Ways and Means Subcommittee Hearing Testimony

John Durst, President and CEO of the SCRLA, was invited to testify at a Ways and Means Subcommittee hearing on February 16. Below is the testimony he gave.

A headline on WIS-TV’s website today reads: “While the rest of SC’s economy is almost back, leisure and hospitality are down 15%. In the story, it cites UofSC economist Joey Von Nessen’s indicating that the missing piece for our industry to return to previous employment levels is based on biology rather than economics. What Dr. Von Nessen was referring to is COVID-19 vaccination levels.

Here are some examples of how our hospitality industry has been so very hard hit by the pandemic:

• More than 58,000 jobs in our state’s hospitality industry have been lost since last March

• Hundreds of hotels have been teetering on the brink of foreclosure or closure due to low current and projected demand, putting thousands of livelihoods at risk

• Hotel occupancy is hovering around 40%, which is down 24% since this time last year

• Consumer spending in restaurants remains well below normal levels – at least 28% on average

• 18% of South Carolina restaurateurs say they are considering temporarily closing

South Carolina’s hospitality industry is clearly reeling from this unprecedented health care crisis and the accompanying economic fallout.

Our tourism industry, a leading economic engine, proudly, for example, hosts internationally known events such as the RBC Heritage, the Darlington Southern 500 and the 2021 PGA Championship... not to mention some great collegiate games. Our natural beauty is also enjoyed by thousands annually. Before the pandemic struck, ours was a $23.8 billion industry, supporting one in every 10 jobs and generating $1.8 billion in state and local taxes.

Taking those facts into account, that’s why Governor McMaster included restaurants and hotels in his initial list of essential businesses that would remain open. One example of how we are doing our part to make safety and health our top priority is having established, in collaboration with the Governor’s Office, DHEC and PRT, the Palmetto Priority program which is a formal commitment made by South Carolina restaurateurs to provide a clean and safe environment for their staff and customers, and to demonstrate the extensive precautions that they are taking to prevent the spread of COVID-19.

To maximize the resilience of our industry, I respectfully submit that it is vital for our frontline, essential workers to be classified in Phase 1A to receive COVID-19 vaccinations. As indicated by the Governor, they do work in essential industries and are truly frontline, essential workers.

As our industry continues to use best practices, following the guidelines of the CDC and DHEC, our resilience, our world-class cuisine and lodging, along with our highly-sought-after attractions and events, will steadily increase the number of our guests. The results of classifying our frontline hotel and restaurant workers in Phase 1A will speed up our economic recovery and help us further demonstrate to those growing numbers of guests – through our proven, successful brand of Southern hospitality – that, “We’re glad you’re here.”