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State tourism on 'uphill swing'

March 24, 2006

Michigan tourism revenue increased by 4 percent in 2005, despite rising gas prices, MSU researchers said.

"We had very good weather conditions during the peak travel season in summer and fall," said Don Holecek, director of MSU's Tourism Center. "Last year we had mostly a lot of bad news — gasoline prices were high, higher than the year before, high unemployment, the economy was a little rocky, and we started hearing increasingly bad news about auto (industry) troubles."

Michigan residents make up 60 percent of the state's tourism, he said.

One trend that could contribute to the growth is "the aging population's high propensity to want to travel," Holecek said.

Tourists spend $17.5 billion each year traveling the state, which generates almost $1 billion in taxes each year, said George Zimmermann, vice president of Travel Michigan.

"Our perspective is that business was up a little last year, but 4 percent is not what I would call robust growth — it's more an inflationary increase than a big rebound, but obviously, up is better than down," Zimmermann said. "If you look at the 2005 hotel occupancy rate, statewide it's about 53 percent, and that's 10 percent below the national average."

The Legislature appropriated $15 million to fund tourism marketing in Michigan — the money will be used to bring in visitors from other parts of the country "that may not be struggling as much as we are," Zimmermann said.

Next year, schools will be required to open after Labor Day, adding at least two weeks to the tourist season, Steve Yencich, president and CEO of the Michigan Hotel, Motel & Resort Association.

"That's additional time for families to take vacations throughout the state," Yencich said. "We've hit the bottom of the trough and we're on an uphill swing."

Yencich said a lot of Michigan's business is from nearby states such as Indiana, Ohio and Wisconsin because most vacationers drive to the state.

"The increase in gas prices over the last few years have caused many people to stay away from cross country trips and stay closer to home," Yencich said. "You throw a dart virtually anywhere in the state and you're going to find a prime vacation spot."

Holecek said other counties have been more popular.

"Surprisingly, the most popular county of destination is Wayne County," Holecek said. "You have entertainment, sports events, casinos, you have people visiting other people, you have a border crossing popular with young people because you can go over there and drink at (19)."

Holecek named Kent County, where Grand Rapids is located, and Grand Traverse County as other popular tourist destinations in the state.

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