Tourism Impacts and Second Home Development in Coastal Counties: A Sustainable Approach

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1 Tourism Impacts and Second Home Development in Coastal Counties: A Sustainable Approach Brunswick, Currituck and Pender Counties, North Carolina (Funded by North Carolina Sea Grant) Center for Sustainable Tourism Division of Research and Graduate Studies East Carolina University

2 Community Tourism Industry Components Host Community Infrastructure Long & Nuckolls

3 Factors Affecting Gateway & Resort Communities Housing Stock and Related Housing Issues Ability to Seek Clarity & Agreement on Issues Leading to Effective Planning Workforce Issues Recruitment, Retention, Compensation & Housing Understanding Wealth, Economic Drivers, and Base Industries Community Sense of Place Balancing Local Economy & Quality of Community Experience for Residents and Visitors Environmental Stewardship Water, Climate, Energy & Land Encouraging Business and Entrepreneurship Adjusting to Changing Community Demographics Access and Transportation East Carolina University Center for Sustainable Tourism

4 The Tourism Cycle. (R.W. Butler, The Concept of a Tourist Area Cycle of Evolution, Canadian Geographer, vol. 24, no. 1, 1980, p. 7). Critical Range of Elements of Capacity Stagnation Consolidation Rejuvenation A B C Number of Tourists Decline D Development E Involvement Exploration Time

5 Next Steps for Participating Counties Become familiar with the details of the study findings look behind the curtain! Put this information within the context of the current private and public climate and discussions. Determine appropriate audiences most interested in the study s content and contribution. Discuss publicly the implications of the findings to public policy, growth and development, and effective planning. Think and act strategically on how tourism contributes in a sustainable manner to the future of the place you live and work.

6 Study Objectives

7 Issues Affecting the Study Area Land Use Development of Second Homes Cost of Living Real Estate Prices Jobs and Job Growth Affordable Housing Choices for Work Force and Local Residents Transportation Environmental Issues

8 Objectives of Study 1. Assess property owners perceptions of the impact of tourism on community land use, the economy, service provision, cultural opportunities, infrastructure, the environment and general community quality of life; 2. Profile economic value of second homes documenting by number, type and value; 3. Identify perceptions of the importance of sustainable actions on future economic success;

9 Objectives of Study 4. Determine how climate impacts resident and second home owners property and recreational decisions; 5. Compare differences between second homeowners and resident property owners regarding impacts, benefits, and future support for tourism; 6. Compare assessment of community attachment and the factors that produce that attachment.

10 Housing Stock Brunswick County GIS Data Base

11

12 54% 23% 10% 14% 12% 40% 100% 90% % 70% % 50% 40% % Second Home Second Home Full Time Home 30% 20% 10% 0% 7895 Ocean Front Leland Bolivia Northwest Other Total

13 Housing Stock Currituck County GIS Data Base

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15 12% 53% 8% 95% 58% 43% 100% 90% % 70% % 50% 40% % Second Home Second Home Full Time Home 30% 20% % 0% 47 Crawford Fruitville Moyock Ocean Sands Popular Branch Total

16 Housing Stock Pender County GIS Data Base

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18 12% 47% 14% 24% 32% 100% 90% % % 60% 50% 40% % Second Home Second Home Full Time Home 30% % 10% 0% Burgaw Topsail Grady Long Creek Rocky Point Other Total

19 Methodology and Sampling

20 Methodology Qualitative focus groups Establish an understanding of the perceptions of the tourism industry and study area Determine the primary issues and concerns regarding the impact that tourism has on the community Quantitative survey Estimate the extent and degree of perceptions regarding the concerns and issues expressed by the focus groups Compare perceptions of tourism s impact on community life between local residents and second home owners

21 Sampling and Survey The Geographic Information System (GIS) Tax Records of each county provided a list of the county s housing stock from which a sample was selected of both resident and second home property owners; Survey of homeowners from Spring 2011 to Summer 2011 (7,395 full time property owners; 7,192 second home owners); Collection effort included initial mailing, two reminder notices, two telephone reminder calls and incentive drawing; 1,481 usable responses from internet survey: 47% full time residents; 53% second home owners.

22 Summary of Findings

23 Background and Demographics Tourism is a significant economic development component for all three counties in direct, indirect and induced spending. The presence of second homes is noticeable in both numbers and value. Second home owners have substantially higher annual household income at all income levels starting at $100,000 than do full-time residents. Over seventy percent (70.2%) of second home owners are 55 years of age or older. Over fifty-four percent (54.5%) of second home property owners intend to maintain current use of their second home properties.

