November 25, 2024 12:42 PM

Michigan: Travel This Year is Expected to Grow As Gas Prices Decrease

Michigan is not necessarily the first place that comes to mind when you think about planning a trip, but the state's popularity may surprise you. Travel to the state is expected to rise in 2013 for the second consecutive year as consumer confidence grows and gas prices remain steady, according to the Grand Rapids Business Journal.

"We really projected positive growth in the number of people visiting the state and the amount that they are spending, somewhat similar projections to last year," Sarah Nicholls, the associate professor of tourism at Michigan State University said. "What we think we are seeing is the beginning of a period of sustained, steady growth in the industry.

"2010 and 2011 were sort of the recovery years, so some of the percentage increases in terms of things like occupancy were really big just because they had fallen so much in the previous two years," she continued. "But I think what we are entering into now is, hopefully, a long period of sustained, steady growth."

Nicholls worked with tourism experts to analyze and develop projections for travel in the upcoming year. The findings were presented at the Pure Michigan Governors Conference on Tourism and Travel, held in Detroit.

They project a three percent increase in tourists visiting Michigan and a six percent increase in the amount they will spend. Gas prices are one factor they use as an indicator, and they point to a positive outcome for 2013.

"We've seen, so far, relatively steady gas prices," Nicholls said. "Gas prices only went up four percent in 2012, but, for context, in 2011 they went up 26 percent.

"People have gotten used to the prices and they are willing to travel given those prices," she continued. "As long as those prices stay relatively steady, I think for now gas prices are not going to be a major issue for us."

The return of consumer confidence also bodes well for the Michigan economy.

"I think definitely consumer confidence is increasing, so people have more confidence in keeping their job and a steady income, and they're definitely getting back into the idea of spending money on discretionary items like travel," Nicholls added.

She hopes to keep Michiganders in the state and to attract more out-of-state visitors because they bring money into the state, revitalizing the economy.

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