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North Carolina’s travel and tourism industry is facing a triple whammy. There’s government policy uncertainty, budgets tightened by inflation and lingering effects from Hurricane Helene. But its members are moving forward, looking to build on a record $36.7 billion in visitor spending last year. They’re adding and improving attractions, marketing more and turning visitors into residents. Business North Carolina recently gathered five of its leaders to discuss the industry’s current state, their solutions to its challenges and how they plan to keep North Carolina one of the country’s most-visited states. Their conversation was moderated by Publisher Ben Kinney. The transcript was edited for brevity and clarity.
The discussion was sponsored by:
• Greensboro Area CVB
• Greenville-Pitt County CVB
• Pinehurst, Southern Pines, Aberdeen Area CVB
• Visit Sanford
• Visit North Carolina
WHAT IS THE INDUSTRY’S CURRENT STATE?
TUTTELL: I’ve been in the industry for 30 years, including time in Florida dealing with hurricanes and shark attacks, and I have never seen anything like Hurricane Helene in western North Carolina. It’s amazing how far we’ve come in a year. The region’s state parks and most of the Blue Ridge Parkway are open. Many impacted communities are welcoming visitors again, though some will needmore time to recover. Some will be different moving forward. I’m hopeful that rebuilding includes resiliency. Storms like Helene are no longer once-in-a-lifetime events.
The worst in times brings out the best in people. It was amazing to see the entire community help with recovery. Phil Werz’s destination, for example, was a way station for goods and assistance.
Visitor spending statewide was up 3.1% in calendar year 2024. It’s expected to be flat this year. Some mountain communities are down about 20%. Commercial lodging has done better than vacation rentals. That’s likely because of recovery work, so the numbers are hard to judge.
Tourism is experiencing a national slowdown. When that happens, whether because of economic uncertainty or something else, North Carolina fares better than most states. We have a great location, and it’s easy to get here. We’re not seen as expensive, and there’s plenty to do.
North Carolina’s population is growing. More than half its residents weren’t born in the state. Everybody assumes you’ve seen everything if you grew up here. But it’s a first-time visit for many people. Most of the state’s destination marketing organizations spend more of their marketing dollars on in-state travelers than out-of-state travelers.
WERZ: Our bull’s-eye is the Carolinas, but our target includes Atlanta and Washington, D.C. The state’s DMOs (Destination Marketing Organizations) compete for tourism dollars. But when something the magnitude of Hurricane Helene happens, they support each other. We want the state to be successful. When visitors have a great experience in Pinehurst, for example, they’re inspired to explore the mountains, Greensboro, Sanford and other parts of the state. Drive across the state, and you’ll enjoy many cultures and experiences, each authentic to North Carolina.
SCHMIDT: Our growth has been steady. We set another record in visitor spending in 2024, when visitors spent $320.1 million. Equally important is the record number of hospitality-related jobs that are impacting Greenville and Pitt County. During the 2024 calendar year, 2,108 residents were employed within the industry, which plays a pivotal role in the overall success of our travel and tourism efforts and the health of our economy. We are blessed to have a variety of hospitality markets that we can accommodate, including meetings, conventions, reunions, leisure, medical, outdoor recreation and sports tourism.
HOW ARE QUALITY OF LIFE AND TOURISM CONNECTED?
CORDO: I’ve lived in five states, and North Carolina has a lot going for it. You can be in the mountains or on the beach. You can walk in the woods or visit a large city. It’s a micro version of the country or world. I see why so many residents choose in-state travel. Those options resonate with out-of-state or -country visitors, too.
Greensboro’s large population is growing. Its economic base is transitioning. Many manufacturers were lining up to leave a couple decades ago. It was a rough time. But when things go down, they eventually go back up, especially when you have good infrastructure, a large population, and good education and healthcare systems. People want to live in those communities, and they’re where jobs move to.
Greensboro has potential to be a cool hipster community, where recent graduates, young professionals and creative class people can afford to live. It’s not there yet, but it’s transitioning. That would be a natural progression for Greensboro.
Some large manufacturers are choosing Greensboro. They see it as a place where people would want to live. That’s tourism. That’s group business for us. It’s visits from friends
and family.
