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The Highlands Bubble
Written By: Kaye McHan | Issue: 2021/06 – June
Highlands emerges from Covid lockdown in a stronger financial position, thanks to a small but steady flow of visitors.
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There are scores of reasons we are fortunate to live in Highlands, and now we can add one more to our gratitude list: Our Visitors. The continued strong economics of tourism we have experienced in Highlands is not reflected in our state.
In the state of North Carolina, visitor spending for 2020 dropped significantly due to Covid-19, taking a huge toll on the state’s tourism industry.
North Carolina is the sixth most visited state in the country and relies heavily on visitors to keep our economy strong. The latest reports are showing a 32 percent drop after a 10-year run of record visitor spending according to the U.S Travel Association and Tourism Economics.
These downturns not only affect tourism related businesses but also local residents, and governments. In 2020 total visitor spending in the state was $19.96 billion, a drop of 29.5 percent in domestic and 79.4 percent in international visitors. State and other local governments saw similar decreases in visitor-generated tax revenues. For more information go to: nccommerce.com/news/press-releases/annual-tourism-spending-report-released.
Because of Highlands’ geographical location and abundance of natural resources for outdoor activities we have thrived during Covid. Current predictions show towns like Highlands, in remote mountain and beach areas, will continue in a travel bubble a little longer. Visitor sentiment during Covid drove travelers to small, isolated destinations where they could spend their time outdoors and feel safe.
The question is: when or will the bubble pop?
So far, so good for Highlands. We are grateful for businesses that serve residents and visitors; for keeping neighbors employed; for taxes, paid by visitors who support our town government; and for Occupancy Tax which supports many local jobs, events for residents and visitors, grants to nonprofits, our Welcome Center, and marketing for months when we have low visitation and need the economic boost.
Taxes collected in Highlands last year increased over prior years, all because we had visitors, while, sadly, other areas in North Carolina struggled. Highlands dodged the Covid economic bullet, and for that we are deeply grateful.
Thank you, Visitors!
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