Hilton Head Island‐Bluffton ChamberHilton Head Island‐Bluffton Chamber Leadership Class: Real Estate and Tourism

John Salazar, Ph.D.

Director, Lowcountry and Resort Islands Tourism Institutey

University of South Carolina Beaufort

Presentation FormatPresentation Format

• NAICS Output Analyses

• Economic Impact of SecondEconomic Impact of Second 

Homes survey results

• MSA Analyses

• Other projects

2007‐2010 IMPLAN Annual NAICS Output Analyses

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What is IMPLANWhat is IMPLAN

• Using input‐output analysis in combination with regional specific Social Accounting Matrices and Multiplier Models, IMPLAN provides highly accurate and adaptable models. The IMPLAN database contains county, state, zip code, and federal economic statistics hi h i li d b i i d f i lwhich are specialized by region, not estimated from national 

averages and can be used to measure the effect on a regional or local economy. It was developed by the University of Minnesota and is sold by the Minnesota IMPLAN Group (MIG, Inc.). 

• Output represents the value of industry production In IMPLANOutput represents the value of industry production. In IMPLAN these are annual production estimates for the year of the data set and are in producer prices. For manufacturers this would be sales plus/minus change in inventory. For service sectors production = sales. For Retail and wholesale trade, output = gross margin and not 

lgross sales.

• IMPLAN is used by the federal and local governments, universities, corporations, and a variety of other organizations.

• The following analyses are for the following HHI zip codes: 29915, 29925 29926 29928 and 2993829925, 29926, 29928, and 29938.

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Table comparing 2007 vs 2010

Total HHI Commodity Output

Total Commodity Output for NAICS Sectors (Excluding Gvt. Sector and Non‐NAICS Sector 

Categories

% of NAICS Sector Output of the Total HHI Commodity 

Output

IndustryCode Description 2007 Employment 2007 Output % Share of 2007

Top NAICS2010

Employment 2010 Output % Share of 2010 Top NAICS

Employment % Increase/Decrease from

2007

Output % Increase/Decrease

from 2007

Output Categories Output

0 Total 46757 $ 4,886,786,246 41148 $ 4,106,207,339 -12% -16%Top NAICS Producers 37757 $ 4,012,603,312 82% 32482 $ 3,078,467,604 75% -14% -23%

360 53 Real estate & rental 7512 $ 1,229,745,425 31% 5166 $ 771,902,928 25% -31% -37%411 72 Accommodation & food services 6623 $ 446,434,598 11% 5671 $ 353,471,530 11% -14% -21%354 52 Finance & insurance 1388 $ 284,589,691 7% 1820 $ 292,403,064 9% 31% 3%394 62 Health & social services 2311 $ 176,429,781 4% 2600 $ 211,890,480 7% 13% 20%34 23 Construction 3075 $ 385,367,204 10% 1713 $ 208,101,919 7% -44% -46%

341 51 Information 517 $ 191,418,507 5% 667 $ 190,371,459 6% 29% -1%$ $320 44-45 Retail trade 4625 $ 257,421,893 6% 3287 $ 189,667,049 6% -29% -26%

367 54 Professional- scientific & tech svcs 2282 $ 242,350,508 6% 1859 $ 180,592,658 6% -19% -25%382 56 Administrative & waste services 2919 $ 186,678,800 5% 3073 $ 178,175,256 6% 5% -5%414 81 Other services 3028 $ 224,500,129 6% 3135 $ 175,314,054 6% 4% -22%402 71 Arts- entertainment & recreation 1171 $ 82,732,764 2% 1564 $ 80,364,890 3% 34% -3%41 31-33 Manufacturing 344 $ 96,496,159 2% 275 $ 73,560,375 2% -20% -24%

