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October 11, 2007
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Summer Events Boost Area Tourism
Businesses Report Slight Upturn in Sales
By Paul Gingras

Reflecting on the 2007 tourism season, business owners throughout the Eastern Upper Peninsula and Mackinaw City reported slightly stronger sales than in summer 2006, which many cited as an exceptionally bad year. Others enjoyed much higher sales, while some mentioned a downturn, and several saw erratic highs and lows in sales during the season. New events, including the Mackinac Bridge anniversary celebration, and a spike in travelers from neighboring states boosted local results. Travelers seemed to have less disposable income this year, business owners agreed.

A 6% increase in revenue this summer over summer 2006 was reported by Marilyn McFarland, executive director of the Mackinaw Area Visitors Bureau. Gathered through room taxes from 53 hotels and motels, the funds are used to market the area, she said.

Much of the upturn appeared to be related to the 50th anniversary celebration of the Mackinac Bridge, Mrs. McFarland said, noting this was well covered by the media in Michigan and in some out-of-state publications.

"I think that created a buzz" that led people who had not come for years to return to the Straits of Mackinac, she speculated, and other special events in St. Ignace and Mackinaw City also contributed to a strong turnout.

"I think we all just made it a special year," she added. "The Straits area was definitely at the top of people's minds in Michigan."

Business owners on Mackinac Island reported increases in business this summer, with a surprisingly high turnout from out-of-state visitors, as reported in the Thursday, August 30, edition of The St. Ignace News.

In general, business in St. Ignace was up this summer, compared to 2006, said Lynne Piippo, director of the St. Ignace Visitors Bureau and a member of the St. Ignace Special Events Committee, which includes members of the Chamber of Commerce and Visitors Bureau.

The new powwow in August, the annual car shows, and media promotion of the bridge anniversary brought in a lot of travelers this summer, she said.

In the heart of St. Ignace, Bentley's B-n-L Cafe reported a "fairly good season," said Leanne Trudo, one of its owners. An exceptional number of in-state visitors patronized the cafe. Many were young couples who had decided to travel closer to home this year. They often included one visitor familiar with the area, who was introducing his or her spouse to the Straits, and many brought young children with them.

Jim Durm, owner of Sunset Motel on US-2 in Moran Township, said the motel's gross income this summer was up 5% or 6% over the same period last year owing to both higher occupancy and increased motel rates. Normally, July is the motel's strongest month, but this year, it was August. More families were traveling later in the year, and the motel served more travelers from Indiana and Ohio this year, he said.

Jim and Annette Durm have owned the motel since 1986. They noted a steady increase from 1986 to 1999, and then a steady decrease until 2006, followed by this year's upturn.

Mr. Durm does not consider weather a major factor in summer sales. The weather was nice, but it was also nice last summer, he said, leading him to conclude that people have become more accustomed to higher gas prices, which may have dissuaded traveling last year.

This year, "they came anyway," he said.

At Glen's Market in St. Ignace, store director Dale Hess said, "We had a good summer, better than last year."

The tourism season got off to a slow start, with low sales in June, but July and August were strong. Glen's received more travelers from Michigan and many more out-ofstaters than usual, especially from neighboring states.

"People are staying closer to home," he said.

Sales were high for barbecue items, including soda pop, beer, supplies to make s'mores, and steaks, which he speculated were consumed by campers at nearby Straits State Park.

"Who can make sense of any of this?" asked Dennis Goodwin, owner of Pines Trading Post in St. Ignace, who noted that business was slightly better this summer compared to the same period in 2006. Pines is a gas station, party store, and deli.

This year and last year are difficult to compare, he said. Unlike last year, day-to-day sales were erratic. The store would experience an excellent Sunday (normally a slow day) and then a terrible Wednesday (normally a good day).

The Pines makes a point of catering to the local population and considers business generated from special events "gravy," Mr. Goodwin said. This year's special events helped the business, and the sale of meat to area restaurants was definitely up, Mr. Goodwin said.

Also the owner of Pines Motel, he added that many more people have booked rooms in advance this year, while in 2006, many people were going from motel to motel to compare prices. He noted the change as cautious spending, and agreed with other business owners that visitors seemed to have less disposable income this year.

The Goodwins have owned the motel and store for six years and noted a 15% to 16% increase in sales every year until 2006.

Tom Pfeiffelmann, general manager of Star Line Mackinac Island Ferry, said business this season was up slightly over 2006. There were more runs to Mackinac Island, both from St. Ignace and Mackinaw City, and the increase was driven by patrons from outside Michigan, he said.