24 Background and Demographics Thirty-six percent (36%) of second home property owners intend to increase personal use of their second home properties. About fifteen percent (15.2%) of second home owners suggest they will retire to their respective county full time. 42.2% of second home owners compared to 22.8% of full-time residents have post-graduate education. Second home owners were more inclined than full-time residents to be a couple with children no longer in the household.

25 Tourism and Community Life Second home owners were more satisfied than full time resident property owners with: 1. Amount of both non-tourism and tourism commercial development; 2. Number of tourism businesses and employment opportunities; 3. Cleanliness and upkeep of the county; 4. Crime prevention. Full time resident property owners expressed greater satisfaction than did second home property owners on: 1. Quality of local public educational system.

26 Tourism and Community Life Second home owners expressed greater satisfaction with the relationship of tourism to cultural offerings including 1. Interactions between visitors and property owners; 2. Promotion of cultural and historical resources; 3. Mix of cultural offerings; 4. Number of cultural offerings. Second home owners were more satisfied with community infrastructure issues including: 1. Availability of public sewer system; 2. The management of tourists traffic; 3. Quality of parks, greenways and bike lanes; 4. Availability of public parking during tourist season.

27 Tourism and Community Life Full time resident property owners expressed less satisfaction with : 1. Current water and air quality; 2. Availability of quality recreational opportunities; 3. Availability of quality health care services; 4. Affordability of work force housing; 5. Availability of work force housing; 6. Range of housing styles and designs.

28 Community Sense of Place Full time residents expressed greater level of attachment than did second home property owners on: 1. I feel that I have political influence on community decisions; 2. It is important to be a member of local civic organizations. Second home property owners expressed greater level of attachment than did full time residents on: 1. I really miss it when I am away too long; 2. I feel that I can really be myself here.

29 Sustainable Actions and Future Economics Full time resident and second home property owners hold similar views on: 1. Full access for everyone in the community to participate in tourism development decisions; 2. Preserving culture and heritage; 3. Reducing noise; 4. Protecting water quality; 5. Protecting air quality; 6. Protecting our community s natural environment for future generations; 7. Conserving the natural environment; 8. Being energy efficient; 9. Managing wastewater; 10.Reducing consumption of freshwater; 11.Managing, reducing and recycling solid waste; 12.Reducing and managing greenhouse gas emissions.

30 Sustainable Actions and Future Economics Full time residents felt a greater level of importance than did second home property owners on: 1. Training and educating clients and employees on sustainable practices; 2. Purchasing from companies with certified green practices; 3. Providing economic benefits from tourism to locals.

31 Climate and Weather Second home property owners indicated a greater level of agreement on : 1. Weather and climate conditions were important in deciding to own property in the County; Full time residents indicated a greater level of agreement on: 1. I feel I am adequately prepared for a severe weather event (e.g. hurricanes, floods, heavy rains); 2. Weather conditions have changed enough in the County that I would NOT consider buying property here in the future.

32 Climate and Weather Weather factors such as precipitation, wind, and humidity play a greater role in full time residents personal recreational decision making process. Second home property owners indicated that five climate conditions would have greater effect on their future property values including: 1. Sea level rise and coastal flooding affect ; 2. Number and intensity of coastal storms; 3. Availability of freshwater; 4. Changes in temperature and/or humidity; 5. Changes in precipitation.

33 Support for Further Tourism Development Second home owners expressed a greater level of environmental, economic and overall benefits received from tourism, than did full time residents. Second home property owners perceived a greater level of positive impact of tourism on: 1. Tourism is a strong economic contributor; 2. Tourism creates new markets for local products; 3. Tourism benefits other industries in the county; 4. Growth in tourism will create jobs for local residents; 5. Tourism brings new income to the County; 6. Tourism helps preserve the cultural and historic identity of the county; 7. Tourism improves the image of the county s culture.

34 Support for Further Tourism Development Second home property owners perceived a greater level of negative impacts of tourism in the County on: 1. My quality of life has deteriorated because of tourism; 2. Tourism in the County is growing too fast; 3. Tourism increases the amount of crime in the county; 4. Tourism increases traffic problems; 5. There is overcrowding due to tourism development; 6. Recreational resources are overused by tourists.

35 Support for Further Tourism Development Full time residents expressed a greater level of support for further tourism with: 1. I support new tourism facilities that will attract more tourists to the County; 2. Local government should provide tax incentives to encourage private development in tourism. Second home property owners expressed a greater level of support for further tourism with: 1. Tourism should be developed in harmony with the natural environment; 2. We need to take a long-term view when planning for tourism development; 3. I support tourism having a vital role in the County; 4. County should plan and manage tourism s growth.