BRYAN: Sanford has a similar story — a small community that lost traditional manufacturers and jobs. Then pharmaceutical companies arrived, rebuilding the economic base. The community began to share and invest in that vision. We have assets that were probably unimaginable 15 years ago. We recently built a sports complex — Lee County Athletic Park. We’re building a regional farmers market. We’re renovating our depot.
While many people love living here, we weren’t necessarily attracting residents. When your community improves its quality of life, people want to visit and experience it. Then they discover it has affordable living. Golf and weddings are our top visitor entry points. But our welcome center’s No. 1 visitor is a new resident. They want to explore living here.
WERZ: Pinehurst has historically been seen as a retirement community. While its demographic might be slightly older, Southern Pines is home to many young families with children. It’s at Fort Bragg’s backdoor. More soldiers and their families are choosing to stay in the county after completing their service.
Our strategic marketing plan celebrates small towns. People crave their authentic experiences. You can shop Southern Pines, visit Seagrove pottery studios or enjoy high tea at Lazy Fox Lavender Farm in Cameron. Brad Halling and his wife, Jessica, operate BHAWK Distillery in Southern Pines. People travel from around the world to sample their creations and meet Brad, an American hero who fought in the Battle of Mogadishu in 1993. These people are tourism leaders. They tell stories. And that’s what we’re about, telling stories.
WHAT CHANGES ARE YOU EXPLORING OR ENACTING TO ATTRACT MORE VISITORS?
SCHMIDT: There are some exciting developments that will support recreational opportunities and sports tourism, one of the industry’s fastest-growing sectors. Greenville recently acquired the ECU North Recreational Complex through a lease agreement. NRC’s eight outdoor fields can host a variety of recreational tournaments and events. NRC will undergo several upgrades over the next 15 months. They include additional fields, which will allow it to host larger youth and adult-amateur tournaments. The city also is under contract to purchase two parcels of land, where it will develop a 12-diamond complex for baseball and softball tournaments. Its design work should begin early next year.
Pitt County recently opened two 25,000 -square-feet indoor recreational centers to support sports, recreation and fitness.
WERZ: We’re close to returning commercial flights to Moore County Airport. That service ended about 20 years ago. A daily flight would fly to and from Dulles International Airport in Washington, D.C. That hub connection would get people anywhere in the world. It would be a gamechanger.
A recent study found there’s no better place with an airport our size in the country to start commercial service. There is demand. Golfers and members of the healthcare and defense industries want it. And our population is expected to grow to about 180,000 from about 108,000 during the next couple decades. So, we’ve worked closely with our economic development partners, state Sen. McInnis and other lawmakers to make it happen.
Golf is our bread and butter. I tell Pinehurst Resort President Tom Pashley to keep resort owner Mr. Dedman happy, because he spends money — doubling, tripling, quadrupling down on golf. The resort is expanding with Pinehurst Sandmines, where it opened a restaurant, Station 21. Its No. 10 course opened last year, and its No. 11 will open in 2027. The U.S. Open is returning every five or six years through 2047. USGA has its Golf House Pinehurst, and World Golf Hall of Fame and the USGA Experience opened last year.
Kelly Miller and his ownership group are renovating accommodations at their Pine Needles and Mid Pines clubs. They have some of the best Donald Ross-designed golf courses in the country. If they can take the lodging to the level of the courses, it’ll be a home run. The work is expected to be done before 2029, when the U.S. Open returns to Pinehurst with the men’s and women’s championships in consecutive weeks on the same course. That has only happened once — Pinehurst No. 2 in 2014.
HOW DO YOU KEEP VISITORS COMING BACK?
TUTTELL: North Carolina is a collection of interesting places. It has natural beauty, and it’s hospitality is well-known. That mix will help us well into the future.
The ability to work remotely has encouraged people to see places further from the big cities. That’s an advantage for North Carolina, which is home to many small destinations. Technology helps people find information about them, and social media helps them reach people.
CORDO: Greensboro is an event-driven destination. When we host an event, festival, conference or whatever it may be, it must make people loyal to our destination for that purpose. You must create the value proposition or attendee experience that makes the meeting planner want to return. You can market all day long, but if visitors’ expectations aren’t met, they won’t return.