319 42 Wholesale Trade 327 $ 59,400,692 1% 280 $ 43,531,105 1% -14% -27%381 55 Management of companies 332 $ 44,716,667 1% 334 $ 41,403,957 1% 1% -7%332 48 49 T t ti & W h i 423 $ 39 038 754 1% 338 $ 32 203 189 1% 20% 18%332 48-49 Transportation & Warehousing 423 $ 39,038,754 1% 338 $ 32,203,189 1% -20% -18%391 61 Educational svcs 774 $ 26,085,226 1% 610 $ 30,391,137 1% -21% 17%33 22 Utilities 59 $ 29,085,893 1% 41 $ 19,732,759 1% -30% -32%1 11 Ag, Forestry, Fish & Hunting 32 $ 1,687,176 0% 29 $ 2,862,772 0% -10% 70%

20 21 Mining 18 $ 8,423,443 0% 18 $ 2,527,023 0% -1% -70%

5

6

Accommodation & food services

7

8

So what does the IMPLAN historical data tell us?So what does the IMP AN historical data tell us?

• The overall Hilton Head Island commodity production (or output) had contracted for the years 2007 through 2010.

• Real estate sector has declined in its annual contribution to the Hilton Head Island economycontribution to the Hilton Head Island economy.

• The sectors related to Tourism (Accommodations & foodservices, Retail trade, and Arts‐entertainment & recreation) have maintained their annual % share )contribution to the total commodity production during 2007‐2010.

• The sectors of Finance & insurance, Health & social i f i d d i i i &services, Information sector, and Administrative & 

waste services have increased in their annual contribution to the Hilton Head Island economy.

9

2010‐11 Hilton Head Island Second Home Owner Study ReportHome Owner Study Report

Executive SummaryExecutive Summary

• Approximately 59% of the respondents owned Villa/Condominium HomesApproximately 59% of the respondents owned Villa/Condominium Homes 

and 36% owned Single Family Homes.

• 90% of second homes have sole owners.90% of second homes have sole owners.

• Most second home owners (26%) owned property in Sea Pines.

• 62% of the homes were not publicly rented and for owner use or non• 62% of the homes were not publicly rented and for owner use or non 

paying guest use.

• 83% of the owners drove to Hilton Head Island for their last trip• 83% of the owners drove to Hilton Head Island for their last trip.

• 65% of the owners who utilized air transit for their last trip flew embarked 

to Hilton Head Island from the Savannah Airportto Hilton Head Island from the Savannah Airport.

Executive SummaryExecutive Summary

• Beaches, Natural Beauty, and Dining were the most important Hilton Head , y, g p

Island attributes while vacationing.

• 88% (767) of the 876 respondents indicated they visited 8‐10 times before 

buying their second home.

• 58% purchased their second home to return to the island for vacation.

• The median year for home purchases was 2003 but most were purchased in 

2005.

46% i di t d th t th I l d i Cl i F il V ti S t• 46% indicated that the Island is a Classic Family Vacation Spot.

• 93% indicated that a Hilton Head Island vacation makes them feel relaxed.

• Most indicated they would recycle on vacation• Most indicated they would recycle on vacation.

MethodologyMethodology

• 5,000 second home owners were randomly selected5,000 second home owners were randomly selected from a list of over 17,000 home owners who pay 6% annual property tax.

• The owners were mailed a 4‐page survey to their primary home address.

• 876 surveys were completed and returned ‐ a 17.5% response rate.

• The randomized survey sample has + a margin of error of 3%.

GenderGender

AgeAge

Marital and Family StatusMarital and Family Status

Household IncomeHousehold Income

Average Income: $200K‐$249K

Classification of Second HomeClassification of Second Home2000: The mean year when owners purchased there home

2003: The median year of home purchases

2005: The year when most second homes were purchased

Ownership ArrangementOwnership Arrangement

Community of OwnershipCommunity of Ownership

Current Use of Second HomeCurrent Use of Second Home

Second Home Usage EstimatesSecond Home Usage Estimates

O h d t bli l t th i t t k 5Owners who do not publicly rent their property take 5 vacations per year and stay 7 days per vacation.

