In need of a lift: Northern Michigan‘s ski industry

Dec. 12, 2007

The Michigan ski (snowsports) industry has been challenged in recent years. On the surface, it appears that weather pattern changes attributed to global warming effects are the cause. Certainly that hasn’t helped, but if you shovel under the light snowfalls of recent years, one will find additional challenges. Industry experts point to more than the weather for the ups and downs they have experienced in recent years. Not all is negative though; early snow falls and cold temperatures this year have all ski facilities here in Northern Michigan feeling very optimistic for the 2007-2008 season.
If you talk to anyone who operates a ski resort or downhill ski facility Up North, they all agree: “We have the product here in Northern Michigan, but it’s felt that backs have been turned on us in Lansing.”
A big frustration for the industry has been the lack of promotion coming from Travel Michigan, the tourism promotional arm that is part of the Michigan Economic Development Corporation (MEDC), a branch of State Government.
“For the second year in a row, they are not spending a dime to promote winter tourism,” said Steve Kerschner, director of snow sports at Shanty Creek in Bellaire and president of the board of directors for the Michigan Snowsports Industry Association (the group that represents all of Michigan’s ski facilities). “They have invested millions using actor Tim Allen’s voice to create Pure Michigan commercials that promote summertime, but nothing to promote winter. They tell us that they get a better bang for their buck that way. But winter tourism is important to this state. Collectively, our resorts up north spend a ton of money promoting winter.The State could help some.”

WATER WINTER WONDERLAND
Ed Grice, general manager of Boyne Mountain, agrees.
“Our state nickname used to be Water Winter Wonderland (look at an old Michigan license plate),” said Grice. “That still rings true. We have a beautiful area, and it’s one of the reasons why people come here year-round.”
A check of the official Travel Michigan website, michigan.org, found that information about “winter” does exist, but it is buried in the site. In the “Attractions” menu of the site, there is no mention of winter attractions. Instead, the site is promoting amusement and water parks, along with zoos and casinos. In general, the site is difficult to navigate, and combines travel information with economic development information.
A visit to neighboring states’ websites – and winter tourism dominates, and those sites are easier to navigate. Wisconsin, for example, has loads of easy-to-access information on winter opportunities for travelers, and the header of their homepage is all about winter. The Illinois tourism site leads in with winter travel opportunities, and has a “Three Day Winter Getaway” promotion including a downhill ski and snowboard package. Even Tennessee, on their travel website, is all about winter with their “Come Home To A Tennessee Winter,” tagline promoting everything from skiing to ice sculptures.
So what gives in Michigan? I called Travel Michigan, and their response was, “the lack of funding - but we did make a commercial promoting three Upper Peninsula ski resorts.” Yet they were unsure if the commercial was airing currently.

UP NORTH: ON ITS OWN?
All resorts, like The Homestead in
Glen Arbor on the Leelanau Peninsula. are taking national marketing efforts into
their own hands.
“The weather is out of our hands. The economic conditions, however, have forced us to change our marketing strategy to attract more visitors from locations outside Michigan,” said Jamie Jewell-Vanduzen, sales & marketing director at The Homestead Resort. “In fact, regardless of the season, we are finding ourselves marketing more to travelers who live in neighboring states.”
At Crystal Mountain Resort in Benzie County, PR Manager Brian Lawson concurs.
“One of the challenges we face is letting people know what Michigan has to offer during the winter months. The ‘Pure Michigan’ campaign has provided a powerful message that has motivated people to investigate all the wonderful summer opportunities in Michigan. Those same opportunities, if not more, exist here during the winter months as well,” said Lawson. “We need the state to commit the funds to mount an effective winter campaign. With the state’s economy struggling, it’s never been more crucial to attract out of state visitors, which in the end will not only provide more revenue, but also more jobs for the state.”
While Michigan’s struggling economy has been blamed for challenges in the State’s tourism industry, one startling fact indicates that the answers to an improved tourism economy might be right here in Michigan. According to the Travel Industry Association of America, last year, for the tenth year in a row, Michigan was the only state in the Midwest with a tourism deficit. Michigan residents spent nearly $3 billion more on traveling out of Michigan than non-residents spent while traveling in Michigan last year. In fact, Michigan residents took 3.5 million more trips to out of state destinations in the U.S. than non-residents took to Michigan.
If other states in the Midwest are able to keep more of their residents for in-state travel, why isn’t Michigan? This fact frustrates Kerschner and his colleagues.
“That is ridiculous. It is obvious that while sectors of our economy are challenged, many Michiganders have the money to travel to other states to vacation,” said Kerschner. “I think it really gets down to the fact that many people in this state are unaware of what they have in their own backyard.”
COOL INVESTMENTS
Kerschner’s frustrations are echoed by Stephen Kircher (the two are often confused), president of Boyne USA Resorts eastern operations, who in a press release to media earlier this fall expressed concern over Michigan’s current economic climate.
“People don’t have to ask me why we are expanding outside of Michigan,” said Kircher, whose family owns ski resorts in several states. “The business climate in Michigan is terrible right now, and Lansing is not helping the situation. You would think that when it comes to winter tourism, our legislators would protect the one facet of the business that is still bringing in tourism dollars.”
Kircher’s comments were a result of concerns over the pending service tax Michigan planned to place on lift tickets. That service tax was put in place for one weekend, and Steve Kerschner of the MSIA and Shanty Creek said that it just added to their industry’s frustrations.
“As an industry, we had to spend a great deal of time and energy this year battling the service tax they wanted to put on lift tickets, energy and dollars that should have been spent marketing our industry,” Kerschner said. “Well, it passed - and we had to spend one weekend charging the tax. Then they repealed it after the weekend; and so now we are spending money and time refunding those that we charged the tax to over that weekend. We can track down those that bought season passes, but for those who just bought lift tickets for the day-it will be impossible,” he continued. “You have to wonder if they have any clue what they are doing down there in Lansing.”
Kerschner adds that the lack of support coming out of Lansing is equally frustrating considering what he and his colleagues have been investing in to improve the quality of their facilities. Even though Boyne USA Resorts have been making substantial investments in projects outside of Michigan, they have also invested millions in upgrading their Michigan operations, as have Kerschner and crew.
“At Shanty Creek, we have invested more than $20 million dollars in improvements,” said Kerschner. “We have the goods here and we are making the investment because we believe in the product. Now we need Lansing to do the same.”
Brad Keen, general manger of Boyne Highlands near Harbor Springs, agrees.
“At Boyne Highlands, we just invested $400,000 in new state of the art snowmaking equipment, giving us new low-energy snowmaking capabilities,” said Keen. “Our challenge is not with the quality; it really gets back to the challenge of attracting the traveler.”

