Northwest Planning Region
Water and Wilderness

Outdoor tourism is an important economic engine in northwestern Minnesota.

By Nate Dorr

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Summer in northwestern Minnesota is as good as it gets anywhere in the country. Most people have blocked out thoughts of wind chills and turtlenecks and are playing outside as much as possible. Many counties in the Northwest Planning Region rely on the surrounding lakes and wilderness areas to attract vacationers. Of course, these visitors will spend money and come to love the area. But tourism is more than just an industry that employs seasonal or student workers. It also serves as a tool to attract highly skilled and talented workers living outside the region.

Urban studies theorist Richard Florida addresses “quality of place” and how knowledge-based workers develop a sense of attachment and belonging to a certain place. Applying this concept, local businesses and recruiters hope those highly skilled workers will consider extending their vacations into a permanent residence.

Recreational activities and visiting friends or family are the main attractions for visitors to the region. [1] The abundance of lakes and regional shopping centers and the slower pace of life are all assets. Northwestern Minnesota is also a haven for ATV riders and snowmobilers, accounting for nearly 48 percent of Minnesota’s ATV rider population and 44 percent of the snowmobiler population. [2]

In Lake of the Woods County, also known as the “Walleye Capital of the World,” tourism-related industries account for more than one-fourth of the total gross sales for the county. The information in Table 1 shows which counties in the northwest are most dependent on tourism and why tourists are visiting each area. Not surprisingly, most people come there to get away and relax.

 

Table 1

Northwest Minnesota's Top 10 Tourism Dependent Counties
County	Tourism Portion of Total Gross Sales 1	Primary Purpose of Trip 2
Lake of the Woods	26.7%	Fishing (29%)
Mahnomen	16.3%	General Leisure (20%)
Becker	9.4%	General Leisure (20%)
Crow Wing	9.2%	Own Cabin/Vacation Home (27%)*
Polk	9.0%	Pleasure and Recreation (46%)
Beltrami	7.9%	Pleasure and Recreation (81%)**
Hubbard	7.8%	Pleasure and Recreation (81%)**
Douglas	5.8%	Pleasure and Recreation (40%)***
Morrison	5.8%	Own Cabin/Vacation Home (27%)*
Cass	5.0%	Pleasure and Recreation (81%)***

 

¹ Source: Minnesota Sales and Use Tax, 2007, County by Industry, NAICS 451, 711, 712, 713, 721, 722.
² Source: University of Minnesota Tourism Center, At a Glance reports, 2000 through 2007.
*      Brainerd area information used due to proximity.
**    Leech Lake area information used due to proximity.
***  Ottertail County information used due to proximity.

Using tourism-related employment trends, we can figure out which seasons are the busiest for restaurants and resorts in the northwest. Job seekers in this industry can expect to find more employment opportunities from May to September. These opportunities sometimes turn into year-round employment depending on the occupation and situation. Economic developers and businesses might also use this information for developing a marketing strategy to recruit potential workers. Recruiters might consider partnering with resorts and hotels, food and beverage businesses, and parks and historical establishments to showcase the employment opportunities of the area. The quarterly change in tourism-related employment over two years is shown in Figure 1.

Much like the construction sector, the accommodation and food services sector employs a large portion of the region’s workers (22,800 jobs or 10.5 percent of all employment) [3] and has one of the largest seasonal employment changes. Accommodation and food service employment showed the most seasonal change, with a low of 17,543 employed in the first quarter of 2008 to a high of 22,800 in the third quarter of 2008 (a gain of 30 percent or 5,257 jobs). Of course, these seasonal employment gains drop off again as winter rolls around. The accommodation, amusement/gambling/recreation, and museum/parks/historical sites subsectors show the most seasonal employment variation among tourism-related industries in the northwest. The food services and sporting goods/hobby/book/music stores subsectors are less seasonally variable.

Just how big is tourism in northwestern Minnesota? The tourism industry in the region recorded $960 million in gross sales during 2007. [4] This activity, not including personal income or property tax, added roughly $56.8 million to state and local tax rolls through sales and use taxes. Although tourism accounts for only 5.7 percent of total gross sales for the region, this industry pays 18.1 percent of total sales and use taxes for the region. So, despite a lower average weekly wage for industry employees, tourism activity plays a major role in the maintenance of public services.

Similar to an export market, tourism is a great way to bring in outside sales revenue. Last summer’s high gas prices kept people close to home and introduced the media-friendly term “staycation.” This summer, gas prices have been relatively low but unemployment has been near historical highs in the state.

Resort owners in the region remain optimistic, but they have had to offer special packages and deals to keep their lodges filled. Like many resorts in the region, the Quarterdeck Resort in the Brainerd Lakes area has been experiencing a moderate decline in bookings compared with last summer. Last minute bookings increased and some year-after-year returning vacationers cancelled their trips due to uncertainty about their jobs and income.

Lee Seipp, whose family has owned and operated the Quarterdeck Resort for 32 years, said the north woods setting and environment (including trails, lake access and local events), all within an easy day’s drive from larger cities, are key elements in attracting visitors. Shorter stays and special deals make vacationing in the region even more affordable.

“The need for Minnesotans to get out and recreate or visit family will always be there,” Seipp said.

Like the folks fishing on Lake of the Woods or Leech Lake, job seekers in today’s economy are waiting for that next bite. People looking for work in northwestern Minnesota’s tourism industry will likely find something, especially when the industry has the second most job vacancies in the region. [5]

For recruiters chasing the elusive knowledge-based worker, the best marketing opportunities are from early summer to the colorful fall months at restaurants, bars, hotels and resorts. Collaborating with these tourism business partners will strengthen the local economy for manufacturers and health care industries alike.

For more information on northwestern Minnesota, check out these Web sites :

Ingenuity Frontier
www.ingenuityfrontier.com

ISeek Regional Websites

Crookston, East Grand Forks, Roseau, Thief River area 
www.iseek.org/northwest/index.html

Bemidji, Lake of the Woods, Park Rapids area 
www.iseek.org/headwaters/index.html

Alexandria, Detroit Lakes, Fergus Falls, Moorhead area 
www.iseek.org/westcentral/index.html

Brainerd, Leech Lake, Little Falls area
www.iseek.org/northcentral/index.html