Number of Days Used (Median)

Not Publicly Rented: For Owner Use Only and/or Non 

Paying Guest (n=62%)

Publicly Rented by a Property 

Management Company and/or 

Long Term Rental Only (n=8%)

Other (n=2%)

Combination of Any of the Categories 

Paying Guest (n=62%)Owners of the Home 

(n=23%)

(n=8%)(n=2%)

Days the second home is occupied by the family

50 21 14 21 30

Days the second home is occupied by renters

100 100 365 233 98

Days the second home is occupied by non 

i15 14 14 14 14

paying guests

Type of Transportation Used on Last Trip to HHI

Airport UseAirport Use

HHI Attributes RankingHHI Attributes RankingPlease rate how important the following attributes are when choosing to vacation on Hilton Head Island (Check the appropriate

Extremely important

Important Neutral UnimportantNot important

at allMean # of Respondents

Hilton Head Island. (Check the appropriate box to the right of the island characteristic)

importantp p

at allp

Beaches 72% 24% 3% 0% 1% 4.66 834Natural beauty of the destination 66% 31% 3% 0% 0% 4.63 834Dining/seafood 50% 42% 6% 0% 1% 4.41 831Ease of access 37% 49% 11% 1% 1% 4.20 825Cell Phone Signal Strength 36% 40% 17% 3% 4% 4.02 831Wireless (Wi-Fi) Access 36% 38% 17% 4% 4% 3.97 832Golf 30% 31% 17% 11% 12% 3.57 831Environmental/ecological sensitivity 29% 43% 22% 3% 3% 3.93 826Travel distance 24% 49% 20% 5% 2% 3 87 824Travel distance 24% 49% 20% 5% 2% 3.87 824Diversity of activities & places 23% 55% 16% 4% 2% 3.92 824Affordability 17% 52% 24% 4% 3% 3.77 829Water sports 10% 33% 34% 11% 12% 3.18 820Tennis 10% 19% 25% 21% 24% 2.70 828History/heritage 7% 34% 43% 11% 6% 3.26 821History/heritage 7% 34% 43% 11% 6% 3.26 821Arts/culture 6% 39% 41% 11% 4% 3.32 826Hilton Head VIP card perks 5% 16% 35% 21% 23% 2.58 818Spa 1% 8% 35% 30% 26% 2.29 823Volunteer opportunities 1% 7% 38% 28% 26% 2.28 820Answered Question 838

Reason for PurchaseReason for Purchase

Percentage of Time Spent WorkingApproximately 58% indicated they would spend a portion of their timeApproximately 58% indicated they would spend a portion of their time 

working remotely.

31% of the respondents indicated they were going to stay on the island more frequently. Those respondents indicated they were going q y p y g gto stay on average an additional 79 days per year.

Vacation FeelingVacation Feeling

Second Homeowner SpendingSecond Homeowners – Not Publicly Rented: Item

# of Respondents

Missing Variable

On average, how many people are you financially responsible for when you 

p g

take a trip to Hilton Head Island? (Please enter your answer in the space provided. If you can't answer the question, please indicate N/A in the space.)

474 81 2.59

Transportation (around the area) 346 209 $      133.56 Lodging 26 529 $      535.42 Food‐dining out 484 71 $      430.55 F d i 481 74 $ 289 34Food‐groceries 481 74 $      289.34 Beaches 41 514 $      119.29 Shopping 423 132 $      580.96 Spas 46 509 $      205.98 Golf 224 331 $      274.56 Biking 53 502 $ 83 66Biking 53 502 $         83.66 Parks 6 549 $         40.83 Performance/visual arts 89 466 $      124.63 Festivals 54 501 $         82.96 Museum/historical tours 50 505 $         56.84 Boating/sailing 50 505 $ 306 60Boating/sailing 50 505 $      306.60 Nature based activities 28 527 $      105.54 Dolphin tours 19 536 $      111.58 Tennis 34 521 $      102.50 Fishing 33 522 $      193.79 Sporting events 16 539 $      229.38 p gOther cultural activities 40 515 $      105.43 Other sport activities 23 532 $         98.04 Other outdoor activities 33 522 $      122.42 Other expenses 115 440 $      284.12 

Non Paying Guest SpendingIf you checked that you have non‐paying guests staying in your home, please estimate their TOTAL expenditures in EACH of the following areas during their last trip. Round UP to the nearest amount.

# of Respondents Mean

UP to the nearest amount.

