[PPT] - Hilton Head Island Bluffton Chamber Hilton Head Island Bluffton PowerPoint Presentation

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Hilton Head Island‐Bluffton Chamber Hilton Head Island‐Bluffton Chamber Leadership Class: Real Estate and Tourism

John Salazar, Ph.D. Director, Lowcountry and Resort Islands Tourism Institute y University of South Carolina Beaufort

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Presentation Format Presentation Format

NAICS Output Analyses
Economic Impact of Second

Economic Impact of Second Homes survey results

MSA Analyses
Other projects

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2007‐2010 IMPLAN Annual NAICS Output Analyses

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What is IMPLAN What is IMPLAN

Using input‐output analysis in combination with regional specific

Social Accounting Matrices and Multiplier Models, IMPLAN provides highly accurate and adaptable models. The IMPLAN database contains county, state, zip code, and federal economic statistics hi h i li d b i i d f i l which are specialized by region, not estimated from national averages and can be used to measure the effect on a regional or local economy. It was developed by the University of Minnesota and is sold by the Minnesota IMPLAN Group (MIG, Inc.).

Output represents the value of industry production In IMPLAN

Output represents the value of industry production. In IMPLAN these are annual production estimates for the year of the data set and are in producer prices. For manufacturers this would be sales plus/minus change in inventory. For service sectors production =

sales. For Retail and wholesale trade, output = gross margin and not

l gross sales.

IMPLAN is used by the federal and local governments, universities,

corporations, and a variety of other organizations.

The following analyses are for the following HHI zip codes: 29915,

29925 29926 29928 and 29938 29925, 29926, 29928, and 29938.

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Table comparing 2007 vs 2010

Total HHI Commodity Output

Total Commodity Output for NAICS Sectors (Excluding Gvt. Sector and Non‐NAICS Sector Categories

% of NAICS Sector Output

f the Total HHI Commodity

Output

IndustryCode Description 2007 Employment 2007 Output % Share of 2007 Top NAICS 2010 Employment 2010 Output % Share of 2010 Top NAICS Employment % Increase/Decrease from 2007 Output % Increase/Decrease from 2007

Output

So what does the IMPLAN historical data tell us? So what does the IMP AN historical data tell us?

The overall Hilton Head Island commodity production

(or output) had contracted for the years 2007 through 2010.

Real estate sector has declined in its annual

contribution to the Hilton Head Island economy contribution to the Hilton Head Island economy.

The sectors related to Tourism (Accommodations &

foodservices, Retail trade, and Arts‐entertainment & recreation) have maintained their annual % share ) contribution to the total commodity production during 2007‐2010.

The sectors of Finance & insurance, Health & social

i f i d d i i i & services, Information sector, and Administrative & waste services have increased in their annual contribution to the Hilton Head Island economy.

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2010‐11 Hilton Head Island Second Home Owner Study Report Home Owner Study Report

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Executive Summary Executive Summary

Approximately 59% of the respondents owned Villa/Condominium Homes

Approximately 59% of the respondents owned Villa/Condominium Homes and 36% owned Single Family Homes.

90% of second homes have sole owners.

90% of second homes have sole owners.

Most second home owners (26%) owned property in Sea Pines.
62% of the homes were not publicly rented and for owner use or non
62% of the homes were not publicly rented and for owner use or non

paying guest use.

83% of the owners drove to Hilton Head Island for their last trip
83% of the owners drove to Hilton Head Island for their last trip.
65% of the owners who utilized air transit for their last trip flew embarked

to Hilton Head Island from the Savannah Airport to Hilton Head Island from the Savannah Airport.

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Executive Summary Executive Summary

Beaches, Natural Beauty, and Dining were the most important Hilton Head

, y, g p Island attributes while vacationing.

88% (767) of the 876 respondents indicated they visited 8‐10 times before

buying their second home.

