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Cover Story on Travel and Tourism








Sand + Dollars

The travel industry pulls in 
$12.6 billion a year, and most of it
 arrives in the family station wagon

Learn more:
Festival of Flight Propels State Through a Banner Year
Calendar of Upcoming Travel Events



By Laura Williams-Tracy

Thomas Jefferson said he was a great believer in luck. The harder he worked, the more he had of it. The same logic could be applied to North Carolina’s travel and tourism industry. How lucky it is to be blessed with the highest mountains east of the Mississippi River, peaks that tower over the 470-mile-long Blue Ridge Parkway along the western frontier of the state. At the same time, North Carolina’s crystal blue coast beckons sun worshippers to grand oceanfront castles and comfortable beach cottages, where visitors enjoy the history of lighthouses, pirates and wild horses. At both ends and in between, the state’s moderate climate means someone is playing golf somewhere every day of the year.

Such congenial qualities, and more, have helped make North Carolina the sixth-most visited state in the nation with some 43 million tourists coming here each year — 71 percent of them coming from out of state.

Sixth place is an even more impressive ranking when you consider that the states ahead of us are California, Florida, Texas, Pennsylvania and New York — places with the tourist magnetism of Disney amusement parks and the country’s largest cities.

North Carolina is lucky to have three major interstate highways interlacing the state. We’re also fortunate to be centrally located along the East Coast within driving distance of some of the country’s largest population centers.

But is it all luck that has taken North Carolina’s tourism industry so far? Hardly. State leaders as well as those working in the hospitality industry recognize the economic impact of tourism, and they’ve made significant investments over the years to continue luring tourist dollars into the state. 

Tourism is the second largest industry in North Carolina, trailing only manufacturing. Visitors spend $12.6 billion here each year, generating more than $2.1 billion in tax receipts for federal, state and local governments. Tourism is the economic engine that fuels many different industries, from general retail and food service to lodging and entertainment.

And it supports jobs — some 196,400 of them. “Those jobs are sometimes harder to see because it’s not like someone at a manufacturing center cutting a ribbon and announcing several hundred new jobs,” says Lynn Minges, executive director of the N.C. Division of Tourism, Film and Sports Development. In fact, Minges says, many counties in the state base their entire economies on tourism, from their restaurants and hotels to their doctors and accountants.


A Better Place To Be

So how did North Carolina — always a favorite tourist destination — climb to the ranks of the best destinations in the country, gaining two spots in the last two years?

For years North Carolina promoted itself as the “Variety Vacationland,” a successful campaign given North Carolina’s wide array of beaches, mountains and heartland amusements. But that slogan focused too much on peak season summer travel and didn’t give North Carolina credit for all the things to see and do year-round, says Minges.

Today, the state’s tourism tagline is “A better place to be,” which focuses on what the state has become known for — its natural scenic beauty that promotes rest and relaxation. That’s a different identity than what some of North Carolina’s neighboring states have cultivated —  golf, resort getaways and history.

By promoting North Carolina as a place for winter snow skiing, fall leaves on display, year-around golf, and traditional summer vacations to the coast and mountains, the numbers of visitors have risen, says Minges. Travel patterns have grown year-round, attracting a greater share of the group tour market, improving convention business and increasing the number of short weekend vacations.

The fallout in travel after the Sept. 11, 2001, terrorist attacks in New York City and Washington, D.C., played right into the brand that North Carolina had spent years nurturing. Studies showed after the attack that travelers wanted a drive-to, safe destination that offered natural beauty and wholesome family fun. North Carolina fit the bill.

Days after the terrorist attacks, officials at the convention and visitors bureau in Asheville debated pulling some of their $1.5 million advertising spending. But those who argued that the mountain region’s brand of rest and relaxation was exactly what a weary public would want won out, says Kelly Miller, vice president of the Convention and Visitors Bureau of the Asheville Area Chamber of Commerce.

