Budget Presentation COVID-19 Impact on Tourism in SC SCPRT FY 21 - - PowerPoint PPT Presentation

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Budget Presentation COVID-19 Impact on Tourism in SC SCPRT FY 21 - - PowerPoint PPT Presentation

Jan 12, 2024 234 likes •436 views

Budget Presentation COVID-19 Impact on Tourism in SC SCPRT FY 21 Budget Discussion Duane Parrish Director SC Dept. of Parks, Recreation & Tourism SC Tourism Revenue & Percent Change Weekly: 3/28 8/22 Estimated South Carolina

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SLIDE 1

COVID-19 Impact on Tourism in SC SCPRT FY 21 Budget Discussion

Duane Parrish

Director

SC Dept. of Parks, Recreation & Tourism

Budget Presentation

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SLIDE 2

SC Tourism Revenue & Percent Change

Weekly: 3/28 – 8/22

Source: Tourism Economics

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16 5/23 5/30 6/6 6/13 6/20 6/27 7/4 7/11 7/18 7/25 8/01 8/08 8/15 8/22

Millions

Estimated South Carolina Tourism Revenue and Percent Change by Selected Week in 2020

  • 40%
  • 37%
  • 38%
  • 36%
  • 37%
  • 79%

Note: Dark purple bars represent weeks in 2020. Light purple shaded bars represent weeks in 2019

Week Ending

  • 84%
  • 87%
  • 88%
  • 88%
  • 85%
  • 83%
  • 79%
  • 65%
  • 48%
  • 45%
  • 40%
  • 38%
  • 35%
  • 35%
  • 42%
  • 42%
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SLIDE 3

SC Lodging Revenues

Hotels & Short-term Rentals Combined

Source: Smith Travel Research and AirDNA

$0 $100 $200 $300 $400 $500 $600 $700

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Millions

CY2020 CY2019

  • 30% YTD

Hotels down -43% YTD

  • Vac. Rentals down -4% YTD
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SLIDE 4

South Carolina Air Traffic

100,000 200,000 300,000 400,000 500,000 600,000 700,000 January February March April May June July August September October November December

Deplanements - SC Airports 2019 v. 2020

2019 2020 50,000 100,000 150,000 200,000

Deplanments - SAV 2019 v. 2020

Series1 Series2 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Deplanements - CLT 2019 v. 2020

Series1 Series2

  • 64.0%
  • 67.4%
  • 55.4%
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SLIDE 5

SC State Parks Revenue FY 19 vs FY 20

$0 $1 $2 $3 $4 $5 $6 $7 July August September October November December January February March April May June

Millions

FY 19 FY 20

SC State Parks issued $3,366,871.81 in refunds from March 9 – April 30, 2020.

South Carolina State Parks were closed to the public from March 27 – April 30, 2020. State Parks reopened for day-use on May 1,

  • 2020. Overnight use (i.e., camping/cabin rentals) were resumed on a staggered basis throughout May.
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SLIDE 6

Tourism (L&H) Employment

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20

National Unemployment Rate for Leisure & Hospitality vs Overall Economy

Leisure & Hospitality All Sectors

Jun-20 July 2020 (P)

2,059.4 2,071.5

  • 6.6%
  • 5.5%

107.4 106.9

  • 2.7%
  • 0.1%

252.3 252.7

  • 2.1%
  • 2.7%

398.0 392.3

  • 4.4%
  • 4.0%

103.2 103.2

  • 0.8%
  • 1.9%

280.5 286.8

  • 6.1%
  • 3.9%

245.4 247.6

  • 4.7%
  • 4.1%

210.7 213.2

  • 24.3%
  • 21.6%

357.0 355.3

  • 5.7%
  • 3.8%

258.2 410.2

  • Apr. 2020

May-20

1,921.8 102.7 244.9 376.6 1,986.9 South Carolina 2,197.7 State

  • Mar. 2020
  • Feb. 2020

2217.1

Education & Health Services Leisure & Hospitality Government

106.9 244.8 388.2

Construction Manufacturing Trade, Transportation & Utilities

109.0 258.4 408.7

104 281.7 376.6 109.9

102.1

Financial Activities Professional & Business Services 305.4

268.2 103.4

% Change Feb-July % Change July 2019-July2020

Source: Bureau of Labor Statistics

377.6 363.2 357.0 267.7 139.9 176.7 303.8 264.9 258.3 228.5 238.3

259.7

100.0

0.0 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 Jan Feb Mar Apr May Jun Jul

