231-922-9460 | Google +

Wednesday, May 13, 2009

No-Frills Forecast For Travel And Tourism
Travelers pare down trips amid ailing economy
Cheap Cruises Luring Many

Traverse City Record-Eagle

TRAVERSE CITY -- Jennifer Tank and her family will vacation as usual on an island on the Wisconsin side of Lake Superior this summer, but there won't be many accompanying frills or discount cruises.

"We are doing it again this year and taking some friends to share costs and food," said Tank, of Traverse City. "We're just not going above and beyond anything this year."

Her story rings true with families across Michigan, many of whom are hunkered against a mind- and soul-battering economy that's ravaged state manufacturers and myriad spin-off businesses. It's an eerie, storm-cloud-overhead feeling for those who live and have businesses in the Grand Traverse region, where travel and tourism pay the bills.

The state's economy, particularly in the automotive industry, cast a pall over advance reservations at the Grand Traverse Resort & Spa in Acme.

"We are having a very difficult time forecasting this year," resort spokesman J. Michael DeAgostino said. "The bookings that we're seeing are very short-term."

Good weekend weather should provide a boost in last-minute travelers as the summer goes on, he said. But a string of poor weekends could spell trouble.

"This could be, really, the most challenging season we've seen since the resort opened in 1980," DeAgostino said.

Those who will vacation are opting for less expensive trips than usual, and searching for vacation package deals such as cheap cruises.

Statewide travel, an estimated $18 billion sector in Michigan, is projected to drop by 3 to 4 percent this year, according to yearly projections from Michigan State University. Travel volume in Michigan dipped more than 6 percent last year. Many residents are leaving the state for San Diego Cruises or New York Cruises.

Local attorney J. Michael Senger is among those who said they'll stay closer to home this summer, in part because of the economy.

Senger often travels around the Midwest for short summer trips, but he expects to cut back this year and already shortened his annual winter retreat to Florida.

"This year we cut it back to two weeks and that's because of the economy," Senger said.

Some area business owners said they could benefit if locals play it tight to the vest.

"It looks like camping is still affordable, so that's great for us," said Janice Teppo, manager at Sleepy Bear Campground in Empire, a private campground near Sleeping Bear Dunes National Lakeshore.

The 165-site campground opens Friday and has 641 reservations for the season, more than the 603 reservations by mid-May last year.

In general, visitors are booking longer stays and plan to bring in more family members, Teppo said.

"A lot say they can't afford long trips, but they can afford this," she said.

Reservations at Michigan's state parks don't paint such a rosy picture.

"We're down about 6 percent as this point," said Harold Herta, chief of resource management for the Michigan Department of Natural Resources.

If that number holds, it could translate into $1.56 million in lost revenue, he said.

"One thing we have seen is ... there have been increases in campers in areas near metropolitan areas," Herta said.

Last year, the biggest drop in campers was in the Upper Peninsula, followed by parks in northern Lower Michigan. Camper numbers for southern Michigan were up slightly, Herta said.

"We tied that to gas prices," he said.

Michigan state parks average about 5 million campers in a season, but the poor economy is expected to impact summer travel plans across the state, Herta said.

"Everybody keeps leaving Michigan and losing their jobs," he said. Others are looking outside the state for vacation discounts and cruise specials.

Other area destinations expect to hold their own this season. Reservations for the 16 motel rooms and 25 camp sites at Ranch Rudolph near Traverse City are on par with last year, owner Melody Hamill said.

"Our reservations are right where they've been for the last few years," she said. "Last summer panned out OK and I think it will this year, also. Now we just need Mother Nature to play her part."

Ranch Rudolph has seen an increase in private events, such as weddings and company retreats, and people are still going on horseback riding trips there and floats down the Boardman River, she said.

DeAgostino said the resort sees signs that the economy may be turning around. Advance reservations into 2010 for business conferences and seminars are coming in, a sign that companies could be emerging from the economic storm.

"In the long term, things are looking better, even if the short-term is a little more uncertain," DeAgostino said. "But from Memorial Day to Labor Day, we just don't know."