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

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Last year at this gas prices rose to morethan $4 per gallon, putting the brakex on traditional summer road trips. Now gas is back arounxd $2 a gallon, but a deep recession lingerzs after putting hundreds of thousandse of Americans out of work and causing millionas more to rein intheir “Gas prices are not as much of a concernb right now as the overall consumer confidence and people’s concernsz about their jobs and retirements,” said John who has been executivse director of for the past nine years.
this will be a particularly challenging year for Minnesota though there is hope that Minnesotansz who travel will do so closer to At Madden’s on Gull Lake in Brainerd, owner and Genera l Manager C. Brian Thuringer said this has beenthe “most of the four or five recessions he has seen during his 36 yearw at the resort. “This is the firstf time that the bottom has realltfallen out,” Thuringer said. “Before, there was alwaysw that feeling that there was a slump andthings weren’tt flowing, but tomorrow was goingf to be great. This is the firsr time when people don’t really know when tomorroew is.
” A recent survey conductedr by Explore Minnesota found that 57 percenft ofthe state’s lodging businesses saw revenues and occupancy decline in April and May as compared to a year ago. However, 51 percent of Minnesotas hotel and campground operators said they expect business to remain flat or increasee this summer compared tolast summer. About 60 percen t of survey respondents describex the financial health of their businessezsas “growing” or “stable, but There are some concerns about declining rates, but Edman expects this to be a relativelyy strong summer for the state’s $11 billion-a-year tourismn industry.
The state typically generates about 37 percent ofits travel-related revenue during the month of June, July and August, and he think s those peak months will be busy again this “People are still going to want to travel,” Edmah said. “They’re just going to travel differentl than they did inthe past. Peopl still need to get away for stresx relief andhealth reasons.” The biggest difference this year, Edman predicts, will be where peoplr decide to go. He expectd that most people will stay closerd to home andbook shorter, less-expensive trip within driving distance of where they live. That’w why Explore Minnesota is changing itsmarketing approach.
it spends about 80 percent of its marketing budgeg to promote the stateto nonresidents, with the remainingb 20 percent aimed at this year, that split is closer to 60-40. “Wew don’t have oceans and we don’t have mountains, but we do have a lot of thinges thatare unique,” Edman “Whether it’s fishing or hiking or biking, thosw are relatively low-cost activities that you can do You don’t have to go far.
” That could bode well for Minnesotaw resorts, as Twin Cities residents book tripw to Duluth or Brainerd, instead of venturinv on week-long, cross-country trips, said Dave Siegel, presidentf and CEO of Hospitality Minnesota, which overseese the state’s restaurant, lodging, and resortf and campground associations. “I think it’s goiny to be a good he said. “… I’m not projectinvg an increase, but I expect to hold their own.
” Camping and fishinvg also could see a boosr in popularitythis year, Siegel Meanwhile, officials at Minneapolis’ convention and visitors bureau, Meet Minneapolis, remainz “cautiously optimistic” about business this summer, said Presidenr and CEO Melvin Tennant. “A lot of our hospitality-industryy executives believe we’ve eithere hit bottom or are close to hitting and that from thispoint on, we’re going to be able to see some very modes growth.
… I think this summer could be very good for Meet Minneapolis advertisedits “Downtownn Sizzle” campaign, which includes discount packages at 12 participatingf hotels through September, with 450,000 promotiona l inserts in newspapers in the Twin Duluth; Des Moines, Iowa; Fargo, Madison, Wis.; Milwaukee; and Winnipeg, Getting a true read on the summer hospitality businesas is difficult, however, because people are waiting longer to book theirt trips. So even the northern Minnesota resorts that anticipatd a busy summer still have numerous openings durinvpeak months. “It’s a much more last-minute vacation-planniny experience,” Siegel said.
“I think that’s If people are nervous about theird jobs or theireconomic futures, they’red waiting until they have a greatet degree of security before they make that