L&H Employment Trends NC, GA, FL, SC

NC GA FL SC

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SLIDE 7

Projected SC Tourism Revenue

2020

CY2019 Estimated CY2020 Projected 2020 vs 2019 % Change

Domestic Visitors Travel Spending

$16.5B $9.9B

  • 40%

International Visitors Travel Spending

$930M $90M

  • 90%

State & Local Government Spending on Tourism

$530M $213M

  • 60%

Tourism-Related Capital Investment

$910M $544M

  • 40%

Exports of Manufactured Tourism Merchandise

$5.7B $1.4B

  • 75%

Total Gross Tourism-Related Spending

$24.5B $12.2B

  • 50%

Source: Tourism Economics

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SLIDE 8

SCPRT Budget

Carryforward Base Budget No Impact on Level of Operations Budget Reduction Scenarios 3% = $1.5 MM 5% = $2.5 MM 7% = $3.5 MM

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SLIDE 9

Urgent Non-Recurring Needs

$360,000

2021 PGA Championship

$3,000,000

Hunting Island Lighthouse Repairs

$3,000,000

Fair Play Welcome Center Rebuild

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SLIDE 10

Urgent Non-Recurring Needs

Other Funds Authorization Requests State Park Service (includes 3.5 FTEs): $4,290,000 PARD: $1,500,000 Recreation Grants & Policy (Federal Funds): $2,000,000

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SLIDE 11

CARES Act Funding Requests

SCPRT has applied for $146,990.38 in CARES Act funds for expenses incurred in FY2019-2020. To- date, $96,813.27 has been approved for CARES Act Funding. These expenses are for signage, supplies to secure the parks during closure, sneeze guards/protection at park offices and retail location, hardware/software to support telecommuting and cleaning supplies. SCPRT completed the EBO SCCARES survey for the estimated expenses for FY2020-2021. SCPRT estimates $60,000 for technology needs to support telecommuting and $5,000 for PPE and cleaning supplies. CARES Act funds help to cover expenses not covered by FEMA. SCPRT has submitted $96,357 for FEMA reimbursement for expenses incurred during FY2019-2020.

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SLIDE 12

CARES Act Funding Requests

Activity Amount SCPRT Statewide Recovery Marketing $10,000,000.00 Major Destination Recovery Marketing Grants

(Myrtle Beach, Charleston, Hilton Head Island, Greenville, Columbia)

$30,000,000.00 Tourism Economics forecasts that it may take between one to three years for visitor spending to return to pre-COVID levels. How quickly South Carolina’s $24 Billion Tourism Economy recovers depends on the actions we take to aid this recovery. SCPRT is requesting $10,000,000 for Statewide Recovery Marketing and $30,000,000 to use as Recovery Marketing Grant Funding for the state’s five major destinations.

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SLIDE 13

Impact on Consumer Travel Sentiment

Nearly half

  • f

all Americans cancelled a planned trip due to COVID-19 44% reduced their travel plans as a result

  • f

the virus, with many changing from a fly-in to a drive-in destination The status

  • f

COVID-19 and economic concerns are two primary factors that will influence consumer travel decisions in the short term

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SLIDE 14

Statewide Recovery Marketing

Approximately 88% of South Carolina’s domestic visitors arrive by car COVID-related travel cancellations or reductions have yielded pent-up demand for travel An overwhelming percentage of consumers plan to travel by car for their first trip within the next six months SCPRT’s Tourism Recovery Marketing focuses on consumers within a 350-mile radius and utilize easily adaptable media placements

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SLIDE 15

Statewide Recovery Marketing Phase One

Maintaining Consumer Awareness

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SLIDE 16

Statewide Recovery Marketing Phase Two

Resuming Active Consumer Engagement

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SLIDE 17

Phase Two

Resuming Consumer Engagement

Statewide Recovery Marketing

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