Gas prices don't dent travel in the Carolinas

When Carolinas residents head out this weekend for the Labor Day holiday, their trips will cap an uneven summer season for the states' tourism industry.

While hotels across North Carolina filled more rooms than last summer, occupancy in South Carolina dipped, due in part to more rooms in markets such as Myrtle Beach.

More people visited attractions such as the Outer Banks and the Biltmore Estate, but traffic on the Blue Ridge Parkway dropped from last summer.

In June and July combined, N.C. hotel occupancy was up about 2 percent over last year, according to Smith Travel Research, a Tennessee firm that regularly compiles hotel industry data.

The increase came as room rates rose about 7 percent and the number of rooms remained almost the same, said Lynn Minges, executive director of the state's tourism division. Those factors combined to boost revenues this summer.

Most visitors to N.C. destinations come from within the state and nearby states, Minges said. Since those trips don't cover many miles, she said, visitor traffic hasn't been affected by gas prices.

"We tend to do well when gas prices are high," Minges said, explaining that vacationers can offset fuel costs. "They may eat out a little less. They may spend less on gifts and souvenirs."

South Carolina also is a big market for auto travelers, who make up about 85 percent of the state's visitors, said Marion Edmonds, a spokesman for the state's tourism department.

Occupancy rates dropped at S.C. hotels this summer, Edmonds said, in part because the state has about 2 percent more hotel rooms. That means there could be more guests than last summer, he said, but the larger inventory of rooms would result in a lower occupancy rate.

"It essentially washes out," Edmonds said.

The average room rate and revenue were up in June and July, according to Smith Travel Research. In addition, Edmonds said, that report doesn't include "that growing universe of accommodations" such as small inns, bed-and-breakfasts and beach cottages.

When you consider that, Edmonds said, "I think we're in a pretty stable situation."

Accommodation tax revenue up

A Myrtle Beach tourism official echoed Edmonds, saying revenue from accommodation taxes is a better measure of visitor traffic. That revenue is up 5 to 10 percent this summer, said Nicole Aiello, a spokeswoman for the Myrtle Beach Area Chamber of Commerce.Other oceanside destinations, though, saw unmistakable gains.

Visitor traffic at the Cape Hatteras National Seashore jumped 11 percent in June and 48 percent -- from about 313,000 people to almost 465,000 -- in July, according to National Park Service statistics.

Carolyn McCormick, director of the Outer Banks Visitors Bureau, said the region benefited from a beach on Ocracoke Island being named the best in the U.S. That honor came from Stephen Leatherman, a Charlotte native known as "Dr. Beach" for ratings he has issued since 1991.

Also, McCormick said, the national seashore has no entry fee; the only cost comes when you want to climb to the top of the Cape Hatteras lighthouse. McCormick said she expects the revenue for paid accommodations -- including campgrounds and rental homes -- in the Outer Banks to be 15 to 20 percent higher than last year.

Across the state, Asheville also expects higher lodging revenues this summer, said Dodie Stephens, a spokeswoman for the city's convention and visitors bureau. About 90 percent of visitors come by car, Stephens said, and hotel room revenues in July were up more than 7 percent over the same month in 2006.

One of the area's biggest draws, the Biltmore Estate, had almost 300,000 visitors this summer -- a 5 percent increase from last year, said Julie Hanser, vice president of attraction marketing at the estate. "And we had a great summer last year," she added.

This year was the second that Biltmore admitted children 16 and younger for free, Hanser said. Although admission prices at the gate rose slightly, she said, the estate also offers discounted tickets when bought online.

Another of North Carolina's most-visited attractions, however, didn't get as many visitors this summer.

Almost 2.1 million people traveled some part of the Blue Ridge Parkway -- which extends into Virginia -- in June, down more than 3 percent from June 2006. July's traffic was off even more, with just over 2 million visitors -- a nearly 13 percent drop from more than 2.3 million last year.

"That is a little bit of a shock," park ranger Yolanda Gibson said Thursday. "The irony is that (attendance in) our campgrounds are up."

Hotel Room Stays

Occupancy rates for N.C. hotels and motels increased from last summer, while rates for S.C. hotels and motels dipped slightly.

North Carolina Month Occupancy rate Change from June 2006 June 2007 68.8 +2.8% July 2007 66.7 +1.8%

South Carolina Month Occupancy rate Change from June 2006 June 2007 70.3 -0.4% July 2007 70.0 -2.5%

Source: Smith Travel Research, via state tourism offices.