Cruise Industry Boosts Hotel Stays in Charleston Area

The cruise industry is good for Charleston.

Data from 164 hotels in the Charleston area shows that cruise ship activity generates at least 1,158 additional reservations and more than $108,000 in additional room revenue each time a ship begins or ends a cruise in Charleston, according to a release from S.C. Ports Authority.

The study conducted by hospitality researcher and professor, Dr. John Crotts, and marketing consultant, Michael Wolfe, looked at occupancy, rates and revenue statistics for a 1,004 day period.

Focused just on the hotel sector, the information showed that cruises impact occupancy at area hotels up to two days before the cruise departs and again when it returns, generating additional rooms being sold at area hotels and translating into $13.5 million in revenue.

“This analysis spanned a time of economic hardship, yet hotel occupancy and room sales remained a bright spot in the local economy,” said Crotts, in a release. “The performance of the hotel sector trended upward during this time, and cruise activities contributed favorably to this positive trend.”

The report showed that cruises boosted occupancy and rates in properties in Mount Pleasant, West Ashley and North Charleston with the 17 hotels in peninsular Charleston as the biggest beneficiaries.

The cruise operation is primarily a maritime commerce activity with significant spending by the ship and crew for local products and services.   

However, the study also showed that some cruise guests add a day or more to enjoy Charleston and the surrounding area’s attractions.

“The results of this study were consistent with our survey results, where more than a third of passengers indicated that they extended their trip, staying overnight in paid accommodations in the metro area,” said Crotts. “The data show only positive benefits of embarkations and debarkations on hotel revenue, from what is a modestly-scaled cruise operation.”

Crotts said 125 cruise ships left the region in the 1,004-day study period that ran from Jan. 1, 2009 through Oct. 1, 2011.