Chicago
CNN
—
Every morning this winter, hotel owner Kelly Doyen looked out her window and hoped to see the snowmobiles at the Gwynn Model Town Inn covered in snow.
“We're one of only four hotels with snowmobile trails right on our property,” said Doyen, who co-owns a hotel in Michigan's Upper Peninsula with her husband. In the past season, that competitive advantage drew about 800 snowmobilers, the northern states' top winter sport, to a hotel in Gwinn, Mich., about 20 miles from Marquette.
This year, Doyen said he often saw muddy roads instead of fresh powder.
Well, the season is coming to an end, “Sales are down 70% compared to last winter,” she said. “We've been through some pretty tough situations.”
The 2023-2024 season was the warmest winter on record in the lower 48 states, according to NOAA's National Centers for Environmental Information. Changes in weather have a major impact on the festivals, events, and tourism that define the Great Lakes' identity and generate income for the people who live and work there. Overall, eight states experienced record-breaking warm seasons, including Wisconsin, Michigan, New York, and Minnesota, as well as North Dakota, Iowa, Vermont, and New Hampshire.
Instead of a winter wonderland, tourists have experienced less snow, less ice, and fewer opportunities for outdoor activities over the past few months. Small business owners and local industries scrambled to adapt. Less outdoor ice skating may lead to more indoor ice skating. Less snowshoeing means more pickleball in some places.
Doyen said the loss in revenue was about $70,000. She is one of several business owners in the Midwest who are staying afloat on winter sales until the summer tourism season begins. Since she bought the property in 2020, just before the coronavirus outbreak, Doyen has invested most of her profits into renovations, she said. Operating costs total $15,000 per month. With bookings down, her husband quit her 401(k) to keep her open.
“For the last six months, I've spent every night here because I can't afford to pay people here,” Doyen said. “We're down to the last $20,000, so we have to make it by June.”
“I'm depressed. I'm tired.”
Event and revenue meltdown
Severe drought conditions have spread across parts of Wisconsin and Michigan and increased in Iowa during the winter due to reduced snowfall, according to the U.S. Drought Monitor. The situation has become so serious that the governors of Michigan, Minnesota, and Wisconsin have announced that businesses affected by the drought may be eligible for loans from the Small Business Administration.
“From skiing and snowshoeing to winter festivals, snowy winters are part of the Minnesota way of life,” Gov. Tim Walz said in a March 7 news release. It impacts small businesses that rely on snow and winter tourism to grow and survive. ”
Susan Esler, CEO of Travel Market in Michigan, told CNN that hotel bookings are down 16% from Christmas through March this year.
“We rely on snow for outdoor activities,” Esler said. “Reservations are down. Business is down.”
Erin Hooley/AP
Sunlight reflects off Lake Michigan at Montrose Harbor on an unseasonably warm day in Chicago, Tuesday, February 27, 2024.
Estler estimates that about 30 percent of tourism revenue is spent on hotels. That means the remaining 70% supports the local economy, from gas stations to grocery stores to restaurants.
“All of them are affected,” she said.
Data from the Bureau of Economic Analysis highlights the importance of climate, especially snow, on business owners' bottom lines. Snowfall activity in states concentrated around the Great Lakes adds hundreds of millions of dollars to the region's economy, according to the BEA. For example, according to the BEA, snow activity in Wisconsin added him $83.6 million in 2022, and Michigan added about $130 million the same year.
Several events that normally draw large numbers of tourists to the market have had to be canceled this year. This includes his UP200, a dog sled race in Alaska and a qualifier for the famous Iditarod race.
“Safety is our top priority and given the lack of snow and high temperatures, we are committed to providing a safe race,” UP200 President Darlene Welch said in a statement posted on the UP200 website in February. I can't do that.''
Esler pointed to the UP200, which still holds an outdoor festival in place of a race, as an example of companies quickly adapting to what could become the new normal.
“It's really time for an adjustment,” she says. “We’re hoping for early spring and early summer. [businesses] You'll be able to start recouping some of the money you lost over the winter. ”
christopher germain
Snowy winter roads in Michigan, February 7, 2023
Christopher Germain, CEO of the Lake Superior Community Partnership, said some ski resorts are offering summer kayaking packages and special event and wedding packages to offset lost winter revenue. He said it offers outdoor space. Germain added, “Some small businesses are collaborating with each other to host special dining events.”
Partnerships and discounts
Jermaine, Esler, and Doyen are all immigrants who moved to northern Michigan, drawn to the majesty of the Upper Peninsula's winters.
“We actually interviewed it in the winter, towards the end of January, and it was absolutely breathtaking,” Esler said. “The identity of UP, especially the market, is and always has been very tied to the winter season. So it's very unusual for this to be done.”
Doyen said one of the most challenging aspects of hotel availability is the inability to provide more visitors and activities, and therefore ancillary income to nearby residents.
“The fact that we were without anyone hurt our community as well,” Doyen said.
Despite the challenges, Doyen still loves running the inn and wants to keep the doors open for as long as possible.
“We really take care of our guests and we take care of our community.”
Doyen told CNN he plans to offer a 20 percent discount during the spring in hopes of attracting more tourists.
Looking ahead, Germain said, “I can't plan for another season.”
