Hilton Head Monthly Magazine

Golf provides the green for South Carolina’s coastal economies.

ASUB-PAR ECONOMY HASN’T diminished the hopes of several Hilton Head Island business owners who say they’re still counting on golf courses to drive traffic to the island in 2009. But that could be a tough task considering that area courses are reporting an almost 6 percent drop in the number of rounds played.

The golf industry contributed $2.7 billion to the state’s economy in 2007, up from $2.2 billion in 2004, according to a South Carolina Department of Parks, recreation and Tourism report to be released this year.

The report accounts for golf ’s economic impact by considering not only the money spent on golf but also the capital investments of the golf courses and how people spend their money after they’ve fnished up on the 18th.

“As is the case with similar-sized manufacturing industries, golf has quantifable impacts on the economy — creating demand for the goods and services of other businesses, creating jobs and incomes for the state’s residents, and creating tax revenues for state and local governments,” the report states. “Furthermore, it is a major tourism draw which brings business to the hospitality industry.”

And while the state’s studies on the golfing industry aren’t as detailed as those on tourism, the sport’s infuence on Hilton Head Island and Bluffton is undeniable.

“I think (golf) has a great impact on our business,” said Phillip LeClaire, general manager of Frankie Bones restaurant in Main Street Village. “It’s especially true during of-season times. When you get that extra push it’s nice.”

Visiting golfers spent almost $1.2 billion in South Carolina in 2007, 23 percent of which was spent in the Bluffton-Hilton Head Island region, according to the draft report. Visiting golfers contributed a little less than $1 billion to the state’s economy in 2004.

“The most appealing element of our 8-mile-by-12-mile island is that its attributes surpass any other area that an avid golfer may consider for enjoying their leisure time when not playing golf,” said Ann-Marie Adams, executive director of the Hilton Head Area Hospitality Association. “Those who seek attractive and competitive course time also seek outdoor recreation opportunities, diverse culinary offerings, ocean side accommodations and entertainment options that range from live music, to comedy, to the performing arts and perhaps even cooking classes or half-day fshing excursions.”

But despite golf ’s increasing fnancial influence, Brett Borton, executive director of the Lowcountry Golf Course Owners Association, says the nation’s tough economic climate is affecting courses and businesses in three ways: Area courses have seen a steady decline in the number of rounds played over the last two years, courses are losing members and visitors aren’t staying in the area as long as they used to.

“ I’ve never felt the golf industry here is supported to the degree that it deserves to be, knowing the economic impact it has on this community.”

Even the Verizon Heritage is struggling. Studies show that the Heritage has a total annual economic impact in Beaufort County of more than $80 million, but tournament organizers this year had a hard time securing sponsorships, selling tickets and providing players with courtesy cars. Similar problems are being felt across the PGA tour schedule.

“I’m not going to be able to call it until after the Heritage,” Charlie Golson, owner of Charlie’s L’étoile Verte restaurant, said of how the golf industry will efect his bottom line. “If we only get two-thirds of that $80 million we’re all in terrible trouble. I think they should advertise the golf and the beaches and we would have a great summer. I think it could pull us through the whole economic mess if it’s marketed properly.”

Borton’s group works with the Hilton Head Island-Blufton Chamber of Commerce and Visitor & Conventio Bureau to promote the island to the Ohio, Atlanta and Charlotte drive markets and also utilizes its GolfIsland.com brand to reach across the country and the globe. Visitors to GolfIsland.com can book full golf and lodging packages or simply book a couple of rounds for the weekend. Despite all that, Borton said there’s not enough being done to promote Hilton Head as a golf destination. “I’ve never felt the golf industry here is supported to the degree that it deserves to be, knowing the economic impact it has on this community,” he said.

But area leaders have said they understand the role tourism and golf play in driving the local economy and are doing all they can to support it.

The Hilton Head Town Council in December agreed to provide the Hilton Head Island-Bluffton Chamber of Commerce with an additional $200,000 to market the island to its two primary drive markets: Charlotte and Atlanta. Borton acknowledges that the drive markets are critical to the island’s golf economy.

In fact, the print and Internet material associated with the Chamber’s “emergency” marketing campaign prominently features golf, stating that “the ocean lies just beyond the world-class golf courses.”

“We’re spending more money marketing Hilton Head Island than has ever been done before,” said Mayor Tom Peeples. “We’re optimistic, and I believe that it will be successful.”

But Borton says his group should receive a greater portion of the state accommodations tax collected by Hilton Head. The accommodation tax is a 2 percent tax on overnight lodging within town.

Under state law, money raised through the tax is supposed to be distributed back to organizations that promote tourism. The Lowcountry Golf Course Owners Association has received $75,000 in accommodations tax revenue from the town since 2005. The town handed out $2.7 million in accommodation tax grants this year and the Chamber received $1.2 million as the town’s designated marketing organization. Borton’s group did not receive any money from the town this year.

“Competition for this money is tough, but we remain one of the primary drivers of tourism to Hilton Head Island. We remain one of the biggest generators of tax revenue, not only to Beaufort County but to Hilton Head Island,” Borton said.

Although the association hasn’t received ATAX dollars since 2005, it does receive a portion of the ATAX money given to the Visitor & Convention Bureau, though Borton said that portion should be larger.