potential across the entire State of South Carolina. Acknowledgements The Tourism Development International team of experts wishes to sincerely thank the members of the Tourism Cluster Committee, and the Directors of the Regional Tourism Organizations and Convention Visitor Bureau, throughout South Carolina, for the assistance, advice and courtesy extended to the team during the course of their work. There were also many individuals involved in tourism in South Carolina who provided advice and information during the study period for which the team is most grateful (see Volume III for meeting contacts). Finally, without the organizational support, assistance and guidance provided by the tourism staff of the South Carolina Parks, Recreation and Tourism Department, the expert team would not have been enabled to complete this project In particular we would like to mention: Chad Prosser – Director of Parks, Recreation and Tourism Amy Duffy – Chief of Staff Julie Flowers – Director Research and Policy Beverley Shelley – Director Sales and Marketing George Estes – Heritage Director Dudley Jackson –Research Director Victoria Lewis - Assistant to Director We owe our gratitude of to all concerned South Carolina Tourism Action Plan Project Personnel: South Carolina Tourism Cluster Committee: Chad Prosser, Director; South Carolina Department of Parks, Recreation & Tourism Billy Alford, Vice President; A&I Inc. Dr. Peter Barr, Provost; Coastal Carolina University (Tourism Research) Paula Harper Bethea, Director, Marketing & Client Relations; McNair Law Firm Andy Cajka, President; Southern Hospitality Group Willie Calloway, Exec. Director; South Carolina State Museum Woody Crosby, President & CEO; Jordan Properties/Crown Reef Mike Griffey, Owner and Manager; Abingdon Manor County Inn Helen T. Hill, Executive Director; Charleston Area CVB Frankie Miller, Dean; Trident Technical College Bettis Rainsford, President; Rainsford Development Company Douglas P. Wendel, President & CEO; Burroughs & Chapin George Fletcher, CEO; New Carolina Council on Competitiveness Tourism Development International expert team: Michael Mac Nulty – Project Director Eamon Henry – Economist Mike Bell – Air Access Expert John Robinson/Jim Flannery – Planning and Product Development Peter Mac Nulty – Market Evaluation and Prioritization Robert Cleverdon – Marketing Strategy Gordon Currie – Human Resource Development NEW CAROLINA COMPETITIVENESS COMMITTEE Tourism Action Plan 2006 CHAPTER ONE ECONOMIC IMPACT MEASUREMENT Gross State Product and Employment TERMS OF REFERENCE The economic impact measurement assignment comprised the following three tasks: * Review current methods of calculating economic impacts of tourist expenditure. * Compare the existing approaches (methodologies) as used by South Carolina and the Consultant, setting out the capabilities of each. * Based on the analysis in the first two tasks, attain a common understanding of the best approach. The mission covered the period November/December 2005 South Carolina Tourism Action Plan CHAPTER ONE NEW CAROLINA TOURISM ACTION PLAN ECONOMIC IMPACT MEASUREMENT: GROSS STATE PRODUCT AND EMPLOYMENT. EXECUTIVE SUMMARY 1. INTRODUCTION As part of the New Carolina Tourism Action Plan, it was agreed that the methodology used in calculating the impact of the tourism sector on the State’s economy be reviewed in line with the terms of reference outlined above. The analysis was undertaken at State, rather than individual resort level. The consultant worked in close collaboration with Ms Julie Flowers, the State Tourism Economist, and her colleagues in the South Carolina Parks, Recreation and Tourism Department’s Economic and Research Division, to whom thanks are due. 2. IMPACTS: DIRECT, INDIRECT & INDUCED Economic impacts can be direct, indirect and induced. Direct impacts are the wages and salaries paid to employees in the tourism sector – calculated using the 2003 South Carolina Tourism Satellite Account figures. Indirect impacts are made up of hotels buying supplies, government expenditures related to tourism and travel, public and private capital expenditures, and non- visitor tourism merchandise exports. These generate wages and salaries for employees across other industry sectors – again calculated using the 2003 Satellite Account figures. Induced impacts -the inflow of purchasing power from out-of-State visitor expenditure, as an expenditure stimulus to economic activity, does not stop at direct plus indirect impacts, because the take-home pay generated by these impacts is spent on goods and services. This generates wages, salaries and profits for the employees and enterprises where this spending occurs; and thus creates further Gross State Product and jobs as induced impacts. The IMPLAN calculation package already has facility to compute induced impacts, where required. 3. FULL ECONOMIC IMPACT OF TOURISM FOR SOUTH CAROLINA Consequently, the full
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