Many business owners in the Straits of Mackinac area are pleasantly surprised by an upswing in sales this summer, despite the national recession. Most say poor weather has played as large a role as the economy in impacting this summer's business.

Numbers of motorists crossing the Mackinac Bridge have increased, compared to last summer.

At the bridge, July numbers are up about 8.6 % from 2008. Hand in hand with the increased travel into the U.P. that this indicates, many local business owners are reporting improvements in sales, while others in the community have noticed a continuance in the decrease seen over the past few years.

Weather and the economy are two main factors business owners say have impacted sales.

Bridge traffic, certainly a major indicator of the number of people passing in and out of the Upper Peninsula, has been up from the same time period in 2008 for four consecutive months, after being down each of the first three months of the year. April saw an increase of 9.3%, May an increase of 4.7%, June an increase of 6%, and July an increase of 8.6%, which puts the bridge about 4.3% ahead of last year in its traffic numbers.

Bob Sweeney, executive secretary of the Mackinac Bridge Authority, said about 30% to 35% of its traffic each year is in the months of July and August.

"A good July and August usually means a good year," Mr. Sweeney said. "It's great because all of the forecasts said it would be a down year." Traffic numbers for the first week in August have been up from last year, too.

Roadside Attractions Report

High Numbers

Owners of roadside attractions near St. Ignace, including the Deer Ranch, Castle Rock, and the Mystery Spot, reported better numbers than they saw in 2008. Owner Harold Kriesche said the Deer

Ranch has been ahead of last year for May, June, and July; May income was up 18% over 2008.

"Business is up," Mr. Kriesche said. "US-2 has been busy."

Mr. Kriesche

said one sign of the recession is the disappearance of suppliers, some of of suppliers, some of whom have been selling goods to the store for decades.

"Everything has changed so much, so fast," he said. "I don't think we will see years like 1991 or '92 ever again."

Mark Eby, owner of Castle Rock on I-75, said the number of people climbing Castle Rock has increased about 24% from 2008 and sales are nearly 16% higher at the gift store.

"I think part of what's going on," Mr. Eby said, "is that people going on a little vacation are saying, 'Darn it, we're going to stay in Michigan.'"

Factors dragging down tourism last year, he said, could have been higher gas prices, which peaked at more than $4 at many stations during the summer, and the downturning economy.

He attributed some of this year's success to lower fuel prices, changes in the business' marketing efforts, an effort by tourists to spend their vacation dollars in Michigan, and possibly the Pure Michigan tourism advertising campaign by the Michigan Economic Development Corporation. Hotels, Others See Increase in

Out-of-State Visitors

The advertising campaign is certainly the reason for more out-ofstate visitors staying at local hotels and motels, said Lynne Piippo from the St. Ignace Visitors Bureau.

"We are seeing a lot more license plates from out-of-state than ever before," she said.

Mackinac State Historic Parks Director Phil Porter agreed that what he has seen this summer suggests that more out-of-state tourists are visiting his museum sites in Mackinaw City and on Mackinac Island.

"That may be a good thing," Mr. Porter said, "that we aren't relying on only people from Michigan."

Wayne Burnett from Straits State Park in St. Ignace also noticed an increase in out-of-state license plates passing through the gate of the park and campground, and said sales of non-resident yearly passes have increased this year.

"Maybe every fifth plate is from out of state," Mr. Burnett said.

Workers at the Deer Ranch, Arnold Line, Star Line, Audie's restaurant in Mackinaw City, and Mackinac Grille restaurant in St. Ignace have all noticed an increase in out-of state traffic, while some other area businesses say they have not seen such a trend.

Tourism dollars spent at hotels in the Upper Peninsula as a whole continues to decrease, according to Tom Nemacheck at the U.P. Travel and Recreation Association.

Although he said up-to-date numbers can be difficult to get because of a lag on when occupancy numbers are reported, this year looks to be about 15% down from last year for member properties across the entire peninsula.

This percentage does not take into account the month of July, and Mr. Nemacheck said the decrease has been seen by tourism organizations in Wisconsin and Minnesota, as well.

"Consumer confidence is extremely low," he said. "If we could come out of the summer 5 to 10% down, I hate to say it, but it would be a win from what I'm hearing."

The association shifted some marketing efforts out-of-state about seven years ago, Mr. Nemacheck said, and that, along with the Pure Michigan campaign, has helped minimize the damage of the recession on U.P. tourism.

