2010-08-26 / Front Page

Mackinac Island Business Is Up

Summer Travel Better Than Last Year
By Allison Knopp and Rebecca Jaskot
Mackinac Island Town Crier

Good summer weather, a more certain economy, and the state's Pure Michigan tourism advertising have led to a better year for businesses on Mackinac Island than last year, although most businesses say they have only seen a small increase in numbers.

Transportation Companies: Business Is Up, a Little

Businesses and transportation companies have reported a small increase in the number of visitors coming the Island this season.

Bob Brown, general manager of Arnold Transit, said that the company had a “pretty decent year,” and business is up a little from last year. He noticed a lot more out of state and international visitors coming to the Island.

“It's been warm and overall pretty nice,” he said. “That's the key for Mackinac Island. A lot of people drive north, but if it's not nice, they're not going to come over to the Island.”

Business at Shepler's Ferry is up a little since last year, Chris Shepler said, but not significantly.

“Traveling is so fickle right now, so I have no idea why,” he said. “It's just business as usual.”

The ferry company did lengthen a boat this year to help carry luggage and bicycles, and Mr. Shepler said he has seen a small increase in the number of bicycles brought to the Island.

Tom Pfeiffelmann of Star Line has also observed more people coming from other states, and said business has been good this year, especially in July and August.

“That's been a trend for several years now,” he said. “If not for the out of state visitors and the Pure Michigan ads, we would not be doing as good.”

Although business is up, he said it still is not a great year for the Island. He has not seen many visitors carrying purchases when returning from the Island.

“They're really not spending on the Island. Once they get there, they're really watching their pocketbooks,” he said. “If anything, they usually only have a halfpound of fudge, so that's not good.”

Airport manager Dennis Bradley said he is not seeing as many planes as he used to, but he thinks it is owing to changes in aviation across the country. He said planes have become more expensive to operate, and it is not as easy for people to take work off these days.

On the Island, he has seen a decrease in people who used to fly to the Island just for the day.

“A lot of airplanes are like campers and motor homes; not everyone who owns one is super rich,” he said. “So those have gone by the wayside.”

He used to see a lot of airplanes from Chicago and Detroit, but now they come mostly from Traverse City and Gaylord. Corporate business, however, has been good, he added.

At the Straits of Mackinac, Mackinac Bridge traffic is up 2.7% from last year, with 2,125,440 vehicle crossings through July, compared to 2,069,896 in 2009.

Occupancy Improving

at Hotels and Restaurants

Hotel occupancy is improving.

Grand Hotel Managing Director John Hulett said business is up from last year.

“Right now we're cautiously optimistic about the season,” he said.

Grand Hotel has had a “pretty decent year,” he said, and reservations for the rest of August look good, with a couple of weak points. The hotel still needs more business for September, but he expects reservations to pick up with the specials the hotel is offering.

He has seen a lot of people from Michigan and regional areas staying at the hotel and observed a dramatic increase in day traffic downtown.

“We're hoping it will stay recovering for the rest of the season and into 2011,” he said of the economy.

Business at Iroquois Hotel has been great this season, said Becki Barnwell.

“It would be pretty hard not to be better than last year,” she said. “It's still not how it was historically, 10 or 15 years ago, but it's still great.”

She attributes the good business to good weather and to the Pure Michigan advertising campaign.

“We've seen more out of state [visitors], largely due to the pure Michigan campaign. I think it's been very successful,” she said. “When people come from all over the U.S., [the state promotional advertising] has let them know that we're here.”

At the Windermere Hotel, owner Margaret Doud, also the Island's mayor, said the hotel has had a good year.

“With good weather and an increase in traffic, business is better, but you can still tell that we are in bad economic times,” she said.

From month to month, the hotel had steady occupancy. The Lilac Festival and other events brought a lot of people in June, the Fourth of July and boat races brought people in July, and a lot of families came for vacations in August.

“I think people were looking forward to having a vacation this year, whereas last year, they couldn't,” she said.

Occupancy at both the Chippewa Hotel and Lilac Tree Suites and Spa is up over last year, according to General Manager Brian Bailey. He said that the Pink Pony bar has also been doing well, since good weather has allowed people to enjoy its outdoor patio.

