Canadians still visiting, buying homes on Hilton Head Island, despite weak Canadian dollar

Hilton Head Island's top source of international tourists is expected to remain steady, despite an unfavorable currency conversion.

The Canadian dollar is weak, with one Canadian dollar equaling about $0.74 in U.S. dollars. Visits to the United States by Canadians are forecast to be down by 8 percent this year and another 1 percent next year, according to a report by The Associated Press.

But local marketing and real-estate experts don't anticipate a significant drop in Canadian tourists or homebuyers.

"We're seeing a very nice increase in the number of Canadians buying here," said Rick Turner, president at Engel & Volkers on Hilton Head.

About 21.1 million Canadians are expected to come to the U.S. this year, almost 30 percent of the U.S.'s international visitors.

In 2014, about 4.7 percent of Hilton Head's visitors came from Canada, according to research by Clemson University and the University of South Carolina Beaufort.

Charlie Clark, vice president of communications at the Hilton Head-Bluffton Chamber of Commerce, said Canada is Hilton Head's No. 1 non-U.S. market, followed by the United Kingdom and Germany.

The approximate economic impact last year from Canadians visiting Hilton Head was $42.1 million.

Clark said to attract non-U.S. visitors, the chamber partners with the S.C. Department of Parks, Recreation and Tourism as well as Brand USA, a Washington, D.C.-based public-private partnership.

That "helps our buying power tremendously and helps us maximize the dollars we spend," Clark said.

So far in 2015, the chamber has spent about $32,000 on digital and print advertising designed to reach Canadian travelers via outlets such as Expedia, the Toronto Star, DiscoverAmerica.ca and Chatelaine.

In addition to the chamber's main website, a Canadian microsite has been set up to directly target potential visitors. So far this year, that site has seen a 39 percent increase in visits from the previous year, Clark said.

International travelers are an especially important draw for U.S. tourism hotspots.

"Canadians, as well as other non-U.S. visitors, tend to stay longer and spend more, which is why destinations compete heavily for these visitors," Clark said.

STILL A GOOD DEAL

South Carolina is increasingly becoming a hotter destination spot for snowbirds.

Laurie Laykish, who works in marketing in Toronto and Hilton Head, says more Canadian tourists are interested in Hilton Head and the state overall.

"Historically, it's been Florida, but people are tired of it," Laykish said.

And although Hilton Head is still at least an 18-hour drive from eastern Canada, where a lot of Canadians traveling to South Carolina come from, it's still several hours shorter than driving to Florida. Laykish added that marketing in Canada and word-of-mouth have increased interest in Hilton Head.

The weak Canadian dollar, also called a loonie, could have some impact locally.

"The Canadian dollar is bad right now," Laykish said. "I worry it will deter Canadians from coming down."

But, she added, visiting the island is economical for Canadians who are financially able to travel to the United States for vacation.

"Even with the exchange, it's affordable," she said. "The price of goods is relatively low."

Turner echoed that sentiment, saying he didn't feel the weak Canadian dollar would cause a significant downturn in homebuying on Hilton Head.

"There is such a strong desire to get to a warmer climate," he said.

Turner likened it to the increase in gas prices a few years back.

"Despite the hike in gas prices, people were still going to Grandma's for Christmas," he said. "At first, it's sticker shock, but people get used to it. It becomes the new reality."

Canadians who are set on getting to a warm climate readjust their finances to make the move, he said.

Additionally, Hilton Head typically attracts higher-income buyers.

"Our clientele is not as affected by decreases in currency," Turner said.

The same goes for tourists traveling from Canada to Hilton Head.

"I think people in the bracket Hilton Head attracts are still vacationing," Laykish said.

Locally, homebuying is at an all-time high. According to Hilton Head Area MLS records, 2,714 homes have been purchased in the area in 2015 to date. Previously, that record was 2,521 homes, in 2013.

Turner says the end of the recession, the increase in baby boomers retiring and a higher number of people working from home are three primary factors contributing to the surge in local homebuying.

"Many people can live anywhere they want because of the Internet," he said, something that particularly applies to Canadians seeking to work remotely in a warm climate.

Charter One Realty agent Andy Twisdale said he has noticed an uptick in the number of Canadians purchasing homes on Hilton Head, especially in the past four or five years.

Laykish said Canadians are often surprised by how far their money can go to visit the island or to buy or rent a home locally.

"Many Canadians buy second homes here," Laykish said. "What you get for $1 million on Hilton Head would cost $2 million to $3 million in Toronto.

"Once Canadians come, they realize it's a great value," Laykish said. "Everything is a deal."

Follow reporter Ashley Fahey on Twitter at twitter.com/IPBG_Ashley.

Related content:

• Where have all the Canadian tourists gone? December 3, 2015
• Record tourism year brings millions of visitors, dollars to county, September 6, 2015

This story was originally published December 7, 2015 at 5:42 PM with the headline "Canadians still visiting, buying homes on Hilton Head Island, despite weak Canadian dollar."