E.S.C. quarterly

              North Carolina State Library
Raleigh
N.C
Doc
THE
^r* ni ia dt LY
VOLUME 22, NO. 1-2 TOURIST AND TRAVEL INDUSTRY
A
Published By
N. C. EMPLOYMENT SECURITY COMMISSION
CASWELL BUILDING RALEIGH, N. C.
i
CHAIRMAN'S
COMMENTS
Henry E. Kendall
Chairman
N. C. Employment
Security Commission
At any time of the year, during
any season, our State attracts the
traveler. Last year 27 million out-of-kendall
state residents visited North Caro-lina
and undoubtedly this number
will increase in 1964. Reaching nearly 500 miles from
Cape Hatteras to Cherokee County, the State offers
entertainment and scenic splendor to every tourist, and
income, employment and economy of tourism have
spiraled until today this remarkable enterprise rivals
our top Tar Heel industries.
In 1963, income derived from tourism and travel ap-proached
one billion dollars! Employing over 83,000
workers, almost 20,000 business firms served the
traveler. Personal income to citizens of North Carolina
from travel service and transport was $287 million.
This is our first issue of the ESC QUARTERLY to
feature tourism. For a number of years a noted re-search
consultant, Dr. Lewis C. Copeland of the Univer-sity
of Tennessee Department of Statistics, has sur-veyed
the tourist and travel industry in North Carolina
so we solicited an article from Dr. Copeland around
which we could feature our aptly named "Variety
Vacationland." Dr. Copeland immediately replied,
graciously preparing the article which begins on page
12, and his i.s the most meticulous examination of a
North Carolina industry which has ever been published
in our magazine.
We also turned for help to the State Department of
Conservation and Development and its Advertising
Division, and found there a serious and successful in-volvement
in every approach to tourist and travel
promotion. Many articles which appear in this
QUARTERLY were prepared by, or were received
through, the personnel of the State Advertising Divi-sion.
We learned that there are thousands of accommoda-tions
in North Carolina for the tourist, and almost as
many feature stories, and our selection of tourist
locations to feature in this edition attempts not to
publicize one attraction over another, but only to sub-stantiate
the marvelous sectional appeal of the coastal
plain, piedmont and mountain areas. There are old-time
tourist attractions in our State, and new ones with new
dimensions. Tar Heel tourism is being vitalized by men
with spirited ideas; and despite the success already
enjoyed by North Carolinians engaged in tourism, there
is a feeling of optimism that the real wealth of North
Carolina's natural attractions is untapped.
A resource more vital to North Carolina than its
natural assets is manpower, and here's an area of un-fortunate
imbalance. Our workers lack the skills re-quired
by specialized industry. Our State's administra-tion
has undertaken a massive training attempt, one of
the nation's most ambitious, and the plight of many of
our citizens is disclosed by the article "North Carolina's
Attack on Unemployment" which begins on the opposite
page. Taken from a report submitted to Governor
Sanford earlier this year, the material, supplied by our
(See COMMENTS, page 73)
THE
ESC QUARTERLY
TOURISM AND TRAVEL IN NORTH CAROLINA
Volume 22, No. 1-2 Winter-Spring, 1964
Issued at Raleigh, N. C, by the
EMPLOYMENT SECURITY COMMISSION
OF NORTH CAROLINA
Commissioners
Billy Earl Andrews, Durham; Thomas B. O'Conner,
Forest City; Horace E. Stacy, Jr., Lumberton; R. Dave
Hall, Belmont; W. Benton Pipkin, Reidsville; and Dr.
James W. Seabrook, Fayetteville ; Henry E. Kendall,
Raleigh.
State Advisory Council
Public representatives: James A. Bridger, Bladenboro,
Chairman: Sherwood Roberson, Robersonville; W. B.
Horton, Yanceyville; Mrs. D. C. Lewellyn, Dobson; Em-ployer
representatives: A. I. Tait, Lincolnton and G.
Maurice Hill, Drexel; Employee representatives: Melvin
Ward, Spencer, AFL, and H. D. Lisk, Charlotte, CIO.
HENRY E. KENDALL Chairman
R. FULLER MARTIN Director
Unemployment Insurance Division
JOSEPH W. BEACH Director
State Employment Service Division
H. E. (Ted) DAVIS Editor
Public Information Officer
Sent free upon request to responsible individuals,
agencies, organizations and libraries
Address: E.S.C. Information Service,
P. O. Box 589, Raleigh, N. C.
INDEX APPEARS ON PAGE 73
Cover Legend
So what if a little guy and his brother take a spill or two? The
picture was taken at Topsail Island. But their kind of fun is
everywhere as thousands of vacationers seek pleasure and excite-ment
in Carolina. Do these youngsters care if tourism has become
one of our leading industries? You think they care if tourism in-volves
almost a billion dollars in our State's economy? Shoot, no.
ESC QUARTERLY
In February Governor Sanford
announced a "Statewide Acad-emic
and Vocational Training
Proposal for North Carolina's
Attack on Poverty," a pro-gram
to relieve the problem
of hard core unemployment.
The program proposes to
train 15,000 people in 62 em-ployment
categories. The fol-lowing
article discloses the
economic realities facing a
vast number of North Caro-lina
citizens.
North Carolina's Attack On Unemployment
Prepared by the Bureau of
Employment Security Research
HUGH D. RAPER, DIRECTOR
Responsible citizens of North Caro-lina
were already engaged in a ser-ious
battle to increase the level of
living of underprivileged people
throughout the State when President
Johnson issued a declaration of war
on poverty in America. A need to in-crease
the pace of the attack is recog-nized,
however, and a strategy is being
developed to expend whatever addi-tional
energy and resources are neces-sary
to win the war. This proposal
represents an effort to exploit more
fully the opportunities to train people
for productive employment under the
provisions of the Manpower Develop-ment
and Training Act of 1962, Pub-lic
Law 87-415.
The Need for Increased Effort
Although North Carolina ranks
relatively high among the southeast-ern
states with respect to recent ac-complishments
under federal train-ing
programs, it is felt that many
thousands of individuals having un-usually
difficult employment and
training problems have not been
reached. A comprehensive statewide
training program with considerable
flexibility is required in order to iden-tify,
communicate with, and motivate
those people who are faced with unem-ployment,
underemployment and pov-erty.
A comprehensive approach is
required to help those individuals who
comprise our "culture of poverty."
This type of culture is characterized
by a sense of despair and hopeless-ness,
by low levels of aspiration, by
suspicion of others, and by a set of
values that emphasize taking advan-tage
of whatever immediate gratifica-tions
are possible with little regard for
a future that is assumed to be as bleak
and as hopeless as the present.
The scope of North Carolina's so-cial
and economic problems is stagger-ing.
In 1959, 37.2 per cent of all
North Carolina families reported in-comes
of less than $3,000, as com-pared
with 20 per cent in the United
States. More than 70 per cent of our
non-white families reported incomes
under $3,000. The per capita income
in North Carolina in 1962 was $1,732
and in 1961 was $1,642 which was
$641 below the national average. This
gives the State a per capita income
rank of 42nd among all states. In re-cent
months, the State has had the
further dubious distinction of falling
to last position among all states in
average weekly earnings of workers
engaged in manufacturing industries.
Lack of training and illiteracy at
least partially account for the low in-come
and poverty situation in North
Carolina. A recent study revealed some
interesting facts regarding the school
situation. The study showed that out
of every 100 children who enter the
State's public school system, 50 do
not graduate from high school, and
only 19 continue their education at
the college level. Unchecked over suc-cessive
generations the school drop-out
problem has contributed to an
estimated accumulation of nearly a
half million functional illiterates. The
1960 Census of Population showed that
almost 17 percent of the population
25 years of age and older had less
(Continued)
ESC QUARTERLY
r-.
than five years of schooling. North
Carolina ranked 46th among the 50
states in this respect. The severity of
the illiteracy problem is also reflected
in the high draftee rejection rate on
mental tests—nearly 38 percent—giv-ing
the State one of the highest re-jection
rates in the nation. The extent
of illiteracy is further reflected by the
fact that one of every four driver's
license applicants cannot read the
simple written test which is adminis-tered
and must have it read to them.
Technological advances and automa-tion
are considered economic blessings
for many people and for society as a
whole but, in turn, create more ob-stacles
for the displaced, the unskilled
and the uneducated. The decade of the
fifties was a period of upheaval in
terms of population shifts within the
State and migration out of the State.
Small farmers without adequate re-sources
to expand the size of their
operations and adopt new production
technology have sought refuge in the
cities of the State and nation. These
migrants have not been greeted with
outstretched arms because of their
lack of training and general unpre-paredness
to participate in an urban
society. In addition to the movement
of people from rural to urban areas
within the State, there was a net mi-gration
loss to other states of about
330,000 persons.
In spite of this tremendous out-mi-gration,
the volume of unemployment
increased to almost 75,000 in 1960,
an increase of over 50 per cent from
1950. Equally as serious, and more
difficult to combat, the extent of un-deremployment
and under-utilization
of the labor force became more pro-nounced
during this period. Thousands
of rural people have not moved into
urban areas because of the fate of
their neighbors that dared seek oppor-tunities
elsewhere. They have re-mained
on farms totally inadequate to
afford a decent standard of living,
recognizing that it is just a matter
of time before they are completely
strangled as a result of increasing
costs and lower profits. Small mar-ginal
farm operators and seasonal
workers are included in the group of
underemployed persons, and these
people make up the majority of the
37 per cent of the families in the State
earning incomes of less than $3,000.
North Carolina Efforts
North Carolina has established
many beachheads and is currently en-gaged
in skirmishes throughout the
State to help people escape the traps
set by a fast moving society. This
statewide training proposal is an at-tempt
to implement and reinforce the
programs already underway. It is a
means of coordinating the attack and
provides the additional resources
needed for meeting the educational
-and training needs. Evidence of the
seriousness with which North Caro-linians
view the economic plight of
many of their fellow citizens is seen
in the following efforts.
Appropriations for the public-schools
have been increased 60 per-cent
in the last two years as a result
of the emphasis placed on quality ed-ucation
by Governor Sanford and the
Legislature. Teachers' salaries have
been increased by 25 percent, the
pupil-teacher ratio has been reduced,
more specialized personnel have been
made available in all schools, school
libraries have been improved, and a
special experimental program in voca-tion
has been launched.
Steps are currently being taken to
increase the number of four-year col-leges
and to inaugurate a diversified
combination of community colleges
and technical institutes for individuals
who do not plan to attend four-year
colleges. There has been a rapid ex-pansion
of the State's network of In-dustrial
Education Centers. The en-rollment
in these centers last year
numbered about 36,000. These centers
with well-equipped laboratories, shops
and classrooms offer carefully planned
curricula in vocational education to
youth and adults.
An attempt is being made to probe
the problems of ignorance and poverty
in depth, as evidenced by the recent
appeal of the North Carolina Fund to
the Ford Foundation for assistance in
planning, financing and implementing
a statewide approach of experimental
action. The North Carolina Fund is
a State foundation which receives its
support from national, state and local
foundations as well as federal, state
and local governmental agencies.
These resources are being used to
focus attention on the basic problems
of our people, to encourage and sup-port
experimental action in pilot areas
to determine whether or not the cycle
of poverty can be broken. In 1963 the
Ford Foundation made an initial grant
of seven million dollars which will be
matched from state and local sources.
Two State foundations have already
appropriated $500,000 to the Fund for
each of the next two years.
Why A New Approach Is Needed
Experience in implementing the
Manpower Development and Training
Act indicates that a new approach is
necessary if the people who need ed-ucation
and training the most are to
be reached. North Carolina has had
62 training projects—covering about
1,700 trainees—approved since the Act
was passed. These projects generally
have been oriented toward the train-ing
of workers in the higher skilled
occupations, requiring rather long
periods of training. It is apparent that
many potential trainees lack sufficient
education and/or aptitude to qualify
for courses of this type. The persons
eligible for training in these high
level courses are those that could
probably obtain employment without
training if given sufficient time.
Certain restrictive features of the
MDTA such as the requirement that
trainees must qualify as head-of-household,
must have had three years
of work experience, youths 16 through
18 ineligible, et cetera, have made it
difficult for the State to recruit train-ees.
It is particularly difficult to get
men who are heads-of-households to
commit themselves to lengthy train-ing
programs because of their inabil-ity
to exist on the nominal training
allowances paid in this state.
The problem of identifying poten-tial
trainees and motivating them to
take advantage of the training oppor-tunities
is one of the major impedi-ments
to expanding the program. A
dramatic illustration of the difficulties
found in getting response to educa-
North Carolina has taken steps to train persons who wish to learn new skills. Under
the Manpower Development and Training Act, machinist training is given at the
Industrial Education Center in Charlotte. Facilities and methods are up-to-date.
1 ESC QUARTERLY
tional opportunities by some groups
appeared in the following news item:
Gaffney, South Carolina (AP)—
Four youths appeared in General
Sessions Court in connection with
a series of break-ins. Judge Frank
Epps, learning that they had quit
school, gave them the choice of re-turning
to school or going on the
chain gang. Without hesitation, all
four chose the chain gang.
A lack of response because of belli-gerence
is probably the exception to
the rule in rural N. C. The majority
would like to get into the mainstream
of economic activity but are socially
and culturally unprepared. It is not
hard to visualize the reluctance of a
boy from a small town in N. C. to ag-gressively
pursue training for a job in
a large metropolitan area. The boy
reared on a subsistence farm in a
home isolated from all social ameni-ties
is generally too timid to venture
forth even when the opportunity is
afforded. These types of people can
be rescued only by sympathetic coun-seling
and an educational experience
that will equip them not only to per-form
a technical vocation but to ad-just
to a new world.
The problem in many instances is
to strike the spark of ambition, gen-erate
drive and transform the un-responsive,
apathetic individual into
one actively motivated to achieve.
The Proposal
The training efforts to date in
North Carolina, including implemen-tation
of the MDTA, are mere token
accomplishments when viewed in re-lation
to the overall scope of the job
that should and must be done. This
proposal represents a vigorous and
different approach that should pro-vide
the means for accomplishing our
educational and training objectives.
One of the greatest occupational shortages in North Carolina is the qualified
stenographer and secretary. The IEC in Charlotte instructs young applicants in
typing which is part of the stenography course given there under MDTA. Simi-lar
projects are being taught at many of the State's industrial education schools.
New Objectives
A statewide project is envisioned to
train between 10 and 15 thousand in-dividuals.
