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

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

Presentation Format Presentation Format • NAICS Output Analyses • Economic Impact of Second Economic Impact of Second Homes survey results • MSA Analyses • Other projects

2007 ‐ 2010 IMPLAN Annual NAICS Output Analyses 3

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 which are specialized by region, not estimated from national hi h i li d b i i d f i l 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 gross sales. l • 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. 4

Table comparing 2007 vs 2010 Total Commodity Output for NAICS Sectors Total HHI % of NAICS Sector Output Commodity (Excluding Gvt. Sector and Non ‐ NAICS Sector of the Total HHI Commodity Output Output Output Output Categories Categories Employment % Output % 2007 % Share of 2007 2010 % Share of 2010 IndustryCode Description 2007 Output 2010 Output Increase/Decrease from Increase/Decrease Employment Top NAICS Employment Top NAICS 2007 from 2007 0 Total 46757 $ 4,886,786,246 41148 $ 4,106,207,339 -12% -16% 37757 $ 4,012,603,312 82% 32482 $ 3,078,467,604 75% -14% -23% Top NAICS Producers 7512 $ 1,229,745,425 31% 5166 $ 771,902,928 25% -31% -37% 360 53 Real estate & rental 411 72 Accommodation & food services 6623 $ 446,434,598 11% 5671 $ 353,471,530 11% -14% -21% 1388 $ 284,589,691 7% 1820 $ 292,403,064 9% 31% 3% 354 52 Finance & insurance 394 62 Health & social services 2311 $ 176,429,781 4% 2600 $ 211,890,480 7% 13% 20% 3075 $ 385,367,204 10% 1713 $ 208,101,919 7% -44% -46% 34 23 Construction 341 51 Information 517 $ 191,418,507 5% 667 $ 190,371,459 6% 29% -1% 320 44-45 Retail trade 4625 $ $ 257,421,893 6% 3287 $ $ 189,667,049 6% -29% -26% 2282 $ 242,350,508 6% 1859 $ 180,592,658 6% -19% -25% 367 54 Professional- scientific & tech svcs 382 56 Administrative & waste services 2919 $ 186,678,800 5% 3073 $ 178,175,256 6% 5% -5% 3028 $ 224,500,129 6% 3135 $ 175,314,054 6% 4% -22% 414 81 Other services 402 71 Arts- entertainment & recreation 1171 $ 82,732,764 2% 1564 $ 80,364,890 3% 34% -3% 41 31-33 Manufacturing 344 $ 96,496,159 2% 275 $ 73,560,375 2% -20% -24% 327 $ 59,400,692 1% 280 $ 43,531,105 1% -14% -27% 319 42 Wholesale Trade 381 55 Management of companies 332 $ 44,716,667 1% 334 $ 41,403,957 1% 1% -7% 423 423 $ 39,038,754 $ 39 038 754 1% 1% 338 338 $ 32,203,189 $ 32 203 189 1% 1% -20% 20% -18% 18% 332 48-49 Transportation & Warehousing 332 48 49 T t ti & W h i 774 $ 26,085,226 1% 610 $ 30,391,137 1% -21% 17% 391 61 Educational svcs 33 22 Utilities 59 $ 29,085,893 1% 41 $ 19,732,759 1% -30% -32% 32 $ 1,687,176 0% 29 $ 2,862,772 0% -10% 70% 1 11 Ag, Forestry, Fish & Hunting 20 21 Mining 18 $ 8,423,443 0% 18 $ 2,527,023 0% -1% -70% 5

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Accommodation & food services 7

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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 services, Information sector, and Administrative & i f i d d i i i & waste services have increased in their annual contribution to the Hilton Head Island economy. 9

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

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.

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% indicated that the Island is a Classic Family Vacation Spot. 46% i di t d th t th I l d i Cl i F il V ti S t • 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.

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%.

Gender Gender

Age Age

Marital and Family Status Marital and Family Status

Household Income Household Income Average Income: $200K ‐ $249K

Classification of Second Home Classification of Second Home 2000: The mean year when owners purchased there home 2003: The median year of home purchases 2005: The year when most second homes were purchased

Ownership Arrangement Ownership Arrangement

Community of Ownership Community of Ownership

Current Use of Second Home Current Use of Second Home

Second Home Usage Estimates Second Home Usage Estimates Owners who do not publicly rent their property take 5 O h d t bli l t th i t t k 5 vacations per year and stay 7 days per vacation. Publicly Rented by a Property Combination of Not Publicly Rented: For Long Term Number of Days Management Any of the Owner Use Only and/or Non Rental Only Other (n=2%) Used (Median) Company and/or Categories Paying Guest (n=62%) Paying Guest (n=62%) (n=8%) (n=8%) Owners of the Home (n=2%) (n=23%) Days the second home is occupied by the 50 21 14 21 30 family Days the second home 100 100 365 233 98 is occupied by renters Days the second home is occupied by non 15 14 14 14 14 paying guests i

Type of Transportation Used on Last Trip to HHI

Airport Use Airport Use