In addition to his repeat business, he has noticed an increase in new customers and visitors from out of state, which he attributes the new business to the Pure Michigan campaign.

“What it's doing, for not only us here on Mackinac Island, but all of northern Michigan, is great,” he said. “If we didn't have that funding, we might not be doing well. Plus, it creates a new group of returning business.”

Mission Point Resort is doing a lot better than last year and, so far, it is up 9% to 10%, according to David Hume, the resort's director of sales and marketing. Occupancy has increased, which he said improves business at the resort's restaurants and shops.

The resort has had more weddings than last year, and guests are spending more money, which he thinks is because people are feeling more confident about the economy.

“We would love to have some more [guests], but we're holding our own, and we're pleased,” he said.

Todd Callewaert at the Island House said that the hotel has done well this season, but business is not as high as the 2008 level. He, too, has seen a 9% increase over last year. The hotel has had more weddings this year, but they have been smaller, which brings wedding revenues to about the same level.

The hotel's restaurants are doing well, too, with more diners than last year.

The family's other businesses, Starbuck's and Ryba's Fudge shops, are also up a bit from last year.

He thinks that the economy and Pure Michigan ads have helped bring business.

“People feel a little safer than last year at this time,” he said. “The uncertainty is gone.”

Restaurants on the Island have also had a fair year, with nice weather benefiting some.

Mary's Bistro owner Mary Callewaert said May was not very good for the restaurant, but there has been significant improvement in June and July.

“It was definitely due to the weather,” she said.

Cannonball Drive-in has been busy, according to owner Jack Armstrong. Ice cream, water, soda, shakes, and malt sales have been up this year.

“All of the liquids have been selling well,” he said, “naturally, with the heat.”

The barbecue and hayride that the Cannonball operates from downtown to British Landing has also been successful, he said.

“It has been a very, very nice year,” he said. “Customers have been great.”

Sharon Reurinke of the Chuckwagon said that the restaurant has been doing much better in its second year, with quite a bit of traffic, mostly around breakfast time. She said about half her customers have come from out of state.

May and June were slow months for Patrick Sinclair's pub, Manager John Slevin said, but July had about the same business as last year, and August is looking like it will be prosperous. The smoking ban in restaurants is the factor he believes has changed the business most.

“Some people that would have been in here smoking and drinking their beverages aren't this year,” he said.

Some Attractions Say

Business Is Moderate

Good weather has benefited some attractions, but some say that business is still moderate.

Attendance is down 9% from last year at all five Mackinac State Historic Parks properties, and revenue is also down by approximately 4% through mid-July.

Compared to last year, Fort Mackinac on Mackinac Island is down 8.5%. In Mackinaw City, Colonial Michilimackinac is down 7%, Mackinac Point Lighthouse is down 12%, and Mill Creek Discovery Park is down 13%.

A decrease in school groups early in the season, a weakness in motor coach tours, and bad weather on key weekends during the first half of the season were to blame, Director Phil Porter said in a report at the July 23 meeting of the Mackinac Island State Park Commission.

At Jack's Livery Stable, coowner Reggie Gough said business this year is good for his driveyourself carriage and saddle horse trade, but not exceptional. Last year, he said, it was just fair, so this year is an improvement. Since July 4, the livery has been busy but was down a little bit in June because of the weather.

Arrowhead Carriages owner Joe Plaza agreed, calling business for his hourly sightseeing carriage tours this year “moderate.” He sees a slight improvement in business compared to last year, but not much.

“Just because there are lots of people walking the streets, it doesn't mean they're buying carriage tours,” he said.

The number of people on the Island seems to be up a little bit from last year, said Brad Chambers of Mackinac Island Carriage Tours, which has increased his business a little.

“We're noticing that we're steady to up just a little bit from last year,” he said.

The good weather helped some businesses. Marie Steensma of Wings of Mackinac Butterfly Conservatory said the much improved weather made business much better than last year. More sun meant more people exploring, hiking, and biking near the conservatory, so the business saw more traffic.

“I thought everyone was in a really great mood because it was a really great summer,” she said.

Bicycle rentals have also benefited from better weather this year.

“Business is good,” said Mackinac Island Bike Shop owner Ira Green. “I was surprised at how well we have been doing. I attribute it a lot to the sunshine.”