"Had we not done that, we would be in worse shape now because the out-of-state markets would not have been so developed as they are now," he said. "It's just a horrible time right now to be trying to move people."

Ferry Companies Find Busy

Days Shifting

The three ferry companies providing service from St. Ignace and Mackinaw City to Mackinac Island agreed that profits are by no means at an all-time high, but business is better than many of them expected.

Chris Shepler from Shepler's Mackinac Island Ferry said numbers were down for both May and June this year.

"May was scary," Mr. Shepler said. "At the end of June, though, things started to pick up. July has been very good."

Numbers for July appear to be very close to 2008 numbers, he said, which the company is happy about. He said the weather is one of the big determiners of business for the ferry line, and he hoped for this month's weather to encourage as much business as the company saw in August 2008, when Labor Day weekend crossed into August.

"August '08 was the best one in Shepler's history," he said.

Tom Pfeiffelmann from Star Line said the company did slightly better business in July this year than last, which was better than they expected.

"It's pretty amazing that people are coming in spite of the economy and in spite of the weather," he said.

Mr. Pfeiffelmann has also noticed a surge in out-of-state customers using the ferry service this summer, saying that often about half of the cars in Star Line's parking lots have license plates from states other than Michigan.

"It was a good July because of out-of-staters," he said. "People are moving with the low gas prices."

Bob Brown from Arnold Line said their summer has gone well, and he has also noticed more out-ofstate and international visitors.

"The season is shaping up to be pretty decent," Mr. Brown said. "I think things are going to start coming back."

Workers at all three ferry lines have also noticed a shift away from the traditionally busy days of Tuesday and Saturday, not necessarily their biggest days any more.

For instance, Mr. Shepler said his ferry line has seen some good Fridays, traditionally a slow day.

"We're trying to figure out what our busy days are," Mr. Shepler said. "The only way there is a trend is that there isn't a trend."

Messrs. Brown and Pfeiffelmann agreed that the busy days aren't Tuesday and Saturday anymore.

"The normal trends don't seem to be holding true this year," Mr. Brown said.

Campgrounds, Historic Sites See

Slow Start to Season

According to Mr. Burnett at Straits State Park, the number of overnight stays in July was up 4.6% from last year, which was 27% down from the 2007 numbers.

The number of campers at the state park in May was down 20% from 2007 and 16.5% down from 2008. But in June, 8% more people camped there than in June 2008, a 55% increase over the 2007 numbers.

Attendance is down 1.6% so far this year at Mackinac State Historic Parks (MSHP) sites in Mackinaw City and on Mackinac Island, which include Fort Mackinac, Colonial Michilimackinac, Old Mackinac Point Lighthouse, and Historic Mill Creek Discovery Park.

Attendance was much lower earlier in the season, Mr. Porter said, and the number one factor affecting their numbers has been the weather.

"It appears that the pattern is improving," he said. "We had a very weak spring and it has been strengthening through the summer."

Attendance at Fort Mackinac on the Island is down 1.6%; Colonial Michilimackinac in Mackinaw City is down 4%; Old Mackinac Point Lighthouse in Mackinaw City is up 1%, and Mill Creek just outside of Mackinaw City is up 1.5%.

Mr. Porter said the reason Mill Creek's numbers are the strongest is likely because of the addition of the Discovery Park in 2008, which features a 50-foot-high canopy bridge, an aerial cable zip line ride over a creek, a 40-foot climbing wall, and a tree-top lookout platform. After the addition opened, attendance at Mill Creek surged to 30% more people in 2008 than in 2007.

Distributors See

Slight Decreases in Business

Those who supply local restaurants and hotels say they see a slight drop in business.

Dennis Hutchinson, who works at the Gordon Food Service Gaylord office supplying restaurant food, said business is slightly down from where it was last year in his area, which stretches from the U.P. to areas as far south as Flint.

He said his company has recently gained a larger share of the market in the northern Michigan and Eastern U.P. region, although business here is not up as much as the market-share that has been gained.

One of the beverage distributors serving local restaurants, Marchetti Distribution Company from Sault Ste. Marie, reported being down in gross sales of beer, both for the month of July and the year to date. The distributor sells beer and wine and serves Mackinac and Chippewa counties, and part of Luce County.

After having a good July last year, John Jorgensen from the company said sales are likely down this yer because of this summer's poor weather and because of the economy.

