Guest Column: Credit Card Rewards Bring Tourists, Revenue To South Carolina

Getting your Trinity Audio player ready...

by WILL GALLOWAY

***

Whether it be the mountains, beaches, college football games, concerts, or festivals, South Carolina attracts tourists from across the country and the world, making tourism a major player in the state’s economy. According to the South Carolina Department of Parks, Recreation, and Tourism, tourism is a $29 billion industry in the state, supports one in every 10 jobs, and generates $1.8 billion in state and local taxes.

A healthy tourism industry depends on a healthy economy.

Recent research from the airline industry found that more than 172,000 travelers have used airline credit card rewards to travel to our state. This doesn’t even count those who may be driving and using hotel credit card rewards to get a night or two for free at a hotel. Plus, travelers often use cashback rewards to help their overall budgets.

It’s clear that credit card rewards help many Americans afford travel. Research has also found that airline credit card rewards programs support more than 2,000 jobs in South Carolina alone.

These travelers who rely on rewards points to travel here support local jobs and our economy, bringing in an economic impact of over $260 million.

According to the U.S. Travel Association, 84% of credit cards offer rewards programs. In addition, 15 million air trips are booked annually with credit card rewards, and over 30 million U.S. households have airline rewards credit cards.

What if these reward programs were gone in the blink of an eye?

***

The Association found that only a 10% decrease in booked travel via credit card rewards programs would lead to 1.5 million fewer trips annually and $4.3 billion in lost economic activity for local travel businesses.

States like South Carolina that rely heavily on their travel and tourism industry would hurt tremendously.

Unfortunately, this could be a reality as Senator Dick Durbin (D-IL) plans to reintroduce the Credit Card Competition Act in the new Congress, which would significantly deplete credit card rewards programs.

Credit card rewards are funded by interchange – the fee merchants pay when you purchase something with a credit card. The Credit Card Competition Act would allow corporate mega-stores, like Target and Walmart, to select interchange fees rather than the banks.

As a result, this would add billions to mega-stores profit while stripping banks and credit unions – including South Carolina credit unions – of funding for credit card reward programs, access to credit, and cybersecurity.

Last year, the directors of the six major airports in the state sent a joint letter to Senators Lindsey Graham and Tim Scott urging them to vote against the Credit Card Competition Act of 2023 due to the risk it would pose to funding for credit card rewards programs that many travelers and frequent flyers rely heavily on.

“Regardless of what brings people (to South Carolina), what remains the same is that tourists open their wallets to airlines to travel here, hotels to stay, restaurants to eat, and beaches to swim,” according to the letter.

Local banks and credit unions also joined the travel and tourism industry in raising a flag on the risks legislation like the Credit Card Competition Act would pose to financial institutions, consumers, and the economy. I hope Senators Lindsey Graham and Tim Scott will take into consideration the economic impacts legislation like the Credit Card Competition Act will have on our state’s economy, specifically the travel and tourism industry.

***

ABOUT THE AUTHOR…

Will Galloway is a graduate of Clemson University and currently serves on the Kershaw County Soil and Water Commission. He is also a former chairman of the South Carolina College Republicans and has extensive grassroots and campaign experience in South Carolina and across the country.

***

WANNA SOUND OFF?

Got something you’d like to say in response to one of our articles? Or an issue you’d like to address proactively? We have an open microphone policy! Submit your letter to the editor (or guest column) via email HERE. Got a tip for a story? CLICK HERE. Got a technical question or a glitch to report? CLICK HERE.