Transportation (around the area) 173 $  102.63 Lodging 18 $  116.67 Food‐dining out 240 $  260.44 Food‐groceries 218 $  184.03 B h 36 $ 45 56Beaches 36 $    45.56 Shopping 183 $  263.93 Spas 26 $  162.31 Golf 119 $  197.77 Biking 69 $    70.94 Parks 11 $           ‐Performance/visual arts 28 $    54.46 Festivals 22 $    39.77 Museum/historical tours 35 $    42.00 Boating/sailing 42 $  125.95 g gNature based activities 24 $    38.33 Dolphin tours 25 $    99.40 Tennis 32 $    71.72 Fishing 35 $  115.00 Sporting events 15 $ 56 67Sporting events 15 $    56.67 Other cultural activities 19 $    45.26 Other sport activities 18 $    55.83 Other outdoor activities 16 $    50.00 Other expenses 44 $  184.09 

Generating the EstimatesGenerating the EstimatesGenerating the EstimatesGenerating the Estimates

• 17,343 second‐homeowner households17,343 second homeowner households– Survey: 846 respondents 

• Reported spending weighted according toReported spending weighted according to number of respondents in each category:– Not Publicly Rented y– Publicly Rented by Property Management Company

– Long Term Rental– Non‐Paying Guests– Other

InputsInputsReported Spending CategoriesReported Spending Categories

T t ti Biki T iTransportation  Biking Tennis

Lodging Parks Fishing

F d di i t P f / i l t S ti tFood‐dining out Performance/visual arts Sporting events

Food‐groceries Festivals Other cultural activities

B h M /hi t i l t Oth t ti itiBeaches Museum/historical tours Other sport activities

Shopping Boating/sailing Other outdoor activities

S N t b d ti iti OthSpas Nature based activities Other expenses

Golf Dolphin tours

InputInput‐‐Output ModelOutput ModelInputInput Output ModelOutput Model

• Utilized the Regional Dynamics (REDYN) modelUtilized the Regional Dynamics (REDYN) model

• Estimates include:Di t (i t di tl lti f 2nd– Direct (impacts directly resulting from 2nd

homeowner spending)

Indirect (impacts generated by suppliers to– Indirect (impacts generated by suppliers to businesses servicing 2nd homeowners)

Induced (impacts generated by consumer– Induced (impacts generated by consumer spending by the employees whose jobs were created by direct & indirect impacts)y p )

ResultsResultsResultsResults

• Reported in terms of:Reported in terms of:– Employment – total jobs created in Beaufort County

– Output – dollar value of goods & services produced within Beaufort County (roughly county GDP)(roughly = county GDP)

– Disposable Income – aggregated after‐tax household income in Beaufort Countyhousehold income in Beaufort County 

– Net Fiscal – local (county & municipal) government revenues net of expenditures

MultipliersMultipliersMultipliersMultipliers

• Based upon ratio of total job creation to jobsBased upon ratio of total job creation to jobs created directly by second homeowner spending

• Estimated employmentmultiplier = 1.08– Every 10 directly‐created jobs generate y y j gapproximately 1 additional job in Beaufort County

• Estimated outputmultiplier = 1.12– Every $100 spent by second homeowners generates an additional $12 of output in County

Total Estimated ImpactTotal Estimated ImpactAll Second HomeownersAll Second HomeownersAll Second HomeownersAll Second Homeowners

Beaufort CountyBeaufort County

2011 2012 2013 2014 2015

Employment 2,176 2,153 2,116 2,081 2,046

Output (x1000) $120,650 120,652 120,665 120,674 120,684

Disposable Income (x1000) $63,308 63,630 63,653 63,659 63,650Income (x1000)Net Fiscal(x1000) $5,484 5,280 5,057 5,069 5,080

(Note:  All dollar amounts are in current dollars)

Total Estimated ImpactTotal Estimated ImpactNonNon‐‐Paying GuestsPaying GuestsNonNon‐‐Paying GuestsPaying GuestsBeaufort CountyBeaufort County

2011 2012 2013 2014 2015

Employment 120 118 117 115 113

Output (x1000) $6,349 6,350 6,350 6,352 6,353

Disposable Income (x1000) $3,414 3,437 3,441 3,443 3,445Income (x1000)Net Fiscal(x1000) $401 391 379 380 381

