MINNEAPOLIS— New numbers show that tourism in Minnesota collapsed this summer.
In a survey by the Federal Reserve, Hospitality Minnesota and Explore Minnesota Tourism, half of 266 hospitality and tourism industry respondents said business was slower than in 2023.
“We saw a decline in occupancy overall,” said Aliah Vanchelli, general manager of the Sunset Bay Resort in Appeldoorn on Lake Mille Lacs.
Summer told a different story at Sugar Lake Lodge near Grand Rapids.
“Honestly, it was incredible,” said owner Abby Oxborough. “One of the better summers we’ve had.”
Oxborough says family reunions have boosted her business. That is a customer segment that Vanchelli also focuses on.
“Everyone is a little stricter about how much they spend and what they spend on, and I think quality time is the push forward [to get them here]’, said Oxborough.
Companies in the survey cited the high cost of living as one of the reasons why customers stayed away this summer.
Inflation has fallen significantly, but 60% of respondents said increasing their own spending was also a major challenge.
“We have seen the increase in the costs of food, transportation and alcohol,” Vanchelli said.
Oxborough says Sugar Lake wages are at an all-time high.
It was also a rainy summer, which didn’t help.
Despite all this, the survey found that two-thirds of companies were optimistic or neutral about the outlook for the next six months.
‘That’s always there [question] with an election and what the economy is going to look like, will people want a vacation?’ said Oxborough. “We don’t know.”
Vanchelli says Appeldoorn’s has added new amenities and thinks business will be excellent next year.
