Tourism and Its History in North Carolina

Whether taking a drive around the Dan River Region, riding along parts of Caswell County or making a road trip to the mountains or the coast, playing the role as a visitor or tourist is commonplace to most all Americans.

Tourism as we know it had its beginnings in the nation as early as the 1600s. By the 1700s George Washington was noted in Virginia to ‘taking the waters’ to cure an ailment according to researcher Thomas Weiss. These early ‘spa trips’ were noted by Weiss as a ‘fashionable indulgence”.

Given the harsh existence most of our forefathers experienced in the nation, and the values of the early settlers, most families were merely working to survive and being a tourist was likely the farthest thing from most of the early settlers’ minds, especially those not living in cities. In the early nineteenth century, a few areas like Niagara Falls became famous destinations for tourism.

In North Carolina, the various regions including the Coastal area, central Piedmont and Mountain areas were ideal for supporting travelers interested in seeing the state, experiencing grand scenery and relaxing getaways. According to NCpedia, the statewide tourism and travel focus began to form in the 1880’s. With the opportunity to access the region by railroad, it was easier for people to get form the mountains to the beach areas and it also positioned the state for visitors and investors coming from the north and south of the nation to enjoy the beauty of North Carolina. Large resorts began to be built to accommodate the visitors, most of whom were the wealthy.

It was in 1933 that Governor O. Max Gardner recognized the importance that tourism could have to the state and began a Bureau of State Advertising to promote the state for tourists. In the 1930’s the Great Smokey Mountains National Park, Blue Ridge Parkway and Cape Hatteras National Seashore along with some national forests in the state were all formed and became the foundation of the tourism industry in NC. By the 1950’s tourism was a primary contributor to the state’s overall economy. Much of this growth happened because of the New Deal that had many programs focused on overcoming the Great Depression

After World War II and the advent of the middle class and car ownership becoming the norm, the wealthy were no longer dominating the tourism scene in NC. The ski industry, amusement parks and visiting state historical sites began to be more mainstream as both public and private tourist attractions became more prevalent along with motor lodges, motel chains and less extravagant resorts.

In the 1980’s the state further assisted with overall tourism development. According to Magellan Strategy Group, “For more than three decades, beginning in 1983, local occupancy taxes enacted via legislation passed by the North Carolina General Assembly have been a popular and effective means of growing the visitor economy in Tar Heel State communities.” Magellan Strategy Groups goes on to say, “The concept of the occupancy tax is relatively straightforward: guests pay a small additional amount as a percentage of their accommodations rate, and that tax is then remitted by the business owner to local government on a monthly basis. The revenue generated is usually administered at the local level in North Carolina by a state-created Tourism Development Authority (TDA) consisting of appointed individuals who are typically stakeholders in the local tourism economy and/or elected officials.

All local occupancy taxes in North Carolina must be enacted by the General Assembly, and every community is governed by its own distinct legislation (although these laws are often quite similar to one another). Unlike sales tax, no occupancy tax revenue is directed to the state government in North Carolina— 100% remains at the local level. Occupancy taxes are typically applied to any property that also pays sales tax, including hotels, bed and breakfasts, cabins, condominiums, and rental homes for short-term stays (including Airbnb and Vrbo in North Carolina). The tax is usually not applied to religious conference centers, colleges, campgrounds, youth camps, and RV parks.”

In Caswell County, the Tourism Development Authority (CCTDA) is a public authority governed by the terms of special legislation granted by the NC General Assembly that authorized Caswell County to levy a room occupancy tax. Occupancy taxes are paid by visitors that stay overnight in the county at a hotel, Airbnb, Vrbo or other short-term rentals; no local residents are taxed for TDA operations. The funds are to be used by the CCTDA to market the county to visitors and tourists. The organization’s mission is to further the development of travel and tourism in the county through advertising and promotion.

For details contact, Hello@VisitCaswell.com. Information referenced from NCPEDIA, Richard D. Starnes, The Official Travel & Tourism Website for North Carolina VisitNC.com and NCCommerce.com/tourism/research.

Submitted by Amanda Hodges, as published in Caswell Then & Now Magazine, Summer 2024