Despite the dismal travel months of September and October of 2001, hotel sales in the Asheville area were up 14 percent for that fiscal year — a time when most markets took an enormous hit. “For many Americans it’s an inherent right that, by God, they are going to take a vacation,” says Miller. “Asheville was a particular destination that gave them what they were looking for.”

To some degree, industry watchers say, the heightened fear of terrorism and reluctance to travel long distances helped North Carolina’s travel industry. “People are driving rather than flying and doing things closer to home,” says Gene Brothers, associate professor of tourism management at N.C. State University. “We’re kind of back road and rural, and an enjoyable, family-oriented attraction.”

Higher-profile, mass-crowd-attracting venues, on the other hand, might also attract the interest of potential terrorists.


Discovering the State We’re In

Uncertainty about how the terrorist attacks, as well as the slumping economy, would affect the state’s second-largest industry prompted a collaborative effort between the N.C. Division of Tourism, Film and Sports Development, the N.C. Outdoor Advertising Association and the N.C. Press Association to encourage travel in the state by North Carolinians. Just five months after the terrorist attacks, the group unveiled a handful of billboards and print ads depicting the three travel regions of the state — the mountains, Piedmont and coast. With $2 million to $3 million worth of advertising space donated by outdoor advertising companies and member newspapers, the ads were meant to encourage people within the state to rediscover the natural and cultural assets already located so close to their homes.

With North Carolina residents responsible for 32 percent of the tourism already occurring in the state, it was an important market not to ignore, says Minges.

With the campaign in place, the number of visitors to state parks increased in 2002 by almost 8 percent, with the strongest growth taking place at the state’s coastal parks. Visits to the state’s top 25 tourist attractions, which include the Blue Ridge Parkway, Concord Mills shopping center, Cape Hatteras National Seashore, Carowinds Theme Park and the Biltmore Estate, were up 6.4 percent for 2002.

Minges calls the program a tremendous success, and estimates that it has generated some $4 million to $5 million worth of exposure for the state’s amenities.


Becoming a Family Destination

Tourists in North Carolina travel here for a variety of reasons, and the constant investment in offering new venues helps keep the trip from growing stale, says Brothers.

With some of the state’s top attractions located in the mountains, that region draws some 14 million visitors a year, the bulk during the summer months of June through August. The Blue Ridge Parkway is the state’s top attraction, garnering some 14 million visitors each year. The Great Smoky Mountains National Park and Harrah’s Cherokee Casino are also in the top five state attractions.

But competition is fierce, and communities have to continue to add new product to keep crowds coming back. “There is so much competition for the leisure visitor’s dollar that destinations have got to reinvent themselves or become extinct,” says Asheville’s Miller.

Asheville is the only city in the country that’s known to have instituted a Tourism Product Development Fund, which raises money through an additional one cent added to the room tax. The money cannot be used for operations or marketing, but must be spent on brick and mortar projects that will offer new venues to draw in visitors.

The latest project to benefit from the fund is The Grove Arcade, a revitalization of the city’s first public market, which was planned by E.W. Grove, founder of the Grove Park Inn. The Arcade includes shops, offices and luxury condos as well as open stalls similar to a farmer’s market.

North Carolina’s sunny coastline draws visitors from across the state and into Ohio, Pennsylvania and Virginia, who access the coast through the extensive roadway system. And events over the past few years, such as the preservation of the Cape Hatteras Lighthouse, the tallest brick lighthouse in North America, have helped keep the trip fresh, says Carol Lohr, executive director of the Crystal Coast Tourism Authority in Morehead City.

The lighthouse closed from November 1998 until May 2000 and then fueled tremendous interest in scenic opportunities, as tourists came to see how it was lifted and moved 2,900 feet away from the ocean.

Other amenities along the coast continue to draw interest, including the Wright Brothers National Memorial, which will celebrate 100 years of flight this December with an event expected to draw tens of thousands of people.

