Savannah Chamber

2018 Savannah Economic Trends

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26 This comes on modest growth reported from 2015 to 2016 in total visitors (13.7 million visitors, +1.5%). Gains in visitor spending in Savannah grew more healthily to $2.8 billion (+5%) in 2016. Overnight visitor stays increased by 1.3% reaching 7.9 million in 2016. Special interest tourism activities such as visiting historic places, seeing cultural attractions, and enjoying exceptional culinary experiences are in high demand among Savannah's leisure tourists compared to national averages. After shopping as the most popular visitor activity, fine dining rated ahead of visiting historic sites, representing a switch in position for dining and site visitation from previous years. Further growth in exceptional culinary experiences should continue to support interest in Savannah as a "foodie" destination in 2018. Overall growth in the industry is expected to beat the numbers set for 2017 by several percentage points. The leisure and hospitality sector, which includes accommodations, food services, arts, entertainment, and recreation, has been one of the fastest growing (about 5% annually) sectors since January 2010. It currently is the largest economic sector of the regional employment base, providing work for nearly 28,000 people, having added over 1,000 workers during 2017. Health Services The regional health care sector continues to be a stalwart of economic consistency and growth since 2007. In fact, this sector experienced only a mild job loss of 300 jobs during the Great Recession while the rest of the regional economy shed 12,000 workers. Since 2007, growth in health services has matched the 21% overall regional growth rate, and health services now employs 22,800 workers. 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. The two nationally recognized medical centers in Savannah, St. Joseph's/Candler and Memorial University Medical Center serve the healthcare needs of people from across southeastern Georgia. St. Joseph's/Candler health care system is expanding its portfolio of medical facilities in the region. It completed a $21.6 million renovation and expansion (+30,000 square feet) of the Southside campus in 2017. Construction of Phase I of the $62 million campus in Pooler will continue through 2018 and opening is expected in 2019. Additionally, a four-acre campus of medical facilities is planned for Bluffton, SC. The $22 million project will be constructed over six years starting in 2019. The project will consolidate services currently provided in various locations and create space for the expansion of healthcare service offerings. Final closing of the sale of Memorial University Medical Center to Hospital Corporation of America (HCA) is expected in early 2018. The agreement is valued at approximately $710 million and includes $433 million to purchase the assets of Memorial and assume its debt. An additional $280 million is included to fund ten years of capital improvements. HCA is a for-profit institution, the first to offer hospital services of this magnitude in Savannah. Memorial is the largest provider of healthcare in the southeast region of Georgia with 4,450 employees including 635 physicians and a 612-bed academic hospital. Military Fort Stewart is not only the largest military installation east of the Mississippi River covering 280,000 acres but, combined with Hunter Army Airfield, is one of the largest employers in Coastal Georgia. In 2016, there were about 26,000 military personnel and civilian defense workers at both facilities. Fort Stewart and Hunter AAF continue to play an important role in the regional economy. Total payroll for both bases is estimated at well over one billion dollars and with an annual financial impact of five billion dollars. The U.S. Army's Third Infantry Division, based at Fort Stewart, celebrated its 100-year anniversary in 2017. As part of the celebration, the Third Infantry Division Museum opened in late November to chronicle the storied history of this fighting force. Important operational changes were implemented in 2017 as elements of the division's second brigade, previously light infantry, were re-flagged as armored units in October 2017. The transition will add 87 M1 Abrams tanks, 138 Bradley fighting vehicles, and 18 self-propelled howitzers to the unit. Training exercises as an

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