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PositionNorth Carolina's tourist industry - Industry Overview

Tourism officials want to attract travelers from around the globe - and those just passing through.

James France sees great things in store for the state's largest resort, the 510-room Grove Park Inn. "1995 looks like it's going to be the greatest year this hotel has ever seen," the Asheville resort's general manager says. And that's after record occupancy rates and revenues in 1993 and 1994. Of course, it helps that the nearby Biltmore Estate is celebrating its centennial this year.

But France still worries that establishments such as Grove Park don't get the respect other businesses do. "The hospitality industry in North Carolina represents $451 million in taxes," he notes. "So that's no chicken feed." In fact, the travel and tourism segment of the economy boasts that it's second only to manufacturing in revenues, generating between $7 billion and $8 billion each year. Ralph Peters, who chaired the advisory state Travel and Tourism Board in 1994, wants North Carolina to better coordinate its efforts to lure both businesses and vacationers.

Last year, the General Assembly and Gov. Jim Hunt did earmark $5 million over the next three years to promote the state overseas. With USAir's daily flights to Frankfurt and London from Charlotte and American's flights to London from Raleigh-Durham, the main international markets targeted are Germany and the United Kingdom. By the turn of the century, an estimated 25% of the nation's total travel revenue will come from abroad, and North Carolina doesn't want to miss out.

For now, more than 40% of the state's travelers come from neighboring states and Florida, according to a 1994 study. Slightly more than 25% say they're just passing through. That's largely due to a geographic advantage that Dick Trammell, director of the Travel and Tourism Division, wants to exploit: "If you have the potential to capitalize on travelers coming through the state, in terms of accommodations revenue, food revenue, gas, incidental sales, whatever the case may be, then for Pete's sake, don't allow them to just drive by your door."

But the flip side is that other states have been hurt recently by natural disasters and bad press about crime, so the drive-through trade isn't as dependable as it used to be. "While revenue had been up every year from 1980 to 1989, in reality from about 1984 to about 1989, actual market share of the Southeast regional market had been dropping. So what is a better year?"

Dave Heinl says he just had...

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