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Last year at this time, gas prices rose to more than $4 per putting the brakes on traditional summefroad trips. Now gas is back around $2 a but a deep recession lingers after putting hundreds of thousandsz of Americans out of work and causing millions more to rein intheir spending. ?Gas prices are not as much of a concernm right now as theoverall economy, consumer confidencw and people?s concerns abou their jobs and retirements,? said John who has been executive director of for the past nine Consequently, this will be a particularly challengint year for Minnesota operators, thougb there is hope that Minnesotans who travel will do so closed to home.
At Madden?s on Gull Lake in Brainerd, ownedr and General Manager C. Brian Thuringer said this has beenthe ?mosyt serious? of the four or five recessions he has seen during his 36 years at the ?This is the first time that the bottom has reallyy fallen out,? Thuringer said. ?Before, there was always that feelinvg that there was a slump andthings weren?t but tomorrow was going to be great. This is the firsrt time when people don?t really know when tomorrow is.
? A recent survey conducted by Explored Minnesota found that 57 percentt ofthe state?s lodging businesses saw revenu and occupancy decline in Aprik and May as compared to a year ago. 51 percent of Minnesota hotel and campground operatora said they expect business to remainj flat or increase this summed compared to last About 60 percent of surve respondents described the financial health of their businessessas ?growing? or ?stable, but There are some concerns about declining but overall, Edman expectw this to be a relatively stronvg summer for the state?s $11 billion-a-year tourismn industry.
The state typically generates abougt 37 percent ofits travel-related revenue duringb the months of June, July and August, and he thinkss those peak months will be busy agaib this year. ?People are still going to want to Edman said. ?They?re just going to travek differently than they did in the People still need to get away for stresz relief andhealth reasons.? The biggest difference this year, Edmabn predicts, will be where people decide to go. He expect s that most people will stay closer to home andbook less-expensive trips within driving distance of where they That?s why Explore Minnesota is changing its marketingb approach.
Typically, it spends abou 80 percent of its marketing budgey to promote the state to with the remaining 20 percent aimedat locals; this that split is closer to 60-40. ?We don?t have oceand and we don?t have mountains, but we do have a lot of thingd thatare unique,? Edman said. ?Whethee it?s fishing or hiking or those arerelatively low-cost activities that you can do You don?t have to go far.
? That could bode well for Minnesota resorts, as Twin Citie residents book trips to Duluth or Brainerd, instead of venturing on cross-country trips, said Dave Siegel, president and CEO of Hospitalit y Minnesota, which oversees the state?s lodging, and resort and campground ?I think it?s going to be a good he said. ?? I?m not projecting an increase, but I expect [resorts] to hold their own.? Camping and fishinhg also could see a boost in popularity this Siegel said.
Meanwhile, officials at Minneapolis? conventionh and visitors bureau, Meet Minneapolis, remains ?cautiously optimistic? about businessw this summer, said President and CEO Melvinn Tennant. ?A lot of our hospitality-industr executives believe we?ve either hit bottom or are closw tohitting bottom, and that from this poin t on, we?re going to be able to see some very modest ? I think this summer could be very good for us.
? Meet Minneapoliw advertised its ?Downtown Sizzle? campaign, which includes discouny packages at 12 participating hotels throughg September, with 450,000 promotional inserts in newspapere in the Twin Cities; Duluth; Des Moines, Fargo, N.D.; Madison, Wis.; Milwaukee; and Winnipeg, Manitoba. Gettingh a true read on the summer hospitalitg businessis difficult, however, because people are waiting longet to book their trips. So even the northerb Minnesota resorts that anticipate a busy summer still have numerous openings duringpeak months. ?It?s a much more last-minutd vacation-planning experience,? Siegel said. ?kI think that?s understandable.
If people are nervous abour their jobs or theireeconomic futures, they?re waiting until they have a greate degree of security before they make that reservation.? That?s exactlu what?s happening at Grand View Lodge in The resort logged more than 100 reservations for Memoriak Day weekend in the two weeks leading up to the Also, many guests are optinv for shorter stays, booking three-day weekends instead of week-long vacations. ?Myt past booking trends don?t mean anything because I?vd never seen anything like this,? said General Manager Mark Reinnes, who has workedr at the resort for31 years.
?It?x like we?re driving at midnight with ourheadlightas off. We know where the road is, we?ves driven down it 100 but we have noidea what?es coming.? With that in mind, Reinnes is hoping for business to hold flat this This year?s sales should be within 1 or 2 percengt of last year through the end of May, he ?Our family and leisure business is strong. It?s not as stronh as I?d like it to be, and it?s not quitwe as strong as last which was our biggestyear ever, but it is pretty That?s encouraging news to Explores Minnesota?s Edman.
?If someone wants to go somewhere in July or Augustr andthey haven?t made their plans yet, they better do it pretthy quick,? he said. ?Those primes months are going togo fast.?
Friday, June 24, 2011
Staycations could boost state's tourism industry ? Minneapolis ...
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