Michigan’s tourism industry has been battered the past five years, the victim of 9/11, a poor economy, a weak business travel market and under-promotion. Visitors spend $17.5 billion a year on Michigan travel, $12.6 billion of that for leisure travel and $4.9 billion for business travel. The industry employs 193,000 Michiganians, and it generates $971 million in taxes for the state treasury.
No data better portrays the state of Michigan’s tourism industry than statewide hotel occupancy, ADR (average daily rate) and RevPAR (revenue per available room) from Smith Travel Research. At 53.5% in 2005, Michigan hotel occupancy is down 7% from 2000 and trailed the nation in 2005 by 10%. In 2005, Michigan’s average daily rate was 16% below the national average, revenue per available room was 29% below the U.S. average, and Michigan ranked 50th of the 50 states for hotel occupancy.
