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WNC worker exodus poses threat to tourism, officials say
Sunday, 22 December 2024 13:37

From Staff Reports 

 

Some  tourism and political leaders in Western North Carolina are expressing major concern that the ongoing local worker exodus — following the wrath wreaked on the region by Tropical Storm Helene on Sept. 27 — could worsen significantly.

The concerns were expressed during the 2024 Asheville Annual Economic Outlook presented on Dec. 11 at the Omni Grove Park Inn — and in separate interviews with local political and tourism officials. 

After Helene, more than 27,000 people in North Carolina filed storm-related disaster-related unemployment claims as of Dec. 2.

What’s more, Buncombe County’s employment rate went from the lowest in the state before Helene, to a state-high jobless rate of 8.8 percent for October (one month later). The other counties in the Asheville Metropolitan Statistical Area — Henderson, Haywood and Madison — also recorded rising joblessness in October

Meanwhile, the Asheville Economic Outlook highlighted alarming statistics, particularly a 4.4 percent increase in unemployment month-over-month. 

Clark Duncan, the senior vice president of economic development with the Asheville Area Chamber of Commerce (the event’s host), “noted that Asheville’s hospitality community has been hit especially hard, experiencing a staggering 15 percent loss of employment in that sector alone,” Asheville television station WLOS (News 13) reported, adding that Duncan said that “this is a significant concern, as tourism plays a critical role in the city’s economy.”

Adding to the somber report, Vic Isley, the president and CEO of Explore Asheville, reported “an estimated 70 percent loss in the visitor economy specifically for the fourth quarter,” News 13 stated. 

“‘These numbers are not just statistics — they reflect real lives and real businesses struggling to stay afloat,’ Isley said, as she addressed hundreds of local and national business representatives during the presentation.”

In referring to Duncan’s warning, “We will see closures in waves,” Isley added, according to News 13. “It’s not happening all at once, but the impact can be felt throughout the city as legacy businesses, both in manufacturing and restaurants, have started announcing their closures. This news is disheartening, especially for a community that thrives on local establishments.”

However, despite the challenges, there is “a glimmer of hope emerging from the broader economic landscape,” News 13 reported.

To that end, Ben Harris, former chief Economist for the U.S. Treasury Department, “asserted that the overall U.S. economy is in great shape,” the TV station noted. 

“He pointed out that economies usually bounce back stronger after natural disasters, citing a tendency for increased employment and resilient home values during such recovery phases.” 

Specifically, Harris noted, “You tend to see a lot of construction jobs open up as communities rebuild.”

News 13 noted, “He (Harris) also emphasized that, unlike during the 2008 financial crisis, when unemployment soared, the current situation shows that workers are actively searching for good jobs. ‘It’s a tough time for Asheville, but if you have to face a disaster, it’s better when the economy is strong,’ he added.

“After addressing the present challenges in 2024, local leaders have set their sights on a brighter future in 2025. 

“Duncan stated, ‘The sooner people come back to be a part of our recovery and region we call home, the faster we’ll get back to thriving.’ To guide this recovery, they plan to conduct an authoritative economic impact study, gathering input from business-owners and residents alike.

“There remains a strong impression of cautious optimism in the air. ‘We have great optimism and realism for what’s happening in our community,’ Isley expressed, emphasizing the need for community support during these tough times. 

“Explore Asheville said it is focused on promoting upcoming announcements to further uplift the local economy during December and into the first few weeks of 2025, she said,” News 13 stated.

 Elsewhere, among those expressing concern about a worker exodus from the area are state Sen. Julie Mayfield, D-Asheville, who recently told News 13 that “workers have nowhere to go. If they get evicted from their apartments, they’re going to leave (the area) because they can’t just go across town and rent another apartment...

“Pre-pandemic 50,000 people a day commuted into Asheville,” Mayfield said. “Our population increased almost 50 percent by people coming into work, to work, so if Asheville, as the economic engine of the region, crashes — those impacts get felt all around the region.”

The big fear, according to Mayfield is: What if those seasonal workers who were laid off don’t return?

“If those people move away, then come the spring when our tourism numbers do start to naturally climb again, we won’t have enough people to support that industry,” Mayfield said.

In Hendersonville, Michelle Owens, executive director of the Visit Hendersonville Tourism Development Authority, told the Hendersonville Times-News on Dec. 5 that “20 billion eyeballs” have seen negative publicity about WNC in the first week of Helene, so she must redouble her efforts to draw tourists. 

 

 

 



 


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