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Letter from Phil Kirk
Why Tourism is Important to Jobs
 Did you know that North Carolina is now the sixth most visited state in the
nation? We rank behind only California, Florida, Texas, Pennsylvania and New
York. Did you know that the travel and tourism industry pumps more than $12 billion
into our state’s economy each year? Did you know that tourism generates more than $1 billion in state and local
taxes each year? On average, each travel dollar produced adds nearly six cents
in state tax receipts and three cents in local taxes. Did you know that tourism expenditures directly support nearly 200,000 jobs
across our state?
The answer to each question would produce a “no” from most North
Carolinians. Too many people are not knowledgeable about this important industry
in our state.
Mecklenburg, Wake, Guilford, Dare, Forsyth, Buncombe, Durham and New Hanover are
the leading destinations.
The reasons people travel to North Carolina are varied. Thirty percent come to
visit friends, relatives, and the military and another 30 percent come for
entertainment and recreation. Twenty-five percent come for business and military
reasons with the remaining 15 percent citing “personal” reasons.
These figures emphasize the tremendous economic impact of our military bases in
eastern North Carolina as they relate to tourism — a fact not widely known nor
considered.
Obviously, convention business brings in a lot of people and money. The recent
building of convention centers in such places as New Bern and Greenville, along
with a new one in Charlotte, and discussions regarding new facilities in
Wilmington, Raleigh and other cities — coupled with the many existing ones,
show that many North Carolina leaders understand the value of a convention
center complex on the economy.
The way tourists spend their money in our state is also interesting:†food
service, 25 percent; public transportation, 23 percent; lodging, 17 percent;
auto transportation, 17 percent; entertainment, 10 percent; and retail purchase,
8 percent.
The effects of 9-11, the depressed economy, and the wars in Iraq and Afghanistan
are still being felt. As consumer confidence has fallen, so has travel. However,
the bright side is that domestic travel and shorter trips closer to home are
increasing. Spending per trip continued to decline nationally and in North
Carolina.
In our state, rain has been a negative. A year ago, it was the drought! Travel
in North Carolina last year was up nearly 3 percent while U.S. domestic trips
were up only three-tenths of 1 percent. Business traveling is on the rebound
while leisure travel remains steady.
North Carolina’s travel and tourism industry is progressive and
marketing-oriented. Lynn Minges directs the Division of Tourism, Film and Sports
Development in the Department of Commerce. The tourism industry is very diverse
and sometimes has competing interests and priorities. Minges and her staff have
been effective in getting the various components of the industry working well
together. The North Carolina Travel and Tourism Board is also effective at
getting the major players together on a quarterly basis. I serve on that Board
as well as on the Travel and Tourism Coalition Board. Rosemary Wyche, NCCBI’s
vice president of development, is our alternate on both boards.
The N.C. Economic Development Board, on which I serve, is working on developing
an “N.C. Brand” to use in promotional and marketing activities, as well as
developing incentives for tourism product development and film making and
research that will be helpful in strengthening the industry. Heritage tourism,
historical preservation and cultural activities are also being considered.
Historically, state government has not invested nearly as much in advertising
and marketing as our competitors for tourism dollars. That makes the need for
public-private partnership and education of elected officials — and the public
in general — even more important on tourism issues now and in the future.
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