High fuel prices, declining dollar could affect Michigan tourism
By KURT HAUGLIE, DMG Writer
POSTED: May 6, 2008
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The report from two Michigan State University assistant professors of community, agriculture, recreation and resource studies states that tourism in Michigan last year was flat compared to 2006, and they expect spending to be flat this year, also, due to increased costs, particularly for fuel and food, and the decline in value of the American dollar.
However, Tom Nemacheck, executive director of the Upper Peninsula Travel and Recreation Association in Iron Mountain, said tourism was actually up last year compared to 2006.
“We were up 6 percent last summer and fall,” Nemacheck said.
He expects tourism in the U.P. this year to be at least as good as last year, but the cost of gasoline is an issue that he’s aware of.
“We certainly are very concerned about the dramatic increase in fuel (costs),” he said.
About 10 years ago, Nemacheck said UPTRA began encouraging out-of-state travelers to come to the U.P., and the effort seems to be producing results.
“We started to see a lot of that the last few years,” he said.
There is a financial advantage to traveling in the U.P., Nemacheck said, because what people come to see, which are mostly natural features, either have no cost or are low cost.
Most of the out-of-state travelers who come to the U.P. come from Illinois, Minnesota and Wisconsin, Nemacheck said.
“I think many people that might have said, ‘Let’s go to Colorado,’ will say instead, ‘Let’s go to the U.P.,’” he said.
Nemacheck said UPTRA has also started seeking international travelers to visit the U.P., in particular those who prefer to travel in motor coaches.
The reason those travelers may come to the United States and Michigan is because they can get a good exchange rate for their currency right now because of the decline in value of the dollar.
However, Nemacheck said although international travelers may come to the U.P. in greater numbers this summer, there may not be enough of them.
“It will be an increase, but it won’t make up for the loss of travelers from downstate,” he said.
Tracey Barrett, executive director of the Baraga County Convention and Visitors Bureau in L’Anse, said she expects tourism in Baraga County to be about the same as it was last summer.
However, the county has experienced a general decline in tourism recently, particularly during winter.
“It has been declining in the last three or four years,” she said.
Barrett said one of the ways she knows that tourism is declining in Baraga County is because of a drop in revenues from the county 2 percent hotel and motel room tax.
Usually she sets her budgets expecting $35,000 from the room tax, but recently only $30,000 has been coming to the convention and visitors bureau. Because of that she has cut back on advertising.
She’s been receiving fewer telephone calls from travelers seeking information about the county, also, Barrett said, but that could be a result of more people getting that information from the Internet.
However, Barrett said out-of-state travelers are still coming to Baraga County, particularly visitors from Illinois, Minnesota and Wisconsin. Two weeks ago she talked to a family from California who decided to come to Baraga County simply because of its proximity to water.
Bill Leonard, president of the Keweenaw Convention and Visitors Bureau in Calumet Township, said most of the travelers coming to Houghton and Keweenaw counties are coming from Illinois, Minnesota and Wisconsin.
The fact that tourism is expected to be in decline this summer for the state as a whole, Leonard said he expects the situation to be better locally.
“Of course we’re not excited about hearing that tourism is going to be down in the state,” he said. “We’re thinking we’re not going to be affected as much as the rest of the state.” Occupancy at hotels and motels in Houghton and Keweenaw counties during the tourism season is usually about 50 percent out-of-state travelers, Leonard said.
“With the bad economy in Michigan, we’re not getting as many Michigan tourists,” he said.
Leonard said he appreciates the effort by UPTRA to encourage international travelers to come to the U.P.
“We’re hoping more international travelers will discover us,” he said.
Nemacheck said he has some concerns about the way the MSU researchers gathered some of their facts, and he doesn’t expect their predictions of a decline in tourism statewide to come true.
“I think they’re wrong,” he said. “If we have good weather, I would expect we’d do better than predicted.”
Kurt Hauglie can be reached at khauglie@mininggazette.com