He has noted quite a few visitors from out of state.

Mackinac Wheels Manager Gavin Webster said that weather has had a lot to do with success, but even on cloudy and rainy days this summer, business has been prosperous.

“We have been doing pretty good,” he said. “Better than last year.”

Pat Grodecki, part owner of Ryba's Bike Rental, also said that business has been much better than last year. She said that business was slow at the beginning, but has picked up throughout the season.

Retail Shops Say Sales Are

Strong; Later Ferry Run Helps

At The Big Store, manager Tim Leeper said business is up from last year.

“Kids groups were down, but there has been a bigger traffic flow,” he said, referring to youth field trips.

Most people are buying smaller items, and the most popular section of the store is the close-out rack. He has noticed many purchases this year are being charged to a credit card instead of being paid with cash.

Many of the customers at The Big Store have been from Michigan, but Mr. Leeper said that some of the store's visitors have been from out of state, including many southerners.

“I think they are trying to escape the heat,” he said.

At Lilacs and Lace and Victorian Summer Gallery, owner Jack Landres said May and July were good months for business and he hopes that August will shape up to be good, as well. He noticed there are more people coming into the stores who are purchasing pieces and not just browsing, although more people are buying smaller paintings.

Some Wear on Mackinac has been doing great in its first year, according to owner Jack Armstrong.

“It has been a great success,” Mr. Armstrong said. “We have had to order and reorder a number of times.”

He said that they have seen customers from all 50 states and from all over the world.

“Everything is on an upward trend,” he said of business on the Island. “There are more people coming in and they are spending more money.”

Business is also up at Mackinac Island Tuxedo and Men's Wear, also owned by Mr. Armstrong.

“Adding the men's wear really helped to fill a void on the Island,” he said. “We have been selling a lot of underwear and socks, things people forget [to pack]. We have also sold a lot of suits and sport coats.”

Nephew's of Mackinac women's clothing store owner Nancy Porter said business is about the same as last year. When it is warm, typically the store sells more product.

“People buy something they want to wear on vacation,” she said.

On cooler days, they see an increase in traffic but fewer purchases, since customers want to be able to wear the outfits they buy, and much of her resort wear is suited for warmer weather.

Joann's Fudge reports business similar to last year's, but it has sold a little more ice cream. Warm weather is good for fudge sales, but hot weather is not, she Ms. Porter, whose family owns the business.

La Galerie gift shop owner Buzz Waggoner said sales have been up this season from last, which he thinks is owing to more people coming to the Island. More people have been buying this season, rather than just looking. In 28 years of business, Mr. Waggoner has a lot of repeat customers, and still finds that this year has been a “very good year.”

“Overall, for this season, I can't complain,” he said.

More people use credit cards this year, while more paid with cash last year. He also thinks that he has not been seeing as many international customers this year as in the past.

Great Turtle Toys and Flagship owner Ben Nye said that business has been up at his three shops. He believes there are many factors contributing to the success of his business and others on the Island.

“I think a big factor is that there is a sense of optimism with people,” he said. People are seeing a brighter future for the economy and are more willing to spend money than previous years, he speculated.

This year he has seen people purchase more items, including higher priced items.

Having the staff teach kite flying and other games has been a huge success, he said. Great Turtle Toys flies kites and teaches people how to fly them at Windermere Point whenever the weather is favorable. His staff will also teach people how to juggle or use the toys and games that he sells.

“People are trending toward things that get kids off of the couch,” Mr. Nye said.

Another factor that has improved business is the 11 p.m. ferry offered by Arnold Transit.

“When they didn't have the late boat, people were anxious about leaving. They are too worried about leaving to think about getting a meal or going shopping or having a drink,” he said. “That boat has alleviated that stress. Big kudos to them.”

Something that surprised Mr. Nye this season was the amount of business during the middle of the week. It often caught his staff off guard, he said, to have such heavy traffic on weekdays and believes that the Pure Michigan campaign has brought a lot of people to the Island.

Mr. Nye believes that the Island businesses will continue to flourish if they commit to having great products and services.

“To continue to be prosperous, we need to have a good product and top-notch services,” he said. “We have to continue to do it right. We need to have the best bartenders, excellent service at restaurants, friendly sales people, the whole package.”

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