Economy, frugal travel cloud tourism season's forecast

Sheri McWhirter and Bil O'Brien
CNHI News Service

May 13, 2009 04:23 pm

— TRAVERSE CITY, Mich. -- Jennifer Tank and her family will vacation as usual on an island on the Wisconsin side of Lake Superior this summer. But there won't be many frills.

"We are doing it again this year, and taking some friends to share costs and food," said Tank of Traverse City. "We're just not going above and beyond anything this year."

Her story rings true with families across Michigan, many of whom are hunkered against an economy that's ravaged businesses and workers throughout the state. That frugal posture is leaving an eerie, storm-cloud-overhead feeling among those who live and have businesses in the Grand Traverse region, where tourism pays the bills.

The state's economy, particularly the automotive industry, has cast a pall over reservations at the Grand Traverse Resort & Spa in Acme.

"We are having a very difficult time forecasting this year," said spokesman J. Michael DeAgostino. "The bookings that we're seeing are very short-term."

Good weather weekends this summer should provide a boost in last-minute travelers, he said. But a string of poor weekends would mean trouble.

"This could be, really, the most challenging season we've seen since the resort opened in 1980," DeAgostino said.

Statewide travel, an estimated $18 billion sector in Michigan, is projected to drop by 3 to 4 percent this year, according to estimates from Michigan State University. Travel volume in Michigan was down more than 6 percent last year.

Some area business owners said they will benefit if locals stay close and stay on budget.

"It looks like camping is still affordable, so that's great for us," said Janice Teppo, manager at Sleepy Bear Campground, a private facility near Sleeping Bear Dunes National Lakeshore.

The 165-site campground opens Friday and has 641 reservations for the season, more than the 603 reservations it had at this time last year.

Visitors are generally booking longer stays and plan to bring more family members, Teppo said. "A lot say they can't afford long trips, but they can afford this," she said.

Reservations at Michigan's state parks aren't benefitting from the same trend.

"We're down about 6 percent as this point," said Harold Herta, chief of resource management for the Michigan Department of Natural Resources. If that number holds, it could mean $1.56 million in lost revenue, he said.

DeAgostino said he sees signs at his resort that the economy may be turning around. The resort is taking advance reservations for business conferences and seminars into next year, a sign that companies may be emerging from the economic storm.

"In the long term, things are looking better, even if the short-term is a little more uncertain," he said. "But from Memorial Day to Labor Day, we just don't know."

Sheri McWhirter and Bill O'Brien write for The Record-Eagle in Traverse City, Mich.

Copyright © 1999-2008 cnhi, inc.