DATA REFLECTS IMPACT ON TOURISM
Pandemic wallops Door County business
DOOR COUNTY - When public health officials urged visitors to avoid Door County as the COVID19 pandemic spread to the region in March, local businesses feared the financial repercussions short- and long-term closures might bring.
As the county cracked open in mid-May, tourism industry leaders anticipated people would eventually visit the area. With flights limited and travel restrictions going up, primarily Midwestern visitors coming for day trips were expected — and now data shows those predictions may have been right.
County lodging data comes with asterisks
The Wisconsin Department of Revenue reported Door County collected roughly 0.5% more in sales taxes so far this year than the same timeframe in 2019. That matches input from several area businesses that told the Door County Advocate they experienced a busier season than usual.
The county fell short with room tax collections though, according to Door County Tourism Zone Commission data. Lodging guests pay room taxes when they book, and the tax makes up 5.5% of the total cost.
The lowest countywide room taxes collected appeared in April, when the total plummeted to $6,803 from $43,362 the month before. During that month, people shuttered businesses and canceled events at rapid rates, and Door County Public
Health reported the area’s first COVIDrelated death. The county collected $73,854 in room taxes in April 2019 and nearly $68,000 in 2018.
Michael Goldstone, innkeeper at Church Hill Inn in Sister Bay, said his hotel lost all business in April, and improved little in May. Over the next three months, more guests booked rooms, but he guessed about 50% to 60% fewer than normal years, with midweeks noticeably slower. The most significant drop-off in guests Goldstone experienced came after Chicago deemed Wisconsin a high-risk state in late July. Church Hill Inn filled up on weekends in August, though.
Goldstone also noted a “complete change in guest profile” likely caused by the fact that older people are at higher risk of severe symptoms if they catch COVID-19.
“We normally cater to (an) average guest age of 50s, (but) this year most of our return guests canceled and did not re-book for fear of their health,” Goldstone wrote in a survey response for the Advocate. “However, we are seeing many more new guests whose average age is probably 30-50.”
In contrast to Goldstone, Lane Samuelson’s rental cottage in Carlsville stayed busy over the past several months. Regardless of the pandemic, the cottage was entirely booked, which impacted Samuelson’s revenue positively.
Some other lodging entities, like Samuelson’s, experienced good business despite the circumstances. The county’s average daily room rate actually increased from $169 in June 2019 to $185 this June, according to Door County Tourism Zone Chair Josh VanLieshout.
There are some asterisks to that increase, though. VanLieshout said properties reported about 20,000 fewer available rooms this year than in 2019, as well as an occupancy rate that dropped from 53% to about 41%. Another caveat: The zone noticed a record number of lodging entities that did not report this data. VanLieshout couldn’t say for certain why fewer people reported or why the average daily rate increased.
Businesses navigate low incomes, less traffic
Wisconsin Department of Transportation data proved the county experienced a decrease in travelers. The department continuously tracks how many vehicles pass certain primary locations in a given area. Like tax data, April showed the most significant change in patterns.
One marker on State Highway 57 in Dyckesville, which most travelers pass before crossing into Door County, counted 36% fewer vehicles in April this year compared with the same month in 2019. Last year, April traffic at the same location increased 13% from 2018.
Typically by mid-June the county’s tourist season is in full swing. Compared with 2019, traffic this June dropped an average 3% across five DOT-monitored locations — Michigan Street, Oregon Street and Sturgeon Bay bridges as well as State Highway 57 in Dyckesville and State Highway 54 in Rankin. The Michigan and Orgeon Street bridges stretch parallel to each other in downtown Sturgeon Bay, but 17% more vehicles crossed the former this June than in 2019, while Oregon Street Bridge dropped 25%.
Other business owners’ finances took a hit due to the lack of visitors. Not only did businesses cut hours or alter operations elsewhere — like Goldstone, who canceled Church Hill Inn’s breakfast buffet and closed its exercise room — but costs stacked up for items like personal protective gear to keep shops functioning safely.
Lodging entities ramped up cleaning practices; some kept rooms open for a few days between guests to rid spaces of any possible bacteria. However, Door County cleaning businesses faced similar cuts to income.
Lyneea Ramey’s business Keepin’ Door County specializes in tidying vacation rentals. She expects her earnings for the entire year to equal what she made in just July of 2019. Her schedule remained consistent last summer, but this year Ramey dealt with an average of five last-minute cancellations each day.
Heather Laughlin, owner of Uncle Tom’s Candy Store in Ellison Bay, faced “a ton of extra costs” from setting up shop in her garage. But moving outside also helped; Laughlin said business boomed after the outdoor store opened on Memorial Day weekend. That’s the same time emergency orders around Wisconsin relaxed and people began moving about more freely.
“Being outside gave our customers more freedom to stop by and shop while easing their minds a little with the extra safety precautions and room to spread out,” Laughlin said. “I was nervous getting started, but it sure proved to be a blessing and I am so thankful we are able to be open.”
Still, Laughlin said overall income is down as a result of being closed all spring.
For Margaret Magle, owner of OtherWorlds Books and More in Sturgeon Bay, the loss of business during the pandemic cleared out her personal and business savings.
Magle closed the store for two months, and during that time she and her husband also lost their other jobs due to COVID-19. Along with setting up the store’s website to sell items online, Magle used Facebook Live and an eBay web store. Although she’s figured out methods to keep business going, Magle said another shutdown would be a “struggle.”
Like Laughlin, Magle adjusted the store for COVID-19 safety. She limited occupancy so six to 10 people could come in at once, and set out hand sanitizer. OtherWorlds customers also had to wear masks, a change not everyone cooperated with.
“Those who didn’t like the changes and restrictions were especially rude,” Magle said. “We endured threats, being yelled at, some business people were spit at. Thankfully, the good outnumbered the bad.”
Despite these issues, Magle and Ramey feel “a renewed sense of community” as the city promoted buying local and made accommodations so restaurants could space tables outdoors.
“I hope small businesses can pull through,” Ramey said. “There’s a couple of us that have been reaching out and taking care of each other.”
With just under half of 2020 left, and likely many more months navigating altered lifestyles to prevent spreading COVID-19, Door County’s tourism industry awaits a full understanding of what long-term effects the pandemic caused on businesses and the local economy. By late October, July and August data will be published to further detail this summer’s tourism activity.
Many people expect this year’s total sales and room taxes collected to fall below normal, according to VanLieshout, although people he’s spoken to predict smaller losses now than they did earlier in the pandemic.
“My intuition and some of the feedback I’m getting is with a later start, and some schools and communities deciding not to do fall sports, I think there’s optimism we’ll have a good August,” VanLieshout said. “That could be a good thing for lodging in Door County. I would expect that to extend to other businesses involved in tourism.”