As more Americans are vaccinated, there is finally hope that a real recovery in the devastated US economy and workforce is in sight. A sector of particular importance for South Carolina and Lowcountry has been the hardest hit, by far, and will require creative measures to recover: travel and tourism.
Fortunately, Berkeley, Charleston and Dorchester counties have established diversified economies in the past decade. Even in the context of this impressive development, tourism remains a critical economic engine. In 2019, travel generated $ 9.7 billion in economic impact across our region, directly employed 40,000 residents, and accounted for more than 20% of all sales.
The tourism industry in the Charleston area enjoyed an incredible boost when entering 2020. So, everything changed. COVID caused the bottom of the US tourism economy to plummet almost overnight. Spending on travel and tourism across the country fell by half a trillion dollars last year – ten times the impact of 9/11. With other segments of the economy showing a slow recovery, almost 40% of all unemployment in the United States is in the leisure and hospitality sector. Locally, unemployment in hospitality and leisure exceeds 25%, three times the rate of any other sector in the Charleston area.
It is not at all clear when the travel industry’s backward trend towards broader economic recovery may change on its own. In our region, this is especially worrying for those who depend on business trips, groups and events.
Helen Hill
Michael Tall
One thing that became clear last year is that many industries and businesses across the Charleston area depend on, or at least are influenced by, the visitor industry. With Washington determined to provide aid until the economy can move on its own again – as evidenced by the $ 1.9 trillion aid package approved by Congress and signed by President Joe Biden last week – it makes sense to target assistance to parts of the economy that have the greatest needs and are the most crucial to an overall recovery. Travel and tourism, which held jobs for 1 in 10 Americans before the pandemic, should certainly be at the top of that list.
That is why our sector has mobilized around a bipartisan bill called the Law for the Recovery of Jobs in Hospitality and Commerce, recently presented in both chambers of Congress.
The legislation contains the type of smart, targeted tax incentives that would accelerate travel recovery: a temporary business tax credit to revitalize business meetings, conferences and conventions; an individual tax credit to encourage non-commercial travel; a temporary deduction of entertainment business expenses to help entertainment venues and performing arts centers recover; and tax cuts for restaurants and food and beverage companies to help restore jobs in food services and strengthen the entire food supply chain in the United States.
The bill’s original sponsors include Democrats and Republicans from across the country, including US Representative Tom Rice, a Republican who represents much of the South Carolina coast north of the Santee River.
We support these measures for the good they will do to restore business and group travel, encourage leisure visits, rebuild local jobs and encourage the overall recovery from our community’s pandemic.
COVID presented our industry, and our entire society, with the greatest challenge of recent memory. But a general economic and job recovery will only be possible with a robust travel recovery. We appreciate the support and actions of our elected officials so far and encourage them to consider all avenues available in the future to accelerate the recovery of this key industry.
Helen Hill is the CEO of Explore Charleston (also known as the Charleston Area Convention and Visitors Bureau). Michael Tall is the chairman of the Explore Charleston Board of Governors.