North Carolina is undergoing a renaissance. Destinations and accommodations are going to the next level, because the experience matters. Those improvements, whether to buildings or customer service, are happening statewide.
BRYAN: Sanford residents are friendly. They talk to you on the street, and they treat you like family. That geniality has made destinations out of some businesses, including Mrs. Lacy’s Magnolia House. Its owner, Faye Schulz, will hug your neck when you arrive. She’ll make sure you hear about today’s dessert, then she’ll save you a piece in the kitchen. Temple Theatre’s producing artistic director, Peggy Taphorn, danced on Broadway, where many other staff members worked or performed. They stage professional productions in an intimate 300-seat setting, making you feel part of the show. They take pride in providing great customer service. We want you to come back.
More than 50% of weddings at our local venues involve out-of-town couples. The owners manage the weddings, and they want everyone to be happy. Todd and Amanda Anderson, for example, own Daniel’s Ridge. When a bride added a bridesmaid on the wedding day, Amanda called the florist, who made another bouquet and delivered it as the girls were walking down the aisle.
These businesses help more than themselves. They impact all their vendors. Small businesses are the lifeblood of our community. As they and our manufacturing base grow, the community expands its amenities.
WERZ: Tom Pashley says Pinehurst isn’t a bucket list destination; you don’t check it off and never return. We want you to keep coming back. When I stop at The Cradle Short Course in Pinehurst, I meet a variety of people. There are first-timers. Some have been coming for decades, and others crossed an ocean to get here. It’s a cross section of visitors. It’s a melting pot for golfers and people seeking an authentic experience.
WHAT IS TOURISM’S ROLE IN ECONOMIC DEVELOPMENT?
BRYAN: We’re part of a team that includes Downtown Sanford and Sanford Area Growth Alliance. We touch base on almost every project, whether it’s a visitor experience or benefit to residents. We might host industry representatives, showing them that this is a desirable community.
Sanford has invested in streetscapes. Historic buildings have been renovated and preserved. People learn our history by following the mural trail or taking a ghost tour. You see the pride in the blending of assets and investments.
TUTTELL: Tourism is economic development’s front porch. One reason behind North Carolina’s great economic development wins is it’s a place you want to visit, and you want to live here. That drives a lot of it. In certain wins, companies said they chose this place because their employees want to live here. That desire makes it easier to find workers.
CORDO: Not every state understands that business relocation is more than a tax break. You also need to be a place where your employees want to relocate, and you can find talent. It needs to be fun for young professionals through soon-to-be retirees. That’s where tourism kicks in. It helps drive jobs and people, whether they’re new residents or visitors. A close relationship with economic developers is important for the tourism industry.
SCHMIDT: I represent the travel and tourism industry on Economic Development Partnership of North Carolina’s board of directors. EDPNC and local economic developers do a tremendous job of selling the state. CNBC named it the country’s Top Place for Business in 2022, 2023 and 2025. Our statewide and local travel and tourism offices are crucial to that success. Each economic development opportunity starts with a visit. Site selectors tour communities, exploring and learning as any other visitor.
WERZ: Ground is being cleared and graded in nearby Richmond County for Amazon Web Services $10 billion cloud computing and artificial intelligence investment. It includes 10 buildings, each 200,000 to 220,000 square feet. AWS told me it would need 2,000 hotel rooms per week for the next seven to 10 years. Moore County has 2,300 hotel rooms, but there are three or four more hotels on the way. One debuts this fall.
Local economic developers are talking with a major golf partner that’s planning a 36-hole course resort with lodging near Carthage.
WHAT CHALLENGES DOES THE INDUSTRY FACE?
TUTTELL: The two biggest are affordable housing and daycare. They’re mentioned in many economic development discussions, but they’re important to tourism, too. Our workers need them.
WERZ: Affordable housing is a big issue in Moore County. We need hospitality workers. Pinehurst, for example, probably could use a couple hundred more. But they can’t work here if they can’t afford to live here.
CORDO: North Carolina is growing but not so fast that a bubble is forming, its culture is being subverted by outsiders or issues that quickly become NIMBY — not in my backyard — are being created. People who come here want to adopt the state’s culture, including its friendliness. Why would they bring the negativity usually found in fast-paced places or lifestyles.