58% purchased their second home to return to the island for vacation.
The median year for home purchases was 2003 but most were purchased in

2005. 46% i di t d th t th I l d i Cl i F il V ti S t

46% indicated that the Island is a Classic Family Vacation Spot.
93% indicated that a Hilton Head Island vacation makes them feel relaxed.
Most indicated they would recycle on vacation
Most indicated they would recycle on vacation.

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Methodology Methodology

5,000 second home owners were randomly selected

5,000 second home owners were randomly selected from a list of over 17,000 home owners who pay 6% annual property tax.

The owners were mailed a 4‐page survey to their

primary home address.

876 surveys were completed and returned ‐ a 17.5%

response rate.

The randomized survey sample has + a margin of

error of 3%.

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Gender Gender

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Age Age

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Marital and Family Status Marital and Family Status

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Household Income Household Income

Average Income: $200K‐$249K

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Classification of Second Home Classification of Second Home

2000: The mean year when

wners purchased there home

2003: The median year of home purchases 2005: The year when most second homes were purchased

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Ownership Arrangement Ownership Arrangement

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Community of Ownership Community of Ownership

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Current Use of Second Home Current Use of Second Home

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Second Home Usage Estimates Second Home Usage Estimates

O h d t bli l t th i t t k 5 Owners who do not publicly rent their property take 5 vacations per year and stay 7 days per vacation.

Number of Days Used (Median) Not Publicly Rented: For Owner Use Only and/or Non Paying Guest (n=62%) Publicly Rented by a Property Management Company and/or Long Term Rental Only (n=8%) Other (n=2%) Combination of Any of the Categories Paying Guest (n=62%) Owners of the Home (n=23%) (n=8%) (n=2%)

Days the second home is occupied by the family 50 21 14 21 30 Days the second home is occupied by renters 100 100 365 233 98 Days the second home is occupied by non i 15 14 14 14 14 paying guests

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Type of Transportation Used on Last Trip to HHI

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Airport Use Airport Use

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HHI Attributes Ranking HHI Attributes Ranking

Pl Please ease rate rate how how impor portant the fol the followi wing at attributes are when choosi are when choosing to vaca to vacation on

n

Hi Hilton

n Head

Head Isl Island (Check (Check the he appro appropriate Ex Extremely tremely imp import rtant ant Im Import

rtant

ant Ne Neutral ral Unimport

rtant

ant Not i Not impor portant at at al all Mean Mean # of # of Res Responde ndent nts Hilto Hilton Head Head Islan Island. . (Check (Check the the appro appropriate box to box to the ri the righ ght of

f the i

the island and chara characterist stic) imp import rtant ant p p at at al all p Beaches 72% 24% 3% 0% 1% 4.66 834 Natural beauty of the destination 66% 31% 3% 0% 0% 4.63 834 Dining/seafood 50% 42% 6% 0% 1% 4.41 831 Ease of access 37% 49% 11% 1% 1% 4.20 825 Cell Phone Signal Strength 36% 40% 17% 3% 4% 4.02 831 Wireless (Wi-Fi) Access 36% 38% 17% 4% 4% 3.97 832 Golf 30% 31% 17% 11% 12% 3.57 831 Environmental/ecological sensitivity 29% 43% 22% 3% 3% 3.93 826 Travel distance 24% 49% 20% 5% 2% 3 87 824 Travel distance 24% 49% 20% 5% 2% 3.87 824 Diversity of activities & places 23% 55% 16% 4% 2% 3.92 824 Affordability 17% 52% 24% 4% 3% 3.77 829 Water sports 10% 33% 34% 11% 12% 3.18 820 Tennis 10% 19% 25% 21% 24% 2.70 828 History/heritage 7% 34% 43% 11% 6% 3.26 821 History/heritage 7% 34% 43% 11% 6% 3.26 821 Arts/culture 6% 39% 41% 11% 4% 3.32 826 Hilton Head VIP card perks 5% 16% 35% 21% 23% 2.58 818 Spa 1% 8% 35% 30% 26% 2.29 823 Volunteer opportunities 1% 7% 38% 28% 26% 2.28 820 Answered Question 838

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Reason for Purchase Reason for Purchase

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Percentage of Time Spent Working

Approximately 58% indicated they would spend a portion of their time Approximately 58% indicated they would spend a portion of their time working remotely.