36 Demographic Information on Respondents

37 Age of Respondents 75 and older and under % Full time Second home

38 Family Status of Respondents Other Couple, children no longer at home Couple, children at home Couple, no children Single, children no longer at home Single, children at home Single, no children % Full time Second home

39 Ethnicity of Respondents Other Hispanic Caucasian Asian American Indian African American % Full time Second home

40 Gender of Respondents Female Male % Full time Second home

41 Level of Education Post graduate year college Some college, but no degree year college/technical School High School or GED Less than high school % Full time Second home

42 Employment Status Other Retired Looking for work Own my own business Working part-time Working full-time % Full time Second home

43 Is Your Occupation Tourism Related? No Yes % Full time Second home

44 Income $400,000+ $200,000 - $399,999 $150,000 - $199,999 $100,000 - $149,999 $75,000 - $99,999 $50,000 - $74,999 $35,000 - $49,999 $25,000 - $34,999 $15,000 - $24,999 $0 - $14,999 % Full time Second home

45 Registered to Vote in the County? No Yes % Full time Second home

46 Reasons I Own Property in Coastal County and Patterns of Property Use

47 Why I Choose to Live in the County? (Full time Residents) Other This is a very friendly place I like the community atmosphere More affordable than other coastal areas Recreational opportunities This is where I have retired/plan to retire I like the scenery I like the climate Because of job opportunities My job is here To be with family and friends I was born here %

48 Why I Bought My Second Home in the County? (Second Home Owners) Beach Proximity to permanent residence Investment value Rental value Air quality Water quality Friendliness of the area Recreational opportunities Affordability of the area Culture/history of the area General climate Closeness to family and friends Other %

49 My Use of Second Home Property in 5 years? Other 4.8 Don't know 8.9 Sell it 12.8 Live in it full time and telecommute 2.1 Rent it part time 21.3 Rent it full time 5.1 Increase personal use 36.0 Retire to it full time Maintain current use %

50 Dimensions of Community Life and Relationship to Tourism

51 Land Use and Tourism Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied The amount of residential development The amount of non-tourism commercial development Full time The amount of tourism commercial development % The amount of residential development The amount of non-tourism commercial development Second Home The amount of tourism commercial development

52 Land Use and Tourism p The amount of residential development.668 The amount of non-tourism commercial development.000* The amount of tourism commercial development.000* Full time Second home

53 The Economy, Jobs and Tourism Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied Number of tourism businesses Employment opportunities Full time Cost of living compared to other coastal counties % Number of tourism businesses Second Home Employment opportunities Cost of living compared to other coastal counties

54 The Economy, Jobs and Tourism p Number of tourism businesses.000* Employment opportunities.000* Cost of living compared to other coastal counties.250 Full time Second home

55 Government Services and Tourism Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied Cleanliness and upkeep of the county Fire and emergency services Crime prevention Full time Educational offerings for adults Quality of local public educational system % Cleanliness and upkeep of the county Fire and emergency services Crime prevention Educational offerings for adults Second Home Quality of local public educational system

56 Government Services and Tourism Cleanliness and upkeep of the county p.000* Fire and emergency services.946 Crime prevention.017* Educational offerings for adults.130 Quality of local public educational system.000* Full time Second home

57 Cultural Offerings and Tourism Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied Interactions between visitors and property owners Promotion of cultural and historical resources Mix of cultural offerings Full time Number of cultural offerings % Interactions between visitors and property owners Promotion of cultural and historical resources Mix of cultural offerings Second Home Number of cultural offerings

58 Cultural Offerings and Tourism Interactions between visitors and property owners p.000* Promotion of cultural and historical resources.000* Mix of cultural offerings.000* Number of cultural offerings.000* Full time Second home

59 Infrastructure and Tourism Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied Management of storm water runoff Availability of public sewer system The management of traffic generated by tourists The quality of parks, greenways and bike lanes Full time Availability of public parking during tourist season % Management of storm water runoff Availability of public sewer system The management of traffic generated by tourists Second Home The quality of parks, greenways and bike lanes Availability of public parking during tourist season

60 Infrastructure and Tourism Management of storm water runoff p.165 Availability of public sewer system.000* The management of traffic generated by tourists.001* The quality of parks, greenways and bike lanes.000* Availability of public parking during tourist season Full time Second home.001*

