Charleston tourism hits record $14B, drives South Carolina’s economy

Charleston’s popularity has put South Carolina on the map for years, holding the title for best place to visit time and time again.

As short-term rental numbers are rising and hospitality businesses are popping up left and right, what do the growing rates of visitation truly mean for the city and state?

Charleston is generating almost half of the total tourism economic impact in South Carolina, bringing in $14.03 billion in 2024, which is a 7.1% increase from the previous year, according to a study by College of Charleston’s office of tourism.

Let’s talk numbers

In 2024, almost a quarter of Charleston’s economy was attributed to the 7.89 million tourists who came into the region, the study found. Compared to 2023, those numbers are at an all-time high.

Charleston’s tourism industry hit a record for nearly five million hotel room nights sold, maintaining a 70.6% average hotel occupancy rate.

With increased stays came increased rates. According to the study, average hotel rates in Charleston over the past three years have been about $63 higher than 2020 and $30 more than 2019.

Charleston’s market attracted visitors from some of the top metropolitan areas on the East Coast such as Atlanta, New York City and Charlotte with other top visiting states including Florida, Virginia, Ohio, Pennsylvania, New Jersey, Tennessee and Texas, according to the study.

The Lowcountry profited roughly $1,105 per person visiting the Lowcountry, according to the study.

Hotels weren’t the only vacation lodging to see an increase in the Charleston region as short-term rental popularity saw growth as well. The 9,244 active short-term rentals in the region played a role in visitation rates.

According to AirDNA, the STR revenue increased 11% from May 2023 to May 2024, pulling in about $89,900. Combined, lodging in hotels and STRs contributed $1.55 billion to Charleston overall tourism impact, according to the study.

Charleston from a state perspective

Similar to the connection New Orleans represents for France, Charleston is that to the United Kingdom, said Duane Parrish, director of Discover SC. Much of the culture and architecture mimics that of European cities, hence its unique appeal.

Compared to Columbia and Greenville, Charleston is set up with most tourist attractions within walking distance on the peninsula. Parrish said the walkability of that part of town also helps decrease vehicle traffic on the peninsula.

“What I like to say about population growth is no one moves before being a visitor first,” Parrish said. “So if you have population growth, that generally is preceded by high visitation.”

As 34 people move to Charleston per day, traffic is impacted.

“The rush hours for traffic in the morning or afternoon, typically that’s not the visitors,” Parrish said. “Visitors at 7 or 8 in the morning are having a cup of coffee, that’s mostly local people which traffic infrastructure isn’t able to keep up with … but it’s easier to blame the visitor than it is your neighbor”

Residential benefits of tourism heights

With the tourism industry’s growth, residents of Charleston do stand to profit from each visitor.

Parrish said Charleston sees higher numbers of spending per visitor compared to other areas in the state. With higher spending, the city doesn’t have to rely on as many visitors to see that economic impact.

“You see people that are traveling into our area that are spending more, and that is a positive thing because that continues to impact the tax base,” said Dan Blumenstock, director of hotels at Lowcountry Hotels and board chairman for Explore Charleston. “The city of Charleston last year said they weren’t going to have to raise property taxes because the hospitality tax was continuing to thrive.”

In addition to increased sales tax contributions, more visitations create more hospitality employment for residents in the region. According to the study, the 2024 tourism industry opened about 1,200 job opportunities.

“The busier we are as hotels and restaurants, the better off it is for the people who are working in our industry as well,” Blumenstock said. “It also impacts career growth because as we are busier that lends itself to being able to sustain someone that maybe got into this industry right out of college and then you see that person growing into some very well- and high-paying positions.”

Blumenstock said he has also seen Charleston become a hub for “experiential travel,” opening space for industries unique to Charleston such as Crabbing with Tia and Lowcountry Oyster Co. He said one businesses group that has grown more recently is breweries and distilleries that create a different atmosphere for visitors and residents alike.

“I’d like to say our industry is the industry of good news,” Blumenstock said. “We’re one that wants to provide unity and bring people together for a great time.”