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31% of the respondents indicated they were going to stay on the island more frequently. Those respondents indicated they were going q y p y g g to stay on average an additional 79 days per year.

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Vacation Feeling Vacation Feeling

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Second Homeowner Spending

Second Homeowners – Not Publicly Rented: Item # of Respondents Missing Variable On average, how many people are you financially responsible for when you

p g

take a trip to Hilton Head Island? (Please enter your answer in the space

provided. If you can't answer the question, please indicate N/A in the space.)

474 81 2.59 Transportation (around the area) 346 209 $ 133.56 Lodging 26 529 $ 535.42 Food‐dining out 484 71 $ 430.55 F d i 481 74 $ 289 34 Food‐groceries 481 74 $ 289.34 Beaches 41 514 $ 119.29 Shopping 423 132 $ 580.96 Spas 46 509 $ 205.98 Golf 224 331 $ 274.56 Biking 53 502 $ 83 66 Biking 53 502 $ 83.66 Parks 6 549 $ 40.83 Performance/visual arts 89 466 $ 124.63 Festivals 54 501 $ 82.96 Museum/historical tours 50 505 $ 56.84 Boating/sailing 50 505 $ 306 60 Boating/sailing 50 505 $ 306.60 Nature based activities 28 527 $ 105.54 Dolphin tours 19 536 $ 111.58 Tennis 34 521 $ 102.50 Fishing 33 522 $ 193.79 Sporting events 16 539 $ 229.38 p g Other cultural activities 40 515 $ 105.43 Other sport activities 23 532 $ 98.04 Other outdoor activities 33 522 $ 122.42 Other expenses 115 440 $ 284.12

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Non Paying Guest Spending

If you checked that you have non‐paying guests staying in your home, please estimate their TOTAL expenditures in EACH of the following areas during their last trip. Round UP to the nearest amount. # of Respondents Mean UP to the nearest amount. Transportation (around the area) 173 $ 102.63 Lodging 18 $ 116.67 Food‐dining out 240 $ 260.44 Food‐groceries 218 $ 184.03 B h 36 $ 45 56 Beaches 36 $ 45.56 Shopping 183 $ 263.93 Spas 26 $ 162.31 Golf 119 $ 197.77 Biking 69 $ 70.94 Parks 11 $ ‐ Performance/visual arts 28 $ 54.46 Festivals 22 $ 39.77 Museum/historical tours 35 $ 42.00 Boating/sailing 42 $ 125.95 g g Nature based activities 24 $ 38.33 Dolphin tours 25 $ 99.40 Tennis 32 $ 71.72 Fishing 35 $ 115.00 Sporting events 15 $ 56 67 Sporting events 15 $ 56.67 Other cultural activities 19 $ 45.26 Other sport activities 18 $ 55.83 Other outdoor activities 16 $ 50.00 Other expenses 44 $ 184.09

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Generating the Estimates Generating the Estimates Generating the Estimates Generating the Estimates

17,343 second‐homeowner households

17,343 second homeowner households

– Survey: 846 respondents

Reported spending weighted according to

Reported spending weighted according to number of respondents in each category:

– Not Publicly Rented y – Publicly Rented by Property Management Company – Long Term Rental – Non‐Paying Guests – Other

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Inputs Inputs

Reported Spending Categories Reported Spending Categories

T t ti Biki T i Transportation Biking Tennis Lodging Parks Fishing F d di i t P f / i l t S ti t Food‐dining out Performance/visual arts Sporting events Food‐groceries Festivals Other cultural activities B h M /hi t i l t Oth t ti iti Beaches Museum/historical tours Other sport activities Shopping Boating/sailing Other outdoor activities S N t b d ti iti Oth Spas Nature based activities Other expenses Golf Dolphin tours

