Savannah Chamber

23 The Mason Mega Rail was in service throughout 2023, providing the greatest on-dock rail capacity in the western hemisphere. To further increase the reach of GPA services, $127 million was allocated to build the Blue Ridge Connector which will extend port services to rural manufacturing and supply chain operations in northeast Georgia. The terminal will be located in Gainesville, GA and connect to the Mason Mega Rail. It is expected to be completed by 2026. The Port of Brunswick handled a 17.7% increase in roll-on/roll-off cargo volumes in FY 2023. The Port of Brunswick has been undergoing a $262 million expansion project to meet increased supply chain demands and place it in a position to become the top auto and machinery port in the U.S. These upgrades include 640,000 square feet of auto and machinery processing across five different buildings. Three of these buildings, totaling 290,000 square feet and 122 acres, are currently under construction on the south side of the island. On the north side, a 350,000-square-foot warehouse was recently completed to serve auto and machinery processing. Federal approval was recently announced for a fourth roll on/roll off berth on Colonel's Island, and a new railyard is set to enter the construction phase in 2024. In November 2023, the GPA launched a short sea service linking Mexico to the Port of Brunswick, which targets automotive manufacturers and further increases cargo volumes experienced by the port. Finally, the GPA announced an eight-year, $6 million housing initiative to improve the quality of life for those living in near-port communities. The initiative will include repair, construction, assistance with first-time home purchases for those with low to moderate income. Tourism The leisure and hospitality sector, which includes accommodations, food services, arts, entertainment, and recreation, has historically been one of the fastest growing (about 3.5% annually) sectors since the post-recession employment low in 2010. The sector provides employment for nearly 29,000 workers, making it the second largest employment sector in the regional economy. By late 2023, employment in the leisure and hospitality sector completed its remarkable recovery to jump 6.5% above its pre- pandemic level. After losing nearly 50% of its employment base in 2020, the next three years saw remarkable recovery. Savannah's visitor-serving hospitality sector is poised to benefit as the probability of recession in the state and nation diminishes in 2024. The sector's forecast is encouraging for 2024 and the longer term as new product is added at both the western and eastern end of the Savannah riverfront district. The $500 million Plant Riverside District project is complete and "River Street East," a $350 million development, will add three hotels with 480 rooms and a seven-story parking garage. These additions are scheduled to open between 2024 and 2026. Plans for new hotel developments have also been in the works during 2023. The "Savannah Skyscraper," a 15-story building in Johnson Square, was approved in October 2023 to be converted into a Ritz Carlton by TMGOC Ventures. It will have 100 rooms and begin construction in May 2024. Plans also include renovation of a 10-story building at 14 E. Bryan St, adding three floors, a public restaurant and bar, and a rooftop pool and lounge. Additionally, the Manger Building is being converted to a 230-room, 5- star hotel by Left Lane Hospitality. The first phase of work is expected to commerce in early 2024 while opening is scheduled for 2026. Left Lane also acquired the Mansion on Forsyth and work continues in 2024 to renovate and expand with 23 new pool-side suites along with a re-imaged restaurant. Additional new and renovated tourism product will be financed during the next five years by an increase in Savannah's hotel/motel tax by two percentage points to 8%. Of the new revenue raised by the tax, 14.7% will finance projected investment of $85.5 million through 2028, including $6.6 million of expenditures in 2024. Of the total, $30 million is scheduled for redevelopment of the Savannah Waterfront, $37 million for the Waterworks building near Enmarket Arena and westside connectivity, and $10 million for the Tide-to-Town trail system. Health Services The regional health care sector continues to be a stalwart of economic consistency and growth since 2007. This sector is resistant to cyclical downturns and experienced fewer job losses during both the pandemic recession and the Great Recession (2007-09). As of the second quarter of 2023, the sector bounced back to exceed its pre-pandemic employment level by 7.8%. Health services employment grew 2.5% to approximately 27,300 workers in the seven-county combined statistical area centered on Savannah. As a regional healthcare delivery center, the health sector continues to be a vital component of the area's economy and growth prospects are good in the short and long run.

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