THE MIDWEST ADVANTAGE
Ed Grice of Boyne Mountain goes back to the state of the economy, pointing to the fact that much of Michigan’s winter tourism season, in particular for the ski resorts, was built around the success of Michigan’s auto industry.
“The auto workers, their suppliers, and all of the business spawned off the big 3 are our customers,” said Grice. “Their recreational dollars are harder to come by and we need to do all we can to give value to the money they spend, or they won’t be back.”
Despite the challenges, Kerschner doesn’t want the Michigan ski and snowboard industry to be viewed in a negative way.
“It is important to separate the challenges of operating the business versus the actual product itself,” said Kerschner. “When you look at the product we have to offer outdoor winter enthusiasts, Northern Michigan by far is superior to anywhere else in the Midwest.”
James R. Bartlett, general manager at Nubs Nob near Harbor Springs, agrees.
“We have lake effect snow, giving us some of the best snow conditions anywhere in the country,” said Bartlett. “Throw in all the amenities our resorts have and the first class customer service, and the product is definitely here.”
Kerschner even says Michigan has some advantages over western states.
“We don’t have 3,000 foot runs, but the size of our facilities gives us the opportunity to better groom our slopes,” said Kerschner. “I also believe there is an affordability factor in regards to if you live in the Midwest; we are more accessible for a shorter stay versus going out West, where you are talking about spending a week.”

SKIING VS. SNOWBOARDING
As for other concerns, such as harmony between snowboarders and skiers, that is no longer an issue at any of the ski facilities in Northern Michigan. Most facilities report that about 30% of their business comes from snowboarders, and most ski resorts have special areas for snowboarders.
“In addition to that fact, we have areas that specifically appeal to snowboarders and areas typically used by skiers. We have found that more and more people participate in both activities. This has created a built-in etiquette of co-existing.”
Brad Keen points to changes in ski technology that have resulted in more kids taking up skiing versus snowboarding.
“The ski technology has changed so much in recent years that even my kids have converted back to skis, especially the twin tips,” said Keen.
And as for the weather, the early snow and cold temperatures this year are positive signs for the industry.

WEATHER BUZZ
“The weather conditions this year have provided us with more opportunities to produce significant snow in that short window of time,” said Missy Smithwick, sales & marketing director at Caberfae Peaks Ski & Golf Resort near Cadillac. “We expect more runs to open sooner. That results in providing a better product and experience for our season pass holders and the general skiing/boarding consumer at large,”
Kerschner adds: “If we are lucky, our season is 120 days. For years, the target date was to be open by Thanksgiving weekend. In recent years for many of us, we hope to be fully operational with all lifts for that week between Christmas and New Years. So with each weekend were open before that, not only does it improve the bottom line, but it creates momentum for the whole season. There is real excitement in the air right now for all of us in the business.”
Kerschner says that in conversations with his colleagues, there is a real buzz about this year, at least from a weather standpoint. But the question remains: Will Lansing step up and resume their promotion of Michigan being the snowsports capital of the Midwest?
According to the now defunct Michigan State University Tourism Research Center, Michigan’s winter tourism industry represents around 30 percent of the state’s total tourism economy. Last year, Michigan’s tourism economy generated about $15 billion in economic impact. Hmm, that means winter tourism contributes $4.5 billion to the Michigan economy. It seems we can’t afford to lose any more businesses in Michigan – and certainly not ones that are making this kind of contribution to the economy.
To learn more about ski and snowboard opportunities in Northern Michigan and the several programs that the industry has created to introduce newcomers to their sport, visit www.goskimichigan.com. Currently there is a ski-for-free program for fourth graders as well as a “Discover Michigan Ski” promotion in January with specially priced lift tickets for families interested in taking up skiing.