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Input Input‐Output Model Output Model Input Input Output Model Output Model

Utilized the Regional Dynamics (REDYN) model

Utilized the Regional Dynamics (REDYN) model

Estimates include:

Di t (i t di tl lti f 2nd – Direct (impacts directly resulting from 2nd homeowner spending) Indirect (impacts generated by suppliers to – Indirect (impacts generated by suppliers to businesses servicing 2nd homeowners) Induced (impacts generated by consumer – Induced (impacts generated by consumer spending by the employees whose jobs were created by direct & indirect impacts) y p )

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Results Results Results Results

Reported in terms of:

Reported in terms of:

– Employment – total jobs created in Beaufort County – Output – dollar value of goods & services produced within Beaufort County (roughly county GDP) (roughly = county GDP) – Disposable Income – aggregated after‐tax household income in Beaufort County household income in Beaufort County – Net Fiscal – local (county & municipal) government revenues net of expenditures

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Multipliers Multipliers Multipliers Multipliers

Based upon ratio of total job creation to jobs

Based upon ratio of total job creation to jobs created directly by second homeowner spending

Estimated employment multiplier = 1.08

– Every 10 directly‐created jobs generate y y j g approximately 1 additional job in Beaufort County

Estimated output multiplier = 1.12

– Every $100 spent by second homeowners generates an additional $12 of output in County

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Total Estimated Impact Total Estimated Impact

All Second Homeowners All Second Homeowners All Second Homeowners All Second Homeowners Beaufort County Beaufort County

2011 2012 2013 2014 2015

Employment 2,176 2,153 2,116 2,081 2,046 Output (x1000) $120,650 120,652 120,665 120,674 120,684 Disposable Income (x1000) $63,308 63,630 63,653 63,659 63,650 Income (x1000) Net Fiscal (x1000) $5,484 5,280 5,057 5,069 5,080

(Note: All dollar amounts are in current dollars)

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Total Estimated Impact Total Estimated Impact

Non Non‐Paying Guests Paying Guests Non Non‐Paying Guests Paying Guests Beaufort County Beaufort County

2011 2012 2013 2014 2015

Employment 120 118 117 115 113 Output (x1000) $6,349 6,350 6,350 6,352 6,353 Disposable Income (x1000) $3,414 3,437 3,441 3,443 3,445 Income (x1000) Net Fiscal (x1000) $401 391 379 380 381

(Note: All dollar amounts are in current dollars)

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Total Estimated Impact Total Estimated Impact

Total Homeowners + Non Total Homeowners + Non‐Paying Guests Paying Guests Total Homeowners + Non Total Homeowners + Non‐Paying Guests Paying Guests Beaufort County Beaufort County

2011 2012 2013 2014 2015

Employment 2,296 2,271 2,233 2,195 2,159 Output (x1000) $126,999 127,002 127,015 127,026 127,037 Disposable Income (x1000) $66,723 67,067 67,094 67,103 67,096 Income (x1000) Net Fiscal (x1000) $5,885 5,671 5,436 5,449 5,462 Additional Property Tax Rev $77 578 6 77 578 6 77 578 6 77 578 6 77 578 6 Property Tax Rev (x1000) $77,578.6 77,578.6 77,578.6 77,578.6 77,578.6 Total Fiscal (x1000) $83,463 83,249 83,015 83,028 83,040

(Note: All dollar amounts are in current dollars)

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Hilton Head Island Top 28 MSA p Markets According to Zip Code Frequency Frequency

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Top 10 markets are similar for Ogilvy, 2010 Visitor Inquiries, and Second Home Survey Participants.
Detroit MSA and Raleigh MSA are important MSA’s to consider as geographic target markets.