The focus is to be on those
who are in need of preliminary coun-seling,
social orientation and basic
literacy training as well as vocational
education. These are the ones who
need the training most and who have
been by-passed to a large extent in
past efforts. A concentrated effort in-volving
local leaders and organiza-tions
throughout the State will be re-quired
to reach these individuals;
i.e., dropouts, illiterates, low income
family members, etc.
Different Testing and
Training Approach
Emphasis will be placed on getting
persons into training programs with
the screening or testing process ori-
High on the list of occupational needs is the need for auto-truck mechanics. The
Charlotte IEC is one of the best equipped in the State to teach this class, and
graduates are in demand. Much of the equipment was donated to the school.
ented mainly to determining the
necessary preliminary basic schooling,
social adjustment assistance and later
placement into vocational classes.
Aptitude testing will be discontinued
when such tests might result in ex-cessive
rejection of students because
of deficiencies in basic educational and
vocational skills.
Types of Occupations
A careful effort will be made to
establish vocational training courses
in shortage occupations with greatest
emphasis on sales, service and lesser
skilled occupations which do not nor-mally
necessitate breaking down of
employers' reluctance to alter hiring
requirements in terms of basic educa-tion.
Job opportunities and training
needs in vocations to be emphasized
aer well validated by numerous local
and statewide surveys conducted by
the Employment Security Commission.
The training needs in this proposal,
based on these studies, are compiled
in terms of multiple occupations on
a statewide basis to provide greater
flexibility in overall program planning
and development. By obtaining prior
approval to train workers in a variety
of predetermined occupations in any
area of the State, new programs may
be developed spontaneously, whenever
adequate numbers of trainees have
been recruited. This procedure will
facilitate the establishment of train-ing
programs in those areas where
potential trainees are known to be
concentrated, but where job oppor-tunities
are quite limited or virtually
nonexistent. When relocation is neces-sary
for job placement, trainees will
be so informed prior to the start of
training. In such cases the trainees
will be given special counseling and
(Continued)
ESC QUARTERLY
instruction to assist them in moving
to areas where job opportunities for
which they have been trained are more
plentiful.
Special Projects
The statewide effort to utilize the
provision of the Manpower Develop-ment
and Training Act more effec-tively
visualizes some unique features
including projects for special groups
such as probationers and students dis-charged
from juvenile correction in-stitutions.
The State Probation Com-mission,
for example, has indicated
wholehearted support of projects
through which unemployed proba-tioners—
particularly the youthful
probationers—might be placed in
training programs. Probation Com-mission
records indicate that in De-cember,
1963, more than 8,000 offend-ers
located in all sections of the State
were under the supervision of the
Commission. Approximately 5,400 of
this number were between 16 and 21
years of age. A vast majority of the
probationers are school dropouts hav-ing
completed the ninth grade or less.
The State Probation Commission's rec-ords
further indicate that many pro-bationers
are living in a state of near
poverty with monthly incomes averag-ing
only $111.00. Most of them are
unskilled or inexperienced. These spe-cial
programs would make it possible
for such individuals to acquire basic
education and occupational skills so
that they might take their rightful
places in society as law-abiding and
productive citizens.
The North Carolina Board of Ju-venile
Correction has likewise en-dorsed
this statewide training pro-posal
and estimates that annually 100
students, selected from the states
seven juvenile correction schools, could
benefit from special occupational
training programs for such youth. The
average student population at these
correctional schools for fiscal year
1962-63 was 1,604. Approximately 400
of these students were over 16 years
of age, and of this number only about
200 had better than an 8th grade
NORTH CAROLINA OCCUPATIONAL TRAINING REQUIREMENTS
January, 1964
Training Requirements
D. O. T. Code Job Title and Skill Level Total Adult Youth
Total for State—All Occupations Studied 15,000 9,845 5,155
Unskilled and Semiskilled Occupations 4,690 2,780 1,910
9-83.01 Air-Conditioning Mechanic Helper 150 100 50
3-49.42 All-Round Farm Machinery Operator 200 125 75
7-81.010 Automobile Mechanic Helper 350 175 175
7-60.500 Automobile Service Station Attendant 250 100 150
7-81.011 Automobile Service Station Mechanic 360 200 160
9-32.01 Bricklayer Helper 250 200 50
8-04.10 Crab Picker 100 75 25
9-00.95 Electrician Helper 150 100 50
3-40.04 Grounds Keeper 150 125 25
9-32.01 Laborer, Carpentry 200 100 100
6-78.905 Machine Operator, General 200 100 100
8-78.10 Machinist Helper 100 50 50
6-04.070 Oyster Shucker 100 75 25
7-32.812 Plumber Helper 170 100 70
7-87.100 Rodman (Surveyor's Assistant) 100 25 75
7-35.100 Routeman 150 100 50
6-14.064 Seamless Hosiery Knitter 200 100 100
6-27.535 Sewing Machine Operator 400 300 100
6-94.202 Sheet Metal Machine Operator 100 50 50
6-94.201 Sheet Metal Worker Helper 200 100 100
4-40.12 Sprayer (Agric.) 110 80 30
3-34.01 Tractor Operator II 300 200 100
6-35.720 Upholsterer Helper 200 100 100
6-95.043 Welder Helper, Combination 200 100 100
Service Occupations 2.700 2,125 575
2-26.32 Cook 180 150 30
2-03.11 Housekeeper, Working 300 250 50
2-84.10 Janitor—Porter 330 300 30
2-24.11 Maid, Motel-Hotel 280 200 80
2-42.20 Nurse Aide 200 175 25
2-42.10 Orderly—Attendant 240 200 40
2-42.22 Psychiatric Aide 620 500 120
2-27.12 Waitress—Waiter 550 350 200
Clerical and Sales Occupations 2,520 1,245 1,275
1-01.31 Accounting Clerk 200 100 100
1-05.01 Clerk, General Office 260 130 130
1-25.26 Duplicating Machine Operator 360 180 180
1-25.62 Key Punch Operator 350 175 175
1-75.71 Sales Clerk 450 200 250
1-37.12 Stenographer 380 190 190
1-37.32 Typist 320 120 200
1-05.01 Ward Clerk 200 150 50
Skilled Occupations 4,160 3,115 1,045
5-83.941 Air Cond. Mechanic 160 120 40
5-81.510 Auto. Body Man 220 160 60
5-81.010 Automobile Mechanic 380 200 180
5-24.010 Bricklayer 220 180 40
5-25.110 Carpenter 260 200 60
5-83.040 Elec. Appliance Serviceman 100 75 25
4-97.010 Electrician 130 100 30
5-83.934 Farm Equip. Mechanic 360 300 60
5-16.710 Fin i sher—Furn itu re 280 250 30
4-75.010 Machinist 160 100 60
5-30.200 Plumber 120 80 40
5-83.416 Radio and T. V. Repairman 200 150 50
4-25.020 Seamstress 130 100 30
5-83.640 Sewing Machine Repairman 260 200 60
4-80.010 Sheet Metal Worker 100 75 25
4-35.720 Upholsterer II 260 200 60
4-15.020 Weaver 100 75 25
4-85.040 Welder, Combination 240 200 40
4-33.311 Woodworking Machine Operator 480 350 130
Technical Occupations 930 580 350
0-48.10 Draftsman 400 300 100
0-64.30 Instrument Man (Survey Party) 230 100 130
0-50.02 Laboratory Technician, Industrial 120 80 40
0-50.01 Laboratory Technician. Medical 180 100 80
The State puts high hopes on training classes in needed
skills, such as this chemist assistant class, to relieve the
problem of labor supply and demand imbalance. Some-time
students cot job offers even before classes end.
A need for qualified draftsmen was determined in the Charlotte
area so a training project was submitted and received federal-state
approval. The shortage of qualified draftsmen is common to
most industrial areas in the State, and drafting is a popular course.
ESC QUARTERLY
education. The Board of Juvenile Cor-rection
currently operates a Juvenile
Evaluation Center at Swannanoa,
North Carolina, where special train-ing
courses for these 200 students
could be established. Such courses
could be established at a reasonable
cost since the Center already has
available shops and buildings for
classrooms which are not being used.
As contemplated, students would en-ter
the MDTA classes at the point
when they would otherwise have been
sent to their homes to seek employ-ment.
The training would be entirely
voluntary as far as each trainee is
concerned, and provision would have
to be made for the payment of sub-sistence
and youth training allow-ances.
These are but two examples of how
special projects designed to meet par-ticular
needs would be developed un-der
the flexible statewide program. It
is essential that the training needs of
these special problem groups be met.
Without assistance they are certain
to wander down a blind alley and be-come
a menace rather than a pro-ductive
element in our complex so-ciety.
Training Recruitment
It has been clearly shown that one
of the primary impediments to mak-ing
training available to those groups
most in need of it was an inability of
regular manpower and educational
agencies to divert from normal opera-tions
sufficient staff to mobilize com-munity
organizations and leadership
in a concerted attack on the problem.
An integral part of this proposal is
the provision for the employment and
use of liaison representatives in a
sufficient number to bring about a
total involvement of all appropriate
community forces. The primary func-tion
of these liaison representatives
"The people we are trying to reach have many personal problems
and barriers to completing training. Remedial academics and literacy
training would be given to each trainee on a tailor-made basis. Coun-seling
on adjustment to city life will, be offered to people taking jobs
in cities for the first time.
"The proposal is to train both adults and youths, people from rural
areas and people from the city. Combined with our Industrial Educa-tion
Center program, our expanded, program for vocational education
in the high school, the North Carolina Fund and other special educa-tion
projects being set up, this proposal would enable us to move
forward rapidly in vocational education and literacy training. We can
hold out real hope to many who have had no hope."
.... Governor Sanford
would be to identify and contact ap-propriate
existing institutions, local
agencies, associations, labor organiza-tions,
civic and other organized groups
to enlist their active participation in
direct contacts with individuals who
would be eligible for and who would
benefit by education and training.
So important is this phase of the
project that special funds are sought
to employ one hundred (100) liaison
representatives. These representatives
would be situated strategically across
the State, the number assigned to an
area varying with the area's potential.
Liaison representatives, likewise,
would include members of all minority
groups.
Experience under "Operation Second
Chance" has demonstrated that noth-ing
short of direct contact and in-dividual
persuasion is effective in
motivating and gaining trainee par-ticipation.
Thus, since existing man-power
agencies and the 100 salaried
liaison representatives would not be
Federal representatives were on hand when Governor Sanford announced
his statewide training proposal. Here, John P. Walsh, Deputy Director ot
the Office of Manpower Automation and Training, addresses the Governor's
Advisory Committee on the Manpower Development and Training Act.
able to reach on a person-to-person
basis a major segment of the poten-tial
trainee group, the primary re-sponsibility
of the liaison representa-tive
will be to enlist participation of
others, because a concerted all-out
statewide effort reaching into every
community will be needed to overcome
the trainee recruitment problems.
This enlistment of community forces
would involve arranging for wide-spread
coverage of the program's
aims and goals by news media; and,
explaining the nature and purpose of
the project to membership of organ-ized
groups to solicit their active par-ticipation
and to coordinate the ef-forts
of all organized groups. Special
funds are being requested for use in
developing a comprehensive state-wide
publicity campaign. Pamphlets,
visual aids, films and radio and tele-vision
publicity will be used in bring-ing
this program to the attention of
the public.
The leaders of the following organ-ized
groups have participated in
project planning and have given as-surance
of participation at the local
organizational level:
The Community Development
Groups, 1,100 presently active, who
are affiliated with the Rural Area
Development Program; the North
Carolina Grange Organization with
its 90 active community groups; the
North Carolina Good Neighbor
Council and its local units; the
North Carolina Extension Service,
which has personnel situated in
every county; the Farmer's Home
Administration, with its staff reach-ing
farm families directly in every
community. More detailed state-ments
prepared by these organiza-tions
explaining their willingness to
cooperate with liaison representa-tives
and share in an active recruit-ment
effort are found in Section G
of the formal proposal.
ESC QUARTERLY
CONGRESSIONAL AMENDMENTS BROADEN MANPOWER TRAINING LAW
BY DAVE GARRISON
Assistant Director, Bureau of Employment Security Research
Recognizing certain deficiencies and
limitations in the original Manpower
Development and Training Act, the
88th Congress, in December, 1963, en-acted
a number of important amend-ments
which should greatly facilitate
the implementation and improvement
of MDTA operations in this State.
Matching Postponed
It is difficult to assess just which of
the various amendments are of per-haps
the greatest significance. Cer-tainly,
the fact that Congress post-poned
the requirement for state
matching of federal funds for an-other
full year—until July 1, 1965
—
was most important to North Caro-lina;
otherwise, we would have been
out of the MDTA training business
this year!
Whereas the original Act provided
that the states would be required to
match federal funds on a 50/50 basis
any MDTA expenditures occurring
subsequent to June 30, 1964, a new
amendment provides that such match-ing
by the states will not be required
until after June 30, 1965; and, then
matched with the state bearing only
one-third of the costs of fiscal year
1966, and one-half of the costs for
subsequent years. As yet, North
Carolina has taken no official action
to match federal MDTA expendi-tures;
however, the Governor's Ad-visory
Committee on the Manpower
Development and Training Act, meet-ing
in February, endorsed a proposal
that North Carolina should continue
to participate in the MDTA training
pz'ogram by matching funds appro-priated
by the federal government.
Whether or not this State will con-tinue
in the MDTA program and to
what extent, dollarwise, are decisions
which must be made by the next
General Assembly.
Allowances Liberalized
Trainee recruitment, which has
been a particularly difficult problem
in many areas of North Carolina, and
in other states as well, should be made
considerably easier as a result of sev-eral
of the new MDTA amendments
affecting allowance payments.
For example, Congress has now
provided that a member of a family
or household may receive training al-lowances
if the head of the family
or household is unemployed. This
amendment specifically states, how-ever,
that not more than one person
in any single household may receive
regular training allowances at any
particular time. This does not include
youths who may be receiving special
youth allowances. Here, of course, the
intent is to extend eligibility for al-lowances
to other family members in
those cases where the regular head
of the family is not able to provide
for the family support.
Another change in the law reduces
from three years to two years the
amount of gainful employment ex-perience
required for a trainee to be
eligible for training allowances. This,
of course, means that many persons
who formerly were not eligible for
allowances because they lacked three
years of work experience will now be
eligible for allowances. Furthermore,
many previously ineligible individuals,
may show renewed interest in the
training programs being offered be-cause
of the availability of the allow-ances.