“Over the last 10 years we’ve seen an increase in our market share because we are seen as a family destination,” says Lohr. “People are getting back to their values and roots, and if they enjoyed summers as a child at the North Carolina coast, they want to bring their children back here now.”

All across the state, cultural tourism, defined as a visit to a museum, historic site, concert or other arts event, is the fastest-growing segment of the travel industry and is among the top five activities people seek during their visits.

The North Carolina Department of Cultural Resources manages 27 sites around the state offering a glimpse of history. Among the most popular are the N.C. Transportation Museum in Spencer; Roanoke Island Festival Park near the site of the Lost Colony outdoor drama; Tryon Palace, the state’s first capital; and the USS Battleship North Carolina in Wilmington. All of the sites have costumed guides and provide an interactive experience.

Those 27 sites drew some two million visitors in 2001, says Brenda Follmer, director of public affairs for the N.C. Department of Cultural Resources.

And it’s no wonder North Carolina draws visitors looking for a history lesson. North Carolina has long supported the cultural arts, becoming the first state to appropriate money to buy an art collection, which resulted in the establishment of the North Carolina Museum of Art in Raleigh in 1947. Winston-Salem was the site of the country’s first Arts Council in 1949, and 16 years later, the N.C. School of the Arts became the nation’s first state arts school.


Fanning the Flame of Sports

The arrival of major professional team sports to North Carolina with the NBA’s Charlotte Hornets in 1988, the NFL’s Carolina Panthers in 1995 and the NHL’s Carolina Hurricanes in 1997 have created a whole new reason for tourists to visit the state.

Coupled with that is the growth in popularity of Carolina-grown stock car racing and such premier golf events as the men’s and women’s U.S. Opens in the Sandhills. This month, the inaugural Wachovia Championship will bring the PGA Tour’s best to Charlotte’s Quail Hollow Club.

“North Carolina is known nationwide and internationally as a tourist destination, and there’s no doubt that sports is a big part of that,” says Scott Dupree, director of sports marketing for the Greater Raleigh Convention and Visitors Bureau.

The Hurricanes’ storybook ride to the Stanley Cup finals last spring helped propel Raleigh into the professional sports limelight and has helped it to garner the NHL draft in June 2004 and put it in line to host the NHL All-Star Game and its accompanying festivities in 2007.

Charlotte’s rapid rebound from the departure of the state’s first professional franchise, the Charlotte Hornets, is further evidence of the state’s ability to support professional teams. The Hornets, co-owned by the Queen City’s No. 1 public enemies — George Shinn and Ray Wooldridge — were allowed to leave for New Orleans at the end of the 2001-02 season. A new Charlotte franchise already has been awarded to BET founder Robert Johnson, however, and will begin play in a new arena in Charlotte in November 2004.

And stock car racing has become an ever-important element of the North Carolina tourism economy. The Coca-Cola 600 race held every Memorial Day weekend at Lowe’s Motor Speedway in Concord is annually the second most attended single-day sporting event in the U.S. behind the Indianapolis 500. The track also hosts two other NASCAR races during the year, as does North Carolina Speedway in Rockingham.

Though not high-profile competitions, Dupree says North Carolina’s position as a host to a multitude of youth and amateur sporting events — such as softball and soccer tournaments — that provide a steady volume of out-of-town and out-of-state visitors make up bread and butter business for the hospitality industry. “Those events really have an impact on the economy even though they go unnoticed by the general public,” says Dupree.

 The highest of profile events was the 1999 U.S. Open at Pinehurst No. 2, a championship that put North Carolina on a large international sports stage for the first time in decades. The event brought in some 40,000 visitors a day to the state during the peak four days of the tournament, and was broadcast internationally, creating interest in other golfing countries about visiting courses in the state.

