2009 Myrtle Beach Visitation Outlook

Today the Myrtle Beach Area Chamber of Commerce hosted two research presentations to address the 2009 Myrtle Beach visitation outlook. John Pelletier, chairman, Equation Research, and Dr. Donald Schunk, research economist, Coastal Carolina University’s BB&T Center for Economic and Community Development, presented their findings to the MBACC board of directors and local elected officials.

Total tourism demand nets the Palmetto state roughly $16 billion annually, with the economic impact of tourism expenditures in the Myrtle Beach area around $5.8 billion. According to Schunk, current trends could lead to a potential loss of more than $400 million in tourism revenues in 2009 if market share remains consistent. That figure could decrease if the destination gains market share or increase if the destination loses market share.

Anticipating a reduction in its 2009 promotional budget, the MBACC commissioned Equation Research to conduct a study on destination metrics. The purpose of the research was to gauge travel planning trends, travel expectations and other factors impacting tourism in the Myrtle Beach area in 2009.

An online survey was conducted Jan. 14-18 in the Top 10 visitor states outside the Carolinas. Respondents were 25-54 years of age who traveled last year and plan to travel this year. The survey was divided evenly among travelers who had visited in the past two years (Myrtle Beach visitors) and those who had not visited in the past two years (nonvisitors). Survey results revealed:

Awareness and desirability of the Myrtle Beach area are growing, largely due to increased advertising in 2007 and 2008:

· Desirability of the destination is increasing: 43 percent of Myrtle Beach visitors, 26 percent of nonvisitors. (When first measured in fall 2006, the average rating for the Myrtle Beach area was roughly 16 percent.) This ranks favorably with competitor destinations (Daytona, Virginia Beach, Gatlinburg-Pigeon Forge and Orlando). Myrtle Beach visitors rated Orlando, the closest competitor, 33 percent; nonvisitors, 28 percent.

· Sixty-two percent of Myrtle Beach visitors and 36 percent of nonvisitors reported seeing advertisements promoting the destination. (When first measured in fall 2006, the average rating for the Myrtle Beach area was roughly 12 percent for visitors/nonvisitors.)

· This rating compares favorably to most competitor destinations (Virginia Beach, Daytona Beach and Gatlinburg-Pigeon Forge), except Orlando. Seventy-nine
percent of Myrtle Beach visitors and 72 percent of nonvisitors reported seeing Orlando advertisements.

Awareness due to advertising will likely decline in 2009 due to reduced marketing dollars, both at the state and local levels:

· The 2009 promotional budget is roughly half the level of advertising in 2007 and 2008.

Myrtle Beach visitors reported high levels of satisfaction and tended to view the area as affordable:

· Ninety-two percent of visitors reported being either “very satisfied” or “somewhat satisfied.”

· Seventy-six percent of visitors believe the Myrtle Beach area is an “affordable vacation destination,” and 74 percent believe the destination offers “good value.”

Many Myrtle Beach visitors plan to cut back on travel and travel expenditures in 2009, largely due to the economy:

· The key factors that will negatively impact travel planning in 2009 are uncertainty about the economy (52 percent) and reduced disposable income (39 percent).

· Thirty-one percent of visitors plan to take fewer trips, and 50 percent plan to spend less on leisure travel in 2009. (These figures are unprecedented and indicate that Myrtle Beach visitors are somewhat more likely to cut back in 2009.) The comparable percentages for nonvisitors are 29 percent and 44 percent, respectively.

Reduction in travel expenses will hit lodging, retail, restaurants and entertainment very hard:

· For those Myrtle Beach visitors planning to cut back:
Ø 46 percent will cut back on shopping
Ø 39 percent will spend less on souvenirs
Ø 32 percent will look for a more affordable hotel
Ø 32 percent will see fewer shows or spend less on entertainment
Ø 30 percent will visit fewer attractions
Ø 27 percent will reduce the number of nights they travel
Ø 23 percent will prepare more meals instead of eating out

Most are willing to change destinations in 2009 if it leads to savings:

· Forty-eight percent of Myrtle Beach visitors and 51 percent of nonvisitors have not chosen their destination for 2009.

· When asked if they will consider visiting a different destination in 2009, as compared to 2008:
Ø 67 percent of Myrtle Beach visitors said “yes” (only 8 percent said “no”)
Ø 68 percent of nonvisitors said “yes” (only 8 percent said “no”)

· The most powerful incentives are a free night stay, discounted travel packages and discounted airfare.

The research findings are available on the MBACC Web site, MyrtleBeachAreaChamber.com.