Roundtable: Travel & Tourism – Business North Carolina

••• SPONSORED SECTION •••

There’s plenty to see and experience in North Carolina. Why else would more than 43 million visitors make it their destination, whether for a work meeting or vacation, every year? But ensuring the travel-and-tourism industry continues to be an important part of the state’s economy, in good times and bad, takes effort. Business North Carolina gathered a group of experts from within the industry to discuss its current state, the challenges it faces and where it’s headed next. The conversation was moderated by Publisher Ben Kinney. The transcript was edited for brevity and clarity.

The discussion was sponsored by:

• Greenville-Pitt Convention & Visitors Bureau
• North Carolina Central University
• Pinehurst Resort and Country Club
• Robeson Community College
• Visit North Carolina

HOW HAS HURRICANE HELENE AFFECTED TRAVEL AND TOURISM IN NORTH CAROLINA?
TUTTELL: Each hurricane teaches us two things. First, many visitors don’t understand geography. They called us right after the hurricane, asking if it was OK to visit the Outer Banks. And people recover at different rates. You always have people ready to go immediately afterward. Five counties in North Carolina’s portion of the Great Smoky Mountains were only grazed by the storm, so they’re enjoying a fall season. But the storm’s impact was tremendous elsewhere. It hit at peak season. It was like a hurricane hitting
the Outer Banks July 4 weekend, which has never happened. The region is responsible for about $2.1 billion in direct spending each autumn. It’s the region’s biggest season, and October is the busiest month for many. About 46,000 tourism-related jobs are at stake, along with thousands of businesses and millions of tax-revenue dollars.

Our responsibility is safety, rescue then recovery. It has been a challenging process. The coast has big bridges, so it’s easy to block one, controlling how people arrive and depart. There are many small bridges in the mountains. You have real challenges when they’re compromised. You can’t fix them by slapping down asphalt. So, while the state usually bounces back quickly from hurricanes, this recovery will take a long time.

Our unique challenge is alerting visitors to where they can go and how to get there, while staying away from potentially dangerous locations and not interfering with recovery efforts. We use an online interactive map to accomplish that. Regions ready for visitors, for example, are colored green. Yellow means they’re partially open, and red means stay out. But even for businesses in green and yellow places, we encourage visitors to call ahead. Google Maps will choose a particular route, but what if it’s filled with recovery vehicles? Locals will offer alternate routes. Many hiking trails look open online, but they haven’t been checked or cleared. We also used marketing that targeted people in Georgia, Tennessee, South Carolina, Alabama and Florida. It invited them to regions that were open and offered travel routes that didn’t interfere with recovery efforts. Communication is key. But things are changing quickly, so it’s a delicate and timely message. I tell my staff that what we say today may not be what we say in three days.

More and more of the region is coming back online every day. Potable water was back in more than 60% of Asheville by the end of October. And we think most of the region will be open to tourism in November. We’ve talked with the state’s ski areas, and the winter season will be saved. We’ll begin promoting that soon. But there will be pockets, including stretches of the Blue Ridge Parkway, that will be closed for a long time.

A website — shopwnc.com — is connecting affected businesses with customers by sharing which ones are open, creating an online marketplace for their goods and announcing upcoming events. People all the way from eastern North Carolina and beyond have done amazing things — gifts, charity and more — to help. It has been remarkable.

KUESTER: Recovery won’t be easy. But the tourism industry will rise to the occasion, returning better than before. Many people have a passion and strong connection to the Mountains. Raleigh-based clothing-maker Peter Millar, for example, designed a hurricane-recovery logo, which they applied to a quarter-zip shirt. All proceeds from its sale went to recovery efforts.

HOW HAS THE INDUSTRY PERFORMED RECENTLY?

TUTTELL: We’ve enjoyed two record-setting years. Visitors spent more than $33 billion in 2022, an increase of  maore that 15% from the year prior. They spent more than $35 billion in 2023, making North Carolina the country’s fifth most-visited state. We’ve been tracking toward an increase this year, but we’ll see what effect the hurricane had. But it’s a huge state, and it’s a big industry. We’re hopeful for a
new record.

KUESTER: This might be Pinehurst’s most-significant year in its130-year history. This year’s U.S. Open was the first hosted under USGA’s anchor site announcement, whose $2 billion economic impact will be felt statewide. It also was the first of five U.S. Opens at Pinehurst through 2047.

The best comment about June’s U.S. Open that I heard came from locals, who said the local vibe never lost its friendliness. I also heard that Pinehurst felt like a college town. That’s something you never hear, because 9 p.m. usually is late here. That tournament brings people from across the country and around the world to a small community, which never lost its authenticity. Moore County visitors spent more than $800 million — the state’s 10th largest tourism economy — in 2023. That’s significant for a population that’s slightly more than 100,000.

Pinehurst Resort opened Pinehurst No. 10, its first new golf course since 1995, in April. That adds one more destination within our destination. It’s a pillar of Pinehurst Sandmines, 900 acres that eventually could include one more course, a short course, lodging, food and beverage, and other amenities. And the World Golf Hall of Fame returned in May after spending about a decade in Florida, re-establishing its roots in Pinehurst, where we believe it rightfully belongs.