61 Quality of Life and Tourism Highly Satisfied Satisfied Neither Satisfied nor Dissatisfied Dissatisfied Highly Dissatisfied Current water quality Current air quality Availability of quality recreational opportunities Availability of quality healthcare services Affordability of work force housing Availability of work force housing The range of housing styles and designs % Current water quality Full time Current air quality Availability of quality recreational opportunities Availability of quality healthcare services Affordability of work force housing Second Home Availability of work force housing The range of housing styles and designs

62 Quality of Life and Tourism Current water quality Current air quality Availability of quality recreational opportunities Availability of quality healthcare services Affordability of work force housing Availability of work force housing The range of housing styles and designs p.000*.000*.000*.005*.005*.017*.041* Full time Second home

63 Sustainability and Future Economic Success Through Tourism

64 Protecting our community's natural environment for future generations Conserving the natural environment Sustainability and Economic Success Very Important Important Neither Important nor Unimportant Unimportant Not at all Important Being energy efficient Managing wastewater Reducing consumption of freshwater Full time Managing, reducing and recycling solid waste Reducing and managing greenhouse gas emissions Protecting our community's natural environment for future generations % Conserving the natural environment Being energy efficient Managing wastewater Second Home Reducing consumption of freshwater Managing, reducing and recycling solid waste Reducing and managing greenhouse gas emissions

65 Sustainability and Economic Success Very Important Important Neither Important nor Unimportant Unimportant Not at all Important Full access for everyone in the community to participate in tourism Training and educating employees on sustainability practices Purchasing from companies with certified green practices Providing economic benefits from tourism to locals Preserving culture and heritage Reducing noise Full time Protecting water quality Protecting air quality Full access for everyone in the community to participate in tourism development decisions % Training and educating employees on sustainability practices Purchasing from companies with certified green practices Second Home Providing economic benefits from tourism to locals Preserving culture and heritage Reducing noise Protecting water quality Protecting air quality

66 Sustainable Actions and Tourism Non-Significant Full access for everyone in the community to participate in Preserving culture and heritage Reducing noise Protecting water quality Protecting air quality Protecting our community's natural environment for Conserving the natural environment Being energy efficient Managing wastewater Reducing consumption of freshwater Managing, reducing and recycling solid waste Reducing and managing greenhouse gas emissions p % Full time Second home

67 Sustainable Actions and Tourism Significant p Training and educating employees on sustainability practices.034* Purchasing from companies with certified green practices.040* Providing economic benefits from tourism to locals.000* Full time Second home

68 Impact of Climate And Weather On Property Ownership In The County?

69 Impacts of climate change are evident in the County Impact of Climate and Weather Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Changing climate conditions will make the County NO longer attractive to new residents Climate change will have a noticeably negative impact on my property values in the next 25 years I feel I am adequately prepared for a severe weather event (e.g. hurricanes, floods, heavy rainfall) I feel the climate conditions here are ideal to attract new property owners. Weather conditions have changed enough in the County that I would NOT consider buying property here in the future. Weather and climate conditions were important in deciding to own property in Brunswick County. % Full time Impacts of climate change are evident in the County Changing climate conditions will make the County NO longer attractive to new residents Climate change will have a noticeably negative impact on my property values in the next 25 years I feel I am adequately prepared for a severe weather event (e.g. hurricanes, floods, heavy rainfall) I feel the climate conditions here are ideal to attract new property owners. Weather conditions have changed enough in the County that I would NOT consider buying property here in the future. Weather and climate conditions were important in deciding to own property in the County. Second Home

70 How Climate and Weather Affect your Ownership of Property? Impacts of climate change are evident in the County Changing climate conditions will make the County NO longer attractive to new residents Climate change will have a noticeably negative impact on my property values in the next 25 years I feel I am adequately prepared for a severe weather event (e.g. hurricanes, floods, heavy I feel the climate conditions here are ideal to attract new property owners. Weather conditions have changed enough in the County that I would NOT consider buying property Weather and climate conditions were important in deciding to own property in the County. p * *.000* Full time Second home

71 Weather Factors Affecting Personal Recreational Decisions

72 Weather Factors Very Important Important Neither Important nor Unimportant Unimportant Not at all Important Precipitation Wind Humidity Full time Temperature % Precipitation Wind Humidity Second Home Temperature

73 Weather Factors &Personal Recreational Decisions Precipitation p.000* Wind.000* Humidity.001* Temperature Full time Second home

74 Climate Change and Future Property Values?

75 Climate Change and Future Property Value Very Important Important Neither Important nor Unimportant Unimportant Not at all Important Sea level and coastal flooding Number and intensity of coastal storms Availability of freshwater Full time Changes in temperature and/or humidity Changes in precipitation % Sea level and coastal flooding Number and intensity of coastal storms Availability of freshwater Changes in temperature and/or humidity Second Home Changes in precipitation