(Note:  All dollar amounts are in current dollars)

Total Estimated ImpactTotal Estimated ImpactTotal Homeowners + NonTotal Homeowners + Non‐‐Paying GuestsPaying GuestsTotal  Homeowners + NonTotal  Homeowners + Non‐‐Paying GuestsPaying Guests

Beaufort CountyBeaufort County

2011 2012 2013 2014 2015

Employment 2,296 2,271 2,233 2,195 2,159

Output (x1000) $126,999 127,002 127,015 127,026 127,037

Disposable Income (x1000) $66,723 67,067 67,094 67,103 67,096Income (x1000)Net Fiscal(x1000) $5,885 5,671 5,436 5,449 5,462

AdditionalProperty Tax Rev $77 578 6 77 578 6 77 578 6 77 578 6 77 578 6Property Tax Rev (x1000)

$77,578.6 77,578.6 77,578.6 77,578.6 77,578.6

Total Fiscal (x1000) $83,463 83,249 83,015 83,028 83,040

(Note:  All dollar amounts are in current dollars)

Hilton Head Island Top 28 MSA pMarkets According to Zip Code FrequencyFrequency

•Top 10 markets are similar for Ogilvy, 2010 Visitor Inquiries, and Second Home Survey Participants.•Detroit MSA and Raleigh MSA are important MSA’s to consider as geographic target markets.

Rank Metropolitan AreaOgilvy Sum by MSA

Ogilvy% Share of T28

2010VI Sum by MSA

2010VI% Share of T28

Second Home 5K Sum by 

MSA

SH% Share of T28MSA T28 MSA T28 MSA T28

1 Atlanta‐Sandy Springs‐Marietta, GA MSA 84 15% 5608 17% 428 18%2 Charlotte‐Gastonia‐Concord, NC‐SC MSA 44 8% 2081 6% 109 5%

3New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA

38 7% 3622 11% 351 15%

4 Pittsburgh, PA MSA 35 6% 1189 4% 126 5%g5 Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA 33 6% 2281 7% 108 5%

6Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA

30 5% 1539 5% 139 6%

7 Cincinnati‐Middletown, OH‐KY‐IN MSA 28 5% 1349 4% 129 5%

8Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV 

27 5% 1686 5% 168 7%8MSA

27 5% 1686 5% 168 7%

9 Cleveland‐Elyria‐Mentor, OH MSA 26 5% 1068 3% 82 3%10 Columbus, OH MSA 25 4% 892 3% 66 3%11 Akron, OH MSA 20 4% 464 1% 32 1%12 Raleigh‐Cary, NC MSA 16 3% 787 2% 23 1%13 Detroit‐Warren‐Livonia, MI MSA 15 3% 861 3% 67 3%14 Augusta‐Richmond County, GA‐SC MSA 14 2% 680 2% 135 6%

Rank Metropolitan AreaOgilvy Sum by

Ogilvy% Share of

2010VI Sum by

2010VI% Share of

Second Home 5K Sum by

SH% Share ofRank Metropolitan Area Sum by 

MSAShare of T28

Sum by MSA

Share of T28

5K Sum by MSA

Share of T28

15 St. Louis, MO‐IL MSA 12 2% 1601 5% 25 1%16 Boston‐Cambridge‐Quincy, MA‐NH MSA 11 2% 909 3% 46 2%17 Indianapolis‐Carmel, IN MSA 11 2% 852 3% 28 1%18 Baltimore‐Towson MDMSA 11 2% 768 2% 45 2%18 Baltimore Towson, MD MSA 11 2% 768 2% 45 2%19 Richmond, VA MSA 10 2% 770 2% 29 1%20 Nashville‐Davidson‐‐Murfreesboro, TN MSA 9 2% 1104 3% 27 1%21 Knoxville, TN MSA 8 1% 643 2% 53 2%22 Dayton, OH MSA 8 1% 340 1% 31 1%23 Rochester, NY MSA 8 1% 277 1% 14 1%,24 Denver‐Aurora, CO MSA 8 1% 271 1% 9 0%25 Albany‐Schenectady‐Troy, NY MSA 8 1% 251 1% 16 1%26 Harrisburg‐Carlisle, PA MSA 8 1% 163 0% 18 1%27 Louisville‐Jefferson County, KY‐IN MSA 7 1% 946 3% 40 2%28 Minneapolis‐St. Paul‐Bloomington, MN‐WI MSA 7 1% 518 2% 19 1%

