Surprising summer for tourism

By BILL O'BRIEN and Sheri McWhirter
Record-Eagle staff writers

September 07, 2008 12:00 am

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TRAVERSE CITY -- Record gasoline prices and the state's slumping economy made for a worrisome summer for many tourism-related businesses in northern Michigan.

But as gas prices plateaued and the weather turned warm and sunny, regional tourism picked up and helped area businesses salvage a respectable summer season.

Patron traffic was up slightly for some businesses, while other travel barometers drooped. But a mixed bag of results is about the best those dependent on tourism could hope for, given the state's challenged economy.

"After years and years of prosperity, you have to expect a little dip in things," said Bruce Brown, owner of Alpine Chocolate Haus in downtown Gaylord.

Brown bolstered his local advertising budget and said he took in a bit more revenue than last summer, even as his expenses increased through rising material and labor costs.

"Instead of pulling back and being conservative, I went out and tried to draw in my customers," Brown said.

State tourism officials continue to evaluate the 2008 tourism season. Preliminary results into late July showed tourism growth up 1 to 4 percent around Michigan, said George Zimmermann, vice president of Travel Michigan, the state's tourism agency.

"It varies by destination," he said.

Operators at Boyne USA resorts in Boyne Falls and Harbor Springs said revenues increased slightly over last summer, despite a noticeable drop in the golf rounds played at its eight courses.

"Golf was down. It was down 11 percent from last year," said Erin Ernst, Boyne spokeswoman. "Golf rounds being down is something the entire state and country is dealing with, too."

Ernst said Boyne made up the difference with increases in guest spa visits, convention reservations and new activities, including a bird of prey educational program and horseback riding trips at Boyne Highlands. Activity at the indoor water park at Boyne Mountain held steady, Ernst said.

"I think we were expecting it to be an OK summer. Our benefit is our location in northern Michigan. We are in an area people like to visit," she said.

But some of the state's bellwether tourism indicators dipped this summer.

Michigan state parks saw 5 percent fewer campers for overnight stays across the state through August, amounting to about a $1 million loss, said Harold Herta, chief of resource management for the parks and recreation division of the Michigan Department of Natural Resources.

The annual state parks budget is about $41 million and camping fees make up about $26 million of that, he said.

"June was terrible. The weather was bad and gas prices were high. July was average, some parks were up and some parks were down, probably more down. But August was fairly good. We had good weather and gas prices came down a little bit," Herta said.

Statistics through July show camping dropped about 4 percent at Traverse City State Park and about 8 percent at Hartwick Pines State Park near Grayling, both traditionally popular locations.

Parks that showed good increases over last year included downstate sites closer to major metropolitan areas, Herta said.

"The theory on that is gas prices," he said.

Mackinac Bridge crossings also fell this summer.

Vehicle counts at the bridge dipped to just under 505,000 in July, down more than 12 percent from 2007.

June crossings were off more than 11 percent from 2007, according to monthly traffic reports from the Mackinac Bridge Authority.

Preliminary numbers through late August showed vehicle counts down about 6.1 percent from last year, said bridge authority executive secretary Robert Sweeney. Labor Day weekend traffic was off about 2 percent from last year.

"There's certainly fewer people traveling the roads of Michigan than a year ago," Sweeney said.

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