Another beverage distributor based in St. Ignace, Griffin Beverage Company, reported slightly lower sales numbers in July and this year to date, said general manager Mike Kamyszek.

Being proactive to bring people into the community is important and effective, he said, and his company has noticed an increase in sales owing to the Saturday fireworks in St. Ignace.

"The event every Saturday appears to be working," Mr. Kamyszek said. "I have heard nothing but positive reports on local sales."

Some Restaurants See

Improved Sales;

Saturday Fireworks Help

Several St. Ignace restaurant owners said they have seen a surprisingly good summer so far.

Mark Sposito, owner of the Mackinac Grille, said so far this year, his restaurant is up 5% from 2008 sales. He said this increase is surprising, especially since the weather is also a strong determiner of business in the summer.

He also said Saturday nights since July 4, when weekly firework displays began in downtown St. Ignace, have seen increases between 10 % and 15% over 2008 sales.

"Our numbers are way up for those nights," he said.

Rob Aukeman, who owns B.C. Pizza with his wife, Heather, agreed that business has increased noticeably on Saturdays before and after the fireworks displays.

Mr. Aukeman said he expected a slower year this summer owing to the suffering economy, but has been surprised by an increase in sales from 2008.

"I think there are more people in town this year," he said. He also has noticed a large increase in customers during the restaurant's halfoff special, indicating people are price-conscious.

"People are on vacation, but trying not to spend too much money," Mr. Aukeman said.

AngGio's Retaurant in Cedarville has seen a slightly better year than last year, owner Chip Autore said, and he said he has noticed an increase in business thanks to the summer's inclement weather.

"We find that on rainy and overcast days, we are busier," Mr. Autore said. "Nothing has changed here too much from last year."

He noted that the seasonal residents have helped to make business in the Cedarville and Hessel area steadier than in St. Ignace, which is more dependent on tourists who make shorter visits. Mr. Autore also said he hoped good fishing reports in the area would help encourage further increased business into the fall.

Nick Jaggi, owner of Audie's restaurant in Mackinaw City, said June and July revenue was between 10% and 15% better than last year, although he acknowledged that 2008 was one of his worst years.

"From our best years, that is still quite a bit down," Mr. Jaggi said. "But this summer has been a pleasant surprise."

Mark Beaubien, manager at Dixie Saloon in Mackinaw City, said the bar and restaurant has been up about 20% in July and has been up 10% to 15% so far in August.

"We've been up pretty much every month this year," Mr. Beaubien said. He said Dixie Saloon has seen a steady increase in business for pretty much every year in the past five years.

Mr Beaubien also said he has noticed fewer people from distant states, from conversations he has had with customers. Instead, he has seen an increase in visitors from elsewhere in Michigan and neighboring states like Ohio and Indiana.

Casino Sees More Northern Michigan Customers

Kewadin Casino in St. Ignace has also seen fewer visitors from further away, more local customers, and more visitors taking advantage of special deals and discounts, casino spokesperson Michelle Bouschor said.

"I think people's idea of a vacation may be changing," Mrs. Bouschor said, noting the increase in the percentage of casino guests coming from areas like Traverse City and closer.

"We've been doing a lot to try to bolster business," she said. "People are definitely taking advantage of the special deals."

June's net revenues for the St. Ignace casino were down about 3.2% from 2008 and year-to-date revenues, as of June 30, were down 4.1%, Ms. Bouschor said.

The St. Ignace Visitors Bureau, which collects a 2% fee on room charges at area hotels, reported that hotel revenues among its members appear to be approximately level with last year's. Mrs. Piippo said May room assessment fees were down about 1%, and June numbers appear to be similar to 2008. Figures from July have not yet been reported by the hotels.

Mrs. Piippo attributes this lack of growth in the hospitality industry to low numbers of hotel and motel guests in the area and in the state in general.

"The competition is pretty fierce right now," she said. "Michigan occupancy rates are the lowest in the nation."

Store owners in St. Ignace have seen both good and bad this summer, some saying business has improved from last summer, and others experiencing no change or a decline in sales.

Tom Della-Moretta, who owns Gold Mine and Michigan's Treasure in St. Ignace with his wife, Yvonne, said sales have been up this year at The Gold Mine, but have been down at Michigan Treasure. Mr. Della-Moretta said 2008 was the worst year in three years for the jewelry store.