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

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 Tourism Revenue and Percent Change by Selected Week in 2020 $500 $450 $400 $350 Millions $300 $250 -35% -35% -37% -38% -36% -40% -37% -38% -40% -42% -42% $200 -45% -48% $150 -65% $100 -79% -79% -83% -85% -84% -87% -88% $50 -88% $0 Week Ending 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 Note: Dark purple bars represent weeks in 2020. Light purple shaded bars represent weeks in 2019 Source: Tourism Economics

SC Lodging Revenues Hotels & Short-term Rentals Combined $700 CY2020 CY2019 $600 $500 -30% YTD $400 Millions Hotels down -43% YTD Vac. Rentals down -4% YTD $300 $200 $100 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Smith Travel Research and AirDNA

South Carolina Air Traffic Deplanements - SC Airports 2019 v. 2020 700,000 600,000 500,000 400,000 300,000 -64.0% 200,000 100,000 0 January February March April May June July August September October November December 2019 2020 Deplanements - CLT Deplanments - SAV 2019 v. 2020 2019 v. 2020 2,500,000 200,000 2,000,000 150,000 1,500,000 -55.4% 100,000 1,000,000 -67.4% 50,000 500,000 0 0 Series1 Series2 Series1 Series2

SC State Parks Revenue FY 19 vs FY 20 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. $7 $6 $5 $4 Millions $3 $2 $1 $0 July August September October November December January February March April May June FY 19 FY 20 SC State Parks issued $3,366,871.81 in refunds from March 9 – April 30, 2020.

Tourism (L&H) Employment % Change % Change Feb. 2020 State Mar. 2020 Apr. 2020 May-20 Jun-20 July 2020 (P) Feb-July July 2019-July2020 South Carolina 2217.1 2,197.7 1,921.8 1,986.9 2,059.4 2,071.5 -6.6% -5.5% Construction 109.9 109.0 102.7 106.9 107.4 106.9 -2.7% -0.1% Manufacturing 258.2 258.4 244.9 244.8 252.3 252.7 -2.1% -2.7% Trade, Transportation & Utilities 410.2 408.7 376.6 388.2 398.0 392.3 -4.4% -4.0% Financial Activities 104 103.4 100.0 102.1 103.2 103.2 -0.8% -1.9% Professional & Business Services 305.4 303.8 264.9 268.2 280.5 286.8 -6.1% -3.9% Education & Health Services 259.7 258.3 228.5 238.3 245.4 247.6 -4.7% -4.1% Leisure & Hospitality 281.7 267.7 139.9 176.7 210.7 213.2 -24.3% -21.6% Government 376.6 377.6 363.2 357.0 357.0 355.3 -5.7% -3.8% Source: Bureau of Labor Statistics National Unemployment Rate for Leisure & Hospitality vs L&H Employment Trends Overall Economy NC, GA, FL, SC 45% 1400.0 40% 1200.0 35% 1000.0 30% 25% 800.0 20% 600.0 15% 10% 400.0 5% 200.0 0% 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 Jan Feb Mar Apr May Jun Jul Leisure & Hospitality All Sectors NC GA FL SC

Projected SC Tourism Revenue 2020 CY2019 CY2020 2020 vs 2019 Estimated Projected % Change $16.5B $9.9B -40% Domestic Visitors Travel Spending $930M $90M -90% International Visitors Travel Spending $530M $213M -60% State & Local Government Spending on Tourism $910M $544M -40% Tourism-Related Capital Investment $5.7B $1.4B -75% Exports of Manufactured Tourism Merchandise $24.5B $12.2B -50% Total Gross Tourism-Related Spending Source: Tourism Economics

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

Urgent Non-Recurring Needs $360,000 2021 PGA Championship $3,000,000 Hunting Island Lighthouse Repairs $3,000,000 Fair Play Welcome Center Rebuild

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

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. 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. 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 Funding Requests 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. Activity Amount SCPRT Statewide Recovery Marketing $10,000,000.00 Major Destination Recovery Marketing Grants $30,000,000.00 (Myrtle Beach, Charleston, Hilton Head Island, Greenville, Columbia)

Impact on Consumer Travel Sentiment Nearly half of all Americans cancelled a planned trip due to COVID-19 44% reduced their travel plans as a result of the virus, with many changing from a fly-in to a drive-in destination The status of COVID-19 and economic concerns are two primary factors that will influence consumer travel decisions in the short term

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

Statewide Recovery Marketing Phase One Maintaining Consumer Awareness

Statewide Recovery Marketing Phase Two Resuming Active Consumer Engagement

Statewide Recovery Marketing Phase Two Resuming Consumer Engagement