Myrtle Beach Economy Continues Evolving

Golf course closings have become a part of the current economic fabric of Myrtle Beach, and many are saying they don't anticipate it to change in the near future. As land values continue to remain in the stratosphere, the need and interest for single-family homes appears to still have plenty of room for growth.

Director of the Coastal Federal Center for Economic Development Gary M. Loftus said that, at the moment, the Myrtle Beach area is still ripe for housing developments. "Where the bubble may burst eventually is with the single-family they are building and those could also slow down from Hurricane Katrina, which may make it harder to get materials," Loftus said. "But it's all a function of the dirt. The single-family homes will continue and be upscale because the dirt's so expensive."

Belle Terre Golf Course and Ocean Isle Beach Club both recently closed in preparation for their conversion to housing developments. Several other Grand Strand courses have also fallen victim to the current economic tide. Burning Ridge West closed nine holes in January for a housing component, Robbers Roost closed in 2003 and Marsh Harbour closed in 2002. Raccoon Run is scheduled to close this month, to be replaced with housing, as is Calabash Golf Links and Angels Trace Golf Links may not be far behind.

While there appears to be no immediate end in sight for housing development, it also appears that "condotels" – condominiums that are used as hotels, have yet to hit their peak." What we're seeing now is companies are accumulating areas to use as condotels, for lack of a better name," Loftus said. "These condos are privately owned but bought by an agency and the owner can only stay there for a certain amount of time, and then they're rented out."

While some have noted the loss of "Mom & Pop" lodgings due to the mammoth condotels, Rich Willis, the golf sales manager for Myrtle Beach Tourism said that travelers are becoming knowledgeable about the condos. "Most people are pretty up to date and a lot of people are moving towards that," Willis said. "Especially golfers, because they don't care if they are right on the beach."

Willis said that large condotels such as Myrtlewood Villas, which has 300 rooms that span from one to three bedrooms, are starting to push hotel owners to lower their rates. "We do a lot of business with Myrtlewood Villas," Willis said. "During the summer, they're cheaper than an oceanfront hotel, and a lot bigger."

The condotels of Myrtle Beach have also jumped into the golf-packaging game, with Myrtlewood Villas offering stay-and-play deals at courses such as Glen Dornoch, Man O' War and Palmettos.

While the economic direction of Myrtle Beach is evolving, Loftus said he could not imagine a scenario where housing began to cannibalize from the tourist dollars that pour into the Grand Strand and its still more than 100 golf courses. "For us, the question is, how far will the bubble go with housing?" Loftus asked. "We're getting residents of Florida, I guess they're tired of it down there. Of course, we just had Hurricane Ophelia here, but she just checked the room rates and moved along."

This story originally appeared in the WorldGolf Wire.