South Carolina Early School Start Dates 
and the South Carolina Travel & Tourism Industries  

An Analysis of Economic & Tax Revenue Impacts

Report by:

Stephen C.  Morse, Ph.D.
Economist

School of Hotel, Restaurant and Tourism Management
College of Hospitality, Retail and Sport Management

Ph: (803) 7773458

e-mail:  smorse@sc.edu

University of South Carolina
Columbia, SC

September 2002

Executive Summary

South Carolina Early School Start Dates and the South Carolina
Travel and Tourism Industries

Purpose of the Study

The purpose of this report is to examine the effects and impacts of early school start dates in South Carolina on the Travel and Tourism economy of the State.

Findings of the Study

ü     South Carolina public schools have begun earlier and earlier in August, taking away up to 3 weeks of summer August vacation time from families with children in South Carolina public schools.

ü     Early school start dates shorten the August vacation season in South Carolina and is associated with decreased August tourism demand, costing the State’s largest industry – tourism – millions in lost economic activity and millions in lost State and local tax revenues.

ü     Early school start dates in South Carolina are associated with lower August tourist business activity including decreased August hotel occupancy rates, decreased August State and local accommodations taxes generated, decreased State and local sales tax generated, and decreased August employment in tourist areas.

ü     Decreased August tourist activity as schools start earlier, is not off-set by increases in tourist activity in other summer months.

ü     Starting schools in August mean schools must cool facilities for children during the hottest month of the year - August, costing unnecessary utility expenses by starting early, as opposed to starting after Labor Day in September.

ü     One conservative scenario estimates economic and tax revenue impacts where as little as 4 out of 10 families with children in South Carolina take one additional vacation if August summer vacation were restored; plus induced additional families from in-state and out-of-state family vacations, would generate $180 million in total economic impact, $6.03 million is State tax revenues, $2.34 million in local tax revenues, and $8.37 million in total State and local tax revenues.

South Carolina Early School Start Dates and the South Carolina
Travel and Tourism Industries

Purpose of Study

The purpose of this report is to examine the effects and impacts of early school start dates in South Carolina on the Travel and Tourism economy of the State. In August 2002, the South Carolina Department of Education requested Dr. Steve Morse, economist and professor in the School of Hotel, Restaurant and Tourism Management at the University of South Carolina, conduct an impact study to examine the effects of early school start dates on the State’s travel and tourism industry.

Background

In 2002, the South Carolina state legislature examined the possibility of establishing a uniform school start date for SC public schools.  To examine the issue further, the legislature directed the SC Department of Education to establish a task force.  The SC legislative bill establishing the task force is below:

          “Section 59-5-71.  The General Assembly declares that it is in the best interest of the students of South Carolina for a uniform beginning date for the annual school term to be developed and adopted by the State Board of Education to be implemented in all public schools of the State.  Therefore, the State Board of Education is directed to establish a task force comprised of superintendents, principals, teachers, parents, school board members, and representatives of business and industry, including tourism-related industries no later than July 1, 2002.  The task force to the fullest extent possible shall be equally divided among proponents of existing or earlier starting dates for schools, proponents of later starting dates for schools, including proponents for dates after Labor Day, and persons who legitimately have no preferences.  The task force shall make recommendations to the board including, but not limited to, the desirability of and if agreed upon a suggested uniform beginning date for the annual school term.  The task force shall report its findings to the State Board of Education no later than October 15, 2002.” (Source: SC State Legislature & SC Department of Education)

History of South Carolina School Start Dates

The table below shows South Carolina public school start dates for nine academic years from 94-95 to 02-03.  The average school start date has become earlier in August from a 1994 average of August 20 to a 2002 average of August 11.  The earliest start data in 1994 was August 16, and in 2002 earlier at August 5.

Early School Start Dates and Statewide Tourism Demand

As South Carolina school start dates have been earlier and earlier since 1997, more and more of the August vacation season has been lost.  In 1997 the earliest school start date was August 11, while in 2002 the earliest school start date was August 5.  Below, the South Carolina statewide hotel and lodging occupancy rates are shown for August and May over a five-year period from 1997 to 2001.  The data indicate that since schools starts dates have become earlier and more of the August summer vacation season is lost, August hotel occupancy rates have decreased statewide. 

In addition, less summer vacation opportunity in August and lower August hotel occupancy rates statewide are reflected in the 2% State Accommodations Tax revenue collected.  In particular, the graphs below shows that since 1997, August state tax revenue generated from the 2% accommodations taxes have decreased.

Since 1997, August statewide 2% accommodations taxes have deceased.

The graph below shows the change in attendance from month to month at SC amusement and theme parks.  In 2001, attendance at SC amusement and theme parks decreased by the largest percent (13%) in August.  This decrease in attendance also results in less SC admissions tax revenues not generated by this decreased August attendance.

Early School Start Dates and Coastal Tourism Demand

Coastal areas of South Carolina generate the majority of tourism demand.  Of all visitors to South Carolina in 2000, coastal areas generated 64% of all visitors, the midlands 19%, and the upstate 17% (Source: SC PRT).  This section examines the relationship between early school start dates and effects on tourism in coastal areas of South Carolina.

Since 1997, hotel occupancy rates in Myrtle Beach for August and May have decreased. 

Horry County generates the largest share of the 2% hotel tax in the State.  However, since 1997 the August percent contributed to the Horry County yearly total has decreased.

Hotel occupancy rates for SC, Myrtle Beach, Hilton Head Island, and Charleston are shown below from 1997 – 2001 for May, June July, August and September.