Rank Metropolitan Area Ogilvy Sum by MSA Ogilvy% Share of T28 2010VI Sum by MSA 2010VI% Share of T28 Second Home 5K Sum by MSA SH% Share of T28 MSA T28 MSA T28 MSA T28 1 Atlanta‐Sandy Springs‐Marietta, GA MSA 84 15% 5608 17% 428 18% 2 Charlotte‐Gastonia‐Concord, NC‐SC MSA 44 8% 2081 6% 109 5% 3 New York‐Northern New Jersey‐Long Island, NY‐ NJ‐PA MSA 38 7% 3622 11% 351 15% 4 Pittsburgh, PA MSA 35 6% 1189 4% 126 5% g 5 Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA 33 6% 2281 7% 108 5% 6 Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA 30 5% 1539 5% 139 6% 7 Cincinnati‐Middletown, OH‐KY‐IN MSA 28 5% 1349 4% 129 5% 8 Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV 27 5% 1686 5% 168 7% 8 MSA 27 5% 1686 5% 168 7% 9 Cleveland‐Elyria‐Mentor, OH MSA 26 5% 1068 3% 82 3% 10 Columbus, OH MSA 25 4% 892 3% 66 3% 11 Akron, OH MSA 20 4% 464 1% 32 1% 12 Raleigh‐Cary, NC MSA 16 3% 787 2% 23 1% 13 Detroit‐Warren‐Livonia, MI MSA 15 3% 861 3% 67 3% 14 Augusta‐Richmond County, GA‐SC MSA 14 2% 680 2% 135 6%

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Rank Metropolitan Area Ogilvy Sum by Ogilvy% Share of 2010VI Sum by 2010VI% Share of Second Home 5K Sum by SH% Share of Rank Metropolitan Area Sum by MSA Share of T28 Sum by MSA Share of T28 5K Sum by MSA Share of T28 15

St. Louis, MO‐IL MSA

12 2% 1601 5% 25 1% 16 Boston‐Cambridge‐Quincy, MA‐NH MSA 11 2% 909 3% 46 2% 17 Indianapolis‐Carmel, IN MSA 11 2% 852 3% 28 1% 18 Baltimore‐Towson MD MSA 11 2% 768 2% 45 2% 18 Baltimore Towson, MD MSA 11 2% 768 2% 45 2% 19 Richmond, VA MSA 10 2% 770 2% 29 1% 20 Nashville‐Davidson‐‐Murfreesboro, TN MSA 9 2% 1104 3% 27 1% 21 Knoxville, TN MSA 8 1% 643 2% 53 2% 22 Dayton, OH MSA 8 1% 340 1% 31 1% 23 Rochester, NY MSA 8 1% 277 1% 14 1% , 24 Denver‐Aurora, CO MSA 8 1% 271 1% 9 0% 25 Albany‐Schenectady‐Troy, NY MSA 8 1% 251 1% 16 1% 26 Harrisburg‐Carlisle, PA MSA 8 1% 163 0% 18 1% 27 Louisville‐Jefferson County, KY‐IN MSA 7 1% 946 3% 40 2% 28 Minneapolis‐St. Paul‐Bloomington, MN‐WI MSA 7 1% 518 2% 19 1%

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Top 10 MSA’s By Frequency and Market Share Top 10 MSA s By Frequency and Market Share

1. Atlanta‐Sandy Springs‐Marietta, GA MSA 2. Charlotte‐Gastonia‐Concord, NC‐SC MSA 3. New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA 4. Pittsburgh, PA MSA 5. Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA 6 Phil d l hi C d Wil i t PA NJ DE MD MSA 6. Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA 7. Cincinnati‐Middletown, OH‐KY‐IN MSA 8. Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA 9. Cleveland‐Elyria‐Mentor, OH MSA

10. Columbus, OH MSA

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Top 28 MSA Markets According to Top 28 MSA Markets According to MSA Share Comparison to Arbitron, Nielsen, and Scarbarough DMA Data Data

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Top 10 markets somewhat differ when compared zip code frequency share analysis.
Atlanta, Charlotte, Akron, Pittsburgh, and Cincinnati are strong markets because the population that

d d d h h f l h ll d

OT28‐ OT28‐ OT28‐ 2010VIT 2010VIT 2010VIT SHT28‐ SHT28‐ SHT28

visited HHI or are interested in HHI exceeds the share of population that normally consumes radio, television, and newspaper media.