Part-Time Work Encouraged
To encourage trainees who are en-rolled
in institutional courses to en-gage
in part-time jobs, whenever
possible, Congress has done away with
the old method of reducing allow-ances
on the basis of the ratio of
hours worked to earnings. Instead,
the new amendment permits casual or
part-time work up to 20 hours a week
by trainees, youth or adult, in institu-tional
training without necessitating
any reduction in the training allow-ance.
The allowance of a trainee in
full-time institutional training now
will be reduced on a dollar-for-dollar
basis for all casual or part-time work
in excess of 20 hours per week. This
change, which incidentally is not ap-plicable
to persons taking on-the-job
training, will encourage institutional
trainees to accept part-time work,
and it may serve to curb the tendency
for trainees to drop out when part-time
work becomes available.
More Youth Eligible for Allowances
Another important change made by
Congress lowers the minimum age at
which youth may be paid allowances
from 19 to 17 years. An added stipu-lation,
however, requires that before a
youth may receive allowances, he
must have graduated from high
school or must have been out of school
for at least a full year. Congress has
also expanded the youth training pro-gram
by permitting up to 25 percent
of the persons receiving training al-lowances
to be youths between 17 and
22 years of age. The original act
limited youth training allowances to
five percent of the total expenditures
for training allowances. Unfortun-ately,
in the beginning of the MDTA
program a few states quickly com-mitted
five per cent of the appropri-ated
funds to youth training, and
North Carolina was never able to pay
youth training allowances. Later the
Labor Department ruled that youth
allowances were payable only to youth
enrolled in special "youth" projects.
Bonus Allowance
Congress has also liberalized the
trainee benefits by providing for the
payment of an increase of up to $10
a week in the regular training allow-ance.
Youth allowances cannot be in-creased
beyond the $20 a week maxi-mum
specified in the Act. In adopting
this amendment Congress seemingly
has recognized the difficulty that
many unemployed workers have ex-perienced
in supporting themselves
and their families on the previous
meager allowances available during
training. It should be noted that the
$10 allowance increase is not an out-right
across the board grant to all
trainees! Instead, the increased allow-ance
is based on two factors (1) the
extent of the trainee's family respon-sibilities,
and (2) the duration of
training course in which the trainee
is enrolled.
Any trainee eligible in any week for
a training allowance, other than a
youth allowance, may now receive an
additional payment for such week ac-cording
to the following criteria:
(1) If the trainee's household or
family consists of three or more
persons, including the trainee,
he shall receive an additional
payment of $5 for the first four
weeks of his training, and $10
for the fifth and subsequent
weeks.
(2) If the trainee's household or
family consists of two mem-bers,
including the trainee, no
increased allowance shall be
payable for the first ten weeks
of his training, but he shall
receive the $10 additional
amount for the 11th week and
each week thereafter.
(3) If the trainee's household or
family consists only of himself
and a youth or youths drawing
training allowances, no increase
shall be payable for the first 10
weeks of training, but he shall
reiceve $10 for the 11th week
and each week thereafter.
The amount of increase in a train-ee's
weekly allowance payment cannot
exceed the difference between the
trainee's allowance otherwise payable
and the state's average weekly un-employment
insurance payment (now
8 ESC QUARTERLY
$24 a week in North Carolina) plus
$10. Also, the total weekly training-allowance
payable, including the in-creased
amount, cannot exceed one and
one-half times the maximum allow-ance
otherwise payable.
Basic Education Now Possible
In North Carolina, as elsewhere,
thousands of persons who might have
benefited greatly from occupational
training could not take advantage of
MDTA training heretofore offered be-cause
of basic educational deficiences.
Many were "screened out" because of
their inability to qualify on the tra-ditional
tests designed to measure
aptitudes for occupations. Others
were ruled out because they were not
able to read the tests being admin-istered.
Congress, in amending the Act
last December, provided for the ex-tension
of training to permit the in-clusion
of reading, writing, arithmetic,
and language skills to prepare trainees —youth and adult alike—for success-ful
participation in occupational
training courses. Training allowances
were also authorized for up to 20 ad-ditional
weeks beyond the previously
authorized 52 weeks. Thus, where
necessary, allowances are now pay-able
for a maximum of 72 weeks for
any combination of basic education
and occupational training. Training in
the basic educational skills may be
offered to trainees prior to entry into
specific occupational courses, or the
two types of training may be con-ducted
concurrently. The Act still
provides, however, that a "reasonable
expectation of employment" must
exist in occupations suitable for the
trainees before they enter the specific
vocational training courses.
Labor Mobility Studies
One amendment allows the Secre-tary
of Labor to develop and carry
out "in a limited number of geographi-cal
areas" several pilot projects de-signed
to assist unemployed persons
to move from communities in which
their skills are obsolete to areas
where they have bona fide offers of
permanent employment in jobs for
which they are qualified. This, how-ever,
is a relatively small experimen-tal
type program for which total ex-penditures
cannot exceed $4,000,000
in any one fiscal year.
The ESC QUARTERLY is pub-lished
in four volumes, twice a
year, and is printed by the N. C.
State College Print Shop. Engrav-ings
are made by the Piedmont En-graving
Company, Winston- Salem.
Characteristics of Persons Trained Under
Federal Programs In North Carolina
BY LAMAR BOWERS
Labor Market Analyst, Bureau of Employment Security Research
The Area Redevelopment Act of
1961 and the Manpower Development
and Training Act of 1962 set up
federally financed occupational train-ing
programs for unemployed work-ers
throughout the nation. These
programs were designed so that each
state, working through its Employ-ment
Security agency and vocational
training agencies, could provide train-ing
in those occupations and skill
levels most needed in the local econ-omy.
The responsibility of providing the
labor market information on the
needed skills, testing, screening and
selecting the trainees, and in placing
trainees on jobs for which they were
trained, rests with each state's Em-ployment
Security agency. The De-partment
of Education, through its
vocational training program, and the
Bureau of Apprenticeship and Train-ing
have the responsibility of provid-ing
training facilities, instructors, and
related services.
North Carolina has made consider-able
progress in developing needed
training programs in various labor
market areas throughout the State,
and in enrolling unemployed workers
in these programs. As of March, 1964,
North Carolina had 67 MDTA and 41
ARA projects approved for a total of
2,663 trainees—1,831 under MDTA and
832 under ARA. As of this date, more
than 1,900 trainees have enrolled in
the 94 projects that have started.
Characteristics of the Trainee
While it is important to enroll as
many individuals as possible in train-ing,
in the final analysis the effective-ness
of the training program is
determined by the benefit each in-dividual,
and therefore the State
economy, has received from the train-ing.
In order to arrive at any conclu-sions
in this respect, it will be neces-sary
to answer such questions as what
kinds of people are being selected for
training? Is the program helping the
people most in need of its services ?
What happens to these people during
their training? Are they adapting to
the demands of a concentrated train-ing
program ? Are they meeting the
required standards for sucessful com-pletion
of scheduled instruction?
What happens to the trainees after
completion of their courses? Do grad-uates
obtain suitable employment?
To provide some answers to these
questions, the Bureau of Employment
Security Research has made an analy-sis
of the characteristics of 1,812
trainees enrolled in ARA and MDTA
programs throughout the State.
A look at the characteristics of all
trainees enrolled reveals the follow-ing
broad groupings. The majority of
the trainees enrolled in the two pro-grams
were in the middle and younger
age groups with more than 75 per
cent being under the age of 35. Ap-proximately
one-half of all trainees
had at least a twelfth grade educa-tion.
A sizeable portion, 48 percent,
were among the long term unem-ployed;
i.e., those unemployed 15
weeks or more. Slightly over one-half
of this group had been unemployed
over 52 weeks. While only 28 percent
of all ARA trainees were classified
as heads-of-households, 46 percent of
the MDTA trainees were family heads.
ARA and MDTA trainees possess
various personal, social and economic
attributes which may bear a signifi-cant
relationship to the problems of
the unemployed. The following para-graphs
discuss these trainees in
terms of several such characteristics.
Age of Trainees
Of prime concern in North Carolina
is the need to include in the training
programs, not only those who fall in
the younger and middle-age groups,
but also older workers who often ex-perience
more difficulty in finding
employment. More than three-fourths
of the trainees enrolled were less than
(Continued)
ESC QUARTERLY
35 years of age. This is considerably
higher than the percentage of all per-sons
in this age group who were filing
unemployment insurance claims in
North Carolina during February, 1964.
Only about 41 percent of the claim-ants
during this period were less than
35 years of age. Perhaps it is even
more significant to note that while
the number of trainees 45 years of
age and over represented only 6.7 per-cent
of the total, one-third of the un-employment
insurance claimants in
February, were in this age group.
This indicates that either the unem-ployed
in the upper age group are not
taking advantage of the available
teaming, are unable to qualify on pre-screening
tests, or that recruiting ef-forts
are being directed toward the
younger age brackets where job place-ment
opportunities are greater. One
other possibility is that the younger
people may not have the financial bur-dens
and family obligations that older
people have — therefore, youth can
exist on meager or no allowances for
a longer period of time. See Figure I.
Duration of Unemployment of
Trainees
In extending training to those most
in need of new occupational skills, the
long-term unemployed require major
emphasis. These workers are most
likely to have exhausted their unem-ployment
benefits as well as the possi-bilities
of finding a job which might
utilize their present skills. This group
also tends to include the highest pro-portion
of persons with special em-ployment
problems — older workers,
members of minority groups, and
those with poor educational back-grounds.
Among North Carolina's trainees,
weeks of unemployment prior to the
MEN
TABLE I Years of Schooling Completed by Trainees
UNDEB 19
19-21
22-34
Enrolled Dropped-Out Completed Employed
Grades Completed Number Per Cent Number Per Cent Number Per Cent Number Per Cent
Total 1,812 100.0 314 100.0 708 100.0 616 100.0
Under 8 years . . . 87 4.8 16 5.1 25 3.5 23 3.7
8 years 238 13.1 34 10.8 97 13.7 82 13.3
9-11 years 598 33.0 113 36.0 244 34.5 218 35.4
12 years 797 44.0 141 44.9 310 43.8 270 43.9
Over 12 years . . 92 5.1 10 3.2 32 4.5 23 3.7
TABLE II. Distribution of the Number of Trainees Approved by Occupational Category
Number of
Occupational Category Projects
State Total 108
Professional & Managerial 3
Clerical and Sales 11
Service 10
Skilled 63
Semi-Skilled 20
Agriculture 1
Trainees
Number Per Cent
2,663 100.0
60 2.3
314 11.8
387 14.5
1,149 43.1
737 27.7
16 0.6
start of training varied considerably.
These ranged from about one-third
unemployed for less than five weeks
to over one-fourth unemployed for
more than 52 weeks. See Figure II.
A comparison of the duration of un-employment
among the trainees with
that of North Carolina unemployment
insurance claimants during February,
1964, reveals that North Carolina is
making considerable progress in en-rolling
the long-term unemployed in
training programs. Approximately
one-half of the trainees had been un-employed
for 15 weeks or more while
only 13.6 percent of the claimants
had been unemployed for this length
of time.
A comparison of the ARA trainees
with the trainees enrolled in MDTA
projects indicates considerable varia-tions
in the length of unemployment.
Approximately 60 percent of all ARA
trainees had been unemployed for 15
or more weeks while only 37.5 percent
of the MDTA trainees had been out
all Trainees
35-44
FIGURE 1. AGE OF TRAINEES ENROLLED
of work for this length of time. This
is another indication of the fact that
in those economically depressed areas
where ARA training is given, dis-placed
workers have more difficulty in
obtaining employment and remain un-employed
for a longer period of time.
However, a look at those trainees who
have completed training in the ARA
projects shows that 80 percent have
found jobs and others are awaiting
referral. Eighty-four percent of the
MDTA graduates were working. This
indicates that even in those depressed
areas where job opportunities are
limited, trained workers can be aided
in finding employment, provided they
are trained in suitable occupations.
Education
In particular need of occupational
training are unemployed workers with
low educational attainment. Workers
who did not complete high school are
especially handicapped in their job
search because of the heavy emphasis
placed on formal schooling by most
employers. This handicap is reduced
substantially when that worker is
trained in a needed occupation.
Among the trainees enrolled in
North Carolina's training projects,
over one-half had not completed high
school. Approximately 18 percent had
eight or less years of education.
As indicated on Table I, educational
background did not significantly in-fluence
the trainees completing the
course and their subsequent employ-ment.
It might be significant to note
that 86 percent of those with no high
school education who completed train-ing
found jobs immediately. The rate
among those with at least some high
school education was just slightly
over 87 percent.
Sex and Family Status
Since men account for over 64 per-cent
of North Carolina's total work
force, it is not surprising that they
comprised the majority of the trainees
enrolled. Most of North Carolina's
projects, however, have been in those
occupations where male workers are
10 ESC QUARTERLY
TABLE III. North Carolina's Trainees Compared With the Nation
MDTA ARA
Characteristic Nation
Sex—Total 100.00
Male 60.9
Female 39.1
Family Status—Total 100.0
Head of Household 56.8
Other 43.2
Duration of Unemployment—Total 100.0
Under 5 weeks ~7. . . 27.2
5-14 weeks 25.0
15-26 weeks 15.4
27-52 weeks 12.5
Over 52 weeks 19.9
Age—Total 100.0
Under 19 years 7.6
19-21 years 20.9
22-34 years 41.6
35-44 years 19.3
45 years and over . . .• 10.6
Education—Total 100.0
Less than 8th grade 3.0
8th grade 6.8
9th to 11th grade 29.8
12th grade 51.1
Over 12th grade 9.3
North Carolina Nation
100.0 100.0
62.5
37.5
55.1
44.9
100.0 100.0
46.0
54.0
INA
INA
100.0 100.0
39.5
18.8
9.3
7.7
24.7
22.3
22.3
14.4
11.9
29.0
100.0 100.0
13.2
22.5
41.2
17.6
5.5
7.1
22.0
39.7
19.7
11.4
100.0 100.0
3.8
11.9
31.0
47.5
5.8
6.3
10.8
29.0
48.4
5.5
North Carolina
5-14
ALL TRAI NEES
:<M>:A IS-?fi
27-52
Over 52
FIGURE II. DURATION OF UNEMPLOYMENT (WEEKS)
Family heads
100.0
60.8
39.2
100.0
27.7
72.3
100.0
19.7
19.9
13.1
15.8
31.5
100.0
20.7
23.8
33.1
13.4
9.0
100.0
6.8
15.5
36.9
37.2
3.6
11.3% Dot-Cot Rate
10.9S5 Drop-out Rate
FIGURE III. ENROLEES AND DROPOUTS BY SEX AND FAMILY STATUS
traditionally employed. Of the 1,812
trainees enrolled, approximately 62
percent were men.
