Tourism-related spending increased 6.2 percent in New Hanover County last year and neared the benchmark set in 2007, according to a presentation Monday from the New Hanover County Tourism Development Authority (TDA).
Spending reportedly hit $425.84 million and generated nearly $40 million in state and local tax revenues in 2011, ultimately leading to a $190 tax offset for each New Hanover County resident. TDA Chairman John Andrews told the New Hanover County Board of Commissioners Monday morning he felt that was “especially deserving of your attention.”
“As you all know, tourism represents a major economic engine for New Hanover County,” Andrews said.
Also noteworthy: More than 5,100 jobs stood on the travel and tourism industries last year, amounting to a payroll value of $94.44-million, TDA said.
Recording numbers close to the $426.08-million benchmark set in 2007, New Hanover County in 2011 maintained its rank of ninth out of the state’s 100 counties in tourism spending and second among its 20 coastal counties, according to the group.
Room occupancy tax (ROT) collections also produced well for the county. According to TDA’s data, they improved 9.29 percent last fiscal year, surpassing by far the 5.65 percent increase marked in fiscal 2008, the previous benchmark year. Additionally last fiscal year, all three of the county’s beach towns—Carolina Beach, Kure Beach and Wrightsville Beach—cruised past previous benchmarks.
New Hanover County and its municipalities collect a 6-percent ROT on transactions for hotel rooms, inns, campgrounds and other short-term stays. The revenues pay for beach renourishment, tourism marketing and, for Wilmington, the publically-owned convention center on Nutt Street downtown.
Specifically, Wilmington has a statutorily established “convention center district” boxed by the Isabel S. Holmes Bridge, the Cape Fear Memorial Bridge, Fourth Street and the Cape Fear River. The entire 6 percent levy within that district is meant to support the convention center, while outside the district the first 3-percent funds the convention center. The second 3-percent supports beach renourishment and efforts of the TDA.
Total ROT collections in fiscal 2012 were $8.48 million, 29 percent of which benefited beach renourishment and 29 percent of which benefited the convention center. Eighteen percent supported tourism while the remainders funded marketing efforts and activities at the beach towns.
TDA this fiscal year is operating on a $3.85 million budget, representing a nearly 12-percent increase over last fiscal year’s, according to Kim Hufham, CEO of the Wilmington and Beaches Convention and Visitors Bureau, TDA’s business entity.
For the near future, Hufham said the group plans to focus on online advertising more and implement a greater billboard and television presence in the Charlotte market. It also wants to expand its social media presence and connect with the global travel market through planning website TripAdvisor.com.
“Online is where it’s at in the travel industry,” Hufham said.
She added that the group would explore partnerships with the private sector to stretch its publically supplied budget.
County commissioners including Rick Catlin Monday morning voiced support for TDA’s efforts. “Tourism is one of the most important industries in New Hanover County,” Catlin said.
“It’s great to see that our numbers are increasing,” said Commissioner Jonathan Barfield.
But New Hanover County was not alone in its tourism success last year. Gov. Bev Perdue said in August that all 100 North Carolina counties saw boosts in visitor spending.
Domestic visitors set a record with $18 billion in spending, which marked an 8 percent increase from 2010’s activity, according to the governor’s office. “For the first time, state tax receipts as a result of visitor spending neared $1 billion in 2011,” a news release stated. “Local tax revenues totaled nearly $561 million. Visitor expenditures directly generated 187,900 jobs and more than $4 million in payroll income within North Carolina in 2011.”