Rank Metropolitan Area OT28‐ Arb OT28‐ Neilsen OT28‐ Scarb 2010VIT 28‐Arb 28‐ Neilsen 2010VIT 28‐Scar SHT28‐ Arb SHT28‐ Neilsen SHT28 ‐Scar 1 Atlanta‐Sandy Springs‐Marietta, GA MSA 9% 9% 9% 11% 11% 10% 12% 12% 12% 2 Charlotte‐Gastonia‐Concord, NC‐SC MSA 5% 5% 5% 3% 4% 4% 2% 2% 2% 3 Akron, OH MSA 4% 4% 4% 1% 1% 1% 1% 1% 1% 4 Pi b h PA MSA 4% 3% 4% 1% 1% 1% 3% 2% 3% 4 Pittsburgh, PA MSA 4% 3% 4% 1% 1% 1% 3% 2% 3% 5 Cincinnati‐Middletown, OH‐KY‐IN MSA 3% 3% 2% 2% 2% 1% 3% 3% 3% 6 Columbus, OH MSA 2% 2% 2% 1% 0% 0% 1% 1% 0% 7 Cleveland‐Elyria‐Mentor, OH MSA 2% 1% 1% 1% ‐1% ‐1% 1% 0% 0% 8 Augusta‐Richmond County, GA‐SC MSA 2% 2% 2% 1% 1% 2% 5% 5% 6% 9 Raleigh Cary NC MSA 1% 0% 1% 1% 0% 0% 1% 2% 1% 9 Raleigh‐Cary, NC MSA 1% 0% 1% 1% 0% 0% ‐1% ‐2% ‐1% 10 Harrisburg‐Carlisle, PA MSA 1% 0% 0% 0% ‐1% ‐1% 0% ‐1% 0% 11 Knoxville, TN MSA 1% 0% 0% 1% 1% 0% 1% 1% 1% 12 Richmond, VA MSA 0% 0% 0% 1% 1% 0% 0% 0% ‐1% 13 Albany‐Schenectady‐Troy, NY MSA 0% 0% 0% 0% ‐1% 0% 0% ‐1% 0% 14 Dayton OH MSA 0% 0% 0% 0% 0% 0% 0% 0% 0% 14 Dayton, OH MSA 0% 0% 0% 0% 0% 0% 0% 0% 0%

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OT28‐ OT28‐ OT28‐ 2010VIT 2010VIT 2010VIT SHT28‐ SHT28‐ SHT28 Rank Metropolitan Area OT28‐ Arb OT28‐ Neilsen OT28‐ Scarb 2010VIT 28‐Arb 28‐ Neilsen 2010VIT 28‐Scar SHT28‐ Arb SHT28‐ Neilsen SHT28 ‐Scar 15 Rochester, NY MSA 0% 0% 0% 0% 0% ‐1% ‐1% 0% ‐1% 16 Indianapolis‐Carmel, IN MSA 0% ‐1% ‐1% 1% 0% 0% ‐1% ‐1% ‐2% 17 Louisville‐Jefferson County, KY‐IN MSA 0% 0% ‐1% 2% 1% 1% 0% 0% 0% 18 N h ill D id M f b TN MSA 0% 1% 1% 2% 1% 1% 1% 1% 1% 18 Nashville‐Davidson‐‐Murfreesboro, TN MSA 0% ‐1% ‐1% 2% 1% 1% ‐1% ‐1% ‐1% 19 Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA ‐1% ‐2% ‐1% ‐1% ‐3% ‐2% 0% ‐1% 0% 20

