DULUTH, Minn. _ The Callan family finished their Northern Waters Smokehaus sandwiches and strolled along the Lakewalk a few hours after they arrived in town the Friday before Labor Day. The parents and their young girls were heading back to Roseville that night, but they hoped to catch a quick glimpse of a ship before heading north to explore Gooseberry Falls.
"We decided we weren't going to stay up here this year just because we didn't want to be in a lodge or a hotel," Chris Callan said.
Duluth's tourism industry is way down this year, as visitors are opting for day trips and avoiding coronavirus trouble spots such as hotels, indoor restaurants and enclosed attractions. Locals are hoping the fall colors can draw some extra business to dampen the devastating impacts of the pandemic.
"This just isn't sustainable," said Anna Tanski, president of Visit Duluth, the city's nonprofit tourism bureau.
The city collected $1 million in tourism taxes for July, down about 25% from what Duluth took in during the same month in 2019.
Duluth spent decades painstakingly cultivating its tourism sector, branding itself as a haven for those who love long hikes or craft brews (preferably both). Now the industry's pandemic-fueled struggles threaten to upset the economic ecosystem that relies on visits from millions of out-of-towners each year.
Though campgrounds and resorts up the North Shore booked up earlier this summer as Minnesotans made vacation plans close to home, Tanski said Duluth hotels were 60% full on an average weeknight in August. After the cancellations of major events such as Grandma's Marathon and the Bayfront Blues Festival, more people are treating Duluth as a road trip stop instead of a final destination.
Last year the city brought in a record $12.4 million in revenue from its tourism taxes on food, beverages and lodging that are funneled back into local attractions.
Mayor Emily Larson said Duluth's latest projections estimate this year's collections will be down by more than one-third. She's already told organizations not to expect additional tax money due to more pressing financial obligations.
That means the Great Lakes Aquarium had to push back major work on two exhibits, including a new 1,200-gallon alligator habitat. The Lake Superior Zoo had to ask for extra time to pay back a line of credit. Visit Duluth will likely have laid off almost all its staff by the end of the month.
"It's a domino effect," Tanski said.
