Contact: Joan Hummel
Explore Minnesota Tourism
651-297-4714
joan.hummel@state.mn.us

ST. PAUL, MN (May 20, 2008) Minnesota tourism businesses are optimistic that they have what budget-stressed consumers are looking for this summer: an easy, close-to-home getaway where they can relax and take a break from everyday worries.

Among the lodging and camping businesses across the state polled recently by Explore Minnesota Tourism, the state tourism office, almost half anticipate an increase in occupancy and revenue this year, and most of the others expect business to be the same as last summer. But since many people are waiting longer to make trip reservations, some businesses are concerned that they may see fewer guests this summer.

Seven in ten polled businesses expect that high gas prices will either have no effect on their business, or will actually benefit their business, with more travelers taking trips closer to home. A fifth of respondents reported fewer out-of-state customers during the past year.

"Most folks are still going to get away for some fun this summer, but they’ll be looking for an alternative to long-distance road trips and air travel - and for millions of travelers, Minnesota will be that affordable, close-to-home option," says John Edman, director of Explore Minnesota Tourism. "Our advertising targets many nearby markets like Sioux Falls, Des Moines and Milwaukee, as well as Minnesotans themselves. We expect to see more Minnesotans exploring their home state this summer, and that will offset any drop in visitors from places like Chicago and Omaha."

Although the overall number of summer travelers in Minnesota is expected to be about the same as last year, there are some changes in travel patterns. In general, people are taking more day trips, planning trips closer to home, staying fewer nights, and spending less at restaurants, attractions and gift shops during their trips. On the other hand, attractions like museums, zoos and amusement parks may get a boost from families choosing day trips and at-home vacations instead of a traditional trip away from home.

Some campgrounds are hearing from RV owners that gas prices are keeping them from traveling far from home; six of ten surveyed campgrounds are seeing fewer out-of-state but more Minnesota customers. Resorts and hotels geared toward high-income customers are especially optimistic, since these consumers are less impacted by rising gas and food costs. Bed-and-Breakfasts also have a positive outlook, as more people treat themselves to special weekend getaways as alternatives to long vacations. More resorts now offer shorter stays than the traditional week’s vacation, in response to consumer demand.

Here’s a summer preview for different areas of the state:

Minneapolis/St. Paul Metro Area
The Twin Cities area is the top destination in the state, hosting 45% of Minnesota travelers annually. Arts and cultural attractions, Twins baseball games, and family attractions like Valleyfair, water parks and zoos all draw summer visitors; this summer the Star Wars exhibit at the Science Museum and the new Nickelodeon theme park at Mall of America are added draws. Mall of America reported a 10 percent increase in international visitors last year, most from Canada and Europe. With the continued strength of the Canadian dollar and the Euro, plus new direct air service from London-Heathrow and Paris, international travel to Mall of America and the Twin Cities should be strong again this summer. In addition, its cultural and family attractions make the Minneapolis-Saint Paul area a likely destination for close-to-home vacations that are likely to be popular this year. Bloomington is aiming to draw visitors to its many hotels with "The Big Ticket" promotion, a bundled three-day pass to top Twin Cities attractions.

Southern Minnesota
Southern Minnesota is the destination for almost 20% of travelers in the state, drawing from Iowa, South Dakota, the Twin Cities, and cities within southern Minnesota. Charming river towns, scenic bike trails, historic sites, summer theater and festivals attract visitors for day trips and weekend getaways. This all positions Southern Minnesota well to benefit from this year’s emphasis on shorter trips close to home.

Northern Minnesota
More than 35% of travel is to northern Minnesota. North Woods lakes, resorts and fishing are all part of the classic image of a Minnesota vacation, and today this experience is augmented by golf, bike trails, water parks and many unique museums and attractions developed over the last 10-15 years. The Twin Cities area is a major source of northern Minnesota visitors, and this year, even more Minnesotans may decide to explore their own state rather than face air travel or cross-country drives at today’s gas prices. While some far north communities worry about losing long-distance visitors due to gas prices, some are drawing anglers who are choosing to fish in northern Minnesota rather than cross into Canada. With its wide array of tourist attractions, Duluth has continued to see an increase in travel revenue so far this year, and is projecting another strong summer tourism season.

About Explore Minnesota Tourism
As the state’s tourism office, Explore Minnesota Tourism pursues an entrepreneurial approach, leveraging the state’s tourism investment with increased involvement by the private sector. A council of representatives from the state’s tourism industry strongly connects Explore Minnesota Tourism with tourism businesses and organizations.

Tourism is a $10.5 billion industry in Minnesota, a key sector of the state’s economy. The leisure and hospitality industry, a major provider of tourism services, employs more than 244,000 Minnesotans. More information can be found at www.exploreminnesota.com.

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Note: This summer outlook is based on an informal survey of 44 lodging and camping businesses across the state conducted the second and third weeks of May 2008 by Explore Minnesota Tourism.