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The setbacks caused by the COVID-19 pandemic are nothing compared to the resurgence of Charleston’s tourism industry.
Last year, the city saw its highest tourism numbers since before the pandemic, according to a recent study from the College of Charleston.
Tourism continues to have a big impact on Charleston-area residents, but not in the way that most would expect: Charleston residents benefit from increased tourist spending, reduced commutes, easier air travel and more hospitality jobs, said Mark Witte, an economics professor at the College of Charleston.
According to a College of Charleston study, Charleston’s tourism revenues will exceed $13 billion in 2023, $7 billion more than in 2019. Considering that visitor numbers increased by just 8% over that period, tourists aren’t coming in larger numbers, but they are spending more: on average, adults will spend $170 more per visit.
“From an economic development standpoint, whether it’s a business coming into the area or someone moving to the area, we always chuckle and say, ‘You have to come here first to know if you want to come here,'” said Dan Blumenstock, chairman of the Explore Charleston board of directors and hotel director for Lowcountry Hotels.
Tourism contributed to nearly a quarter of business sales last year, up 10% from 2020. In South Carolina, increased sales tax revenue means locals pay less in taxes. In return, Charleston’s increased tourism numbers mean less money in residents’ wallets.
In addition to tourism dollars helping general sales, new hotels are also becoming hot spots for big-spending guests: Charleston has seen a rise in demand for luxury hotels since the COVID-19 pandemic, which has seen a number of boutique hotels open in the area, explained Witte, who also served as interim director of the Office of Tourism Analysis in the 2023-24 fiscal year.
As these hotels become more upscale, spending increases and more money flows into the city’s tax base.
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In addition to customer demand for larger stays, Witte said hoteliers are eyeing Charleston as a good location to invest in. Charleston’s occupancy rate was about 71% last year, compared with the national average of 66%, indicating the city has the ability to retain a higher percentage of guests than other parts of the country.
“We’re not trying to fill the hotel in a haphazard way,” Blumenstock said. “We’re very focused on what we do to attract a different clientele.”
Tourists are also looking outside of downtown Charleston’s peninsula and into the surrounding areas. Witte said the East Cooper area of Charleston is experiencing strong growth, with people settling or moving ashore in areas such as Mount Pleasant and Sullivan’s Island.
As spending increases, more tourists are flying into Charleston than ever before, reducing road congestion caused by tourists. Increased access means less parking downtown, less congestion caused by tourists driving through the area, and more spending and time per person, Witte said. He said most of the congestion is caused by local residents.
Since 2020, passenger traffic at Charleston International Airport has increased 68.3%, growing from about 2 million passengers a year to more than 6 million. The increase indicates that more people are coming by plane instead of driving, Blumenstock said.
Increased air travel opportunities have allowed locals to take more direct flights than ever before, and have led to more travel outside of Charleston.
“One of the things we’ve done really well is balance livability with tourism,” Blumenstock says. “Whether it’s festivals, arts, sports, those things are enjoyed by locals and out-of-towners alike.”
Charleston area residents also enjoy tourist-oriented activities and events, and although designed for tourists, experiences like King Street attractions, world-class dining, and numerous museums and historical sites remain highly convenient for locals too.
One of the most impactful contributions has been the International African American Museum, which has played a major role in increasing tourism interest. Speaking with guests at the Lowcountry Hotel, Blumenstock said the IAAM was “one of the top things to do while in Charleston” for them.
“This really helps inspire stories that need to be told,” Blumenstock said, “that go deep into the roots of their traditions that were started by a lot of people.”