Top 10 MSA’s By Frequency and Market ShareTop 10 MSAs By Frequency and Market Share

1. Atlanta‐Sandy Springs‐Marietta, GA MSA2. Charlotte‐Gastonia‐Concord, NC‐SC MSA3. New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA 

MSA4. Pittsburgh, PA MSA5. Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA6 Phil d l hi C d Wil i t PA NJ DE MDMSA6. Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA7. Cincinnati‐Middletown, OH‐KY‐IN MSA8. Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA9. Cleveland‐Elyria‐Mentor, OH MSA10. Columbus, OH MSA

Top 28 MSA Markets According toTop 28 MSA Markets According to MSA Share Comparison to Arbitron, Nielsen, and Scarbarough DMA DataData

•Top 10 markets somewhat differ when compared zip code frequency share analysis. •Atlanta, Charlotte, Akron, Pittsburgh, and Cincinnati are strong markets because the population that 

d d d h h f l h ll d

OT28‐ OT28‐ OT28‐ 2010VIT2010VIT

2010VIT SHT28‐ SHT28‐ SHT28

visited HHI or are interested in HHI exceeds the share of population that normally consumes radio, television, and newspaper media. 

Rank Metropolitan AreaOT28‐Arb

OT28‐Neilsen

OT28‐Scarb

2010VIT28‐Arb

28‐Neilsen

2010VIT28‐Scar

SHT28‐Arb

SHT28‐Neilsen

SHT28‐Scar

1 Atlanta‐Sandy Springs‐Marietta, GA MSA 9% 9% 9% 11% 11% 10% 12% 12% 12%2 Charlotte‐Gastonia‐Concord, NC‐SC MSA 5% 5% 5% 3% 4% 4% 2% 2% 2%3 Akron, OH MSA 4% 4% 4% 1% 1% 1% 1% 1% 1%4 Pi b h PA MSA 4% 3% 4% 1% 1% 1% 3% 2% 3%4 Pittsburgh, PA MSA 4% 3% 4% 1% 1% 1% 3% 2% 3%5 Cincinnati‐Middletown, OH‐KY‐IN MSA 3% 3% 2% 2% 2% 1% 3% 3% 3%6 Columbus, OH MSA 2% 2% 2% 1% 0% 0% 1% 1% 0%7 Cleveland‐Elyria‐Mentor, OH MSA 2% 1% 1% 1% ‐1% ‐1% 1% 0% 0%8 Augusta‐Richmond County, GA‐SC MSA 2% 2% 2% 1% 1% 2% 5% 5% 6%9 Raleigh Cary NC MSA 1% 0% 1% 1% 0% 0% 1% 2% 1%9 Raleigh‐Cary, NC MSA 1% 0% 1% 1% 0% 0% ‐1% ‐2% ‐1%10 Harrisburg‐Carlisle, PA MSA 1% 0% 0% 0% ‐1% ‐1% 0% ‐1% 0%11 Knoxville, TN MSA 1% 0% 0% 1% 1% 0% 1% 1% 1%12 Richmond, VA MSA 0% 0% 0% 1% 1% 0% 0% 0% ‐1%13 Albany‐Schenectady‐Troy, NY MSA 0% 0% 0% 0% ‐1% 0% 0% ‐1% 0%14 Dayton OH MSA 0% 0% 0% 0% 0% 0% 0% 0% 0%14 Dayton, OH MSA 0% 0% 0% 0% 0% 0% 0% 0% 0%

