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The state of tourism

May 27, 2009

Michigan is heading into the national spotlight this summer as millions of dollars are poured into advertising campaigns and promotions to spark tourism in the state. It may not be Florida or California, but Michigan is taking strides to compete with leading tourism industries across the country and, according to officials in the state, it’s standing on its own.

“We have the ability to reach a broader market this year, creating an interest for markets that we have not seen before,” said Brad Van Dommelen, president of the Traverse City Convention and Visitors Bureau.

As these markets expand, Michigan is not only expecting an influx of tourists from within the state, but from outside as well.

Visitors from states such as Wisconsin, Iowa, Mississippi, Kentucky, Pennsylvania and Virginia are coming to Michigan, while border states continue to provide strong tourist flows, Van Dommelen said.

Pure Michigan

On the heels of the Pure Michigan advertising campaign, officials in tourist hot spots such as Traverse City and Mackinac Island are feeling optimistic about what lies ahead.

“We are certainly looking to get tourists from all over the country and I think the Pure Michigan campaign has begun to show some fruits from those efforts,” Rep. Wayne Schmidt, R-Traverse City, said.

Launched in late March, the ad campaign has the biggest budget Michigan has seen for both in-state and out-of-state tourism promotion. The $30 million budget already has helped boost tourism in the state and will continue to draw in visitors from all over the country, said Dave Lorenz, manager of public and industry relations for Travel Michigan.

A $10 million cable TV advertising campaign will also help promote Michigan tourism in different states.

Millions of dollars in funding for ad campaigns might seem excessive in hard economic times, but the tourism industry cannot afford to lose the money, Schmidt said.

“I am committed to having that kind of funding for the state,” Schmidt said. “In these tough economic times, cuts need to be made, but we need to continue to fund tourism.”

Michigan on the map

The NCAA Men’s Final Four brought more than 100,000 people to Michigan and might have sparked an interest in the state that will continue into the summer, Lorenz said.

“People will come for a big event with some low expectations because of Detroit’s reputation,” Lorenz said. “What happens is that people find that Southeast Michigan is a very delightful place to visit … it’s very likely that they will come back and tell their friends what a great place this is.”

The Final Four featured MSU, Villanova University, the University of Connecticut and the University of North Carolina, all schools within driving distance of Michigan.

Increases can be seen in visits to areas of the state even after Memorial Day weekend. A 9 percent increase in Memorial Day traffic to Traverse City is exciting, said Alex Mowczan, owner of the Comfort Inn and Best Western Four Seasons hotels in the city.

“I think it will play out in our favor that those people are not going to take that long trip,” Mowczan said. “They are going to take those short trips in Michigan.”

The advertising for Michigan not only is focused on destinations like Traverse City. It calls attention to other areas in the state looking to attract tourist attention.

“We are extremely excited to be a partner with Travel Michigan,” said Jamie Furbush, president and chief executive officer of the Frankenmuth Convention & Visitors Bureau. “Those Pure Michigan ads that launched nationwide were not specific to our destination … and really the sky is the limit as soon as our ads that are Frankenmuth-specific hit the airwaves.”

Since the campaign, visits to Frankenmuth’s Web site have increased by 400 percent, Furbush said. Advertisements for the city began this week in Toledo, Ohio, and will begin in Detroit next week.

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The state’s Web site, Michigan.org, also has experienced extra attention since Pure Michigan launched. Visits to the site have increased 17 percent from the same time last year, with out-of-state visitors also increasing significantly, said Lorenz. In April, visits from Fort Wayne, Ind. increased 326 percent; Ontario, Canada by 148 percent; and Milwaukee by 61 percent, compared to 2008, Lorenz said.

About 7 percent of all visits to state travel Web sites are directed at Michigan.org, something Lorenz said might be enough to entice tourists into taking the next step and travelling to the state.

“If you can get someone to sample something that’s good, they are more likely to buy it,” Lorenz said.

Positive indications

This logic seems to be working as officials are seeing increases in tourism numbers in April and May.

This April, for the first time since 2001, Mackinac Bridge crossings increased by 10 percent. Tourism might be up for various reasons, said Don Holecek, director of MSU’s Tourism Resource Center. Perhaps the biggest factor in the success over Memorial Day weekend is the weather, Holecek said. Gas prices play the next largest role in tourism numbers, with lower prices attracting more tourists.

Finally, an active Pure Michigan campaign might have a steady effect on the tourism industry, Holecek said.

“It’s really too early to make a call on whether it’s Pure Michigan or anything else that may be causing some spike in this activity,” Holecek said. “My guess is that it’s weather as much as anything else.”

Good weather might be the catalyst that drives Michigan tourism, but other officials attribute success to economic conditions.

“People are still going to travel, they’re just looking for bargains this year,” said Pap Black, executive director of the Marquette County Convention and Visitors Bureau.

High hopes …

More Michigan residents are taking “stay-cations” — remaining in their home state for vacation — as the economy keeps them closer to home, something state officials are keeping in mind.

“I think we are encouraged by the number of inquiries we are getting and we do hope that will translate into more visitors,” Van Dommelen said. “Nobody is downplaying the impact of the economy.”

The Upper Peninsula was originally expected to dip 7 percent this year in tourism flows, Black said. She said that while this summer might not be a “barn burner,” Marquette will still see gains in its industry as the city welcomes tourists from other cities like Chicago.

“Every year that I have been here, we have significantly done better,” Black said. “Now, last August was the best month we’ve ever had in the history of the convention and visitors bureau, and I don’t know if we can beat that. … If we come in within last year, I’m going to be just fine.”

Some tourist attractions in Western Michigan are expecting an upturn in tourism traffic this summer.

About 30,000 visitors are expected in Muskegon every year, a number that could double within three years, said Bryan Hughes, executive director of the Great Lakes Naval Memorial and Museum in Muskegon.

The museum saw the same, if not more, tourists this Memorial Day weekend than last year, Hughes said. A popular overnight children’s camping program is already booked through 2010.

“I think that what we’re seeing is that our overnight program is staying strong,” Hughes said. “We anticipate an increase in tourism this summer that’s very significant.”

… Realistic expectations

Although Lansing is primarily a convention and business meeting destination, the city is doing well compared to its other competitors in the state, said Tracy Padot, vice president of marketing for the Greater Lansing Convention & Visitors Bureau.

The city is expecting 12,000-15,000 visitors this weekend for its annual Be A Tourist In Your Own Town event. The increase in attendance gives hope to Lansing’s tourism industry, even if it is convention-based, Padot said.

“We’re optimistic that we’ll hold our own,” she said.

Originally forecasting a 2-4 percent decline in the Michigan tourism industry, Holecek said he will stick to his predictions.

“We may be closer to 2 percent than 4 percent, but we don’t know what’s going to be the fallout of the auto industry bankruptcies,” Holecek said.

Tourism officials are keeping their optimism in check as the economy falters.

“We certainly always hope that the current year will eclipse the year before,” said Jill Foreman, tourism manager for Muskegon County Convention and Visitors Bureau. “At the same time, with the economy, we’re being realistic with our expectations.”

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