A look at the family status of the
trainees enrolled reveals that approxi-mately
40 percent were heads of
households. It should be noted that
well over one-half of the male trainees
were family heads, while only 12 per-cent
of the women fell in this cate-gory.
As indicated on Figure III, the drop-out
rate among men (21%) was al-most
double that of women (11%).
Men made up slightly over three-fourths
of all dropouts while women
accounted for only one-fourth.
Occupational Category
Table II shows the number of proj-ects
and trainees for approved proj-ects
by occupational category. As
indicated on this table, projects ap-proved
for skilled occupations account
for slightly over 43 percent of the
trainees. As is generally known, the
shortage of trained workers in the
skilled trades is more acute than
among less skilled occupations.
State's Industrialists
Pay $1.05 Billion
Over $1.05 billion in wages were
paid North Carolina industrial
workers during the fourth quarter,
1963, the largest payroll ever recorded
by industry in this State.
Average industrial employment was
1,002,000 each month during October,
November and December, and average
weekly earnings were $80.89. Both
employment and wages were the high-est
ever reported by Tar Heel indus-trialists.
A tally of reports submitted by em-ployers
to the Employment Security
Commission has shown that chemical
workers earned the highest weekly
wage during the quarter. This was
$112.97 each week. Paper and allied
products workers followed closely
with wage payments averaging
$111.71 each week. The only other
group earning over $100 a week were
workers employed by transportation,
commerce and utilities.
The figures include wages and sal-aries
paid all insured industrial em-ployees,
including company executives
and administrative officials.
Almost half of North Carolina's in-sured
workers are located in ten
metropolitan counties. Mecklenburg
industrialists paid the highest average
weekly wage. This sum was $98.25
during the quarter. Forsyth and Guil-ford
County reported the next highest
wages.
ESC QUARTERLY 11
VISITORS FLOCK TO VACATIONLAND, AND A
NOTED RESEARCH SPECIALIST REPORTS THE
ECONOMY OP1 A COLORFUL AND REMARK-TOURISM
AND TRAVEL
By Dr. Lewis C. Copeland
Department of Statistics, University of Tennessee
LAST year twenty-seven million persons from
other states visited North Carolina. They came
in thirteen million party-trips. Their travel ran up
almost five billion passenger-miles of traffic in the
State. That was one-fifth of the twenty-five bil-lion
passenger-miles of intercity traffic on North
Carolina highways, railways, buses, and airways.
This means that one out of five people you pass
on interstate routes in North Carolina is a visitor
from out-of-state.
Travelers mean business to North Carolina com-merce
and industry. Eight percent of all retail
purchases are made by tourists and other travelers
away from home. This arises from the fact that
on the average day one out of twelve Americans
are away from home. Persons on the road have a
variety of needs that can be satisfied only by com-mercial
establishments. Out-of-state tourists spent
$286 million in North Carolina during 1963. But
this was not all: North Carolina residents spent
$181 million. This made a total of $467 million
for all travelers on their trips in the state.
The economic impact of these sales generated
by tourism springs from the fact that travel
spending amounts to half of the sales and re-ceipts
of the groups of business concerns that
have arisen to serve the needs of people away
from home and to provide passenger transporta-tion.
A large block of the North Carolina retail
market then is made up of tourists. These travel-ers
are consumers moving through the North
Carolina economy. Their purchases can be meas-ured
and their spending in North Carolina stores
traced on down Main Street as it circulates
12 ESC QUARTERLY
ABLE TAR HEEL INDUSTRY AS STATE EN-JOYS
A MULTI-MILLION DOLLAR RECREA-TION
AND ENTERTAINMENT BUSINESS.
IN NORTH CAROLINA
through other business firms generating new in-come.
The core of North Carolina's travel business is
the group of private business enterprises catering
primarily to travelers. The economic impact of
tourism is centered in these groups of firms, but
it is not confined to them. First, are the firms
engaged in serving travelers : lodging, eating, and
recreation services. Since most tourists travel by
private cars, servicing automobiles has given rise
to a second important segment of enterprise. One
out of ten concerns are in the automobile business.
Passenger-transport utilities comprise a third sec-tor
of the travel business, and they are doubly
important to interstate tourists. These utilities are
still required by about one-tenth of the traveling
public.
Travel Builds Business
In a nutshell, the economic measures of North
Carolina travel business stack up as follows : There
are 19,000 firms engaged in the service and trans-portation
of travelers in the state. They had com-bined
sales and receipts of $968 million in 1963.
The total includes revenue of $45 million for util-ities
engaged in the intercity transportation of
passengers and $923 million sales of firms cater-ing
to the traveling public. The travel business
provides jobs for 83,000 paid employees, active
proprietors, and others. Altogether, $287 million
in personal income was paid out to individuals by
these firms. This includes payrolls, earnings of
proprietors, dividends, interests, and rents. Taxes
of $170 million were collected by the state of North
Carolina from these firms alone.
Mecklenburg, Guilford, Forsyth and Wake
Counties lead the State in persons employed and
firms engaged in the travel and tourist serving
industry. The tourist spends almost 30 cents of
every dollar for transportation expenses—gaso-line,
auto services, repairs, etc. Almost the same
amount of money is spent for meals. Twenty cents
from each dollar goes for lodging and about ten
percent of the money the tourist spends in North
Carolina is for entertainment and recreation.
ESC QUARTERLY 13
DR. LEWIS C. COPELAND has been engaged in comprehensive travel sur-veys
in states and areas of the Southeast for the past ten years. Presently he
is making annual economic reports on tourism and the travel business in North
Carolina, South Carolina, Tennessee, Kentucky and Alabama. His city and
area studies include Asheville and Western North Carolina; Winston-Salem
and several other sections of the State for special purposes.
A member of the Western Council for Travel Research, the Tennessee Travel
and Tourist Promotion Council and the American Statistical Association, Dr.
Copeland teaches statistics in the College of Business Administration, Univer-sity
of Tennessee.
Dr. Copeland began his teaching career at Duke University. He finished
graduate work at Duke in 1939, having previously received degrees from Texas
Christian University and the University of Chicago. His major field of work has been state and small area studies,
beginning with regional studies in Chicago during the early '30's and continuing in North Carolina during his resi-dence
at Duke University. During the past nine years he has made continuous studies of the Southeast economy with
particular emphasis on economic change in counties and local areas. Dr. Copeland has made these reports since 1959.
These commercial facilities are
used by local customers and travelers
within their own state as well as by
interstate travelers. Business and
pleasure travelers are included among
the customers. But persons away
from home are so completely depen-dent
on these commercial enterprises
and, in turn, the firms receive such an
important part of their sales and re-ceipts
from travelers that both the
businessmen and the customers recog-nize
these firms as "the travel busi-ness."
Several business associations
have arisen around the specific
interests of the travel industry as a
distinct sector of the business com-munity.
The point is that travelers are
such a large portion of their clientele
that some businesses find it worth-while
to make a special effort to at-tract
tourists. In fact, a tourist has
besn defined as a person so far away
from home that he is dependent upon
the travel business to supply his
needs.
Travel, A Growth Sector
The travel industry is one of the
sectors of the North Carolina economy
that is expanding most rapidly. Sales
in travel service have risen 188 per-cent
since 1948. This was well above
the increase of 131 percent for all re-tail
trade and service business. The
annual growth rate for the travel
trade was 7.1 percent in North Caro-lina
and 5.5 percent in the nation.
Meanwhile, all retail business in-creased
5.6 percent yearly in North
Carolina and 4.6 percent in the
United States.
THE NORTH CAROLINA TRAVEL SERVICE AND TRANSPORT
INDUSTRY DURING 1963
Total Receipts from Travel Service and Transport $968 Million
Proportion sold to Out-of-state travelers 31 percent
In-state and out-of-state travelers 48 percent
Receipts from Passenger Transportation $ 45 Million
Receipts of Businesses at Service of Travelers $932 Million
Received by: 10,500 Auto service stations $623 Million
8,450 Lodging, eating, recreation places 300 Million
Increase over 1962: 5 percent Over 1948: 188 percent
Proportion of retail trade and service receipts . . 16 percent
Number of North Carolina Firms Serving and Transporting Travelers 19,000
Proportion of 110,000 total business firms in state, 17 percent
Number Employed in Serving and Transporting Travelers 83,300
Proportion of nonfarm workers in state 6 percent
Personal Income Derived from Travel Service and Transport $287 Million
Proportion of private nonfarm income 6 percent
Approximate amount attributable to out-of-state tourists $ 94 Million
Proportion of tourist spending 33 percent
Contribution of Travel Service and Transport to State Finances:
Gasoline, sales, and other taxes collected
from travel service and transport $173 Million
Proportion of $560 million state revenue 30 percent
Approximate taxes attributable to out-of-state tourists $ 19 Million
Proportion of state revenue collections, 3.4 percent
Firms in Travel Business
There are 19,000 commercial firms
engaged in activities directly related
to the service and transport of travel-ers
in North Carolina. This is 17 per-cent
of the 110,000 active non-farm
business and industrial concerns in
the state. Most of these are in retail
trade and service. About 31 percent
of the 60,000 retail trade and service
concerns in North Carolina are cater-ing
to the needs of travelers. How the
number of firms in the travel serving
group compares with other business
and industry groups is shown in a
separate table. Outside of retail trade
and service, only farm enterprises out-number
the combined aggregate of
firms in travel service and transport.
A separate county table shows the
statewide distribution of the travel-serving
firms. This table highlights
the fact that travel activities are
widely spread over the state.
Naturally, no clear-cut line can be
drawn between a travel and non-travel
business. Several other types of
businesses sell directly to travelers,
but they do not derive a very large
portion of their total receipts from
out-of-state travelers, except in resort
areas. For example, stores specializ-ing
in goods for recreational, sport-ing,
or travel purposes make the bulk
of their sales to local customers. Re-member,
too, that most sporting goods
are not sold in sporting goods stores.
Travel Makes Employment
Travel activities provide jobs for
83,300 persons in North Carolina. This
is the total number of persons en-gaged
in providing food, lodging, rec-reation,
and transportation services
to travelers away from home and to
local customers. There are 20,700 ac-tive
proprietors operating their own
businesses and 58,500 paid employees
in the private firms catering to travel-
14 ESC QUARTERLY
ers. For this new count of travel-related
employment, we have also in-cluded
2,000 unpaid family workers
and 2,100 government employees who
are operating recreation facilities and
other government services for the
benefit of the traveling public. The
count does not include highway em-ployees.
Nor have we included several
lines of small businesses, such as sou-venir
shops, boat dealers, sporting
goods stores, and numerous family en-terprises
catering to outdoor activi-ties.
Group of Workers in
Travel Activities
Number of
Jobs
Total Travel Related Jobs 83,300
Private Wage and Salary
Employees 58,500
Proprietors and Self-Employed 20,700
Government Employees 2,100
Unpaid Family Workers 2,000
The economic impact of this em-ployment
can be stated precisely: a
worker in the travel industry earns
$3,600 yearly. Therefore, 275 workers
will add a million dollars to the an-nual
income of an area. This million-dollar
payroll will set in motion
economic activities related to travel
that in turn will generate three mil-lion
dollars income.
Sales and receipts in a business
generate employment. Thus, sales of
$11,600 provide one job in the travel
business. Then, if we may equate jobs
and tourist trade, the $286 million
tourist expenditures create the equiva-lence
of jobs for 25,000 North Carolina
proprietors and their paid employees.
Likewise, the jobs of 40,000 persons
may be attributed to the sales gene-rated
by all away-from-home travel
in the state.
About $94 million of the income in
North Carolina can be traced to the
expenditures of tourists from other
states. This figure was derived by tak-ing
into consideration the amount of
employment and sales in each busi-ness
group and the ratio of income to
jobs and sales. It turns out then that
a third of tourist expenditures of $286
million are distributed as income to
North Carolina people. On the aver-age
each tourist party adds $7.00 to
the income of North Carolina. About
$80 million or 85 percent of the in-come
from tourists was paid out as
payrolls and proprietor's income to
the 25,000 persons whose jobs can be
attributed to the tourist trade.
The estimates of paid employees are
part of the Bureau of Labor Statistics
estimates of the average annual num-ber
of wage and salary employees in
all nonagricultural establishments in
North Carolina, as shown in a sep-arate
table. Therefore, direct compari-sons
can be made with employment in
SUMMARY FACTS ON NORTH CAROLINA'S TRAVEL BUSINESS
Business Establishments, Employment, and Payrolls in the Business Groups Engaged
in the Service and Transportation of Travelers in North Carolina during 1963.
Dollar Amounts are Shown in Millions.
Type of Travel
Business Group
Number
of
Estab-lishments
Propri-etors
and Paid
Workers"
Total
Personal
Income
Total Sales
and Receipts
Amount
Millions Millions
Percent
of U. S.
Total
Travel Service and Transport 19,000 79,200 $287 $968 1.72
Travel Service 18,950 75,600 267 923 1.74
Lodging, Eating, Recreation 8,450 42,300 125 300 1.15
Lodging Places 2,000 10,300 33 68 1.47
Eating Places 5,200 27,900 76 208 1.15
Recreation Services 1,250 4,100 16 24 0.68
Automobile Services 10,500 33,300 142 623 2.31
Gasoline Service 6,550 20,550 73 433 2.24
Tire, Battery, Accessory 600 3,750 17 85 3.07
Auto Repair and Service 3,350 9,000 52 105 2.19
Passenger Transportation 50 3,600 20 45 1.45
;l The number of employees shown here does not include 2,000 unpaid family workers and 2,100
government employees in jobs re.ated to travel. There are 83,300 workers in all categories.
