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

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ST. PAUL, MN (September 9, 2008) Travel in Minnesota continued at close to normal levels this summer, though tourism-related businesses faced some unusual challenges this year. Concerned about the economy, budget-conscious consumers are not spending money in the same ways they have in the past and that is having an impact on lodging accommodations and other businesses that benefit from tourist dollars.

Overall, people took fewer trips, stayed fewer nights, traveled closer to home, and spent less money while on their trips, according to Explore Minnesota Tourism, the state’s tourism promotion office.

At many Minnesota lodging businesses, including hotels, resorts and campgrounds, occupancy this summer was down somewhat from last summer, reflecting a national trend. Lodging revenues for the year to date appear to be up a bit, although they declined somewhat during the summer.

“Tourism continues to be a stable part of the Minnesota economy, and most lodging businesses are reporting positive financial health,” says John Edman, director of Explore Minnesota Tourism. “During my own family vacation at a Minnesota resort this summer, it was interesting to see that most of the other guests there were visiting from other states, in spite of the gas prices.”

Many lodging businesses and destinations reported a strong summer season, drawing guests who chose a Minnesota vacation over a longer-distance destination, and retaining many repeat customers who return every summer. Favorable exchange rates continued to draw travelers from Canada. Cool weather got things off to a slow start at Minnesota State Parks early in the season, but park visits rebounded with the warm, sunny weather of July and August. The Minneapolis-St. Paul area got an end-of-the season boost when the Republican National Convention filled 16,000 hotels rooms last week.

Tourism businesses have a moderate outlook for the fall travel season, with most expecting to have an average season. As they did this summer, consumers will continue to take leisure trips, but their low level of confidence in the economy will influence travel spending until the economy improves.

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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