Golf has had two significant bumps. The first was Tiger Woods. The COVID pandemic, when travel and group restrictions forced people to find outdoor activities, was the second. The effects of the latter are still being seen at private clubs and public courses nationwide. When you look between the lines, the game is growing with people of color and women, who are the fastest-growing segment. That didn’t happen before. The sport is getting younger; it’s getting more fun. People are participating off the course, which is seen in the phenomenon of Top Golf, Puttshack and Drive Shack.

WHY CAN IT BE DIFFICULT TO RECRUIT TOURISM AND HOSPITALITY WORKERS? WHAT ARE SOME SOLUTIONS?

TUTTELL: Tourism workers must show up every day. Their jobs aren’t virtual. That’s a challenge. Pay is one reason these jobs get a bad rap. Trade group U.S. Travel Association has studies showing you can advance faster in tourism than any other industry. We need to do a better job in schools, talking to students about the industry. It has fun and interesting jobs. You get to see and do things. You impact people’s lives. That makes tourism special and a great career.

BRADFORD: I don’t know how to change the narrative. Sometimes I blame industry people for what they tell students while recruiting them. You either love hospitality work or you don’t. Some students bitten by the bug become disenchanted during an internship. You must push through those early years, which are filled with grunt work. That’s a challenge for many, though I don’t know if that’s unique to hospitality. Serving people is demanding. It can be physical. But you need intelligence, too.

Somewhere we’re not sending the right message. About a decade ago, there was a misconception that work would be perfect in the hospitality industry. But I grew up in a house where my Dad told us they mistreated Jesus, so who are you? We’re probably fighting that more. Our students are required to intern. I see it in students who work for a small event planner. They love putting on the events, but they’re frustrated with the low pay. The owners are making the money. I tell them they have a decision to make.

I’ve taught international students, including many from the Caribbean. They have a very different view of hospitality careers than U.S. students. I had a brilliant young lady from Turks and Caicos, and she has done very well. She went home but recently returned to work in the U.S.

KUESTER: We lean into international work visas. Workers with J-1 visas arrive, and you don’t want them to leave. They embrace the culture of hospitality. I don’t know where we would be without that program. We want to hire and promote from within North Carolina. But we’re caught in this cycle: You’ve got 2,000 employees and rooms need to be cleaned and golf courses prepared. It’s a great solution that I don’t see disappearing anytime soon.

INGRAM: You need passion for this career. If that isn’t deep within you, then it’s not going to work. Experiencing how restaurants or events are run teaches you what to do and what not to do. I tell them to find a place where they can grow. Don’t go to a mom-and-pop restaurant with aspirations to go beyond being a line cook. If you can’t grow there, there’s no reason to be there. I hate to say that, but that’s how it is.

SCHMIDT: We can be the world’s best marketer or business attractor, but the frontline workers are the most important people. They have moments of truth and interaction with visitors. If visitors don’t have a good experience, then my work, regardless of what I do, goes down the drain.

Hospitality is unique. It relies on that face-to-face interaction for people to have a good experience. But it’s a hard industry, which has more turnover than many others. We need frontline hospitality workers who stay for the long term. That way they learn the community and can answer guests’ questions. Without the front desk and waitstaff, without that person at the museum, you can’t provide that one-on-one service, then none of it matters.

If we attract and meet the needs of visitors, then small businesses are helped, and people are employed. The community’s tax base expands, helping push economic development projects. Destination and tourism attracts a different type of money. Fast-growing communities have a growing tax base, but that revenue has to cover services — roads, schools and more — for all those people. Visitors come, spend their money then go home. That money can be used for whatever is needed.

HOW ARE WORKERS BEING DEVELOPED FOR THE INDUSTRY?

INGRAM: Robeson Community College offers associate degree programs for culinary arts and baking and pastry. There are seven certificate programs, too. We’re trying to make our students marketable everywhere.

I train students to be chefs. That includes explaining the realities of kitchen work. Our internship program is called work-based learning. Students start with classroom knowledge, and some return from their internships with a different view of real-life work. It’s a learning opportunity of what to do and what not to do when you land a job, start your business or approach your employees. So, record those observations, and apply them to your goals and plans. Practice your downfalls during your internship, then you’re better equipped to avoid them when you start your thing.

BRADFORD: North Carolina Central offers a four-year bachelor’s degree program for hospitality and tourism administration inside the school of business. It’s management focused. Our graduates work for Marriott, Disney, boutique hotels, event planners and many others. We’re seeing more entrepreneurship; graduates want to hire themselves, starting a business. The university primarily serves a first-generation population. Hospitality is a good choice for a long career.

The average recent college graduate changes jobs about five times within 18 to 24 months. It’s understood that people will only work for a period. That’s the reality, and I don’t see it changing. The hospitality industry stopped training, which is why this problem has lingered for 15 years. So, the industry is beginning to take a different approach. Companies are investing more in their people. Management and other training programs are returning. The good students, the focused students, are staying for at least that year of training. I promote the narrative of a long-term career versus a job. I try to help students understand that. If you’re drafted, to use a sports analogy, you’re hot right now. But the situation will be different in a few years, when you’re competing against younger players. They need to understand that it can be beneficial to stick with a company and not leave before you have your next job.

