Summer officially started this month, which means this is the peak time for vacation and high visitor traffic in the Carolinas. The economic indicators dashboard updates for June provides an overview of the tourism industry trends in the Charlotte Region. Here are key takeaways about the performance and assets of the region as a tourism hub.
Visitor spending contributes to the regional economy
The Carolinas benefit from the leisure and hospitality industry. The estimated economic impact of tourism in South Carolina is $29 billion, a 21% increase in impact since 2019. In North Carolina, total domestic and international visitors spending reached $33.3 billion, a 15% increase from 2021. According to the Charlotte Regional Visitors Authority (CRVA), visitor spending hit $7.8 billion in 2019 in the Charlotte Region, with Mecklenburg County contributing to more than 75% of that amount. While the leisure and hospitality industry were the most hit during COVID-19, the region saw a 46% increase in visitor spending from 2020 to 2021, with Mecklenburg County visitors contributing $4.1 billion to the tourism industry. According to CRVA analysis of Visa Destination Insights, Charlotte international visitors from the top 25 foreign countries of origin spent more than $36.5 million in the region. Most of these countries of origin reflect the footprint of foreign direct companies as well as strategic international markets sourcing international business relocations and expansion in the region. Recovery in this industry is stronger than ever, showing the pandemic was only a setback.
Fig1. Charlotte Demand Recovery Near Top Compared to Top-25 Markets
Source: STR, U.S. Monthly Hotel Review, May 2023, Room Demand Percent (%) Change from May 2019, Charlotte Regional Visitors Authority (CRVA) Analysis
Charlotte hotel room demand recovery is one of the strongest among top 25 markets
Consumers are prioritizing summer travel by delaying large purchases and balancing personal savings. While the tourism industry is concerned with low spending confidence due to inflation, hotel demand remains steady. Room demand percent change is at 5.5% from May 2019, which ranks Charlotte No. 3 after Nashville and Dallas for recovering from low demand since COVID-19. Occupancy rates in Mecklenburg County for the week ending on June 17, 2023, are at 69.1%, which is almost two times higher than the rate in 2020 for the same period (36.1%). Revenue Per Available Room (RevPAR) increased for three consecutive months and is up to 10.9%, outperforming 2019 levels. This growth increases the need for more full-time and seasonal employees to service tourists in the region.
Employment continues to grow in the regional tourism industry
Leisure and hospitality industry added more than 15,000 jobs since January of this year, with a year-over-year growth of 10.7%, the highest of all industries. Further, the industry continues showing needs to refill vacancies and recruit more job seekers in occupations with high demand including hotel workers, events promoters, agents and managers, amusement parks and arcades, performing arts workers, travel tours and guides, and restaurant cooks. The accommodation and food services, one of the core industries in hospitality, is expected to grow by 12% in the next 10 years. Competition from online job posting for hotel workers is higher in the region (217 job postings per month) compared to the national average (166 job postings per month). Recruiting more employees in the local industry will provide Charlotte visitors with the best service to enjoy regional assets and experience the tourism scene.
Sports bring people from different horizons together and contribute to visitor spending in the Charlotte Region
Along with the weather, the Charlotte Region sports season is set to begin heating up this summer. The region truly has something to offer for anyone looking to see live action competitions. The Carolina Panthers kickoff their upcoming season this summer starting with the annual fanfest in August at Bank of America Stadium. Visitors/tourists can also check out Charlotte FC attempt to make a playoff run as the summer rolls on, as well as a variety of minor league baseball games. From the Charlotte Knights in uptown, to the Kannapolis Cannon Ballers in Cabarrus County, minor league baseball is in full swing across the region.
For sports fans looking for even more this summer, the Charlotte Region will also host the United States Men’s National soccer team, and Monster Truck racing at Spectrum Center.
Location and availability of various transportation means are key drivers of tourism
Strategically located on the East Coast of the United States, the region is easily accessible to local and international visitors and leisure/ business travelers through four major interstates, more than 800 miles of rail, and one of the top 10 most connected airports in the world. The Charlotte Douglas International airport remains a key asset to tourism in the region. With 60% of the U.S. population within a 2.5-hour flight, the airport services more than 45 million passengers annually. The region’s temperate weather is filled with more sunny days and its proximity to mountains and beaches (e.g. Wilmington, Myrtle Beach, etc.) are motivators for visitors to spend vacation time and experience the regional cultural scene.
For more insight into other key indicators of the Charlotte Region’s economy, check out the Economic Indicators Dashboard or Get the Data.
