Michigan’s Upper Peninsula attracts visitors all year round, and every season has something to offer, making the Upper Peninsula a popular travel destination.
The Western UP Planning and Development District (WUPPDR) wanted to know the economic impact of tourism in its region, so in 2022, the WUPPDR contracted with the University of Michigan’s Economic Growth Institute (EGI) to conduct an analysis of the economic impact of tourism in the Western UP.
“There has been a lack of local data on the impact of tourist spending,” explains WUPPDR Executive Director Jerry Uhlemmer. “Some spending data is available from the state, but it’s not based on comprehensive research that includes on-site data collection through surveys. With this detailed data, we can better communicate the overall impact of tourism to stakeholders and the public.”
The WUPPDR is a state-designated planning and regional/federal economic development district promoting a stable and diverse economy in the western UP. Its member governments include Baraga County, Gogebic County, Houghton County, Iron County, Keweenaw County, Ontanagon County, City of Hancock, City of Houghton, City of Wakefield, Village of L’Anse, Village of Ontanagon, and the charter towns of Calumet and Portage Counties.
According to the University of Michigan Economic Growth Institute’s website, the institute leverages the university’s resources, research, technology and expertise to foster innovation that helps local and state communities positively impact their economies.
The WUPPDR study was funded by a grant from the U.S. Department of Commerce’s Economic Development Administration and involved extensive field research, including seasonal surveys of tourists visiting the region. EGI then analyzed the data and released its report in May.
The study explored visitor preferences and behaviour in western Uttar Pradesh, focusing on the region’s diverse outdoor activities, visitor satisfaction, tax revenue generated from tourism and employment revenue in the tourism industry.
Eli McClain, research project director, said he hopes the findings will help inform future growth of tourism in Uttar Pradesh and policy decisions by local governments, chambers of commerce and business leaders.
How the study was conducted
EGI collected data through multiple surveys of tourists visiting western Uttar Pradesh and businesses that serve them or depend on tourism, as well as local residents, tourism employees, government and chambers of commerce, analysed the data and prepared the final report.
“We looked at where tourists were going, what activities they participated in, why they came to the Western UP, how much they spent, their demographics and where they were from,” McClain said.
Data was collected and analyzed on trip duration, group size, visitors’ hometowns, trip purpose, activities, destinations, visiting seasons, household income and visitor expenditures. EGI then compiled a so-called Net Promoter Score, which measures visitors’ satisfaction and the likelihood they would recommend a visit to western UP to family and friends.
What the study found
Visitors made an estimated 2,076,847 trips. Visitor satisfaction was high, with the majority of visitors saying they would recommend traveling to the region again. Researchers found that the most popular activity was public camping. The appeal of other activities, such as hiking, biking, skiing, snowmobiling, and exploring the area’s natural beauty, varied depending on the season.
Skiers at Mont Ripley, Michigan Tech. Winter sports such as skiing and snowmobiling attract tourists to the area.
The study found that tourists spending an average of $356.61 per person staying for four days spent $232.84 per person if they stayed at a campground or RV park.
The researchers also looked at the number of jobs and job revenues in tourism-related industries, including accommodation, food and beverage, recreation and entertainment, transportation and retail. They found that 2,401 jobs generated $99.2 million in revenue, most of which was spent locally, positively impacting the local economy.
Tax revenues from tourism totaled $45.5 million in combined local and state taxes.
Visitors came from 48 states and abroad, with the majority coming from Michigan, Wisconsin and Minnesota.
McClain said he wasn’t surprised by the findings because researchers try not to go into studies with preconceived ideas.
“We try to approach every project with an open mind,” he explained. “We just want to engage with the people who visit, live and work in the area and find out what’s unique about the region.”
McClain, a New York native who now lives in Ann Arbor, said he is excited to visit the western UP himself and learn more about the region while interacting with tourists and locals.
The report does not include recommendations for action. The EGI’s role is to provide information that local governments, businesses and individuals can use to decide where to make further investments, to consider tourism in planning and to find ways to promote non-seasonal activities to attract more tourists, he said.
Reaction to the report
“Tourism is a key component of both the business and cultural life of Gogebic County, and the data in this report shows just how big a role it plays,” said Michael Meyer, director of the Ironwood Area Chamber of Commerce. “One of the most gratifying aspects of the report is that our Net Promoter Scores, which measure visitor satisfaction and recommendation, ranged from 70% in the summer to 88% in the spring, indicating that visitors are enjoying their stay and recommending a trip here to their friends.”
The chamber has posted the full report on its website and distributed it to its members, and “we plan to host in-person workshops where businesses and organizations can analyze the specific portions of the results that pertain to our county and see if they can develop new marketing and operational strategies that better align with the data in the report,” Meyer said.
Mary Beth DeFazio, president of the Lake Gogebic Area Chamber of Commerce, also found the report beneficial. DeFazio, owner of the award-winning AJ’s Lodge & Oven on the north shore of Lake Gogebic, said the report opened her eyes to underserved markets and opportunities in her community.
Most people who visit Gogebic Lake come to ride snowmobiles in the winter and ORV/ATVs in the summer, DeFazio said. She and the chamber of commerce know there are a lack of ORV/ATV trails in the area and are already working hard to add more. “We need to cater to people who are coming to see the Northern Lights and create more special events,” she said.
“We need destination marketing,” DeFazio continued. “We need to give people a reason to come and a reason to stay.”
The Lake Gogebic Area Chamber of Commerce will hold a strategic planning meeting in March and will discuss the WUPPDR report at the next chamber meeting. “We need to look at things from a 20,000-foot perspective,” DeFazio said.
The report’s analysis reinforces the importance of tourism as an economic driver, said WUPPDR’s Uhlenmaa. “This analysis can be used to educate local government officials, community groups and the general public about the importance of tourism both regionally and locally. We hope the results of this project will inform our regional efforts and will use this material in future regional efforts,” he said.
The final Economic Impact Report can be found at Understanding Tourism.
Impact on Western Uttar Pradesh
Jennifer Donovan is a reporter with more than 40 years of experience writing and editing for daily newspapers, magazines and universities. She retired as director of news and media relations at Michigan Technological University and lives in Houghton.