COMPARISON OF TRAVEL ACTIVITIES IN NORTH CAROLINA AND THE
UNITED STATES DURING 1963
Amount in Millions
North
Carolina
United
States
Percent
U. S. Total
in North
Carolina
All Domestic Travel Expenditures $467
Interstate Travel Expenditures 286
Travel Service and Transport 968
Travel Service 923
Lodging, Eating, and Recreation 300
Hotels and Lodging Places 68
Eating and Drinking Places 208
Recreation 24
Automobile Services 623
Gasoline Service 433
Tire, Battery, and Accessories 85
Auto Repair and Service 105
Passenger Transportation 45
All Retail Trade and Service $5,610
Total Personal Income 8,630
$26,255 1.78
15,655 1.83
56,172 1.72
53,062 1.74
26,151
4,650
18,059
3,442
1.15
1.47
1.15
0.68
26,911
19,356
2,766
4,789
2.31
2.24
3.07
2.19
3,110 1.45
$288,883 1.94
462,950 1.86
BUSINESS ESTABLISHMENTS ENGAGED IN THE SERVICE AND TRANSPORTATION
OF TRAVELERS IN NORTH CAROLINA DURING 1963
Travel Business Group Number
Total, Travel Service and Transport Business 19,000
Firms at the Service of Travelers 18,950
Lodging, Eating, and Recreation Services 8,450
Hotels and Lodging Places 2,000
Hotels 325
Motels and Tourist Courts 1,115
Camps 160
Other Lodging 400
Eating and Drinking Places 5,200
Recreation Services 1,250
Auto Services 10,500
Gasoline Service Stations 6,550
Tire, Battery, and Accessory Stores 600
Auto Repair and Service 3,350
Firms Engaged in Passenger Transportation 50
Railway Passenger Carriers 4
Intercity Bus Lines 25
Air Transportation 21
Sources : Based on data in the Census of Business, reports of firms to the Bureau of Old-Age
and Survivors Insurance and to the state Employment Security Commission, and other
state business and trade association data. Establishments were classified and defined on the basis
of the major source of receipts as in the Census of Business according to the Standard Industrial
Classification, and for this purpose they were counted only once to prevent double counting.
ESC QUARTERLY 15
various nonfarm industry groups in
North Carolina. It will be noted that
the 19,000 travel business firms em-ploy
54,900 or 22 percent of the 246,-
000 employees in retail trade and
service establishments, not including
professional services and miscellane-ous
industries. Travel service engages
more than one-fifth of those in retail
stores and consumer service establish-ments.
Passenger transportation en-gages
three out of ten workers in
transportation industries. Ten per-cent
of all nonfarm wage and salary
employees in private nonmanufactur-ing
establishments are engaged in
serving and transporting travelers.
Altogether, about six percent of all
nonfarm workers are employed in
travel-connected activities. By com-parison,
travel sales comprise close to
four percent of total nonfarm output,
and these firms pay out about five per-cent
of private nonfarm income re-ceived
by North Carolina people for
participation in current business and
production.
Travel Creates Income
Income produced is the most ap-propriate
measure of the economic
contribution of the travel business and
tourism to North Carolina. This is
because employment in the firms ca-tering
to travelers generates an im-portant
block of personal income pay-ments
to North Carolina people. Total
personal income of $287 million was
derived from travel activities during
1963. Payrolls to hired labor amounted
to $156 million. Active proprietors
earned $95 million from their opera-
NUMBER OF BUSINESS AND INDUSTRIAL CONCERNS IN OPERATION
IN NORTH CAROLINA DURING 1963
Business or Industry Group
Total
Number
Concerns
in State
Retail Trade and Service 60,300
Retail Trade Stores 40,500
Service Establishments 19,800
Transportation and Public Utilities 4,500
Passenger Transportation 105
Railways 29
Intercity Bus Lines 25
Air Transportation 51
Mining 200
Contract Construction 10,100
Manufacturing 7,600
Finance 6,400
Wholesale Trade 6,200
Professional Services 7,700
Miscellaneous 7,000
Total Active Nonfarm Concerns 110,000
Travel-Service and
Transport Business
Number Percent
of Total
18,950 31
12,350
6,600
30
33
50
4
25
21
48
14
100
41
19,000 17
Sources : Estimated on the basis of data from U. S. Department of Commerce, state business
data, Dun and Bradstreet, and reports of firms to the State Employment Security Com-mission
and to the Bureau of Old-Age and Survivors Insurance. Note that the U. S. Census of
Business does not cover all business groups. County Business Patterns covers only employers
and Dun and Bradstreet's listing includes only about half of the active business concerns.
tions. Rents, interest on capital, and
dividends added up to $37 million.
About $94 million of this income
can be traced to tourists from other
states. This is because every dollar
spent by tourists generates 33 cents
income for someone in North Carolina.
The average tourist party contributes
$7.22 to personal income in the state.
These figures mean that 30 percent
Type of Income Payments Amount of
from Travel Income
Per Cent
of Sales
Personal Income $287,000,000 29.5
Payrolls of Employees . . . 155,660,000 16.1
Earnings of Proprietors . 94,600,000 10.2
Dividends 4,190,000 0.5
Rents from Property . 21,350,000 2.3
Interest on Capital 11,200,000 1.2
SALES AND RECEIPTS OF BUSINESS FIRMS AT THE SERVICE OF TRAVELERS
IN NORTH CAROLINA BETWEEN 1948 AND 1962
This table shows the total for all groups of travel service businesses, but does not
include the receipts of passenger transport industries, estimated at $45 million.
Total
Sales
and
Receipts
Percent
Increase
Over
Previous
Year
Ratio to 1948
Percent
of U. S.
Total
in
N. C.
Percent
Retail
Year North
Carolina
United
States
Business
in N. C.
1963 $923 5 288 228 1.74 16.5
1962
61
60
882
842
810
5
4
4
276
263
253
218
208
204
1.73
1.73
1.70
16.6
17.0
16.7
1959
58
57
775
714
684
9
4
8
242
223
214
197
185
179
1.68
1.65
1.64
16.5
16.8
16.5
1956
55
54
635
584
535
9
9
5
198
182
167
167
154
144
1.63
1.62
1.59
16.2
15.4
15.3
1953
52
51
510
487
433
5
12
16
159
152
135
138
133
122
1.58
1.57
1.52
15.0
14.8
13.7
1950
49
48
373
340
320
10
6
117
106
100
108
102
100
1.48
1.42
1.37
13.4
14.0
13.2
Source : The sales and receipts of the eight groups of business firms at the service of travelers
are lodging and eating places, gasoline and other auto services, and recreation facilities except
movies. They were estimated separately on the basis of state data from the Census of Business
and adjusted to the U. S. Bureau of the Census annual survey of retail trade and the author's
estimates for groups not covered by the Census and state data. Details are given in subsequent
tables. Retail sales reports of business concerns under the state sales and use tax and other
state business data were also used. The types of business are grouped according to the Standard
Industrial Classification used in the Census of Business. Therefore, the respective figures differ
from the sales reported by market data surveys and other state estimate.
of the sales and receipts of all firms
engaged in serving and transporting
travelers is paid out as income to la-bor,
managers, and others who share
in the business. Travel activities con-tributed
five percent of all private
nonfarm income received by persons
for participation in current civilian
business and production in North
Carolina.
Among trade and service enter-prises
these earnings bulk large. Pay-rolls
and proprietors' income in cafes,
gasoline service and auto accessory
stores comprised a fifth of the $740
million earned in all lines of retail
trade. Lodging places, auto repair
shops, and recreation services gene-rated
twenty-three percent of the
$360 million income from consumer
services. Railways, buses, and air-lines
paid out $84 million in payrolls;
again, intercity passenger transporta-tion
accounted for a quarter of the
income derived from these three utili-ties.
State Revenue from Travel
Travel activities contribute heavily
to the State's finance. North Carolina
collected $173 million from retail
firms and individuals in the travel
serving business and from gasoline
sales and auto licenses during 1963.
These taxes comprised almost a third
of the $560 million tax and nontax
revenue collected by the state during
that year.
The total sales and receipts of the
travel business in 1963 were $968 mil-lion.
On these sales and the income
generated thereby the State collected
$139 million from taxes on sales, gaso-line,
individual and corporate income,
and business licenses and franchises.
These are the major taxes collected
from business firms and individuals
16 ESC QUARTERLY
in relation to their business opera-tions.
Altogether, North Carolina tax
revenue from these sources amounted
to $472 million. Firms engaged in
travel service and transport paid 30
percent of this amount.
The $114 million gasoline taxes con-stitute
the major source of revenue
related to travel. The direct taxes paid
by travel serving firms and individuals
to the state comprised 15 percent of
the total sales and receipts of the
firms. Sales and use taxes alone col-lected
from the travel serving busi-nesses
amounted to $16.8 million, or
11.5 percent of the state total. Travel
business concerns also paid $8.6 mil-lion
state business taxes, which was
four percent of the state total. In ad-dition,
the travel business paid $12
million for local and property taxes
and licenses. Federal gasoline and in-come
taxes amounted to $52 million.
Type of Tax Payments Amount of Per Cent
from Travel Activities Taxes of Sales
TAXES COLLECTED
AND PAID $237,115,000
All State Taxes 172,655,000 30.0
Local and
Property Taxes 12,030.000 1.3
Federal Income and
Gasoline Taxes 52,430,000 5.7
State Revenue from Tourists
State taxes collected from out-of-state
tourists can also be estimated.
They paid taxes in about the same
ratio as they used gasoline and spent
their money in the places of business.
Altogether, state revenue receipts of
about $19 million were paid or can be
attributed to the spending of tourists
from other states. Tourists pay 11
percent of the $173 million taxes col-lected
from the travel business. Most
of the taxes collected from tourist
activities come from the state gaso-line
tax. Tourists pay more than $10
million in gasoline taxes alone. Other
state business and sales taxes that
can be traced to tourist purchases
amount to $9 million.
Taxes collected from tourists
amounted to 3.4 percent of the total
revenue of North Carolina in 1963 and
it was about four percent of taxes col-lected
from sources to which travel
activities contributed. This means that
state revenue collections amount to
almost seven cents from each tourist
dollar. The average tax per tourist
party was $1.46 or 61 cents per per-son.
Economic Impact of Travel
Travel activities bulk large in the
North Carolina economy. The needs
of people traveling away from home
has created an important market for
North Carolina commerce and indus-try.
The $467 million spent by all
travelers amounts to 48 percent of
the aggregate sales and receipts of
business concerns engaged in serving
travelers and transporting passengers.
On the other hand, the $968 million
PRIVATE EMPLOYMENT IN TRAVEL BUSINESS
Average Annual Number of Paid Wage and Salary Employees and Proprietors
Engaged in the Travel Service and Transportation Business in North Carolina,
1963
Travel Service and
Transportation Group
Active
Proprietors
Paid
Employees
Total Paid
Workers &
Proprietors
Total Travel Service & Transport 20,700
Total Travel Service 20,700
Lodging, Eating, Recreation 9,200
Hotels and Lodging Places 2,000
Hotels 420
Tourist Courts 960
Camps 160
Other Lodging 460
Eating and Drinking Places 5,900
Recreation Services 1,300
Automobile Services 11,500
Gasoline Service Stations 7,350
Tire, Battery, Accessory 550
Auto Repair and Service 3,600
Passenger Transportation None
Railway Passenger Carriers
Intercity Bus
Air Transportation
58,500 79,200
54,900 75,600
33,100 42,300
8,300 10,300
5,100
2,400
300
500
5,520
3,360
460
960
22,000 27,900
2,800 4,100
21,800 33,300
13,200
3,200
5,400
20,550
3,750
9,000
3,600 3,600
600
1,400
1,600
600
1,400
1,600
Source : Estimated number of paid employees from or based on the Bureau of Labor Statistics
series from the State Department of Labor. Other estimates were based on data from the
Census of Business, the IJ. S. Department of Commerce and the Department of Labor, and re-ports
of employers to the Interstate Commerce Commission, the Bureau of Old-Age and Sur-vivors
Insurance and to the State Employment Security Commission. These estimates do not in-clude
2,100 government and 2,000 unpaid fmily workers engaged in these business groups.
COMPARATIVE EMPLOYMENT IN TRAVEL
Distribution of Wage and Salary Employees in Travel and Transport Service
and in All Nonagricultural Establishments in North Carolina during 1963
Nonfarm Industry Group Total Number
in State
Travel Service
and Transportation
Number Percent
Retail Trade and Service 246,000
Retail Trade 175,900
Service 70,100
Transportation 43,100
Passenger Transportation 11,800
Railways 8,800
Intercity Bus Lines 1,400
Air Transportation 1,600
Mining 2,700
Contract Construction 70,600
Manufacturing 540,000
Wholesale Trade 60,500
Utilities and Communication 24,500
Finance and Insurance 49,300
Professional Services 70,000
Private Nonmanufacturing 566,700
All Private Nonfarm Employees 1,106,700
Self-Employed Workers 120,000
Government Employees 184,300
Unpaid Family Workers 10,000
All Nonfarm Workers 1,421,000
54,900
38,400
16.500
3,600
600
1,400
1,600
22
22
24
7
100
100
58,500 10
58,500 5.3
20,700
2,100
2,000
17
1.1
20
83,300 5.9
Source: Estimated number of wage and salary employees in non-agricultural establishments in
column one is the Bureau of Labor Statistics state series. Other estimates are, in part, com-ponents
of the BLS estimates. Where these were lacking the estimates were based on data from
the Census of Business, the Census of Population, and reports of employers to the Employment
Security Commission, the Bureau of Old-Age and Survivors Insurance, and to the Interstate
Commerce Commission.
travel and transport business com-prises
17 percent of the five billion-dollar
retail trade in the state. Retail
business, in turn, makes up one-fifth
of the $27 billion output of the North
Carolina economic enterprise. Tourists
are important to North Carolina busi-ness
because they are consumers mov-ing
through the State. Commercial
enterprises must serve the major part
of their needs, which creates more
than eight percent of the state's re-tail
business.
Travelers are defined, for the pur-pose
of this study, as persons going
outside their daily commuting zone.
People who make short or long jour-neys
and return home the same day
are included, as well as those who stay
overnight away from home. Our defini-
ESC QUARTERLY 17
tion is not limited to persons making
overnight trips or traveling a hundred
miles or more. Short tours account for
the majority of the trips; weekend
travel accounts for a large proportion
of the days away from home; while
the relatively few long business and
vacation trips run up the major por-tion
of the mileage traveled.
Share of the Travel Market
As a result of this more rapid
growth of travel in the state, North
Carolina now has 1.8 percent of the
nation's domestic travel market, in
comparison to 1.3 percent in 1948. In
interpreting this ratio one must note
that the volume of traffic created by
away-from-home travelers in North
Carolina is even larger than the com-bined
travel expenditures. This is be-cause
large travel outlays are made
at origins and destinations that are
not reflected in North Carolina busi-ness.
