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Is tourism beneficial or hurtful?

Keweenaw officials weigh in

Provided photo The Eagle Harbor Art Show is shown in this provided photo. The annual even, now in its 64th year, is a popular event for tourists and locals alike.

KEWEENAW COUNTY — At the July 15th Keweenaw Heartlands update, in Eagle Harbor, Keweenaw County resident and first responder Bryce Holden suggested the Department of Natural Resources and The Nature Conservancy seek ways to address safety and first responder resources in the county as the Heartlands Project will mean potential increases in tourism. Holden said emergency responders are already stretched thin and emphasized that emergency serves are primarily volunteers. he brought up a concern that has been expressed in Keweenaw County for a number of years.

In April, 2022, Keweenaw County Sheriff Curt Pennala began efforts to organize the Keweenaw County Search and Rescue in response to increasing emergency response calls to the Sheriff’s Office. Pennala said because of the attraction and the topographical features of the Keweenaw, it draws a lot of outdoor enthusiasts. In the last few years, during the COVID outbreak, and even prior to that, he added, the number of enthusiasts has been dramatically increasing every year.

As a result of Pennala’s efforts, in May, 2022, Keweenaw County was awarded $82,172 to support first responders from the $5 million First Responder Training and Grant Program. The grant program supports efforts of local government to expand recruitment, improve training and provide additional professional development and support to first responders in local governments.

At the time, Keweenaw County Undersheriff Tanya Matilla said the grant, to some degree, will benefit search and rescue currently organized by the sheriff’s office, though it will benefit the department more. Mattila said the sheriff’s office holds a medical first responders license for the county, so a portion of the grant money was earmarked for training the department’s officers, while another portion was set aside for recruiting and funding an additional deputy. As tourism continues to increase in the Western U.P. more studies continueon its overall impact.

In Dec. 2023, Paul Putnam, Michigan State University (MSU) Extension District 1 Director, covering the central and western counties in the U.P., presented a report to the Keweenaw County Board and outlined issues in the county stemming from tourism pressure. Among the partners Cronin has has been working with is Eagle Harbor Township.

“I think, as we all know,” Cronin said, at the time, “when the pandemic happened, lots of people came to the U.P. that hadn’t been here before, because they were looking for places to socially distance and they all showed up at once, and that created a lot of problems.”

Cronin said his project with Eagle Harbor Township officials studied issues like speed limits, trespassing, and search and rescue, in an effort to develop a more coherent response to the issues that will help manage the situations going forward.

In May, 2024, the Economic Growth Institute of the University of Michigan released a report, “Understanding Tourism Impacts in the Western U.P.” The report says the Western U.P. region saw increased visitation as COVID-19 pandemic related restrictions eased and has continued to see strong visitation numbers above 2019 figures. 2023 Visitor Trips are estimated at just over two million. In 2019, the estimated number was just over 1.5 million.

According to the MSU report, 65% of local jobs were supported by tourism in Keweenaw County. While food and beverage-related employment accounting for 20 jobs, health care and social assistance created three jobs. In Ontonagon County, local jobs supported by tourism averaged 25%, the same report says. While food and beverage accounted for 20 jobs, healthcare and social assistance were double that of Keweenaw County in 2022, averaging six.

In terms of tourism-generated tax revenue, the state of Michigan receives a higher proportion of tax revenues than local governments. Sub county special direct taxes, referring to the impacts on the special districts such as police, fire, and schools, generated $197,000 to the county, and $3.6 million to the state in 2022.

Tax revenues generated from tourism brought Ontonagon County $1.3 million, while generating $3.4 million to the state. Statistics for Keweenaw County were nearly identical. The county derived $1.5 million in tax revenue, while Michigan received $3.6 million. The sub-county special taxes generated $2.2 million in Ontonagon County, with Michigan claiming $3.4 million.

Rural Insights pointed out in Nov. 2023, total tourist spending in the U.P. amounted to $1.5 billion and contributed $155 million to state and local taxes. But at the same time, tourists also bring congestion, increased pressure on local services, and negative environmental impacts as well as contribute to a shortage of affordable housing in resort areas, all of which Keweenaw County is struggling with.

The fear of increased pressure on emergency services expressed by Bryce Holden has been expressed by others such as Pennala and Mattila. While tourism does generate millions of dollars in tax revenues annually, the majority of those revenues bypasses the counties, such as Keweenaw and Ontonagon. Counties derive the bulk of their revenue from property taxes, which are not paid by a fluctuating tourism population.

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