TRAVERSE CITY — A battered economy, high unemployment and a struggling manufacturing sector would seem like enough challenges facing the state — but Michigan's tourism industry says it's also suffering.
The state's top tourism leaders will gather this week in Mount Pleasant for a "Driving Tourism 2006" summit where they'll plan for the coming tourism season and discuss ways to convince state lawmakers to pump more promotional money into the state's $3 billion a year tourism industry.
Industry officials said Michigan lags badly behind other states in dollars spent on tourism promotion. The state ranked among the top 10 in the country in tourism promotional spending in the early '90s, when it spent more than $10 million a year. That total slipped to $5.7 million last year — 31st in the country — and well behind other regional states such as Illinois at $48 million a year and Pennsylvania at $32 million annually.
"Some of these other states are cleaning our clocks," said Brad Van Dommelen, the recently hired president of the Traverse City Convention & Visitors Bureau. "We've depended on Michigan residents for too many years to drive Michigan's tourism."
Van Dommelen said one barometer of the state's tourism troubles is its hotel occupancy rate, currently hovering around 55 percent. That's last in the nation and about 10 points behind the national average.
"Michigan has a world-class tourism product," he said. "It's not a product problem, it's a promotion problem."
Alex Mowczan bought the Best Western Four Seasons Motel in Traverse City five years ago. He's seen a slow but steady increase in business over the years but expects the region could do better with more state support.
"I don't think the Traverse City tourism market is losing ground per se, but I think it's not growing the way it should be," Mowczan said. "If some of these other states are outspending us almost 10 to 1, that's crazy."
But industry officials said some of the fault lies with a tourism sector with diverse interests ranging from small bed-and-breakfasts to large-scale resorts and golf courses.
"I don't blame the governor, I don't blame the Legislature...I blame our industry for failing to press our lawmakers to address the situation," said Steve Yenich, head of the Michigan Hotel, Motel and Resort Association. "We weren't talking to each other."
The industry is encouraged that state officials agreed to spend up to $15 million from the 21st Century Jobs Fund for tourism promotion, but there's disagreement over how to use the money. Some in the tourism industry wants it spent within two years to help catch up to what's being spent by other states, while some state officials want it spread over three-to-five years.
The two-day conference combines the annual tourism gatherings of Travel Michigan, Michigan State University and the hotel/motel association into a single summit on tourism issues.
From the Traverse City Record Eagle - 03/26/2006
