| Updated Jul 5, 2000 | |||
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Open’s Economic Impact to Ripple Widely BY SARA LINDAU The following article originally appeared in The Pilot on April 1, 1999.
The 1999 U.S. Open will have an economic impact far beyond the $160-$200 million to be spent by visitors during its seven-day reign in Pinehurst.
By the time the tournament is history on June 20, an estimated 250,000 visitors will have dropped large and small change that will have the short-term impact of increasing sales tax revenues and profits in the pockets of hotel and motel operators, restaurants and related businesses.
That money will be spent both in the immediate U.S. Open area in Moore County’s Sandhills and as far north as Raleigh and Durham.
When each of the 40,000 visitors a day spends his $345 on a ticket and related expenditures to see the tournament, to be fed, lodged, and transported, Moore County will gain $200 of that. North Carolina outside the county will gain $175 of it, according to the N.C. Division of Tourism, Film and Sports Development in Raleigh.
"The expenditure in the U.S. Open goes way beyond the area of Pinehurst," said a division spokesperson.
A matter of "simple arithmetic" means that many, many visitors will have to stay in hotels and motels in Raleigh and Durham, and drive or fly to Moore County for each day’s play.
There simply aren’t enough rooms here to accommodate all the expected visitors. Some 2,400 rooms exist in Moore County in commercial lodging houses, while 12,000 hotel and motel rooms have been blocked for use during the June 13-20 span, according to Caleb Miles, executive director of the Pinehurst Area Visitors and Convention Bureau.
Before it’s over, over 75,000 hotel rooms will have been rented.
Some people have been renting their homes or condos, with prices going as high as $1,000-$3,000 per bedroom for the week, Miles said.
But most "regular" visitors are staying in commercial lodging, which is more predictable and less costly.
Some large special groups, such as players and their families, U.S.G.A. officials and media, have rooms blocked in Moore County for their use. A few are staying in private homes in the area, mainly for proximity’s sake.
The long-term economic impact will be the result of simply letting more people and corporations know about the county and state.
"Basically, North Carolina will be exposed for four days straight over television, in 125 countries at last count," said Chris Mackey, a state division spokesperson. American viewers will get at least 31 hours of network television coverage of the Open itself, she said.
State industrial recruitment officials, among others, hope that their efforts will benefit from the exposure.
Much of the exposure will take place during the week or so leading up to the tournament, as much advance publicity spotlights the area; the area will reap the harvest in later years, businesspeople said.
"People will see the area on television, and some will probably want to visit here, play golf and eventually relocate here," Miles said.
The Pinehurst Business Guild’s members are likely to get more new business in the aftermath than during the Open itself, current President Ted Rhodes and President-elect Mary Scoggin agreed.
"I’ve been here through Tour championships and the Senior Open," said Rhodes, "and I think this will have a far, far greater impact as far as producing people.
"By and large, it’s your younger people who attend the Open, and they have money to spend."
During the seven days of the Open, the Guild and the village recreation and parks department are co-sponsoring a Village Fest. A professional manager and promoter will handle it, Rhodes said.
"We expect participation by a major sponsor to embrace the Open and make it an event to attract people to the village both during the day and after the Open’s play is over by 8 p.m," said Rhodes. "Corporate sponsors and people staying in private lodgings here aren’t just going to go straight to bed, and they will want something to do. This will showcase the village."
Sandhills Area Chamber of Commerce President Jim Bilyak said inquiries have already come in from prospective businesses that plan to acquire prime properties and benefit from the expected growth boom after the Open.
"There’s the Marriott Inn across from the (Pinecrest) High School," he said, that is being timed for the Open.
"They’re betting we can handle it (post-Open growth)," he said.
Callers to the Chamber are interested in opening offices and a couple of motels, as well as a luxury apartment house, Bilyak said.
Between 25 and 50 Fortune 500 companies have purchased luxury marquee set-ups, to allow their corporate guests to view the Open in comfort and style.
Their 100 allotted corporate tickets for the tournament will be turned over (used) several times. Some spectators will stay for a few days, then leave, and another corporate member will use the ticket for other days of play.
The basic tent marquee goes for $125,000, said Miles. With food and beverages, some of these corporations will spend anywhere from $20,000 to $100,000 more on the U.S. Open.
Marketing the Open is the same as marketing North Carolina and Moore County, in many people’s eyes.
It wasn’t just happenstance that drew so many big companies to purchase corporate tents here.
Four years ago, the President’s Council was organized by Pinehurst Resorts President Pat Corso and Jon Wagner, director of the 1999 U.S. Open.
Jim Hyler, a First Citizens Bank vice president in Raleigh, chaired the President’s Council, composed of 18 businessmen from across the state.
"Basically we were organized to bring North Carolina business leaders into planning and marketing of the Open," said Hyler. "We were to give the event some credibility in North Carolina and identify projects to sell corporate hospitality, and to be ambassadors bringing corporations in North Carolina to the Open."
Pinehurst is in a fairly remote location, with no large corporate or business presence in the immediate area. But President’s Council networking has paid dividends, Hyler said.
Some of the Fortune 500 companies that will have marquees at the Open are Duke Power, Centura Bank, Price Waterhouse Cooper, BellSouth, Fortune Brands, ALLTEL, BB&T, Glaxo-Wellcome, Belk Stores, Carolina Power & Light Co., MCI World Comm, LADD Furniture, Ericsson, Norfolk Southern, First Union, Unisys Corp., Lucent Technologies, Sports Illustrated, IBM, Golf magazine, AT&T, Wachovia, Lanier Worldwide, Bank of America and KPMG Peat Marwick.
For persons planning a visit to the Open, a guide is now available to help ensure that visitors don’t miss a thing: the official 1999 Destination & Golf Guide published by the Pinehurst Area Visitors and Convention Bureau.
The guide is available for free by contacting the PAVCB in Southern Pines. | |
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