St. Louis, MO‐IL MSA

‐1% ‐1% ‐2% 2% 2% 1% ‐2% ‐2% ‐3% 21 Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA ‐1% ‐1% ‐3% ‐1% ‐1% ‐3% 1% 1% ‐1% MSA 22 Baltimore‐Towson, MD MSA ‐1% ‐1% ‐1% ‐1% 0% ‐1% ‐1% ‐1% ‐1% 23 Denver‐Aurora, CO MSA ‐2% ‐2% ‐3% ‐2% ‐3% ‐3% ‐3% ‐3% ‐4% 24 Minneapolis‐St. Paul‐Bloomington, MN‐WI MSA ‐2% ‐3% ‐4% ‐2% ‐3% ‐3% ‐3% ‐3% ‐4% 25 Detroit‐Warren‐Livonia, MI MSA ‐3% ‐2% ‐3% ‐3% ‐2% ‐3% ‐3% ‐2% ‐3% 26 Boston‐Cambridge‐Quincy MA‐NH MSA ‐3% ‐3% ‐3% ‐3% ‐2% ‐3% ‐3% ‐3% ‐3% 26 Boston Cambridge Quincy, MA NH MSA 3% 3% 3% 3% 2% 3% 3% 3% 3% 27 Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA ‐5% ‐3% ‐3% ‐4% ‐2% ‐2% ‐6% ‐4% ‐4% 28 New York‐Northern New Jersey‐Long Island, NY‐ NJ‐PA MSA ‐14% ‐11% ‐5% ‐10% ‐7% ‐1% ‐6% ‐3% 3%

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Top 10 MSA’s According to Media Market Share C i Comparison

1. Atlanta‐Sandy Springs‐Marietta, GA MSA

y p g

2. Charlotte‐Gastonia‐Concord, NC‐SC MSA
3. Akron, OH MSA

4 Pi b h PA MSA

4. Pittsburgh, PA MSA
5. Cincinnati‐Middletown, OH‐KY‐IN MSA

6 Columbus OH MSA

6. Columbus, OH MSA
7. Cleveland‐Elyria‐Mentor, OH MSA
8. Augusta‐Richmond County, GA‐SC MSA
9. Raleigh‐Cary, NC MSA
10. Harrisburg‐Carlisle, PA MSA

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Comparing MSA Frequency versus Media M k Sh C i Market Share Comparisons

Top 10 MSA’s By Frequency and Market Share Top 10 MSA’s According to Media Market Share Comparison Market Share

1. Atlanta‐Sandy Springs‐Marietta, GA MSA 2. Charlotte‐Gastonia‐Concord, NC‐SC

Market Share Comparison

1. Atlanta‐Sandy Springs‐Marietta, GA MSA 2. Charlotte‐Gastonia‐Concord, NC‐SC 2. Charlotte Gastonia Concord, NC SC MSA 3. New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA 4 Pitt b h PA MSA 2. Charlotte Gastonia Concord, NC SC MSA 3. Akron, OH MSA 4. Pittsburgh, PA MSA 4. Pittsburgh, PA MSA 5. Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA 6. Philadelphia‐Camden‐Wilmington, PA‐ NJ‐DE‐MD MSA 5. Cincinnati‐Middletown, OH‐KY‐IN MSA 6. Columbus, OH MSA 7. Cleveland‐Elyria‐Mentor, OH MSA 8 Augusta‐Richmond County GA‐SC MSA 7. Cincinnati‐Middletown, OH‐KY‐IN MSA 8. Washington‐Arlington‐Alexandria, DC‐ VA‐MD‐WV MSA 9 Cleveland Elyria Mentor OH MSA 8. Augusta‐Richmond County, GA‐SC MSA 9. Raleigh‐Cary, NC MSA 10. Harrisburg‐Carlisle, PA MSA 9. Cleveland‐Elyria‐Mentor, OH MSA 10. Columbus, OH MSA

