After coming off a financial high for most of 2008, people who work in Duluth's tourism industry are cautiously optimistic the recession won't cause a major slide in revenues this year.
"Last year was a record year for the DECC. Considering the recession, I feel almost guilty saying that," said Dan Russell, executive director of the Duluth Entertainment Convention Center. He said one-time events such as the Tall Ships Festival and Finn Fest helped propel the DECC to a particularly great year.
Duluth collected 3.4 percent more in tourism taxes from hotels and restaurants in 2008 than in 2007, and 2007 was a good year.
"2007 was our best year ever," said Lorri Drake, general manager of the Hampton Inn on Lake Superior, which opened in 1997. She said that while 2008 didn't quite match 2007, it still turned out better than 2006, which also was a good year, she said.
There was a distinct slowdown in business during the second half of 2008, according to people who work in the tourism industry.
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Hotel rooms at the Hampton Inn weren't filling as fast, for instance.
"We were still filling up, but not seeing a lot of excess demand," Drake said.
Russell said seven major company parties scheduled at the DECC were canceled at the end of 2008
Hotel occupancy rates began dropping steadily beginning in September in St. Louis, Douglas and Carlton counties, according to Smith Travel Research of Hendersonville, Tenn.
"It got more difficult in the fourth quarter, and that's no secret," said Terry Mattson, executive director of Visit Duluth.
Early signs are that the recession probably will take a significant bite out of the area's tourism business this year, but local tourism officials are hoping that while some travelers will decide to skip a trip to Duluth, others will downgrade from a grander trip and come here.
The travelers they have in mind are people like Sauk Rapids, Minn., residents Tim Meemken, 58, and his nephew Nicholas Heinemeyer, 11, who came up for both a business trip and for a chance to do a little museum and zoo hopping.
"He's never seen Duluth during the winter," Meemken said of his nephew. Normally, the family comes up in the summer.
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Drake pointed out that her hotel didn't notice a drop in business during the 2001 recession. To help boost revenue this year, Drake said her hotel has been targeting more advertising toward the Twin Cities market. "Now we're actually having to go out and say, 'Hey, we're still here.'"
Mattson said that, so far, reservations for hotels are continuing to fill up.
"So far in 2009, our inquiries, our convention bookings, everything people have in the books is equal to if not higher than 2008," he said.
Just not losing ground this year seems to be everyone's goal, he said. "Flat is the new up."
