Meals up, occupancy down in November; October retail sales in Dare take a slide
It was an up-and-down month of November for the hospitality industry in Dare County, while retail businesses saw a lower October than the year before.
According to statistics presented at the Dare County Tourism Board meeting on January 16, occupancy collections dropped by 2.8% from the previous year and were down by 4.82% year-to-date when compared to 2023.
Prepared meals sales for November jumped by 8.1%, and were up 1.45% through 11 months of the year.
Retail sales figures for October took the biggest hit in the report, declining by 6.83% and down by 2.01% for the year.
Headed into the fall, predictions continued to call for declines in tourism-related revenues due to the continued reset from the record visitation during and after the COVID-19 pandemic, along with the impacts of inflation on the overall economy.
There was also the turbulence of an election year, and the impact that can have on visitors, especially those from the Washington D.C.-area that is a key market for the Outer Banks.
“Hopefully with the election year over and inflation kind of heading in the right direction, we get those things behind us and get back on solid footing moving into the new year,” said Outer Banks Visitors Bureau Executive Director Lee Nettles.
The figures presented in the report are used to calculate revenues the county generates from the 6% occupancy tax and 1% prepared food and beverage tax, which then funds promotion of the Outer Banks, along with grants for events and tourism-related impacts.
Beach nourishment projects are also funded in part using 1% of the hotel room/vacation rental tax.
Gross collections at hotels, motels, and vacation rentals in Dare County for November totaled $17,709,005, the fourth highest all-time for the month, and over $6.2 million ahead of the pre-pandemic year of 2019.
The year-to-date total through November 2024 of $773,272,030 was the third highest on record, and is coming off 2023 when the year-to-date record was set at $812,462,965.
Bed and Breakfasts saw a massive increase of 375.97% in November, followed by Timeshares +30.94% Cottages +12.99%, Motel/Hotel +8.28%, and Online Travel Companies +5.8%.
Campgrounds were down 17.44% from November 2023 and Property Management Agencies -6.22%.
For the year-to-date, Cottage revenue grew 18.09% and Timeshares +6.83%. Campgrounds were down 18.45%, Bed and Breakfasts -15.92%, Motel/Hotel -6.01%, Property Management Agencies -4.69%, and Online Travel Companies -2.71%.
Hatteras Island was up 1.59% for the month, and down 11.37% for the year. The northern beach towns dropped 6.45% from the previous November and were off 1.45% year-to-date. Roanoke Island and the mainland grew by 32.31% for the month, but declined 28.57% for the year.
Prepared meals and drinks collections in November totaled $20,897,820, second highest all-time for the month behind only 2022’s $28,176,947.
Through the first 11 months of 2024, meals collections totaled a new record of $378,449,320, and have increased each of the last four years.
If trends continue, 2024 will finish as the highest year ever for meals collections in Dare County and continue a streak of increases that started in 2021.
Prepared meal and drink sales in Hatteras Island were off 10.55% from November 2023, and down 0.58% year-to-date. The northern beach towns saw a 10.56% increase for the month and 2.25% for the year. Roanoke Island and the mainland was up 9.69% from the previous November, but down 3.56% year to date.
A trio of Christmas-themed “crawls” launched over the Thanksgiving holiday at establishments from Kitty Hawk to Manteo, The 12 Bars of Christmas, Misfits Bar Crawl, and The Naughty Nine, which may have contributed to the November boost.
“We don’t have a way to isolate the Christmas crawls but there’s no doubt they are generating excitement and additional business,” Nettles said.
“That said, though, I’ll remind that the collection figures are simply gross sales,” Nettles said. “So an increase can also be attributed to higher prices, and higher costs being experienced by the business.”
Retails sales in Dare County for October 2024 totaled $10,447,815, the second-best total for the month behind only the year before.
That ended a streak of October growth dating back to at least 2019, was the 8th month in 2024 that was down when compared to the previous year, and the fourth month where the decline topped 6%.
“That drop might be a reflection of fewer visitors, which jives with the drop we saw in occupancy collections for October,” Nettles said. “Economic concerns on top of that create a challenging environment.”
The year-to-date total for retail sales stood at $100,698,264, second highest all time behind 2023, and is the second straight time the total has passed $100 million by the end of October.
Food is always up because it costs more money than ever. Restaurants are never going to retreat on prices not are they going to retreat on the expected tip for for everything. Someone handing me two donuts does not warrant a tip.
“. . . which jives (sic) with the drop we saw in occupancy . . .”
The proper word is “jibes.”