For Immediate Release
State of Minnesota
Summer survey shows 81% of tourism businesses stable or growing
ST. PAUL, Minn. (Aug. 29, 2022) –According to the Summer 2022 Minnesota Industry Business Conditions Survey released today by Explore Minnesota, most tourism and hospitality businesses in the state (81%) reported being financially stable or growing.
Forty five percent of survey respondents reported summer demand at or above supply. Most businesses nevertheless said they could handle, and would like, even more business.
- An analysis by business sector shows overnight accommodations and food and drink businesses faring better than attractions and entertainment businesses.
- Of the state's five tourism regions, the metro area had the highest percentage of businesses — 64% — reporting increased traffic since last summer. That compares with 52% of business in the southern region, 48% in the central region, 38% in the northwest region and 22% in the northeast region.
- More than half of businesses reported very tight labor availability and wholesale price changes of 5% or more. In the coming months and years, labor shortages and inflation could limit tourism and hospitality industry growth.
A new strategic plan
"It's encouraging to see Minnesota tourism making progress this summer," said Lauren Bennett McGinty, state tourism director for Explore Minnesota. "We hope to build on this momentum as we work toward achieving our vision of becoming a top 10 U.S. destination for extraordinary travel in all four seasons."
That vision is part of a new three-year Strategic Plan, developed over the past several months with input from stakeholders across the state who participated in virtual and in-person listening sessions at which they shared context specific to their communities, regions and sectors of the industry.
More about the industry survey
The survey, conducted in partnership by Explore Minnesota, Hospitality Minnesota and the Federal Reserve Bank of Minneapolis, yielded a total of 324 responses from a cross-section of tourism and hospitality businesses across the state, including food and drink, attraction and entertainment and lodging (hotels and motels, resorts, B&Bs and campgrounds). The survey was conducted Aug. 16-23, addressing business between Memorial Day weekend and August.
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About Explore Minnesota
Explore Minnesota leads Minnesota's travel industry by collaborating with partners and stakeholders to market the state for the economic benefit of all Minnesotans. Tourism, a key sector of the state's economy, in 2019 generated $1.1 billion in state sales tax on $16.6 billion in leisure and hospitality sales and employing nearly 276,000 workers in Minnesota's leisure and hospitality businesses.