Georgia on my Mind

How Community Banks Are Supporting Georgia’s $68 Billion Industry

Whether looking for relaxation, a bit of exploration, or a change of pace, the Peach State delivers diverse experiences for any age and interest. Visitors can take in the scenic Blue Ridge Mountains, pan for gold in historic Dahlonega, and enjoy history and nature in Pine Mountain. Georgia’s vacation options range from relaxing on the beach off the Georgia coast, discovering the unique shops on Savannah’s River Street or taking the family to Summer Waves Water Park on Jekyll Island.

A $68.96 billion industry for the state, tourism drives significant business growth and increased revenue for companies operating in Georgia. rebounded nicely since the pandemic started and continue to increase. Hotel occupancy rates have also increased to almost pre-pandemic levels.”

CBA asked bankers across the state about tourism in their area, how their bank has been able to assist customers in the hospitality industry, and how those companies are finding creative ways to serve visitors considering the tight labor market.

“As far as things First Chatham Bank is doing to support tour tourism industry, I’ll share a couple of examples. Just prior to the pandemic, we provided financing for two well“Our posture has been to help all established of our customers through by not restaurants new to the Savannah market. Both had wonderfully only protecting their business, successful start-ups but in a few but also protecting the jobs those short months, they had to shut businesses create.” - Ken Farrell down due to COVID. We helped each of them through the financial challenges by providing deferrals on their existing credits, modified the repayment terms going forward and we extended some short-term financing to support working capital. We also provided their PPP funding,” explained Mr. Farrell.

“Tourism numbers continue to increase, with numbers on Tybee reaching “pre-covid summer-like” numbers. Savannah is a reachable destination for road trips, which lends itself well for those visitors that want to get away by car,” explained Ken Farrell, President & CEO, First Chatham Bank, Savannah. “In addition, increased flights in and out of Savannah, including newly added routes, have helped with bringing visitors to our area. Tourism numbers have “Due to the positive trends, we’re experiencing in domestic travel, both are thriving and are back to being fully operational. We have done the same for several short-term vacation rental operators who we had financed previously. Our posture has been to help all of our customers through by not only protecting their business, but also protecting the jobs those businesses create.”

“We are seeing an increase in the number visitors to our area,” said Jane Lawson, COO, First Peoples Bank, Pine Mountain. “The two largest tourism destinations for us are FDR State Park and Callaway Gardens. Visitors to these locations began to rise in June 2020 and these levels have continued to grow through June 2021. The bed tax money significantly increased the later part of 2020.

According to Ms. Lawson, First Peoples Bank made more than $4 Million in PPP loans specifically to the hospitality industry. “Our local merchants and businesses continue to struggle to get enough staff into the workforce. Harris County Tourism created a new brand in early 2020 and began promoting outdoor activities. During April 2020 they began targeted social media marketing for many of the tourism venues.”

In Glynn County, tourism is 23% ahead of the pre-COVID 2019 numbers and 11 percent ahead of the best year ever,” said Scott McQuade, President and CEO of the Golden Isles Convention and Visitors Bureau. Nationwide, the industry reflects an occupancy rate that is still down by 30 percent. According to Mr. McQuade, one major factor driving tourism is that beach destinations are highest in demand nationwide.

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Curtis Tumlin, II, Market President PrimeSouth Bank,

Brunswick, shared “Our coastal market has experienced an increase in visitors during the past 12 months. The Golden Isles has a lot of wide-open space where folks can naturally and easily distance – and that was appealing to a multitude of people prior to vaccinations. Also, a lot of individuals who owned secondary homes here have relocated here permanently since the pandemic. Vacation Rentals are running at full occupancy this summer. Hotels are also at full occupancy and are getting top dollar rates.”

Mr. Tumlin explained that PrimeSouth participated in both rounds of PPP funding. “The majority of our clients who qualified for funding participated in both rounds. The SBA loan program has also been beneficial for our clients as around 20% of these loans were to customers affected by tourism in one way or another.”

Bank hospitality clients are incredibly busy with the increase in tourism and have had to adjust hours of operations to cope with staffing needs, commented Mr. Tumlin.

“We are seeing a definite increase in the last few months.

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All vacation rentals on the islands are basically at capacity for the rest of the season and hotels are carrying strong occupancy numbers,” stated Al

McKinnon, President & CEO, South Coast Bank, Brunswick.

“South Coast has been facilitating PPP and stimulus funding to help business keep staff and survive during the pandemic. We’ve deferred and restructured loans to help bridge the gap. I’m happy to say most all are back in full swing. The biggest hurdle we are seeing is the industry getting back to full staffing. Unemployment checks are keeping them home.”

Mr. McKinnon continued, “Throughout the pandemic, restaurants have created the take-out and delivery model to both increase sales and survive with fewer workers. I am happy to say tourism in the Golden Isles is back and strong. People are coming, the beaches are busy and getting a reservation for dinner is a challenge.”

Whether it was through PPP loans, modifying repayment terms, or charitable giving, Georgia’s community banks were instrumental in helping small businesses, homeowners and communities weather the storm. Now go enjoy a Georgia destination!

Photo credits: Golden Isles CVB, Visit Savannah and Explore Georgia.