Final tourism tax collection figures for 2016 won’t be tallied for a few more weeks, but every indication is it was another year for the record books. Expanded marketing efforts, a signature lineup of events, the entrance of Airbnb into the market, refreshed attractions and a 10 percent increase in hotel inventory all contributed to the success.
Looking ahead, Visit Duluth and the hospitality industry stand ready for the challenge to keep this positive momentum moving forward and to continue building our visitor base. However, several factors will create positive change or present issues to impact efforts in 2017.As the sharing economy grows, Duluth most likely will see Uber and/or Lyft enter the market sometime in the new year. With more than two-thirds of visitors coming from the Twin Cities, the expectation is that our city will offer this amenity not currently provided through traditional taxi service. Tech-savvy travelers prefer booking car transportation through the convenience of clicking an app. A new ordinance allowing this service will require City Council approval, a similar process to the one followed by the home-share ordinance.International travelers are discovering Duluth, in large part due to new marketing initiatives through Great Lakes USA. These campaigns target Germany and the United Kingdom. In addition, our visitor center welcomed walk-ins from more than 15 countries. For the first time ever, Duluth was a featured overnight stop on a multi-day itinerary traversing the Great Lakes, a trip heavily marketed in Europe. The exchange rate with Canadian currency continues fluctuating, which certainly has an impact on visitors choosing to cross the border.Stretching beyond city boundaries and recognizing Duluth as a gateway to a much greater region will be a key strategy with partner organizations across St. Louis County and the Arrowhead. This approach appeals to every demographic of traveler seeking a diverse menu of experiences within a concentrated geographic area.For instance, a hiker or mountain bike enthusiast may be enticed by Duluth’s remarkable trail system, journey to the North Shore for a completely different experience, and then venture to the Mesabi Trail for another unique option.Speaking of trails, the recent designation as one of only six IMBA Gold Level Ride Centers in the world will elevate awareness of Duluth as a mountain biking hot spot for every level of rider. Investments continue in the St. Louis River’s western corridor, creating better access to the river, improving wayfinding and signage and completing trail segments. As future development comes online, this area will thrive as a major draw to our city for decades to come.Several new hotels are slated to open during the next 12 months in the Miller Hill corridor, Park Point and Superior. Additional rooms in the market creates ripples in the lodging sector’s performance; but combined with 2016’s significant influx, it may have more of a wave effect. Consumers benefit from competition between properties, but tax collections on lower room rates can cause city coffers to feel the pinch of decreased revenue.Meetings and convention business will remain strong in 2017, but the opening of the Mayo Civic Center expansion in Rochester, Minn., positions the southern Minnesota city to compete with Duluth at a level not previously possible. Increased capacity and state-of-the-art design provide enviable leverage when wooing planners. In many respects, 2017 promises to be a transformational year for tourism with positives outweighing challenges. Anna Tanski is president and CEO of Visit Duluth (visitduluth.com). She wrote this at the request of the News Tribune Opinion page. What to Expect … Monday: … in the city of DuluthTuesday: … in St. Louis CountyWednesday: … from the Duluth public schoolsThursday: … in St. PaulFriday: … from the Northland’s economyToday: … in tourismSunday: … in D.C.Final tourism tax collection figures for 2016 won’t be tallied for a few more weeks, but every indication is it was another year for the record books. Expanded marketing efforts, a signature lineup of events, the entrance of Airbnb into the market, refreshed attractions and a 10 percent increase in hotel inventory all contributed to the success.
Looking ahead, Visit Duluth and the hospitality industry stand ready for the challenge to keep this positive momentum moving forward and to continue building our visitor base. However, several factors will create positive change or present issues to impact efforts in 2017.As the sharing economy grows, Duluth most likely will see Uber and/or Lyft enter the market sometime in the new year. With more than two-thirds of visitors coming from the Twin Cities, the expectation is that our city will offer this amenity not currently provided through traditional taxi service. Tech-savvy travelers prefer booking car transportation through the convenience of clicking an app. A new ordinance allowing this service will require City Council approval, a similar process to the one followed by the home-share ordinance.International travelers are discovering Duluth, in large part due to new marketing initiatives through Great Lakes USA. These campaigns target Germany and the United Kingdom. In addition, our visitor center welcomed walk-ins from more than 15 countries. For the first time ever, Duluth was a featured overnight stop on a multi-day itinerary traversing the Great Lakes, a trip heavily marketed in Europe. The exchange rate with Canadian currency continues fluctuating, which certainly has an impact on visitors choosing to cross the border.Stretching beyond city boundaries and recognizing Duluth as a gateway to a much greater region will be a key strategy with partner organizations across St. Louis County and the Arrowhead. This approach appeals to every demographic of traveler seeking a diverse menu of experiences within a concentrated geographic area.For instance, a hiker or mountain bike enthusiast may be enticed by Duluth’s remarkable trail system, journey to the North Shore for a completely different experience, and then venture to the Mesabi Trail for another unique option.Speaking of trails, the recent designation as one of only six IMBA Gold Level Ride Centers in the world will elevate awareness of Duluth as a mountain biking hot spot for every level of rider. Investments continue in the St. Louis River’s western corridor, creating better access to the river, improving wayfinding and signage and completing trail segments. As future development comes online, this area will thrive as a major draw to our city for decades to come.Several new hotels are slated to open during the next 12 months in the Miller Hill corridor, Park Point and Superior. Additional rooms in the market creates ripples in the lodging sector’s performance; but combined with 2016’s significant influx, it may have more of a wave effect. Consumers benefit from competition between properties, but tax collections on lower room rates can cause city coffers to feel the pinch of decreased revenue.Meetings and convention business will remain strong in 2017, but the opening of the Mayo Civic Center expansion in Rochester, Minn., positions the southern Minnesota city to compete with Duluth at a level not previously possible. Increased capacity and state-of-the-art design provide enviable leverage when wooing planners. In many respects, 2017 promises to be a transformational year for tourism with positives outweighing challenges. Anna Tanski is president and CEO of Visit Duluth (visitduluth.com). She wrote this at the request of the News Tribune Opinion page. What to Expect … Monday: … in the city of DuluthTuesday: … in St. Louis CountyWednesday: … from the Duluth public schoolsThursday: … in St. PaulFriday: … from the Northland’s economyToday: … in tourismSunday: … in D.C.
