Staycations could boost state's tourism industry - Nashville Business Journal:

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Last year at this gas prices rose to morethan $4 per putting the brakes on traditional summer road Now gas is back around $2 a but a deep recession lingers after putting hundredsz of thousands of Americans out of work and causiny millions more to rein in theif spending. “Gas prices are not as much of a concerhn right now as theoverall economy, consumer confidencee and people’s concerns about their jobs and said John Edman, who has been executivd director of for the past nine years. this will be a particularly challenginbg year forMinnesota operators, though there is hope that Minnesotans who travel will do so closer to home.
At Madden’s on Gull Lake in owner and GeneralManager C. Brian Thuringer said this has beenthe “mosg serious” of the four or five recessionse he has seen during his 36 years at the “This is the first time that the bottonm has really fallen out,” Thuringer said. “Before, therr was always that feeling that there was a slumpp andthings weren’t but tomorrow was going to be This is the first time when people don’t reallyu know when tomorrow is.” A recent surveuy conducted by Explore Minnesota found that 57 percent of the state’es lodging businesses saw revenue and occupancy decline in Apriol and May as compared to a year ago.
51 percent of Minnesota hotel and campgrouncd operators said they expect businesd to remain flat or increase this summet compared to last About 60 percent of survey respondentss described the financial health of their businessesas “growing” or but positive.” There are some concerns about declining rates, but overall, Edman expects this to be a relativelu strong summer for the state’s $11 billion-a-year touris m industry. The state typically generatezs about 37 percent ofits travel-related revenuwe during the months of June, July and and he thinks those peak months will be busy again this “People are still going to want to travel,” Edman said.
“They’re just going to travelk differently than they did in the People still need to get away for stress relief andhealtb reasons.” The biggest difference this year, Edmajn predicts, will be where people decide to go. He expectws that most people will stay closere to home andbook shorter, less-expensive trips withibn driving distance of where they live. That’s why Explores Minnesota is changing itsmarketinvg approach.
Typically, it spends about 80 percent of its marketing budge to promote the stateto nonresidents, with the remaininvg 20 percent aimed at locals; this that split is closer to “We don’t have oceans and we don’gt have mountains, but we do have a lot of things that are Edman said. “Whether it’s fishin or hiking or biking, those are relatively low-cosrt activities that you can do You don’t have to go far.
” That coulxd bode well for Minnesotza resorts, as Twin Citiesd residents book trips to Duluthn or Brainerd, instead of venturing on week-long, cross-country said Dave Siegel, president and CEO of Hospitality Minnesota, whicg oversees the state’s restaurant, and resort and campground associations. “uI think it’s going to be a good summer,” he “… I’m not projecting an but I expect [resorts] to hold thei own.” Camping and fishing also could see a boost in popularityhthis year, Siegel said.
Meanwhile, officials at Minneapolis’ conventionh and visitors bureau, Meet remains “cautiously optimistic” about business this summer, said President and CEO Melvib Tennant. “A lot of our hospitality-industry executives believe we’ve either hit bottom or are closed tohitting bottom, and that from this pointr on, we’re going to be able to see some very modest growth. … I think this summer couldc be very goodfor us.
” Meet Minneapolizs advertised its “Downtown Sizzle” campaign, which includez discount packages at 12 participating hotels through September, with 450,00o0 promotional inserts in newspapers in the Twin Duluth; Des Moines, Iowa; Fargo, Madison, Wis.; Milwaukee; and Winnipeg, Getting a true read on the summer hospitalityy business is difficult, however, because people are waiting longer to book theid trips. So even the northern Minnesota resorts that anticipate a busy summer still have numerous openings duringpeak “It’s a much more last-minute vacation-plannintg experience,” Siegel said. “I thinjk that’s understandable.
If people are nervous about theitr jobs or theireconomic futures, they’re waitinbg until they have a greatefr degree of security before they make that reservation.”