Hosting the tournament in the Sandhills region, a small to medium-sized market, at first appeared to be a challenge. But hospitality businesses from Raleigh-Durham and Chapel Hill, the Triad and Fayetteville stepped up to provide blocks of hotel rooms and made the championship a success, says Caleb Miles, president and CEO of the Convention and Visitors Bureau – Pinehurst/Southern Pines/Aberdeen area. The event put more than $100 million into the state’s economy, and because of the multi-city collaboration, the benefits were spread across the state. It was so successful, Miles notes, that “the USGA turned around within a matter of months and booked 2005 (for a second men’s Open). That’s the ultimate compliment.”

The women’s U.S. Open, contested just a couple of miles away at Pine Needles in Southern Pines, has enjoyed similar success. The course hosted the championship for the first time in 1996, again in 2001, and is on the books for 2007. It’s a terrific economic boost for Moore County, which offers the most golf courses per capita of any county in the nation.

Women’s professional sports have their place outside of golf. The Triangle town of Cary is home to the Carolina Courage, the defending Women’s United Soccer Association (WUSA) champions. The team plays at SAS Stadium, a state-of-the-art 7,000-seat facility. And while the NBA’s Hornets left for New Orleans, the WNBA’s Sting continues to play hoops at the Charlotte Coliseum.


Inroads into the Market

Most visitors to North Carolina tourism destinations — some 84 percent — arrive by car. So the state is extremely lucky, Brothers says, to have an extensive road system that includes I-85 traversing from southwest north toward Washington, D.C.; I-40 that runs from Wilmington west clear across the country; and I-95, which offers rapid access from the central part of the state south to Florida and north into New England.

Alabama has some similar amenities to North Carolina, including mountains and coast and an attractive climate, but it’s only served by I-85, making it far less accessible. “Location, location, location. We just happened to luck out,” Brothers says.

He adds that investments by the state over the years in improving access to tourism draws have been wise moves. One recent $90 million investment is the Virginia Dare Bridge, which opened last August in Dare County, and shortens the trip across the Croatan Sound to the Outer Banks by 10 to 15 minutes.

That’s a  time savings that tourism officials say will help lure more visitors from the Triangle, Piedmont and Western North Carolina. At 5.2 miles long, the bridge is the longest in the Carolinas.

The state’s western region gained greater access to more tourist visits last year when Continental Airlines began direct regional jet service from New York City to Asheville Regional Airport, twice a day during the peak season. No doubt weary New Yorkers will be taking advantage of the rest and relaxation venues offered in the mountain region, including The Grove Park Inn’s $40 million subterranean spa, which just months after it opened in February 2001 was named by USA Today as one of the top 10 spas in the world. And they’ll need the rest if they’ve spent the day touring the world-famous Biltmore Estate, one of the nation’s top tourist spots.


Waiting for a Better Economy

Even with a host of natural amenities, a location that is a natural advantage, efficient transportation and a growing national and international profile, the tourism industry isn’t without its tests.

Even before the 2001 terrorist attacks dented enthusiasm for travel, the state’s hotels and motels were feeling the effects of a slowing economy. From a statewide high occupancy rate of 64.5 percent in 1995, North Carolina’s hotels and motels saw occupancy drop to 54.9 percent in 2002. Hotels in the state’s concentrated tourism areas, including the 23 mountain counties and nine coastal counties, did not experience a drop in business nearly like the state’s major metropolitan areas, says Jim Hobbs, president of the N.C. Hotel and Lodging Association based in Raleigh.

During the prosperous 1990s, those areas attracted tremendous attention from investors, who built new hotels and since 2000 alone have added some 2.7 million available room nights in the state. (That’s not the number of hotel rooms, but the number that are available over the course of 365 days a year.)

On the positive side, Hobbs says, room demand in North Carolina has remained fairly consistent over the past three years, with only a small dip during 2001, which is easily accounted for by the Sept. 11 attacks. “What the industry needs is a return to growth and demand,” says Hobbs, “and that’s a function of the economy we are in.”

The state’s current budget crisis also threatens the industry. Last year the Department of Cultural Resources saw its budget cut by 15 percent, causing some state-sponsored cultural sites to trim staff and hours. The North Carolina Museum of Art, for example, closed an extra day of the week.