Students want something different. Many are OK with living at home longer. I want them to have the tools, skills and knowledge. I bring in industry representatives, engage them and plant the seed. Many of them circle back. We’re having longer relationships with students. They leave to do all sorts of things, then they return to tap into career services or networking, because they’re looking for a job.
We have in-person and online programs. We’re seeing individuals in their late 20s, who’ve been working in the hospitality industry for a spell, use the online program to advance their career through more study. We’ve had to pivot in how we serve our students. It’s an opportunity, because they also return more mature and more focused.

KUESTER: Training can’t be over emphasized. We changed our recruiting efforts. We traditionally have gone to culinary and hospitality schools. We also go to community colleges and high schools now. We look outside Moore County. We tour students through the resort a couple times each year, and executives, managers and culinary folks speak with them. They describe kitchen life, what a marketing person does or how golf courses are maintained.

We also have done a niche career pathway program concerning golf-course maintenance with Sandhills Community College. That’s a challenging career with a low entry wage. But it’s vital to Pinehurst Resort, which must maintain grass on 10 18-hole courses, a short course and putting course. Students aren’t saddled with debt when they leave the program, and there’s a job waiting.

HOW CAN TOURISM DESTINATIONS WORK TOGETHER?

SCHMIDT:  Our community understands it advances everyone’s cause. When someone in eastern Carolina does well, we all do well. We’re excited about that. We work with nearby tourism partners. Pitt County has assets that it doesn’t. Washington, for example, has a waterfront, and we have assets that it doesn’t. It’s a good partnership. It happens often in the sports tourism arena. We combine facilities and use our hotels and bigger city amenities.

Historically rural, Greenville and Pitt County are growing quickly. As a destination marketer, we have a large stake in that. We want to attract conventions, meetings, sporting events and leisure travel for that economic impact dollar. One of biggest current goals is exposure. Every event we bring includes first-time visitors to Greenville or Pitt County. We want to show off how we’ve grown and maybe change their perception of the region. That also can be a revelation for people who haven’t visited in a while. And it can spur a return visit for different reasons. We’re promoting our Pitt County Brew and ‘Que Trail, which includes craft brewers and barbecue restaurants. We’ve diversified our offerings with an African-American Cultural Trail. And we’re adding outdoor adventures to the mix. It’s a well-rounded destination.

WHAT’S AHEAD FOR THE INDUSTRY?

TUTTELL: From a state perspective, we expect 2025 to be a really good year. This year brought inherent challenges along with an unexpected one. Presidential election years are tough on travel. We’ve always seen that.  A portion of our tourism business originates in and around Washington, D.C. But presidential election years bring uncertainty, so people cut back. It’s difficult to advertise during those years. Almost every spot is filled with a political advertisement. Those issues will disappear next year. One concern for next year is the cessation of pandemic relief funding, which many communities were spending on tourism promotion. We’ll need to find other sources.

SCHMIDT: We set a record — more than $312 million in visitor spending — last year. That put us 25th out of the state’s 100 counties. We were thrilled. We anticipate breaking that record. Our convention center is already booked for most of next year. A new student center gives us one more large space to market. There are more amenities, such as hotels, to market as a sports tourism destination.

BRADFORD: The industry will garner more respect. The recent pandemic revealed its significance. It requires a more sophisticated employee, and that’s good for us in academics. I see more diversity in job offerings. You can be a journalist, for example, but the travel blog that you write puts you in the industry. One challenge, particularly in the African-American community, is a resistance to work in the industry. Historically, jobs were limited for its members. People are traveling more and seeing more. Youth travel is on the rise. Young people will spend $49 of their last $50 on a trip, not caring if they return broke. I admire their courage. I’m excited.

Hospitality and tourism education will continue in a nontraditional direction. More people will secure their credentials, such as certificates, online. We’ve seen some of that already. Some freshman arrive with ServSafe food and alcohol safety training, which they completed while in high school. That gives them and us a jump.

INGRAM: More students means more qualified workers who understand the industry’s regulations and requirements. I expect an enrollment boom within the next three years. Businesses within the industry need qualified workers. Who else better to properly manage your front desk, waitstaff or kitchen than someone with these credentials? That’s a huge difference. You want a manager who treats people with respect and dignity, not one who doesn’t care. Customers notice if workers are well taken care of. It’s just a downhill slide if they’re not.

KUESTER: We’re cautiously optimistic. We sell into two markets — leisure and corporate. Leisure was up about 20% compared to October 2023. Corporate is as strong as ever. Leisure travelers bounced back from COVID restrictions sooner than corporate. We’re currently 70% leisure and 30% group. Hotels are going up in Moore County. We’re adding lodging at course No. 8. Economic development projects, including bringing back commercial flights to Moore County Airport, are being discussed. And a high-end auto park resort has been proposed for northern Moore County. Its estimated $100 million economic impact diversifies the tourism economy. ■