A state like North Carolina can
expect to receive about one-seventh of
the total expenditures for a complete
interstate trip passing through the
state.
North Carolina's share of the na-tion's
domestic total travel market
can be measured by the following
figures for both short and long trips
during 1963.
Total domestic United States
Personal travel $19.0 Billion
Business travel $ 7.3 Billion
Pleasure and
personal travel $19.0 Billion
The $26 billion spent for travel in
the nation was the cost of traveling
833 billion passenger-miles. The $467
million expenditures in North Caro-lina
covered the cost of 24 billion
passenger-miles traveled within the
state.
Share of the Nation's Tourist Market
Interstate travel in the United
States accounts for almost half of the
overnight trips or those of a hundred
miles or more from home. About two-thirds
of the travel expenditures and
the time spent away from home are
for interstate travel. North Carolina
receives a significant share of the na-tion's
interstate tourist traffic, and
this expanding passenger movement is
bringing an increasing portion of
tourist trade to the State.
Domestic interstate travel
expenditures, 1963
United States .' $15,655 Million
North Carolina $ 286 Million
Percent of U. S. Total, 1.83
Percent increase 1948-1963
United States 131
North Carolina 311
Interstate recreation, vacation,
and personal travel
United States . . $11,290 Million
North Carolina ... $ 200 Million
Almost 13 million out-of-state par-ties
visited North Carolina during
1963. These party trips brought 27
million persons on visits to North
Carolina. These trips include out-of-state
parties visiting North Carolina
or passing through on business or
pleasure trips. About two-thirds of
the trips were for pleasure and one-third
for business. These figures on
travel include passenger movement by
train, plane, and bus as well as by
automobile.
The 4.9 billion passenger-miles
traveled by out-of-state tourists in
North Carolina last year was 2.9 per
cent of the 167 billion miles traveled
by persons on interstate trips
throughout the nation.
This relatively large ratio of the
nation's interstate travel is quite con-sistent
with nation-wide travel sur-veys
and numerous economic factors
and travel indicators in North Caro-lina.
These figures mean that 20 per-cent
of intercity traffic in the state
is generated by interstate travelers.
About 94 percent of this traffic is by
automobile. Interstate travel via auto-
INCOME DERIVED FROM TRAVEL ACTIVITIES IN NORTH CAROLINA
Estimated Personal Income Paid Out by Firms Engaged in the Service and Trans-portation
of Travelers
Travel Service and
Transport Business
Groups
Total Personal
Income
Payrolls
of
Employees
in
$1,000
Earnings
of Pro-prietors
in
$1,000
All
Other
Income
in
$1,000
Amount in
$1,000
Per Cent
of Sales
Total Service and Transport .
Total Travel Service
$287,000
266,540
29.6
28.9
41.5
48.5
36.4
67.3
22.8
16.9
19.4
49.9
45.5
$155,660
135,200
69,300
17,340
43,780
8,180
65,900
31,520
11,390
22,990
20,460
$94,600
94,600
37,900
9,930
21,550
6,420
56,700
34,420
3,060
19,220
Not
$36,740
36,740
Lodging, Eating, Recreation
Lodging Places
124,560
. . . . 32,950
17,360
5,680
Eating Places 75,710
15,900
10,380
1,300
141,980 19,380
Gasoline Service Stations
Tire, Battery, Accessory
Auto Repair & Service
Passenger Transportation ....
73,100
16,520
52,360
20,460
7,160
2,070
10,150
estimated 11
* Due to the nationwide financial structure of the corporations engaged in passenger transporta-tion,
the dividends, rents, and interest derived from these operations were not estimated separately.
Since proprietary firms engaged in intercity and interstate passenger transportation account for a
small portion of all operations, they were omitted.
Source : Estimated from state business data and operating expenses of six groups of firms at the
service of travelers and the three groups of passenger carriers.
COMPARATIVE INCOME FROM TRAVEL
Contribution of the Travel Business and Transport Business to Personal Income
Received by Persons for Participation in Current Business and Production in
North Carolina during 1963
Industrial Source of Income
By Major Business Group
Retail Trade and Services
Retail Trade
Consumer Services
Transportation Intercity Transportation, exc. watei
Railways
Intercity Bus Lines
Air Transportation
Manufacturing 2,213
Wholesale Trade 483
Finance, Insurance, Real Estate 280
Contract Construction 400
Communications and Public Utilities 147
Mining 20
Professional and Other 386
Private Nonfarm Income $5,282
Farm Income and Wages 710
State and Local Government 636
Federal Civilian Salaries 178
Federal Military Salaries 376
Property Income, Dividends 874
Transfer Payments 634
TOTAL PERSONAL INCOME $8,690
Personal
Income
Received
in State
in
Millions
Travel Se
Transport
rvice &
Business
Amount
in
Millions
Percent
of State
Total
. $1,100 $230
146
84
20
4
6
10
21
. . 740 20
. . .360 23
. . 253
84 24
68 6
6 100
10 100
$250
$ 37
$287
Source : Column 1 adapted from estimates by U. S. Department of Commerce, Survey of Current
Business. Estimates of income received from travel businesses were based on data from U. S.
Department of Commerce, Census of Business, and reports of employers and others to North
Carolina Employment Security Commission.
18 ESC QUARTERLY
mobile i.s relatively more important
in North Carolina than in the United
States. Of all miles traveled by auto-mobiles
in the United States 7.7 per
cent are driven on interstate, business
and pleasure trips. More than half of
this is for vacation and other pleasure
trips. The South Atlantic States as a
whole generate or receive from other
states one-sixth of the nation's tour-ist
and vacation travel and the ex-penditures
for these trips. North Car-olina's
share is about one-tenth of the
travel expenditures in the South At-lantic
region.
LODGING BUSINESS
Travel away from home greatly af-fects
the volume of busines in lodg-ing
places. Hotels and motels depend
on a developing travel trade, and
tourists in turn are directly dependent
upon these facilities. There are 2,000
hotels, motels, camps, and tourist
homes in North Carolina. These places
had receipts of $68 million in 1963.
Over 70 percent of the total lodging-receipts
may be traced to tourist tra-vel.
Tourists from other states spent
$58 million for overnight lodging in
North Carolina last year. This was
one-fifth of the cost of tourist travel
in the state. About $48 million of the
lodging expenditures were paid to
commercial places—mainly hotels, mo-tels,
and camps.
All commercial lodging receipts in
North Carolina have risen 164 per-cent
since 1948, well above the na-tional
rate of 88 percent. North Caro-lina
has been receiving a rising share
of the nation's lodging business. It
now has 1.47 percent of the national
total as compared to 1.05 in 1948. The
growth of a state's lodging facilities
is a good indication of the develop-ment
of the vacation business.
Lodging Employment, Income,
and Taxes
North Carolina lodging places em-ploy
10,300 persons. There are 2,009
active proprietors operating their own
business concerns. In addition there
are 8,300 paid employees. The lodging
business as a whole paid out $33 mil-lion
in personal income. These pay-rolls,
proprietors' earnings, and other
income payments comprise 48 percent
of the total receipts of lodging places.
These business firms paid $2.4 million
state taxes in 1963. This was 3.54 per-cent
of all sales and receipts. About
three-quarters of these taxes came
from tourists. Local and property
taxes amounted to $1.9 million. All
taxes on the lodging business were
eight percent of lodging receipts.
Statewide Distribution of Lodging
Facilities
The regional distribution of hotels,
motels, tourist homes, and camps
shows a relatively higher concentra-tion
in the mountain and coastal re-gions
than one would expect from gen-eral
economic activities in the state.
The mountain counties have a fourth of
lodging sales, and the coastal coun-ties
have almost a third. Half of the
camps are in the mountains. The re-gional
distribution of the tourist fa-cilities,
listed in Ken Knight's Travel-book,
is a splendid exhibit of the
statewide dispersion of travel activi-ties.
In one way or another all sections
of North Carolina share in the travel
trade and the lodging business.
Lodging Requirements of Tourists
The overnight accommodation re-quirements
of out-of-state tourists can
be briefly summarized as follows. Half
of the visitors require no accommoda-tions.
These visitors pass through the
CONTRIBUTION OF THE TRAVEL BUSINESS TO STATE FINANCES
State Revenue Collections from All Sources Compared to Taxes and Fees Paid
by Firms and Individuals Engaged in Serving and Transporting Travelers in North
Carolina, By Source, 1963
Source of Tax and
Non-Tax Revenues
All State Firms and Individuals at
Revenue the Service of Travel
Fiscal Year
1963 Amount Per Cent
Amount in in of State
$1,000 $1,000 Revenue
Total Collections $560,833
Major Collections from Business
Firms and Individuals 472,496
Retail Sales and Use 145,942
State Business Taxesb 210,138
Gasoline Net Tax 114,046
Outdoor Recreation 2,370
Automobile Licenses 30,864
All Other State Receipts* 57,473
$172,655 30.8
141,791 30.0
16,760
8,615
114,046
2,370
11.5
4.1
100.0
100.0
30,864 100.0
Sources: Compiled fi-om North Carolina Department of Revenue, "Comparative Statement of
Collections;" Department of Motor Vehicles, "Comparative Statement of Net Collections ;" Depart-ment
of Revenue, Sales and Use Tax Division, "Analysis of Sales and Use Tax Collections", and
special tabulations of taxes supplied by the Department of Tax Research. Income and franchise
taxes in the travel business were estimated on the basis of detailed industry tabulations for pre-vious
years.
a These tax collections were from firms and individuals operating or employed at the retail level.
They do not include Federal taxes and excises and local taxes.
b Comprises privilege tax, franchise tax, income tax, and bus and franchise tax.
c Comprises receipts from sale of hunting and fishing licenses, boat registration, and state park
concessions.
'' Does not include numerous state departmental receipts and fees.
HOW TRAVEL RECEIPTS CIRCULATE IN NORTH CAROLINA
The merchants, hotels, tourist courts, cafes, gasoline stations and others who first
contacted and received tourist dollars, in turn, passed these dollars on into local
trade channels.
Where the Travel Dollars Goes
Amount Spent
in Millions
Total Expenditures, 100 per cent $923
Purchases from wholesalers and other industries, 37.00% 341
Labor, Management, and Owners, 25.35% 233
Payrolls, 14.65% 135
Profit of Proprietors, 10.25% 94
Dividends to Owners, 0.45% 4
Taxes Collected and Paid, 22.01% 203
State Sales Tax, 1.80% 16
State Gasoline Tax, 12.36% ' 114
State Business Taxes, 0.87% 7,
Local and Property Taxes, 1.30% 12,
Federal Gasoline and Income Tax, 5.68% 52,
Capital Expense, Except Taxes, 7.02% ' 64
Rents, Occupancy Costs, 2.32% 21.
Insurance, 0.50% 4:
Interest on Working Capital, 1.21% 11
Depreciation and Replacement, 2.99% 27,
Other Operating Expenses, 6.29% 58
Utilities, Power, and Fuel, 2.25% 20
Telephone and Telegraph, 0.43% 3,
Laundry and Dry Cleaning, 0.65% 6,
Repairs and Maintenance, 0.77% 7,
Advertising and Printing, 0.99% 9,
Equipment, Linen, etc., 0.80% 7,
Cleaning and Other Supplies, 0.40% 3,
Miscellaneous Expenses, 2.33% 20,
,000,000
,570,000
,990,000
200,000
,600.000
190,000
,116,000
660,000
046,000
950,000
030,000
430,000
890,000
350,000
710,000
200,000
630,000
500,000
720,000
980,000
170,000
120,000
100,000
430,000
980,000
934,000
ESC QUARTERLY 19
state or return home without over-night
stops. One-fourth of the over-night
visitors stay with friends and
relatives. For those whose vacation
destination is North Carolina, the
proportion staying with friends and
relatives is about one-half. Another
five percent provide their own accom-modations.
These visitors camp out,
use trailers or stay in their own vaca-tion
cottages. This leaves one-fifth of
the tourists who require commercial
lodging facilities for overnight stops,
a two or three-day stay or for a vaca-tion
stay of a week or two.
GASOLINE SERVICE STATIONS
The growth of travel traffic in a
state can be measured by the growth
of the gasoline business. This is be-cause
more than nine-tenths of inter-city
travel is by private automobile.
Expansion has been faster in North
Carolina than in the nation. The aver-age
yearly rate of increase in North
Carolina was 7.7 percent. The State
now has 2.24 percent of the United
States total. The percentage increase
was 217 percent between 1948 and
1963 in North Carolina, as compared
to 206 percent in the nation. The
highway traveler is served by 6,550
service stations in North Carolina.
Sales were $433 million in 1963, a
three-fold increase during the last
fifteen years. Seventeen percent of
receipts, or $73 million is distributed
as personal income, mainly to 20,500
employees. Business in filling stations
accounted for state tax revenue of
$122 million last year. Tourists from
other states paid a tenth of $12 mil-lion
of these taxes. State gasoline
taxes were $114 million, or 26 per-cent
of all receipts. Federal gasoline
and other state and local taxes brought
the total bill up to $171 million or 40
percent of receipts.
Automobile expenses away from
home comprise 23.5 percent of travel
costs: gasoline, 19 percent; accesso-ries,
1.2 percent; repairs, 1.8 per-cent;
and other expenses 1.5 percent.
These make up a total cost of 3.5
cents per mile for fuel and automobile
operation.
FOOD SERVICES
Tourists find food services at 5,200
eating and drinking places in North
Carolina. This does not include snack
bars and drug fountains, and dining
facilities in hotels. Their receipts were
$208 million. The volume of receipts
rose 126 percent since 1948—just
about double the national rate of 71
percent. Tourists spent $80 million
for food and food services in North
Carolina in 1963. This was 28 percent
of their expenditures. Cafes took in
$72 million from tourists. About 35
HOW TOURISTS SPENT THEIR MONEY IN NORTH CAROLINA
Out-of-state tourists spent their money for the following items in a wide variety of businesses.