The Division of Tourism, Film and Sports Development lost $800,000 in operating expenses last year because of state budget cuts and expects the same this year. Those cuts could affect advertising, which is one of the state’s few tools for differentiating itself from its neighbors.

Competition, to be sure, is fierce. “There’s not much difference between a visit to the Appalachian Blue Ridge in Virginia or North Carolina,” says Brothers. “The one who gets his message out there is the one who gets the visitation and, therefore, the dollars.”

Add to that the proliferation of Internet sites that offer discounted travel deals and that everyone is looking for a bargain. Thus there’s an expectation for hotels and venues to offer a lower rate.

Industry leaders say the state must recognize the impact of tourism as a clean industry that doesn’t burden the state’s schools, nor does it inordinately tax local community’s police and fire service.

“All the studies show that tourism is the new economy,” says Miller of Asheville. “For a return on your investment, tourism expenditures for marketing is a no-brainer. It’s a win-win.”

Brothers says while the travel industry is struggling, North Carolina remains in an enviable position. “When the economy does turn around there are going to be a lot of businesses that have failed in other states,” says Brothers. “With places like Pinehurst, the Biltmore House and the Grove Park Inn, we’ll make it through.”



Festival of Flight Propels State Through a Banner Year
The 12 seconds of man’s first powered flight 100 years ago on North Carolina’s coast are said to have changed the world. This year’s centennial celebration of that first flight, while not world changing, is expected to have a huge impact on North Carolina’s tourism industry. News coverage of the 99th anniversary was worldwide, and so far during 2003, media have come calling from Korea, Japan, Italy and the United Kingdom, to name a few.

“Throughout the whole year we’ll be celebrating,” says Lynn Minges, executive director of the N.C. Division of Tourism, Film and Sports Development. The first flight is the subject of themed exhibits at museums across the state and a popular choice for the cover of many travel guides.

The yearlong celebration is expected to be a tremendous boost for tourism in North Carolina — and especially the Outer Banks. The estimated economic impact this year alone is more than $15 million.

If you don’t want to wait until the Dec. 17 anniversary of the flight itself, there will be plenty of opportunities to celebrate during the year. Fayetteville will be a significant part of the yearlong flight celebration with its Festival of Flight festivity from May 16-26. During those 11 days, which include the travel-rich Memorial Day weekend, Festival of Flight will present arts festivals, educational exhibits, events highlighting the city’s rich heritage and an air show that will demonstrate just how far the Wright brothers’ invention has come.

Fayetteville, with its close connection to Fort Bragg and Pope Air Force Base, will feature military aviation history and education. The celebration will include the largest Memorial Day parade in North Carolina. 

The state’s many other aviation-oriented attractions will host centennial flight celebrations during the year and have their unique displays of vintage aircraft on display, including museums in Hendersonville, Asheboro, Charlotte, Fayetteville and Manteo.

The year’s events will crescendo Dec. 12-17, when Dare County hosts dignitaries from around the world who will celebrate the flight. The celebration will be marked by a precise recreation of the Wright brothers’ flight at 10:35 a.m. on Dec. 17, exactly 100 years to the minute of that flight.

The National Parks Service, which oversees the Wright Brothers National Memorial, has partnered with the state First Flight Centennial Commission to plan events for the week in Kill Devil Hills.

As part of the event, the monument has benefited from a $400,000 restoration and work is under way on a new pavilion. Its use will be long-term, as during the next five years more than 4 million people are expected to visit the Wright Brothers National Memorial.

“Thousands of people come in and out of the Outer Banks every summer,” says Lola Hilton, public information officer for the National Parks Service Centennial Celebration, so the community is well equipped to handle the crowds. “This is truly an international event, and it’s fortunate for us in the state of North Carolina and Dare County to be the hosts.”  -- Laura Williams-Tracy



Travel and Tourism Calendar
North Carolina is home to hundreds of major events each year that draw tourists from throughout the world. Below are several scheduled between now and the end of the year that you might not want to miss.