The legislature is committed to thoughtful development. The state has a good road system. There are problems, as there are everywhere, but you can get where you want in a reasonable amount of time.
SCHMIDT: My biggest challenge is political uncertainty. The state House and Senate are working through their budget processes, and the federal government shut down in October. These uncertainties make it difficult to plan long or short term, whether how to spend tourism generated dollars or how many will be available in the future.
HOW DO INDUSTRY MEMBERS COOPERATE?
TUTTELL: Tourism’s business diversity often goes unrecognized. Most people think tourism is hotels, restaurants and attractions. But many companies support and are impacted by the industry. Laundry companies work with hotels, for example, and banks finance deals.
WERZ: Regional tourism is important. While Ben Owen lives in Moore County, his well-known Seagrove pottery studio is in Randolph County. We often promote Seagrove, even though it’s a 40-minute drive from Pinehurst. If you’re playing golf here, you’re wife may want to go there. It’s similar to NASCAR returning to Richmond County. That race has a regional economic impact.
BRYAN: When Sanford Area Growth Alliance or the welcome center hosts a meeting, attendees usually arrive about 30 minutes early, because we’ve shortened the trip to Sanford, which lacked a four-lane highway until the late 1990s. Once U.S. 1 expanded, there’s one from every direction. They make it easy to get to neighboring communities. They handle hospitality overflow during our big events such as Southern Side by Side Championship and Exhibition at Deep River Sporting Clays. And we get Moore County’s overflow during the
U.S. Open.
Overflow is a good problem, but we’re examining capacity. Wicker Center has space, but lodging is needed. A Fairfield Inn is opening this year, adding supply for the first time in 40 years.
Visit NC’s advertising co-op program allows you to purchase advertising and earn media through public relations. We adopted that model for our partners. Our first six have already realized an impact. We share their media, promoting their business and driving people to them. We help them find the most beneficial paid media. We’re offering more support and hitting better targets. Those businesses bring people to town. We want everyone to have the information they need to have a great time here.
WHAT’S THE CURRENT BALANCE BETWEEN LEISURE AND BUSINESS TRAVEL?
CORDO: We pursue meetings and conventions. Our focus is aviation, because Greensboro is seeing success in that industry. I want more CEOs in town. Tourism is the first stop before moving your business.
The current market is tough. Federal group travel has disappeared. That’s not a political statement; it’s fact. That’s opened gaps in convention center and meeting space schedules, especially in the Northeast. They’re feverishly looking for business and cannibalizing other places. Company and consumer spending are slowing, too, so the market probably has some rough years ahead.
But North Carolina is in a unique position. It’s a one-stop flight from almost anywhere in the world. It’s a day’s drive from about 50% of North America’s population. It’s relatively inexpensive, even in our metropolitan centers, so we get closer to per diem than many places. So, while it’s a tough time for group sales, they’re not impossible in North Carolina. That’s better than many places can say right now.
Cvent, a large company that sources meetings, compiles an annual top-10 list of meeting cities. They’re ranked by volume, so there are no surprises — Orlando, Chicago, Las Vegas and other massive places. We recently studied that list and found meeting planners could save 40% to 45% on core costs by choosing Greensboro compared to any of the top 10. I think that’s the situation in most of North Carolina. We’re a value.
WERZ: Before the COVID pandemic, our travel mix was 45% leisure and 55% business especially for our major tourism partners. Now, leisure is nearly 80%. Business travel is decreasing, but not for a lack of demand. I’ve recently received 18 inquiries about hosting groups from 250 to 1,000 people. Pinehurst and its vicinity have limited capacity for those groups, so we’re zero for 18 on those. We should be six for 18, even three for 18.
I recently shared those calls with my board members. I didn’t recommend an action, though that’s thousands of people and millions of dollars, especially with the occupancy tax doubling to 6% starting Jan. 1, going elsewhere. If they choose not to pursue those, I’m all for more investments in golf.
BRYAN: Our meetings-and-conventions business was up last year based on Wicker Center visits. We want business that best fits our growing advanced manufacturing base, including corporate meetings, training and weekday retreats. We believe we have the right amenities and advantages for them. We can meet the per diem and offer free onsite parking, which is important. Our hotels offer competitive rates. It’s a matter of getting more people to realize that we can be a destination.■
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