Resort Gross Sales and Taxes Rise in 2012, Despite Fewer Resorts
Release Date: May 21, 2014
A recent report from the Minnesota Department of Revenue shows that resort sales and state sales tax revenue were up again in 2012, while the number of resorts continued to decline. Minnesota’s 827 resorts captured $261.8 million in gross sales and $15.9 million in state sales tax revenue in 2012. The 2012 annual increases (i.e., 4.1% for gross sales and 3.9% for state sales tax) marked a third consecutive year of fiscal growth, following declines in 2008 and 2009. The number of Minnesota resorts declined by 31 in 2012, following declines of 27 resorts in 2010 and 29 resorts in 2011.
The following two graphs show gross sales and state sales tax revenue for Minnesota resorts from 2004 through 2012, including regional and statewide totals. Resort data in the graphs can be found in a series of annual reports detailed to the county level here. The graphs depict growth through 2007, followed by recession-related declines in 2008 and 2009 before a return to growth in 2010. The graphs show Minnesota's four tourism regions through 2006, and five regions starting in 2007. Since regional reconfiguration essentially split the North Central/West Region into the Northwest and Central Regions, resort activity has been very similar for the three resulting northern regions (i.e., Northwest, Central and Northeast Regions), as evidenced by the close proximity of their lines on the graphs.
Total sales activity at the relatively few Metro and Southern Region resorts are considerably lower than for northern regions, and are depicted as overlapping lines at the bottom of the graphs through 2010. Beginning in 2011, the small amount of Metro resort activity was distributed equitably among the other regions to avoid disclosing information on the few remaining individual resorts in the Metro Region. This change accompanied a drop to fewer than four Metro resorts in 2011.