May

3 — Brookhill Steeplechase. Eastern North Carolina’s only nationally sanctioned steeplechase, this annual horse racing event attracts more than 12,000 spectators in Brookhill Farms in Clayton, just southeast of Raleigh. Info: 800-849-8499.

8-11 — Wachovia Championship. Charlotte’s recently renovated Quail Hollow Club is the site for the PGA Tour’s first return to the Queen City since the 1970s. Info: 800-945-0777.

16-26 — Festival of Flight. The state’s first major celebration of the Wright brothers’ inaugural flight will take place for 11 festive and exhibit-rich days in Fayetteville. Info: 910-323-0003.

17 — The Winston. This annual event at Lowe’s Motor Speedway in Concord pits the top stock car drivers in an all-star race with millions of dollars on the line. Info: 800-455-3267.

23-25 — SAS Carolina Classic. Golf’s future stars compete over 72 holes in a Nationwide Tour event at the highly regarded TPC at Wakefield Plantation in North Raleigh. Info: 919-531-4653.

25 — Coca-Cola 500. The world’s best racers close out week two at Lowe’s Motor Speedway with their longest race of the season — 400 laps at speeds of around 180 mph. Info: 800-455-3267.


June

19 — WUSA All-Star Game. The world’s best female soccer players come together to showcase their skills for one memorable night at SAS Stadium in Cary. Info: 919-824-5900.


August

24 — Jimmy V Celebrity Golf Classic. More than 100 celebrities, 100 local and national sponsors, and 1,200 volunteers converge at Cary’s Prestonwood Country Club to play golf and raise money in the fight against cancer. Info: 800-849-8499.


September

19-21 — SAS Championship. The Champions Tour, where golf’s 50-and-older set go to bolster their bank accounts, returns to Prestonwood Country Club in Cary for a third time. Info: 919-531-4653.

26-28 — Greater Hickory Classic at Rock Barn. This inaugural Champions Tour tournament will bring deserved attention to Rock Barn Golf & Country Club in Conover, a newly minted, masterful design by Robert Trent Jones Jr..Info: 828-459-1125.


October

4-Nov. 15 — Carolina Renaissance Festival. Held north of Charlotte, this is a medieval amusement park, eight-stage theater, 18-acre circus, arts and crafts fair, jousting tournament and feast — all rolled into one. Info: 877-896-5544.

11 — UAW-GM Quality 500. For the first time in its long history, the fall NASCAR race at Lowe’s Motor Speedway will be run under the lights and in prime time on a Saturday night. Info: 800-455-3267.

16-19 — Chrysler Classic of Greensboro. One of the PGA Tour’s most storied stops moves from the spring to the fall; golfers will find a Forest Oaks Country Club course that’s been renovated by Davis Love III. Info: 336-379-1570.

16-22 — International Home Furnishings Market. More than 75,000 buyers and some 2,500 manufacturers are expected to descend on High Point for the largest home furnishings trade show in the world. Info: 336-884-5255.

17-26 — North Carolina State Fair. The largest event in the state returns to Raleigh, featuring craft demonstrations, livestock exhibits and competitions, concerts, games, rides, side shows and food. Info: 800-849-8499.


November

9 — Pop Secret Microwave Popcorn 400. Traditionally, the Winston Cup season champion has yet to be decided at this second-to-last race of the year at North Carolina Speedway. Info: 910-582-2861.


December

12-17 — First Flight Centennial Celebration. Dignitaries worldwide will descend on Kill Devil Hills in a celebration marked by a precise recreation of the Wright brothers’ flight at 10:35 a.m. on the 17th. Info: 252-441-8144.

TBD — Continental Tire Bowl. Charlotte again is part of the college bowl game frenzy, hosting football teams from the Atlantic Coast Conference and the Big East. Info: 800-231-4636.


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