OT28‐ OT28‐ OT28‐ 2010VIT2010VIT

2010VIT SHT28‐ SHT28‐ SHT28Rank Metropolitan Area

OT28‐Arb

OT28‐Neilsen

OT28‐Scarb

2010VIT28‐Arb

28‐Neilsen

2010VIT28‐Scar

SHT28‐Arb

SHT28‐Neilsen

SHT28‐Scar

15 Rochester, NY MSA 0% 0% 0% 0% 0% ‐1% ‐1% 0% ‐1%16 Indianapolis‐Carmel, IN MSA 0% ‐1% ‐1% 1% 0% 0% ‐1% ‐1% ‐2%17 Louisville‐Jefferson County, KY‐IN MSA 0% 0% ‐1% 2% 1% 1% 0% 0% 0%18 N h ill D id M f b TN MSA 0% 1% 1% 2% 1% 1% 1% 1% 1%18 Nashville‐Davidson‐‐Murfreesboro, TN MSA 0% ‐1% ‐1% 2% 1% 1% ‐1% ‐1% ‐1%

19Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA

‐1% ‐2% ‐1% ‐1% ‐3% ‐2% 0% ‐1% 0%

20 St. Louis, MO‐IL MSA ‐1% ‐1% ‐2% 2% 2% 1% ‐2% ‐2% ‐3%

21Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA

‐1% ‐1% ‐3% ‐1% ‐1% ‐3% 1% 1% ‐1%MSA

22 Baltimore‐Towson, MD MSA ‐1% ‐1% ‐1% ‐1% 0% ‐1% ‐1% ‐1% ‐1%23 Denver‐Aurora, CO MSA ‐2% ‐2% ‐3% ‐2% ‐3% ‐3% ‐3% ‐3% ‐4%24 Minneapolis‐St. Paul‐Bloomington, MN‐WI MSA ‐2% ‐3% ‐4% ‐2% ‐3% ‐3% ‐3% ‐3% ‐4%25 Detroit‐Warren‐Livonia, MI MSA ‐3% ‐2% ‐3% ‐3% ‐2% ‐3% ‐3% ‐2% ‐3%26 Boston‐Cambridge‐Quincy MA‐NH MSA ‐3% ‐3% ‐3% ‐3% ‐2% ‐3% ‐3% ‐3% ‐3%26 Boston Cambridge Quincy, MA NH MSA 3% 3% 3% 3% 2% 3% 3% 3% 3%27 Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA ‐5% ‐3% ‐3% ‐4% ‐2% ‐2% ‐6% ‐4% ‐4%

28New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA

‐14% ‐11% ‐5% ‐10% ‐7% ‐1% ‐6% ‐3% 3%

Top 10 MSA’s According to Media Market Share C iComparison

1. Atlanta‐Sandy Springs‐Marietta, GA MSAy p g2. Charlotte‐Gastonia‐Concord, NC‐SC MSA3. Akron, OH MSA4 Pi b h PA MSA4. Pittsburgh, PA MSA5. Cincinnati‐Middletown, OH‐KY‐IN MSA6 Columbus OH MSA6. Columbus, OH MSA7. Cleveland‐Elyria‐Mentor, OH MSA8. Augusta‐Richmond County, GA‐SC MSA9. Raleigh‐Cary, NC MSA10. Harrisburg‐Carlisle, PA MSA

