MYRTLE Beach — A recent study suggests the Grand Strand is in a good spot heading into the upcoming tourism season despite uncertainties over the national economy.
While the state's tourism hub is not expected to see record numbers from before the COVID-19 pandemic, a study released for the Myrtle Beach Area Chamber of Commerce by consultant Tourism Economics said the area should see visitation numbers this year similar to 2022 with many household budgets being constrained with inflation effects and Federal Reserve interest rate hikes.
Coming out of the height of the COVID-19 pandemic in summer 2021, Myrtle Beach International Airport posted some of the state's top passenger tallies and area hotels saw more than 90 percent occupancy rates — a 30-percentage point increase compared to 2019 and 2020.
Pent-up demand for leisure travel is expected to continue through 2023, with more than 17 million visitors to Myrtle Beach anticipated to spend $16 billion this year, which is a 2.7 percent increase over last year, according to the study. The average daily rate paid for a room is predicted to be $175 a night this year, or $1 higher than in 2022.
"We see good things for the travel sector across the nation, and we have no reason to expect anything different in Myrtle Beach," said Geoff Lacher, senior economist at Tourism Economics. "The destination will also have a good year next year."
Robert Salvino, an economics professor at Coastal Carolina University, said tightened household budgets pinch demand for tourism but said if there is a national recession, it is expected to be different from previous years.
"The numbers are not necessarily showing much of a decline in overall tourism activity, even with the very mild recession they are predicting, which I think is a safe prediction given what interest rate monetary policy is doing and inflation does seem to be showing that it's pulling back," Salvino said.
National inflation was slowing at the end of the year.
"We have also already dealt with a year of interest rates doubling," Salvino said. "That's a strong negative headwind on consumer budgets. We haven't seen as strong as a fallout as you would have expected."
In recent years, the Myrtle Beach Area Convention & Visitors Bureau has marketed itself as a more year-round destination, holding seasonal events including the Winter Wonderland at The Beach on the site of the former Pavilion amusement park in an effort to bring in more visitors. The city recently made Tripadvisor's list of "Top 10 Trending Winter Destinations for U.S. Travelers."
A study from Longwoods International showed that every $1 invested in a Myrtle Beach advertising campaign generates $180 in direct visitor spending and $24 in local tax revenues.
"These efforts maintain tourism and sustain our economy and employment opportunities year-round," chamber president Karen Riordan said.
Salvino said that the primary driver for tourism in the Myrtle Beach market will always be the sunny, warm weather of the summer evidenced by the average daily rate of hotels last year of $97 in January compared to $226 in July.
"We have the snowbirds, but they are by no means the largest component of our tourism market," Salvino said. "It's been extending for a long time, but it has not completely flipped Myrtle Beach to the status of turning a completely year-round destination by any means."
