May 11, 2004
Wisconsin State Journal

Gas Prices Not Expected to Hurt Tourism; State Official Points Out That Transportation Usually Accounts for About 6 Percent of a Trip’s Cost  

Rising gasoline prices won't hurt Wisconsin tourism this summer, the state's top tourism official predicted Monday.

"We don't think it'll make a difference overall," said Wisconsin Department of Tourism Secretary James Holperin. "If it gets up to $2.50 to $3 a gallon, it may have more of an impact."

The tourism secretary also released a study of traveler expenditures that showed a 1.25 percent increase last year statewide. Travelers to Wisconsin spent about $11.7 billion in 2003, generating about $1.9 billion in state and local tax revenue, according to the study. Tourists spent $11.57 billion in the state in 2002.

Holperin said because transportation usually is about 6 percent of the cost of a trip, gas price increases won't raise the total cost that much. Travelers spend the largest portion of their money shopping for retail goods, according to the study.

Higher gas prices also may cause families to take shorter trips and boost Wisconsin tourism, said Romy Snyder, executive director of the Wisconsin Dells Visitor and Convention Bureau.

"We've obviously seen gas prices reach high levels in the past," she said. "We don't expect that gas prices this summer will keep our visitors at home."

The average price of gas in the state, not adjusted for inflation, hit an all-time high Monday of $1.96 per gallon, according to AAA Wisconsin.

Last year, Milwaukee County ranked first statewide in traveler spending with about $1.6 billion while Dane County ranked second with about $1 billion, according to the study, conducted by Davidson-Peterson Associates of Maine.

Sauk County , which includes Lake Delton and the water parks near Wisconsin Dells, ranked third with $947 million.

Winter-traveler spending in the Wisconsin Dells area rose nearly 32 percent last year to $167 million, Snyder said.

"We have without a doubt evolved into a four-season destination and it's the indoor and outdoor water parks that have led the way," Snyder said.

Deb Archer, president of the Greater Madison Convention and Visitors Bureau, said winter travel also is a priority in Dane County , where winter spending rose about 4 percent last year. But the area's biggest season remains May through August, when 30 percent of total visitor spending occurred last year.

Archer said tourism spending in the county supported 18,574 full-time jobs and contributed $89 million in state and local taxes.

Door County ranked seventh in traveler expenditures behind Waukesha , Brown and Walworth counties.

Holperin said his department is focusing on several tourism trends that include:

* Eco-tourism: Activities like bird watching, kayaking and bicycling are increasing in popularity. Next week, he said, the state's first birding trail will open in northwestern Wisconsin and more are planned elsewhere.

* E-marketing: The department may expand its e-mail marketing efforts.

* Arts and culture: Baby boomers are interested in these activities and the department is working with local communities to develop more of them.

"Diversity really is the key to the future of the tourist or hospitality industry in this state," Holperin said.