Contacts: Joan Hummel
651-757-1850

Michele Peters
651-757-1862
Michele.peters@state.mn.us

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ST. PAUL (May 21, 2009) In spite of the challenging economy, Minnesota tourism businesses are hoping to provide relief to stressed-out consumers by offering the affordable, close-to-home getaways travelers will be looking for this summer. Pent-up demand among consumers to take long-delayed breaks could help Minnesota lodging businesses weather this year’s financial storm.

Among the more than 350 lodging and camping businesses across the state responding to a recent poll by Explore Minnesota Tourism, the state tourism office, half expect business this summer to continue at normal levels, with 32 percent anticipating occupancy to match last summer and 21 percent expecting an increase in occupancy. On the other hand, just under half (48 percent) expect occupancy to drop from last summer, and even more, 51 percent, expect their revenues to decline as they lower rates to attract customers. Nationally, the U.S. Travel Association forecasts a 2 percent decline in leisure travel this summer.

“We are going to see people traveling closer to home, but they still want to get away,” said John Edman, director of Explorer Minnesota Tourism. “As a centrally located drive destination, Minnesota has an opportunity to reach these travelers and become their destination of choice this summer. We offer them good value. Travelers may not go as far or spend as much, but most people will still take a trip this summer.”

The economic recession has taken a toll on the travel and tourism industry, resulting in a more than 4 percent drop in occupancy at lodging businesses in Minnesota and nationally in 2008. That business decline accelerated over the winter, with tourism still struggling in the spring. In the recent Explore Minnesota Tourism poll, 57 percent of businesses reported a decline in occupancy and revenue in April and May over the same period last year.

The somewhat more positive outlook for the upcoming summer tourism season is based on hopes that frazzled consumers will be ready for a break and that Minnesota offers nearby, economical destinations. Campgrounds have the most optimistic outlook for summer, as some travelers choose camping as a more affordable vacation option this summer. Many B & Bs continue to attract guests for quick getaways and special occasion weekends, such as weddings and anniversaries.

However, more than half of resorts, hotels and motels expect a decline in business this summer over last. Hotels and motels, in particular, are feeling the impact of a significant decline in business and convention travel, and also report fewer international travelers. Those resorts with a more positive outlook cite repeat customers returning from previous years, stable gas prices, family reunions, and their own marketing efforts as reasons to be hopeful for a good summer season.

The difficult economy has led to changes in travel patterns, with consumers choosing closer-to-home destinations, taking shorter trips and spending less. Businesses responding to the summer outlook poll also reported that guests were making reservations closer to the time of their planned trip and were looking for multi-night discounts and other deals.

The majority of poll respondents, about 60 percent, rated their business’ financial health as “stable, but positive” or “growing,” although a significant number also reported declining financial health. In addition, most think that the Minnesota tourism economy will begin to recover next year.

For a summary of results to the recent survey of Minnesota’s lodging and camping properties, visit Summary Results: Minnesota Tourism Business – Pre-summer 2009.

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 an $11 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 248,000Minnesotans. More information can be found at www.exploreminnesota.com.

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