Purpose of Expenditures and
Type of Business Amount Spent
All Tourist Spending, 1963, 100% $286
Eating and Food Supplies, 28.0% 80
Cafes, eating places, 25.2% 72
Other food purchases, 2.8% 8
Transportation Away from Home, 28.5% 81
Automobile Expenses Away from Home, 23.5% 67
Gasoline Service Stations, 19.0% 54
Accessory stores, 1.2% 3
Repair and service, 1.8% 5
Other automobile expenses, 1.5% 4
Other modes of travel, 5.0% 14
Lodging, Commercial and Noncommercial, 20.3% 58
Commercial lodging places, 16.9% 48
Noncommercial expenses, 3.4% 9
Recreation and Entertainment, 10.0% 28
Commercial recreation, 2.0% 5
Other recreation expenses, 8.0% . . . . ., : . . . 22
Miscellaneous Expenses, 13.2% 37
000,000
080,000
030,000
505,000
560,000
260,000
340,000
390,000
190,000
,340,000
,300,000
050,000
300,000
750,000
600,000
,720,000
880,000
,710,000
Sources : These estimates were derived through an economic analysis of data compiled from
tourist and travel surveys, family budget studies, and the analysis of business and other travel data
for North Carolina.
percent of all cafe business in North
Carolina is brought into the state by
visitors from other states. Food serv-ices
carry a heavy employment ratio,
and 36 percent of sales are paid out
as personal income. They employed
27,900 persons and paid out $75 mil-lion
in personal income. State tax
collections from cafes amounted to
$7.8 million, or almost 4 percent of
sales. They also paid more than $3
million in state and local taxes. We
may attribute a third of these state
taxes to tourists.
Growth of Tourist Travel
Spending by tourists in 1963 was six
percent above the 1962 level. The
growth since 1948 has been more than
three-fold. Last year's trade repre-sented
an increase of 211 percent
since 1948. The nationwide increase of
ESTIMATED OUT-OF-STATE TOURISTS' SHARE OF THE TRAVEL-SERVING
BUSINESS IN NORTH CAROLINA DURING 1963
Type of Business Group
Serving Travelers
State
Total
Receipts
in
Millions
Out-of-State Tourist
Expenditures
Amount
Spent in
Millions
Per Cent
Tourist
Spending
Per Cent
of All
Receipts
Lodging, Eating, Recreation $300.0
Lodging Placesa 68
Eating and Drinking Places 208
Recreation Service 24
Auto Services 623
Gasoline Service Stations 433
Auto Accessory Stores 85
Auto Repair and Service 105
Sub-Total : Travel Service $923
Other Expenditures —
Lodging, Non-Commercial —
Food and Beverage —
Recreation —
Transportation Utilitiesb 45
Other Automobile Expenses —
Miscellaneous Expenses —
Total Retail Trade and Service $5,610
$126.0
48.3
72.0
5.7
62.9
54.3
3.4
5.2
$188.9
44.1
16.9
25.2
2.0
22.0
19.0
1.2
1.8
66.1
33.9
3.4
2.8
8.0
5.0
1.5
13.2
100.0
42.0
71.0
34.6
23.8
10.1
12.5
4.0
5.0
20.4
31.8
5.1
aComprises hotels, tourist courts, tourist homes and other lodging places.
bComprises bus, train, plane, and other types of transportation.
Sources : The estimates of total receipts of the travel business are based on data from the
Census of Business and reports of state business data. The estimates of tourist expenditures
were derived from market analyses and research on tourist spending patterns.
20 ESC QUARTERLY
interstate travel expenditures over
this same period was 131 percent.
North Carolina's annual growth rate
was 7.6 percent, well above the na-tionwide
rate of 5.7 percent for inter-state
level travel expenditures.
Spending- for both business and
pleasure are included in these figures.
The expenditures by North Carolina
people for travel away from home are
not included in the figures for out-of-state
tourists. Some conception of the
magnitude of these tourist expendi-tures
can be noted in the fact that
the total is equal to more than five
percent of the sales and receipts of
all retail trade and service business in
the state. Tourist spending from other
states is equal to a third of the sales
of all firms engaged in serving
travelers.
Tourists' Share of the Travel Business
The $286 million expenditures by
tourists is quite important for the
North Carolina travel business. Visi-tors
from other states spent $188 mil-lion
in the firms catering to their needs
in 1962. This was two-thirds of
tourist expenditures in the state, and
it was one-fifth of the $923 million
receipts of these firms. In addition,
they spent $14 million for common-carrier
transportation, which was a
third of the revenue of these utilities
from their passenger operations.
Tourists spent about one-sixth or
$48 million of their money for com-mercial
lodging places. This is close
to three-quarters of the $68 million
total receipts of all motels and hotels
in the state. Food services received
$72 million from tourists last year,
which was a quarter of the money
spent by tourists. This was a third
of North Carolina's $208 million cafe
business. About $29 million is spent
by tourists for recreation services and
supplies.
More than a fifth, or $67 million of
tourist expenditures, goes for auto
services. Tourist spending creates al-most
one-tenth of the sales of the
gasoline and auto service business.
Other businesses and individuals re-ceive
$97 million tourist money for
miscellaneous goods and services.
State-wide, all tourists' purchases
comprise almost five percent of retail
trade. This business is the difference
between profit and loss for many of
the hotels, motels, cafes, filling sta-tions
and other North Carolina busi-ness
concerns that cater to travelers.
The away-from-home travel ex-penditures
of North Carolina people
and out-of-state visitors combined ac-count
for about half of the receipts
of the firms engaged in the service of
travelers. Local customers provide the
other half of the market. This is char-acteristic
of the travel business in the
nation.
COUNTY TABLE I. TRAVEL EXPENDITURES IN NORTH CAROLINA BY COUNTY, 1963
EMPLOYMENT, INCOME AND NUMBER OF FIRMS ENGAGED IN SERVING
AND TRANSPORTING TRAVELERS, BY COUNTY, 1963
Number of
Firms
in Travel
Service
19,000
356
64
43
61
64
48
179
79
92
125
733
181
296
165
7
185
56
307
118
92
49
13
225
204
233
511
19
115
327
74
128
423
177
732
96
500
7
28
87
27
1,148
217
159
200
207
81
36
48
251
97
236
19
105
216
107
80
58
97
110
1,356
61
80
199
234
648
85
227
140
24
115
55
30
140
231
41
219
195
264
316
329
262
165
62
185
58
241
128
81
16
158
140
738
67
49
159
259
161
234
102
48
Expenditures by Personal
Out-of- Total Number Income
Amount in State Travelers of Persons Paid Out
$1,000 in $1,000 Employed by Firms
STATE TOTAL $467,000 $286,000 83,300 $287,000,000
Alamance 9,810 6,239 1,653 5,886,000
Alexander 764 387 198 503,000
Alleghany 767 513 155 441,000
Anson 1.400 828 207 823,000
Ashe 844 494 215 510,000
Avery 891 639 174 410,000
Beaufort 3,106 1,914 660 2,542,000
Bertie 1,101 560 275 706,000
Bladen 1,530 847 334 945,000
Brunswick 1,344 810 468 793,000
Buncombe 29,330 17,600 3,730 14,042,000
Burke 3,400 1,933 615 2,100,000
Cabarrus 6,878 4,073 1,163 4,118,000
Caldwell 3,750 2,316 600 2,245,000
Camden 69 35 24 33,000
Carteret 4,329 2,911 690 2,163,000
Caswell 559 265 176 369,000
Catawba 9,121 5,687 1,480 5,429,000
Chatham 2,175 1,176 390 1,324,000
Cherokee 1,124 715 346 632,000
Chowan 1,062 606 170 663,000
Clay 185 90 40 106,000
Cleveland 4,534 2,897 1,683 3,923,000
Columbus 3,284 1,849 687 2,192,000
Craven 5,470 3,343 906 3,307,000
Cumberland 16,027 10,343 2,942 9,703,000
Currituck 315 201 56 167,000
Dare 1,593 1,197 455 886,000
Davidson 6,839 4,042 1,173 3,969,000
Davie 1,210 718 249 708,000
Duplin 2,081 1,271 451 1,096,000
Durham 13,770 8,260 2,582 9,323,000
Edgecombe 3,827 2,526 626 2,012,000
Forsyth 25,500 15,500 4,449 18,513,000
Franklin 1,191 666 320 751,000
Gaston 9,815 5,831 1,787 5,786,000
Gates 137 79 15 80,000
Graham 1,538 1,191 99 236,000
Granville 1,708 881 295 1,078,000
Greene 377 214 90 195,000
Guilford 36,330 23,170 6,046 22,139,000
Halifax 4,827 2,991 876 2,673,000
Harnett 3,441 1,941 535 2,074,000
Haywood 4,525 2,989 558 2,538,000
Henderson 4,393 2,831 1,098 2,624,000
Hertford 1,576 973 303 767,000
Hoke 724 455 114 419,000
Hyde 368 193 174 244,000
Iredell 5,272 3,223 952 2,975,000
Jackson 1.446 964 388 823,000
Johnston 4,243 2,300 833 2,578,000
Jones 294 118 53 221,000
Lee 2,904 1,902 372 1,612,000
Lenoir 4,328 2,499 784 2.564,000
Lincoln 1,582 885 336 971,000
Macon 1,355 877 305 766,000
Madison 785 455 201 474,000
Martin 1,812 1,030 333 1,092,000
McDowell 2,281 1,292 394 1,404,000
Mecklenburg 50,100 30,700 8,455 35,498,000
Mitchell 860 515 220 479,000
Montgomery 1,347 731 283 873,000
Moore 6,477 4,577 1,190 4,020,000
Nash 6,488 4,132 903 3,761,000
New Hanover 11,986 7,864 2,236 6,719,000
Northampton 1,144 491 280 806,000
Onslow 7,355 4,738 866 4,324,000
Orange 4,763 3,168 542 2,586,000
Pamlico 216 101 73 146,000
Pasquotank 2,809 1,892 433 1,471,000
Pender 653 424 185 345,000
Perquimans 491 319 89 261,000
Person 1,830 941 474 1,147,000
Pitt 5,278 2,939 1,023 3,363,000
Polk 843 544 153 501,000
Randolph 4,955 2,781 842 3,147,000
Richmond 4,635 2,924 715 2,671,000
Robeson 4,652 2,706 878 2,710,000
Rockingham 6,312 3,773 1,157 3,600,000
Rowan 7,064 4,471 1,262 3,758,000
Rutherford 3,893 2,017 958 2,628,000
Sampson 2,151 1,243 530 1,327,000
Scotland 1,632 1,021 236 873,000
Stanly 3,279 1,671 661 2,241,000
Stokes 823 439 174 562,000
Surry 5,413 3,403 955 3,267,000
Swain 1,584 962 496 963,000
Transylvania 1,409 906 303 818,000
Tyrrell 227 125 39 165,000
Union 2,728 1,588 519 1,668,000
Vance 2,862 1,713 500 1,644,000
Wake 25,130 15,130 4,290 16,642,000
Warren 672 306 205 477,000
Washington 677 379 173 410,000
Watauga 2,098 1,311 579 1,280,000
Wayne 5,362 3,269 1,036 3,123,000
Wilkes 3,410 2,025 546 2,068,000
Wilson 5,991 3,763 1,080 3,641,000
Yadkin 1,456 848 309 929,000
Yancey 700 415 169 422.000
ESC QUARTERLY 21
BY MIRIAM RABB
Travel Information Division, Dept. of Conservation and Development
"Variety Vacationland, U.S.A." is
a title which North Carolina lives up
to in any year and at any season be-cause
of its many attractions. These
include varied scenery and recreation
in settings from the seacoast to the
highest mountains east of the Missis-sippi,
cordiality to visitors, and a
wide choice of accommodations.
There are more in 1964.
Down on the coast, a brand new
bridge links Hatteras Island and the
Cape Hatteras National Seashore to
other areas of the State accessible by
toll-free bridges and highways.
Travel across the piedmont and
in the mountain vacationlands is fa-cilitated
by new sections of inter-state
highways—with some 400 miles
of this system already open in North
Carolina, and additional sections a-building.
On Interstate 40, one of the
most scenic motor routes in America
as it approaches the Eastern Conti-nental
Divide between Hickory and
Asheville, the new Canton by-pass
takes motorists around traffic conges-tion
west of Asheville.
Up in the mountains, a new section
of the Blue Ridge Parkway soars to
6,053-feet—highest point on the en-tire
motor road of this unique scenic
route skimming the mountain crests
between Shenandoah National Park
in Virginia and the North Carolina
entrance to the Great Smoky Moun-tains
National Park near Cherokee.
In the Sandhills winter resorts
which are now year-around play-grounds,
and in other areas of Vari-ety
Vacationland, new golf centers
give North Carolina a total of more
than 180 courses for use in every
season.
Statewide, historical attractions
are being polished up and pointed out
to meet the traveler's growing inter-est
in side trips through the colorful
past of the State where Sir Walter
Raleigh's colonists landed in the
1580's and Daniel Boone blazed trails
through the mountain wilderness.
New accommodations in North
Carolina include a multi-story ocean-front
hotel at Wrightsville Beach
on the southeastern coast, plus new,
and newly expanded, motor lodges and
inns in every section of the State.
Residential developments for year-around
living in vacation areas are
steadily being expanded, with many
catering to retirees and vacationers.
For family tents and trailers, there
are new or expanded campgrounds in
Nantahala and Pisgah National For-ests
and along the Blue Ridge Park-way
in the mountains, and in the Cape
Hatteras National Seashore on the
Outer Banks islands. Mountains to
coast, private enterprise is develop-ing
other camping facilities.
New Lakes
Lake Norman in the piedmont and
Wilkes Reservoir in the mountain
foothills have been added to the chain
of man-made lakes which, with
sounds, rivers and natural lakes, give
Variety Vacationland ideal environs
for fishing and boating. Campgrounds
and recreational areas on Kerr Lake
north of Raleigh have been expanded.
A new 40-acre lake has been built at
the foot of Grandfather Mountain in
the Blue Ridge, and historic Lake
Toxaway in the waterfall country
between Brevard and Franklin is
fully restored as focal point of a new
resort development. Highways to Fon-tana
Lake in the Great Smokies are
newly improved.
In the Great Smokies, where wood-land
wilderness abounds in more than
250,000 acres of the Great Smoky
Mountains National Park, the devel-opers
of the highly successful Ghost
Mountain Park overlooking Maggie
Valley are opening a "Frontier Land"
on the Cherokee Indian Reservation
near the junction of the Great Smok-ies
Park and the Blue Ridge Park-way.
A new luxury resort, Hound
Ears Golf and Ski Club near Blowing
Rock in the Blue Ridge Mountains,
has been opened by the developers of
the unique Tweetsie Railroad.
Here, and at Blowing Rock Ski
Lodge and Cataloochee Ranch near
Waynesville, ski slopes give winter
travel a new look in Variety Vaca-tionland.
