ASHEVILLE AND WESTERN NORTH CAROLINA WHERE TOURISTS COME TO VISIT AND BUSINESS COMES TO STAY.

• Author: Rose, Tracy
• Position: Brief Article

Scenic downtown Asheville is at the heart of a growing number of industries, tourists and retirees flocking to western North Carolina.

When you think about western North Carolina, several images may come to mind. Soaring mountain vistas, the Bilt-more Estate, maybe the Blue Ridge Parkway. In short, the features that form the basis of a strong tourism industry.

Tourism may be the best-known part of western North Carolina's economy. In Buncombe County alone, tourists spent $379 million in 1997, putting it sixth in tourism spending among the state's counties, according to the N.C. Department of Commerce. But the region's economy is growing in other directions, as well. "We have a diverse economy," says Dale Carroll, president and CEO of AdvantageWest, a regional economic-development commission for the western 23 counties.

As in many other parts of the state, the largest employment sectors in the region are manufacturing, wholesale and retail trade. Construction and services are also fast-growing sectors in the west.

Asheville and Buncombe County illustrate the varied elements of the economy that propel the region's growth. Important components include medical services, manufacturing, commercial and residential development and the small businesses that fuel Asheville's revitalized downtown.

Western North Carolina has a long history as a center for medical cures. As early as the mid-1800s, the natural springs at Hot Springs -- then known as Warm Springs -- in Madison County were touted as a remedy for people suffering from rheumatism. In the early 1900s, visitors suffering from tuberculosis flocked to Asheville to take advantage of the mountain climate. "Asheville came to be known as 'Sanitarium City,'" says Mac Williams, the city's economic-development director. "Before Asheville was a tourism destination, it was a medical-healing destination."

Asheville is the largest city in the western part of the state, with a 1998 population of 68,294. It's the region's medical hub, anchored by the recently merged Mission St. Joseph's Health System. The nonprofit, private health system began as two separate, private, nonprofit hospitals -- Memorial Mission and St. Joseph's, which sit across Biltmore Avenue from each other. They partnered in 1996, and last year, the Sisters of Mercy sold St. Joseph's Hospital to Mission. The hospitals merged assets and began to be managed as one institution, says David S. Spillers, senior vice president at Mission St. Joseph's Health System. Over the years, the two hospitals had developed different strengths and focuses. "It made a lot of sense to come together," Spillers says. "It was a natural fit."

Mission St. Joseph's Health System is a major player in the west's economy. It had $530 million in gross revenues in fiscal year '99. Spillers projects $550 million in 2000. The health system plans to spend $80 million over the next few years updating facilities, including building an outpatient surgical center. The hospital system is the largest employer in the state west of Charlotte, with the equivalent of 4,300 full-time positions, Spillers says. It's also one of the better-paying employers, with salaries that average $40,000 a year, including benefits.

Buncombe County's status as a medical hub helps explain why 28% of the county's 102,720 workers, according to 1997 estimates, are employed in the services sector. That includes health-care providers, hotels, auto-repair shops, colleges and law offices, says Tom Tveidt, director of research and information at the Asheville Area Chamber of Commerce.

While business leaders in western North Carolina recognize the importance of maintaining employers such as Mission St. Joseph's Health System, they also are recruiting new businesses and industries. One approach has been through public-private partnerships such as the Buncombe County Economic Development Commission, a partnership of the Asheville Area Chamber of Commerce and the Buncombe County Commission. Since its creation...