Comparing MSA Frequency versus Media M k Sh C iMarket Share Comparisons

Top 10 MSA’s By Frequency and Market Share

Top 10 MSA’s According to Media Market Share ComparisonMarket Share

1. Atlanta‐Sandy Springs‐Marietta, GA MSA

2. Charlotte‐Gastonia‐Concord, NC‐SC

Market Share Comparison1. Atlanta‐Sandy Springs‐Marietta, GA 

MSA

2. Charlotte‐Gastonia‐Concord, NC‐SC2. Charlotte Gastonia Concord, NC SC MSA

3. New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA

4 Pitt b h PA MSA

2. Charlotte Gastonia Concord, NC SC MSA

3. Akron, OH MSA

4. Pittsburgh, PA MSA4. Pittsburgh, PA MSA

5. Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA

6. Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA

5. Cincinnati‐Middletown, OH‐KY‐IN MSA

6. Columbus, OH MSA

7. Cleveland‐Elyria‐Mentor, OH MSA

8 Augusta‐Richmond County GA‐SC MSA7. Cincinnati‐Middletown, OH‐KY‐IN MSA

8. Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA

9 Cleveland Elyria Mentor OH MSA

8. Augusta‐Richmond County, GA‐SC MSA

9. Raleigh‐Cary, NC MSA

10. Harrisburg‐Carlisle, PA MSA

9. Cleveland‐Elyria‐Mentor, OH MSA

10. Columbus, OH MSA Green text MSA’s = MSA made both Top 10 listings

Core and Secondary MSA MarketsCore and Secondary MSA MarketsCore Geographic Target Market: Based on Frequency and Media Share Comparison (Dedicated markets)markets)1. Atlanta‐Sandy Springs‐Marietta, GA MSA2. Charlotte‐Gastonia‐Concord, NC‐SC MSA3. Pittsburgh, PA MSA4. Cincinnati‐Middletown, OH‐KY‐IN MSA5 Cleveland‐Elyria‐Mentor OH MSA5. Cleveland Elyria Mentor, OH MSA6. Columbus, OH MSA

Secondary Market: Based on Frequency and Market Share (Market penetration due to population size)1 New York Northern New Jersey Long Island NY NJ PA MSA1. New York‐Northern New Jersey‐Long Island, NY‐NJ‐PA MSA2. Chicago‐Naperville‐Joliet, IL‐IN‐WI MSA3. Philadelphia‐Camden‐Wilmington, PA‐NJ‐DE‐MD MSA4. Washington‐Arlington‐Alexandria, DC‐VA‐MD‐WV MSA

Secondary Market : Based only on Media Share Comparison (Dedicated smaller markets)Secondary Market : Based only on Media Share Comparison (Dedicated smaller markets)1. Akron, OH MSA2. Augusta‐Richmond County, GA‐SC MSA3. Raleigh‐Cary, NC MSA4. Harrisburg‐Carlisle, PA MSA

Other Ongoing Projects Related to Real EstateVery Aware/Aware

PlantationHHI Reg Res Very

Aware/AwareVisitors

Sea Pines Plantation 94% 68%Sea Pines Plantation 94% 68%Hilton Head Plantation 92% 64%Palmetto Dunes Plantation 90% 61%Shipyard Plantation 88% 57%Port Royal Plantation 88% 54%Indigo Run Plantation 86% 47%Wexford Plantation 84% 44%

•Awareness of HHI 

Plantations (2011 Wexford Plantation 84% 44%Palmetto Hall Plantation 83% 43%Spanish Wells Plantation 80% 40%Windmill Harbour 83% 36%Long Cove Plantation 79% 33%

Concours survey)

• Interest in real estate as a How did you first learn of one of the Hilton Head Island plantations?

Option HHI Reg Res VisRecommendation by family or friends 26% 29%Other 28% 25%I am not aware of any of the Hilton Head Island plantations. 3% 13%

result of attending HHI 

events/festivals (2012 Real estate agent 17% 6%Hotel/Resort/Time Share/Property Management Company 4% 5%Signage at the plantation gate entrance 4% 5%Internet website 2% 5%Other magazine ad or article 3% 4%Real estate magazine 5% 3%Hil H d I l d Bl ff Ch b f C 2% 2%

events/festivals (2012 

festival surveys)

Hilton Head Island-Bluffton Chamber of Commerce 2% 2%Newspaper ad 4% 1%Television ad 1% 1%Radio ad 1% 1%

SummarySummary

• Real estate accounts for the largest portion of commodity sales on Hilton Head Island.

• Visitors purchase real estate after visiting Hilton Head Island 8‐10 times.

• Visitors purchase because they want to return to Hilton Head Island for their vacations.

• Residents from Atlanta and Charlotte vacation and purchase properties on Hilton Head Island.

• Visitors are most aware of Sea Pines Plantation

• Visitors learn about plantations via family andVisitors learn about plantations via family and friends.

• Visit www.lriti.org for our research results.

For more information contact:For more information contact:

John Salazar Ph D CHEJohn Salazar, Ph.D., CHEUniversity of South Carolina – Beaufort

andThe Lowcountry & Resort Islands Tourism Institute

Salazar, 2008 52