The Accommodations Tax Advisory Committee convened on April 3, 2025, to discuss the current state of tourism and marketing strategies for Hilton Head Island. The meeting focused on occupancy rates, visitor spending trends, and future marketing initiatives aimed at enhancing the island's appeal as a travel destination.
The meeting opened with a review of tourism statistics from 2024. It was reported that occupancy rates had decreased by 4%, while the Average Daily Rate (ADR) increased by 1%. Despite the drop in occupancy, the revenue per available room (RevPAR) was down by 3%. However, the committee noted a positive trend in visitor spending, with an overall economic impact from tourism increasing by 17%, indicating that while fewer visitors came to the island, those who did were spending more.
The discussion highlighted specific visitor segments, revealing that home and villa rentals saw a 9% decrease in visitors but an 8% increase in spending. Similarly, daytrippers were down by 5% but increased their spending by 26%. These trends suggest a shift towards attracting higher-spending visitors who engage more deeply with the destination.
Looking ahead, the committee outlined marketing strategies for the fiscal year 2025-2026, emphasizing the importance of wellness travel, sustainable tourism, and active travel. The marketing plan aims to promote Hilton Head Island as a destination that offers wellness experiences, sustainable practices, and opportunities for sports and recreation. The committee acknowledged the need to adapt marketing efforts to align with global trends and consumer preferences.
The meeting also addressed the importance of group travel and the need for adequate event spaces to attract more corporate and social gatherings. While there has been a resurgence in group travel, it remains below pre-pandemic levels. The committee discussed strategies to enhance awareness of available venues and to create compelling itineraries for potential visitors.
In conclusion, the Accommodations Tax Advisory Committee emphasized the need for ongoing evaluation of tourism metrics and marketing strategies to ensure Hilton Head Island remains a competitive and attractive destination. The committee plans to continue monitoring visitor trends and adjusting their approach to meet the evolving needs of travelers.