New attractions at Wright Brothers
National Memorial near Kitty Hawk
are the First Flight Airport with
3,000 foot runway adjoining the first
flight marker, and a replica of the
Wrights' 1903 "flyer" in the Memo-rial
Museum.
Situated almost exactly mid-way
on the Eastern Seaboard of the
U.S.A., North Carolina extends over
500 miles from the Atlantic Ocean to
the Great Smoky Mountains.
Statewide, North Carolina's climate
is temperate. Many features which
make spring through autumn the sea-son
of greatest popularity for the
mountains and seashore playgrounds
are enjoyed all year. Golf, horseback
riding, boating, and fishing are all-year
sports, and there is excellent
hunting in autumn and winter.
The Variety Vacationland has
the largest state-maintained road
system in the U.S.A., with over 70,000
miles of highways. Motoring is a de-light,
because there are many by-ways
through forests and quiet countryside
as well as heavily traveled arterial
highways. All roads are well marked,
and tourist services are abundant.
Air, rail and bus transportation is
excellent within the State, and be-tween
North Carolina and other re-gions
of the U.S.A. It is only a few
hours by air between North Carolina
and major ports of entry, and the
State is also easily accessible by rail,
bus or automobile.
North Carolina has four seasons
and three distinctive regions: moun-tains,
coast and piedmont. Each sea-son
has its special attractions, and
each region its own characteristics
reflecting influences of terrain and
history.
Recreation
Over 1,500,000 acres of North Car-olina
are in publicly owned lands
which have recreational use as their
primary purpose, or offer recreation
in conjunction with the conservation
22 ESC QUARTERLY
The mountains of North Carolina never lose their fascination for visitors and residents
alike, and one of the most colorful displays of nature is evident at the rhododendron
gardens atop Roan Mountain. Two of America's most visited national parks, the Blue
Ridge Parkway and the Great Smoky Mountains National Park, meet near Cherokee in
Western North Carolina. Famous Mount Mitchell, at 6,684 feet, is the highest mountain
east of the Mississippi River. Even during the winter the mountains are appealing.
of natural resources, wildlife or his-toric
sites. About 20 million people
visited parks and forests in North
Carolina during 1963.
America's two most-visited nation-al
parks, the Blue Ridge Parkway
and the Great Smoky Mountains Na-tional
Park, meet in the mountains
of Western North Carolina. They con-nect
near Cherokee, on the 50,000-acre
reservation where the eastern band
of the Cherokee Indians lives. State
parks are in localities from the sum-mit
of Mount Mitchell, highest (6,684
feet) peak east of the Mississippi
River, to Fort Macon on the Atlantic
Ocean.
Significant historic sites and restor-ations
may be visited in every section
of the State. Among them are Old
Salem, founded by the Moravian set-tlers
in 1766 and now within the
thriving industrial city of Winston-
Salem; Tryon Palace, colonial capi-tal
in the coastal city of New Bern
which was founded by Swiss settlers
in 1710; Fort Raleigh National His-toric
Site where the first English
settlements in America were attempt-ed
by Sir Walter Raleigh's expedi-tions
to Roanoke Island in 1585 and
1587; and Wright Brothers National
Memorial, where Wilbur and Orville
Wright made the first powered air-craft
flight near Kitty Hawk on
December 17, 1903. Wright Memorial
and Fort Raleigh are near the en-trance
to the Cape Hatteras National
Seashore, which embraces some 70
miles of oceanfront along the offshore
islands reaching out to Cape Hatter-as.
Three outdoor dramas in North
Carolina's coastal and mountain va-cationlands
relate fascinating chap-ters
of American history. They are
"The Lost Colony" at Manteo on
Roanoke Island; "Unto These Hills"
at Cherokee in the Great Smokies;
and "Horn In The West" at Boone
in the Daniel Boone country of the
Blue Ridge Mountains. The dramas
are presented from late June through
August in spacious amphitheatres.
Spring is featured by flower festi-vals.
A spectacular blooming season
begins in April with azaleas and dog-wood
along the coast and across the
piedmont, and culminates in the
blossoms of crimson rhododendron
atop mile-high mountains in June.
The peak travel season for mountain
and beach resorts begins in May and
continues through autumn. Autumn
is the season of brilliant foliage, with
vast forests of hardwoods turning the
mountains and the rolling piedmont
to crimson and gold in October. Win-ters
are mild in the central and
coastal areas of the State, and the
mid-south resorts of Pinehurst and
(Continued)
ESC QUARTERLY 23
What the tourist will see in North Carolina depends on his personal preference for there are attractions enough to suit any recreational
taste. The new Herbert C. Bonner bridge will carry a flow of travelers from North Carolina's mainland to the outer banks. A steeplechase
event (top right) attracts visitors to Clemmons, and Clingman's Dome in the Great Smoky Mountains National Park for many years has en-ticed
tourists to park at the overlook for an overwhelming view of the Great Smokies. Old number 55, the battleship North Carolina, is now
permanently enshrined at her moorings in Wilmington. The vessel was only recently obtained from the Navy and has already been host to
over one million coastal visitors. Chances are the three geographic regions in North Carolina will please even the most blase traveler.
Camping has enjoyed almost phenomenal growth in popularity. Campsites are available not only in our mountain region but along the
coast where more and more travelers choose to pitch their tents. The scene on the left was taken at Morrow Mountain State Park
near Albemarle. Tar Heel coastal fishing areas are famous. The world's record blue marlin, weighing 810 pounds, was caught off Hatteras
in 1962 and is displayed in a special building at Hatteras, home of the International Blue Marlin Tournament which begins in June.
24 ESC QUARTERLY
Southern Pines make the unique
Sandhills region "America's winter
golf capital." There is skiing at
mountain resorts between December
and March.
Three Regions
Western North Carolina is the land
of the Blue Ridge and Great Smoky
Mountains, plus a dozen other ranges
of the Southern Appalachians. It is
known as "The Land of the Sky,"
because there are more than 200
mountain peaks 5,000 feet high, or
taller. Asheville is the mountain me-tropolis
of a vast resort area also
noted for industry, hydro-electric
developments, and agriculture.
The piedmont plateau, extending
from the Blue Ridge foothills east-ward
through Raleigh, North Caro-lina's
capital city, is the industrial
heart of the State. Here are many of
the factories that make North Caro-lina
the largest manufacturer of tex-tiles,
tobacco and furniture in the
U.S.A. Charlotte, site of North Caro-lina's
International Trade Fair, is the
State's largest city. In addition to the
IV
J
larger cities like Charlotte, Greens-boro,
Winston-Salem, Durham, Ra-leigh
and High Point, the piedmont is
also an area of thriving towns, farms,
broad rivers and lakes, and great
centers of learning.
North Carolina's coastal plain is
basically agricultural—the world's
largest producer of flue-cured tobacco —and also has large industries manu-facturing
textiles, electrical compo-nents,
food and feedstuffs, bricks and
cement. Its climate is mild and alti-tude
low. Morehead City and Wil-mington
are North Carolina's ocean
No better golf courses anywhere than in
North Carolina, such as this one at the
Asheville Country Club. Grove Park Inn
in the background completes the setting.
Southern Ski Queen Betty Simpson pictured
at Blowing Rock Ski Lodge, one of
three recently developed ski areas which
bring a new winter sport to North Carolina.
ports. New Bern, was the first State
capital. The charming cities and towns
of eastern North Carolina, plus re-sorts
and historic sites, comprise
"Coastal Historyland" of a state rich
in historical interest.
Sports
Fishing, enjoyed year around in
most sections of the State, is prime
in spring as channel bass and other
salt water species are taken along the
coast, the trout season begins in the
In Old Salem, Winston-Salem, the Home
Moravian Church is one of the beautiful
buildings open to visitors all year around.
mountains, and inland lake fishing is
excellent. Offshore fishing along the
"Gamefish Junction" coast is at its
best from May into November, and
the International Blue Marlin Tour-nament
at Hatteras is a feature of
early June.
There is bear, boar, deer and small
game hunting in many different areas
of the State between October and late
winter, and the coastal areas are
noted for waterfowl hunting. Upland
game birds, on which there are open
seasons in autumn and winter, include
quail, ruffed grouse, woodcock and
wild turkey. Riding to hounds in tra-ditional
style is enjoyed from October
until March in the vicinity of South-ern
Pines, Charlotte, Raleigh, Tryon
and Greensboro.
Horseback riding is popular year
around, ranging from the challenge
of the show ring to quiet bridle paths
and trails. There are important win-ter
training centers for horses des-tined
for racing and show circuits.
Equestrian events include steeplechase
meetings in April and horse shows
and rodeos at every season.
ESC QUARTERLY 25
JLnnkeeping is one of the oldest
professions in the world. It is second
only to—and this is surprising
—
travel.
There is good reason to believe that
inns existed during the Heroic Age,
around 500 B. C. when the Greeks
began to roam the Mediterranean
and Middle East in search of culture.
The oldest known hotels were located
at Pompeii, but we do not know much
about their operation.
From the Orient comes our first
authentic information about hotels.
Egyptian and European travelers fol-lowed
the oriental trade routes at an
early date. These pioneer tourists
were first accommodated only with
plots of ground near a spring. Next,
these plots were enclosed by walls for
the travelers' safety. Finally, the
walls were roofed over.
When roofs appeared, charges for
a night's lodging were made for the
first time. Then these early resting
places began serving food and
beverages and they took shape as inns,
in which we can see the authentic
forerunners of today's hotels and
motels.
First on Record
The first inn on record which we
can identify by name was the Great
h...i;f
St. Bernard, located in the Alps for
the convenience of weary travelers
on their way to Rome. Though estab-lished
as long ago as the year 982
A.D., this hostelry had a definite re-semblance
to our modern hotels and
motels. It was a massive stone struc-ture
which could offer shelter to 300
persons and beds to 70 or 80. And
the Great St. Bernard chalked up
another innovation : It was the first
lodging place to offer special services
to travelers. One service has survived
until this day. You have all heard of
the famous St. Bernard dogs kept
by the monks to track down travelers
lost in the Alpine snows. This was a
service of this ancient Swiss hostelry.
Undoubtedly, the first inn built in
the original American colonies was
the Jamestown Inn in Virginia, es-tablished
in 1607. The story of our
early inns runs parallel with the de-velopment
of our nation. William
Penn used the facilities of the Blue
Anchor Inn while working on the
plans for the city of Philadelphia. The
Boston Tea Party was hatched at the
Hancock Tavern in Boston.
The early inns were primitive af-fairs
according to our modern stand-ards,
but perhaps they were cozier.
Beds could have as many as five oc-cupants,
but they were not permitted
to wear boots under the covers!
"Inn keeping has grown into a
mighty institution, a city within
a city, with a multiplicity of
services, a city that never sleeps."
BY NEVA G. WRIGHT
Executive Secretary, N. C. Hotel and Motel Association
The history of this great American
enterprise is a fascinating one and
there is something special about inn-keeping.
Hotels and motels are the
"hub of the community," the as-sembly
place for the myriad events
that have nothing to do with city hall,
nor with the courthouse, nor the
municipal park.
Innkeeping a Common Interest
We are drawn to the hotel or motel
for new experiences in food, drink
and shelter, for meetings grave and
gay, for entertainment of all kinds,
for civic affairs, for state affairs, for
patriotic affairs. We go to hotels and
motels to attend weddings, banquets
and balls, to visit smart shops, to at-tend
club meetings and conventions
or simply to meet people.
Innkeeping holds a common interest
as strong for citizens and businessmen
as for the innkeeper himself and,
moreover, the hotel-motel dollar stays
in town.
A recent survey of convention
business revealed that businessmen
receive directly more than half of
every dollar spent by convention visi-tors.
The hotel or motel actually gets
under 40 percent. An exact account-ing
would show 39 cents, and most of
that stays right in town in the form
of wages, salaries, food, beverages,
administrative expenses, laundry,
maintenance, taxes, heat, light and
power.
The U. S. Chamber of Commerce
has said, "If a community develops
its tourism potential to where it at-tracts
a couple of dozen tourists a
day throughout the year, that is eco-nomically
comparable to acquiring a
new manufacturing industry with a
payroll of $100,000 a year."
The public may think of hotels and
motels as blown-up lodging houses, but
collectively our hostelry offers a tre-mendous
dining facility. Motels and
hotels now serve over one million per-sons
at a time, and the turnover can
hardly be estimated. Providing this as-tronomical
number of meals includes
service of 320 million food items, 115
beverage items, 20 million items of
china and glassware, six million menus
and wine lists, 4% million pieces of
silverware, 51 million pieces of laun-dry
and 22 million new linens.
More important than the dollars
spent to provide these services are
the innumerable job opportunities
provided, not only for the skilled but
also for the elderly, marginal and
handicapped workers.
Innkeeping has grown into a
mighty institution, a city within a
city, with a multiplicity of services.
It is a city that never sleeps, for
from the day a hotel or motel opens
its doors it is on duty 24 hours a
day!
26 ESC QUARTERLY
Home Bodies And Travelers, All Enjoy "Eating Out"
BY HAROLD C. GANT, JR.
Executive Secretary, N. C. Restaurant Association
Seventy-eight per cent of the popu-lation
enjoys eating out. Even more
enjoy it as a family event. A good
half of the people say they would like
to eat out more often than they do . . .
women even more than men . . .
young people even more than older
ones . . . high-income people even
more than those with low incomes.
Dining out is already a habit with
most people. Almost half of them eat
out at least once a week. As a group
they average over three meals away
from home each week. Eating away
from home is more of a family affair
than might be expected, because
nearly one-third of the last meals
eaten away from home were by hus-band
and wife together. The highest
percentage, almost 65 per cent, were
evening meals.
Children also contribute greatly to
the dining out market. Nearly 80 per-cent
of all children enjoy it, and over
50 percent of them ask to be taken
out. And most significant of all, one-third
of the families took their chil-dren
the last time they requested it.
Over 40 percent of the meals eaten
out were from choice. People went out
to eat solely because they preferred
to do so. Another 25 percent dined
out as an adjunct to travel or local
excursions. Less than 35 percent dined
out because they had to in connection
with their work or being away from
home for shopping.
The reasons expressed for dining
out by choice are predominantly be-cause
it is a welcome change. Also,
both men and women agree it is a fine
way to celebrate occasions and to en-tertain
friends. In spite of these en-couraging
attitudes and habits, there
are a few deterrents which cause
peop