76 Affect of Climate Change on Future Property Values? p Sea level and coastal flooding.000* Number and intensity of coastal storms.000* Availability of freshwater.000* Changes in temperature and/or humidity.001* Changes in precipitation.013* Full time Second home

77 Community Attachment

78 Personal Attitudes about Living in the Community Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree I feel that I have political influence on community decisions It is important to be a member of local civic organizations This is the best place to do the things I enjoy Full time I really miss it when I am away too long I feel that I can really be myself here I feel that I have political influence on community decisions % It is important to be a member of local civic organizations Second Home This is the best place to do the things I enjoy I really miss it when I am away too long I feel that I can really be myself here

79 Personal Attitudes about Living in the Community I feel that I have political influence on community decisions It is important to be a member of local civic organizations This is the best place to do the things I enjoy I really miss it when I am away too long p.000*.000* * I feel that I can really be myself here.000* Full time Second home

80 Attitudes Towards Tourism Impacts and Second Home Development

81 Personal Benefits Received From Tourism Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Overall, I benefit from tourism in our county I personally receive environmental benefits from tourism I personally receive economic benefits from tourism I personally receive social benefits from tourism % Full time Overall, I benefit from tourism in our county I personally receive environmental benefits from tourism I personally receive economic benefits from tourism Second Home I personally receive social benefits from tourism

82 Personal Benefits Received from Tourism Overall, I benefit from tourism in our county p.000* I personally receive environmental benefits from tourism.000* I personally receive economic benefits from tourism.000* I personally receive social benefits from tourism.063 Full time Second home

83 Tourism improves the image of the County's culture Tourism helps preserve the cultural and historic identity of the County Tourism brings new income to the County Tourism s Positive Impacts Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Growth in tourism will create jobs for local residents Tourism benefits other industries in the County Full time Tourism creates new markets for our local products Tourism is a strong economic contributor to the County % Tourism improves the image of the County's culture Tourism helps preserve the cultural and historic identity of the County Second Home Tourism brings new income to the County Growth in tourism will create jobs for local residents Tourism benefits other industries in the County Tourism creates new markets for our local products Tourism is a strong economic contributor to the County

84 Tourism s Positive Impacts Tourism improves the image of the County's culture Tourism helps preserve the cultural and historic identity of the County Tourism brings new income to the County Growth in tourism will create jobs for local residents Tourism benefits other industries in the County Tourism creates new markets for our local products Tourism is a strong economic contributor to the County Full time p.019*.004*.000*.000*.000*.000*.000* Second home

85 Tourism s Negative Impacts Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree My quality of life has deteriorated because of tourism Tourism in the County is growing too fast Tourism development unfairly raises real estate costs Tourism increases the amount of crime in the County Tourism increases traffic problems Full time There is overcrowding due to tourism development Recreational resources are overused by tourists % My quality of life has deteriorated because of tourism Tourism in the County is growing too fast Tourism development unfairly raises real estate costs Second Home Tourism increases the amount of crime in the County Tourism increases traffic problems There is overcrowding due to tourism development Recreational resources are overused by tourists

86 Tourism s Negative Impacts My quality of life has deteriorated because of tourism Tourism in the County is growing too fast Tourism development unfairly raises real estate costs Tourism increases the amount of crime in the County Tourism increases traffic problems There is overcrowding due to tourism development Recreational resources are overused by tourists Full time.000*.000*.000*.031* Second home p * *

87 Tourism should be developed in harmony with the natural environment Tourism development should embrace the values of all community We need to take a long-term view when planning for tourism development Support for Further Tourism Development Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree I support new tourism facilities that will attract more tourists to the County Local government should provide tax incentives to encourage private Full time County should plan and manage tourism's growth I support tourism having a vital role in the County Tourism holds great promise for the County's future % Tourism should be developed in harmony with the natural environment Tourism development should embrace the values of all community residences We need to take a long-term view when planning for tourism development I support new tourism facilities that will attract more tourists to the County Local government should provide tax incentives to encourage private development in tourism County should plan and manage tourism's growth Second Home I support tourism having a vital role in the County Tourism holds great promise for the County's future

88 Support for Further Tourism Development Tourism should be developed in harmony with the natural environment Tourism development should embrace the values of all community residences We need to take a long-term view when planning for tourism development I support new tourism facilities that will attract more tourists to the County Local government should provide tax incentives to encourage private development in tourism County should plan and manage tourism's growth I support tourism having a vital role in the County Tourism holds great promise for the County's future Full time *.002*.038*.000*.002* Second home p.015*.567

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