"Over half of the license plates in my parking lot are from out-ofstate," he told The St. Ignace News, adding that some came from as far away as Alaska and New Mexico.

High gas prices have not dissuaded tourism, and this proves it, he said, adding that owners of large, gas-guzzling, recreational vehicles continue to travel, but are staying at destinations longer.

Economic conditions in Michigan's neighboring states are good, Mr. Pfeiffelmann said, and Michigan has a lot to offer, so their residents are traveling here. Owing to the falling value of the American dollar, which is now nearly equal to its counterpart in Canada, more Canadians are traveling through the area, he said.

Bud Lowers, coordinator for the Les Cheneaux Chamber of Commerce and Les Cheneaux Tourist Association, saw a slight increase in tourism in the Cedarville/ Hessel area, notably by visitors on driving trips through the Eastern Upper Peninsula.

Business was "better than last year, but not as good as it has been in the past," Mr. Lowers said.

Mr. Lowers agreed with some others that business in the region hit bottom last year, that people have adjusted to higher gas prices and decided to keep traveling, and that special events played a big part in this year's upturn.

At Katydid's variety store in Hessel, owner Katy O'Rourke said her business did very well this season, noting that sales were consistent across the summer months. Business has increased every year in the three years Katydid's has been open, and as usual, August was the strongest month. The business has strong local support, allowing it to stay open until January, she added.

At Cedar Pantry in Cedarville, manager Mike Schaeffer said business was up this season, but not substantially. The tourism season began late and ended early, he said, adding that a strong, eight-week surge ended in late August. For the most part, the upturn in sales was driven by summer residents, he said.

Mr. Schaeffer attributed this year's increase to business expansion. Cedar pantry "is developing into an all-around store," he said.

Owing to erratic winter weather, the business cannot rely on the snowmobile season anymore, he said, so the store is leaning toward offering everything from gas to sporting goods, all of which increased in sales this summer.

To the west, at Sunset Pointe Resort on Big Manistique Lake in Curtis, owner Mike Soder said business was up this tourism season, compared to the same period in 2006. In fact, his resort has experienced its best September in 20 years.

It seems that when gas prices and other economic factors are questionable, resorts do better, Mr. Soder said. Resort patrons can settle in and avoid driving around and burning gas. His customers often take short, inexpensive trips from Curtis.

The upturn in business is driven, in part, by increasing Internet advertising, he said. Sunset Pointe is cited on the local chamber of commerce Web site, and more and more patrons have contacted him via the Internet.

This year, more patrons arrived for the spring fishing season, more families arrived during the midsummer season, and more are in the area now for fall fishing, he said. Sunset Pointe offers cottage, snowmobile, all-terrain-vehicle, and boat rentals. Many patrons now seek package deals that include both a cabin and a vehicle.

"We are seeing a lot of new customers," he added. This summer, about 50% of the resort's customers were new to the area, and Mr. Soder said there have been more patrons than usual from other states. He attributes this, in part, to positive media attention about northern Michigan, such as in USA Today and on the NBC Today Show.

New construction in Curtis is drawing new residents and tourists, Mr. Soder said.

At Chamberlin's Ole Forest Inn, "We were extremely busy" this summer, Kelly Chamberlin said, adding that business has been up.

She attributes good business to the restaurant's strong reputation and noted that a lot of new Michigan residents and people from neighboring states came to the restaurant this season.

"The are starting to look out their back doors," she said.

Curtis has drawn business by offering new events and capitalizing on long-standing events, she said. Having schools start after Labor Day boosted business in August.

Chamberlin's has seen a steady increase in business since 1992. She agreed with Les Cheneaux business owners that winter sales have been unpredictable, owing to erratic snowfall.

Kellie Nightlinger, owner and operator of Naubinway-based U.P. Wide Adventure Guide, said her business did very well this summer. The business is in its second year.

Like Mr. Soder, she attributes increased business to Internet advertising.

This year, she has seen about 50% of her clientele from Michigan and 50% from surrounding states. Usually, she receives 60% to 70% out-of-state travelers.

Bridge Traffic Is One Travel Indicator

Traffic on the Mackinac Bridge is often used as an indicator of tourist traffic in the Eastern Upper Peninsula. The Mackinac Bridge Authority released the following information Tuesday, September 25.

• 574,968 vehicles crossed the Mackinac Bridge this August, a 3.8% increase over August 2006, when 553,789 crossed.

• 577,884 vehicles crossed this July, a 0.2% decrease compared to July 2006, when 579,192 crossed.

• 413,485 vehicles crossed this June, a 3.6% decrease compared to June 2006, when 429,061 crossed.


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