Green text MSA’s = MSA made both Top 10 listings

SLIDE 49

Core and Secondary MSA Markets Core and Secondary MSA Markets

Core Geographic Target Market: Based on Frequency and Media Share Comparison (Dedicated markets) markets)

1. Atlanta‐Sandy Springs‐Marietta, GA MSA 2. Charlotte‐Gastonia‐Concord, NC‐SC MSA 3. Pittsburgh, PA MSA 4. Cincinnati‐Middletown, OH‐KY‐IN MSA 5 Cleveland‐Elyria‐Mentor OH MSA 5. Cleveland Elyria Mentor, OH MSA 6. Columbus, OH MSA

Secondary Market: Based on Frequency and Market Share (Market penetration due to population size)

1 New York Northern New Jersey Long Island NY NJ PA MSA 1. New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA 2. Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA 3. Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA 4. Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA

Secondary Market : Based only on Media Share Comparison (Dedicated smaller markets) Secondary Market : Based only on Media Share Comparison (Dedicated smaller markets)

1. Akron, OH MSA 2. Augusta‐Richmond County, GA‐SC MSA 3. Raleigh‐Cary, NC MSA 4. Harrisburg‐Carlisle, PA MSA

SLIDE 50

Other Ongoing Projects Related to Real Estate

Very Aware/ Very Aware/Aware are Pl Plant antat ation HHI Reg HHI Reg Res Res Very Very Aware/ Aware/Aware are Visit Visitors rs Sea Pines Plantation 94% 68% Sea Pines Plantation 94% 68% Hilton Head Plantation 92% 64% Palmetto Dunes Plantation 90% 61% Shipyard Plantation 88% 57% Port Royal Plantation 88% 54% Indigo Run Plantation 86% 47% Wexford Plantation 84% 44%

Awareness of HHI

Plantations (2011

Wexford Plantation 84% 44% Palmetto Hall Plantation 83% 43% Spanish Wells Plantation 80% 40% Windmill Harbour 83% 36% Long Cove Plantation 79% 33%

Concours survey)

Interest in real estate as a

How How di did d you fi you first rst learn of one earn of one of the

f the Hi

Hilton

n Head Isl

Head Island and pl plantati antations? Opti Option

n

HHI Reg HHI Reg Res Res Vis Recommendation by family or friends 26% 29% Other 28% 25% I am not aware of any of the Hilton Head Island plantations. 3% 13%

result of attending HHI events/festivals (2012

Real estate agent 17% 6% Hotel/Resort/Time Share/Property Management Company 4% 5% Signage at the plantation gate entrance 4% 5% Internet website 2% 5% Other magazine ad or article 3% 4% Real estate magazine 5% 3% Hil H d I l d Bl ff Ch b f C 2% 2%

events/festivals (2012 festival surveys)

Hilton Head Island-Bluffton Chamber of Commerce 2% 2% Newspaper ad 4% 1% Television ad 1% 1% Radio ad 1% 1%

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Summary Summary

Real estate accounts for the largest portion of

commodity sales on Hilton Head Island.

Visitors purchase real estate after visiting

Hilton Head Island 8‐10 times.

Visitors purchase because they want to return

to Hilton Head Island for their vacations.

Residents from Atlanta and Charlotte vacation

and purchase properties on Hilton Head Island.

Visitors are most aware of Sea Pines Plantation
Visitors learn about plantations via family and

Visitors learn about plantations via family and friends.

Visit www.lriti.org for our research results.

SLIDE 52

For more information contact: For more information contact: John Salazar Ph D CHE John Salazar, Ph.D., CHE

University of South Carolina – Beaufort and The Lowcountry & Resort Islands Tourism Institute

Salazar, 2008 52