A tourism economy can come with some welcome, but also challenging, baggage.

Visitors spend millions in the Wilmington area every year, and local business leaders and elected officials agree that tourist dollars, coming in increasing amounts as the economy continues to improve, help the community as a whole.

“Truly, tourism touches just about every industry that we have here,” said Kim Hufham, president and CEO of Wilmington and Beaches Convention & Visitors Bureau, during an event highlighting the area’s tourism industry earlier this month.

While tourism in the Cape Fear region is lauded by many for its contributions of cash, jobs, quality-of-life enhancements and attention, some effects also include traffic congestion, low-wage employment, infrastructure stresses and the need for more hotel rooms. In addition, some proposed legislation could make it harder for the region to remain a top destination for tourists.
 

Hospitality industry employment

In its demographic and labor dynamics section, an analysis from Garner Economics pointed out that average weekly wages in New Hanover County are nearly 25 percent below the national average, nearly 10 percent below the North Carolina average. Per capita income in the county is more than 16 percent below average for the U.S. and slightly less than the state average.

Some say the area’s tourism-heavy economy means that many people are employed in low-wage – sometimes seasonal – jobs. Low wages result in low levels of spending by these individuals, they argue.

University of North Carolina Wilmington economics faculty member Peter Schuhmann, who
studies tourism, pointed out that there are many positive factors to a tourism-based economy.

“While it is true that many occupations in the service sector could be characterized as paying relatively low wages and having limited upward mobility, this does not mean that the output and spending of these people do not contribute to the economy both directly and indirectly,” he said. “Provided that the quality of the tourism product is maintained, tourism provides employment and income and is an important economic driver. This employment and income creates opportunity for upward mobility.”

Tourism provides employment for the members of society who are most likely to be unemployed: younger people and people with lower levels of education, Schuhmann noted.
“Without such employment these members of society will be even more limited in their opportunities and mobility,” he said. 

Diane Withrow, lead instructor in Cape Fear Community College’s hospitality management program, says she hates the term “burger flipper” and doesn’t understand “what all the scoffing is about” with regard to hospitality industry jobs.

“Yes, there are entry-level jobs,” she said. “That’s where anyone starts. In our industry, though, you don’t necessarily need more education to move from being a bus person to the CEO. It’s the American dream.”
 

Diminishing dollars?

In April, city, county and beach town leaders united at a news conference to oppose a proposed sales tax law that would redistribute those dollars.

“It would really affect counties that are dependent upon tourism more heavily than other counties,” Wilmington mayor Bill Saffo said in a recent interview. “I think it’s grossly unfair for a lot of different reasons but in particular because we support the infrastructure like the Riverwalk, like police and firefighters, like maintaining our roads, which means our tourists can come here and have an enjoyable stay and if they ever need any city services or county or town services, it’s there for them.”

Local municipalities would lose millions, local leaders say. A sales tax redistribution would be another in a series of blows that relate to the area’s tourist industry, including the loss of film industry tax incentives, historic tax credits and the business privilege license tax, Saffo said.

“It’s a slap in the face,” he said. “We’re spending the money from our municipal government point of view to attract more people to our community; to attract tourists to our area not only from within the state but from outside of the state; to have that money taken from us – it’s not fair, and it’s not right.”
 

On the road again

Being a tourist destination means lots more vehicles on roadways and bridges. And that can add up to increased frustration for drivers and increased wear and tear on the transportation infrastructure, said Mike Kozlosky, executive director of the Wilmington Metropolitan Planning Organization.

“Obviously, our major arterial roadways experience congestion, which is further exacerbated during peak seasons,” he said. “You can see the difference in congestion between peak season and off peak just by driving on College Road or the intersection of Military Cutoff and Eastwood.”

Hufham said an increase in traffic is a small price to pay for tourist industry dividends.

“We might have a little extra traffic from time to time, but the benefit is worth it,” she said. “We wouldn’t have the number of restaurants, attractions, shopping venues if we didn’t have the tourism industry.”

Brad Blake, a residential Realtor with Coldwell Banker Sea Coast Advantage in Wilmington and a former Myrtle Beach resident, agreed.

“You’re going to have cars on the road. It’s part of being a tourist economy. You just deal with it,” he said.

And as in other businesses, Blake said, the industry is good for the bottom line of local real estate companies.

“It adds money to the economy, but you also get people who come here on vacation and say, ‘Oh my gosh, I want to live here,’” he said.
 

Hotels, other needs

Although new hotels are in the works, officials say the area could use more rooms now for the many visitors who come during tourist season but also for events throughout the year.

“One of our biggest challenges is that we really don’t have enough accommodation space for large events,” said Taphne Taylor-Collins, general manager of Sandpeddler Inn and Suites at Wrightsville Beach. “In general, we need more hotel rooms overall. We could bring bigger groups, bigger conventions.”

Also with waves of visitors come pressures on area health care providers as tourists and locals alike spend more time out and about.

“People need to have fishhooks removed, they get sunburned, there are more area boating and automobile accidents,” said Kirk Singer, spokesman for Dosher Memorial Hospital in Brunswick County. “Each year we do what we can to gear up for the increase in patient visits, and the addition of our urgent care and the community primary care clinics have definitely helped.”

Most minor mishaps or illnesses can be treated effectively in an urgent care or community clinic setting, Singer said, noting that Dosher is expanding its capacity in that direction. Last June, it established an urgent care facility between Southport and Oak Island.

“We’re also about to open a Dosher Medical clinic on Bald Head Island in cooperation with the island’s village council, administration and public safety department,” Singer added. “That clinic will serve Bald Head Island’s health care needs during their peak summer tourist season.”

Better for business

A tourism economy is a boost for numerous local businesses, including commercial real estate firms, industry officials say.

“We see a lot more traffic and activity in the late fall and winter and early spring as our clients and prospects are looking to get open for business before tourism season hits,” said John Hinnant, commercial broker with Maus, Warwick, Matthews & Co. in Wilmington. “Your first three, six, nine months are critical in small business, and you want to make sure you have a shot at the tourists.”

An area that lures tourists can also lure more jobs, leaders say.

“Tourism is an integral part of our diverse economy that brings an infusion of outside dollars and exposure to the community from both the media and those visiting,” said Connie Majure-Rhett, president and CEO of the Wilmington Chamber of Commerce. “That exposure aids economic development efforts by showcasing the area to potential employers who may, in turn, start or relocate a business here, to those looking to relocate and add to our strong workforce – or simply to encourage others to visit.”