MUSKEGON, Mich. — Soaring gas prices could be "potentially very dangerous for the travel industry," said the vice president of Pure Michigan.
David Lorenz said anything that depresses travel volume and spending is a bad thing for the state's economy. However, the impact by high gas prices may not be what you think.
"The challenge is not actually the cost of gas during a vacation," said Lorenz, "because gas is a relatively small part of our overall travel expense. The challenge is that the high cost of gas and other things costing more, means we have less money available for us to spend when we are on vacation."
Lakeshore towns rely heavily on tourism, especially during the summer. Lorenz said most businesses in the state rely on June, July and August revenue to get them through the rest of the year.
"Tourism is a huge part of the economy here in Muskegon County," said Bob Lukens, the director of Visit Muskegon. "Annually, it brings in over $300 million in revenue to various businesses."
Lukens said there is some concern over the impact of high gas prices.
"Our major markets are the Chicago and Detroit areas," said Lukens. "Those are two major metropolitan areas about three to three-and-a-half hours from here."
However, even with that concern, Lukens said they are preparing for a busy season in Muskegon, as festivals and events have all returned.
In Muskegon, they are also focusing on outdoor activities with their tourism promotion, including the 27 miles of beach property and the various trails.
"We have a pretty extensive trail system," said Lukens. "We're seeing more and more cyclists."
Meanwhile, with the cost of gas on the rise, Lorenz suggests "staycations" for people in Michigan looking to travel. Pure Michigan has a list of "one-tank-trips" to take around the state.
The DNR also created a program last time gas prices were high to allow people to enjoy state parks and keep fuel costs down. At 31 state parks, there are areas where people can park their boat or RV for up to two weeks. The DNR's Chief of Parks and Recreation said people still use these, and expects people to use them more this spring as gas prices soar.
"There is a little silver lining on this very dark cloud," said Lorenz. "That is that Michigan is a really good value for travel. Things cost less here traditionally."
While lakeshore communities rely on summer travel, Lorenz said what really needs tourism attention are the state's larger cities, like Detroit and Grand Rapids, both for business and leisure.
"COVID hit us very hard," said Lorenz, "and our cities are the places that are still reeling from those big negative effects and impacts last year."
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