Virginia Beach Economic Development
Virginia Beach’s economic development has been shaped by its strategic coastal location, military presence, and evolving tourism industry, transitioning from a small agricultural and fishing community to a diversified urban center. The city actively pursues strategies to attract new businesses, support existing industries, and foster a skilled workforce. This development has not been without challenges, including balancing economic growth with environmental preservation and adapting to changing market conditions.
History
The earliest economic activities in the Virginia Beach area revolved around agriculture and fishing. Indigenous populations relied on the Chesapeake Bay and its tributaries for sustenance, and early European settlers continued these practices. The establishment of the Cavalier Hotel in 1927 marked a turning point, initiating the development of Virginia Beach as a resort destination. This initial investment in tourism infrastructure laid the groundwork for future economic expansion [1].
Following World War II, the military’s presence significantly impacted the local economy. The establishment of Naval Air Station Oceana and other military installations brought a substantial influx of personnel and investment. This created demand for housing, goods, and services, stimulating growth in related sectors. The late 20th and early 21st centuries saw diversification efforts aimed at reducing reliance on tourism and the military, with a focus on attracting technology, manufacturing, and professional services companies. The City of Virginia Beach has consistently worked to improve infrastructure and create a business-friendly environment to support this diversification [2].
Economy
Tourism remains a cornerstone of the Virginia Beach economy. Millions of visitors annually contribute significantly to revenue generated by hotels, restaurants, retail establishments, and entertainment venues. The city actively promotes its beaches, boardwalk, and special events to attract tourists throughout the year. However, recognizing the seasonal nature of tourism, Virginia Beach has actively pursued economic diversification.
The military sector continues to be a major economic driver. Naval Air Station Oceana, Joint Expeditionary Base Little Creek-Fort Story, and other installations provide numerous jobs and contribute significantly to the local economy. Defense-related industries and supporting businesses also benefit from the military presence. Beyond tourism and the military, Virginia Beach has focused on developing sectors such as advanced manufacturing, technology, and healthcare. The city offers incentives and support programs to attract businesses in these areas and foster innovation. The Virginia Beach Development Authority plays a key role in attracting and retaining businesses [3].
Attractions
Virginia Beach offers a diverse range of attractions that contribute to its economic vitality. The iconic Virginia Beach Boardwalk, stretching three miles along the Atlantic Ocean, is a major draw for tourists, offering shops, restaurants, and entertainment. First Landing State Park preserves the site of the 1607 landing of English colonists and provides opportunities for hiking, camping, and water activities.
Beyond the beach and parks, Virginia Beach boasts cultural attractions such as the Virginia Museum of Contemporary Art (MOCA) and the Sandler Center for the Performing Arts. These venues host exhibitions, concerts, and other events that attract visitors and enhance the city’s cultural appeal. The city also promotes outdoor adventure activities, including surfing, kayaking, and fishing, capitalizing on its coastal location. These attractions collectively contribute to the tourism industry and support local businesses [4].
Getting There
Virginia Beach’s accessibility is a key factor in its economic development. Norfolk International Airport (ORF), located a short distance from Virginia Beach, provides air service to numerous domestic destinations. Interstate 64 connects Virginia Beach to the inland regions of Virginia and beyond, facilitating transportation of goods and people.
The Port of Virginia, one of the busiest ports on the East Coast, is also readily accessible, supporting international trade and commerce. Within the city, a network of roads and public transportation options provides connectivity for residents and visitors. The city continually invests in transportation infrastructure to improve accessibility and accommodate future growth. These transportation links are essential for supporting tourism, facilitating business operations, and attracting investment [5].
Neighborhoods
The diverse neighborhoods of Virginia Beach contribute to the city’s economic character. The Oceanfront area, centered around the boardwalk, is a hub for tourism and hospitality businesses. The resort area supports a concentration of hotels, restaurants, and entertainment venues. The Sandbridge neighborhood, a quieter coastal community, offers a different type of tourism experience focused on beach access and natural beauty.
The Kempsville area, located inland, is a more established residential and commercial district. It features a mix of retail, office, and industrial businesses. The Green Run area, another inland neighborhood, is characterized by its residential communities and commercial corridors. These distinct neighborhoods each contribute to the overall economic vitality of Virginia Beach, offering a range of business opportunities and residential options. The city’s economic development strategies often target specific neighborhoods to address unique needs and promote growth [6].