Michigan State University Extension
Tourism Educational Materials - 33413999
06/06/02
Minnesota Resorts: Profile of the Industry
List of files and visuals associated with this text.
Source: Minnesota
ID: CR-FO-5937-C
Format: Full Text
Authors: MacKay, Donald G.; Lime, David W.; Simmons,
Patrick; Limback, Linda
Year: 1992
"Archived Document: This Extension Bulletin is no longer
available from the publishing state and may contain
outdated information."
Research Summaries
Minnesota Extension Service
University of Minnesota
Introduction
The Minnesota resort industry focuses primarily on the
summer season. In 1990, only 23 percent of resorts were
open year-round. Resorts often are affiliated with other
types of lodging, especially campgrounds. Most Minnesota
resorts are small; the mean and median number of units per
resort in 1990 were 12 and 8 respectively. Approximately
72 percent of Minnesota resorts offer 10 or fewer units.
Relatively few changes occurred in the resort industry
between 1986 and 1990. Mean nominal prices increased by
more than 20 percent. The number of resorts that are open
year-round increased by 4 percent. The median number of
units per resort remained constant, but the mean increased
slightly. Certain amenities, particularly those related to
trails and the outdoors, were increasingly offered during
this period.
Survey Results
This profile of resort accommodations was developed from
surveys conducted by the Minnesota Office of Tourism. A
survey is sent every two years to all resorts in Minnesota
of which the Office of Tourism has record. Operators of
the surveyed facility have an incentive to respond,
because the data becomes part of the Office of Tourism's
computerized accommodations list. The listing is used by
travel counselors to help tourists find accommodations in
the geographic area they plan to visit. The Office of
Tourism calls every establishment that does not return a
survey to improve the rate of response.
This research relies on data from 1986 and 1990. While the
information does not represent a census of all Minnesota
resort accommodations, nor a random sample, it is likely
that the information is representative of the majority of
establishments as well as accommodations that are
interested in attracting tourists. The Minnesota Office of
Tourism estimates that at least 80 percent of resort
establishments are included in the database. For 1986,
there are 1,076 resorts in the database; for 1990, 1,080
are included. The Minnesota Department of Revenue found
that 1,331 establishments filed as resorts in 1986,
suggesting that the Office of Tourism did achieve
approximately an 80 percent response rate to its survey.
For the survey, the Minnesota Office of Tourism defined a
resort as:
"A facility with indoor lodging, specifically designed to
support recreation activities, usually in a
vacation-related time span. Resorts generally offer a
variety of other facilities, such as rental watercraft,
swimming beach, water access, and occasionally campground,
golf course, trails, etc. The resort facility type is
distinguished from the hotel/motel facility type by both
its on-site recreation facilities and natural resources
and its intent as primarily a vacation-oriented versus
transient-oriented lodging facility."
Size of Minnesota Resorts
Minnesota resorts tend to be small enterprises (Vis. 1). A
resort unit is an independent sleeping accommodation which
may include one or more rooms, such as a cabin, a room
within a lodge, or a condominium. The range in size of
Minnesota resorts in 1990 was from one unit to 504 units.
The mean and median number of units per resort in 1990
were 12 and 8, respectively. The 1990 data shows that
small resorts are prevalent in all the regions of the
state. The Southeast Region reports the largest mean and
median size (21 and 9 units, respectively), but the region
as a whole includes only 1 percent of Minnesota resorts
(Vis. 1).
FIGURE 1. Number and Size of Resorts by Region (Minnesota,
1990)
(Vis. 1)
Comparing 1986 and 1990 data reveals there has been a
slight increase in the number of units per resort in
Minnesota. The mean and median number of units for 1986
were 11 and 8, respectively. In 1990, only 8 percent of
Minnesota resorts had more than 20 units, and only 4
percent had more than 25 units.
While larger resorts are a small percentage of all
resorts, they account for a majority of the units
available to tourists in Minnesota (Figure 2). Resorts
with 11 or more units, the relatively large ones, account
for nearly 60 percent of all units available. Resorts with
one to six units, or small resorts, contribute less than
15 percent of all units available.
Resorts often are affiliated with other types of
accommodations, especially campgrounds. Respondents were
allowed to identify these accommodations. Forty-six
percent of the 1,080 resorts in 1990 reported campground
facilities (Figure 3). The mean number of campsites at
these resorts is 20 and the median is 10, which implies
that most campgrounds at resorts are small. Nevertheless,
there also are some large campgrounds at resorts. Seven
percent of resorts reported that they have hotel/motel
facilities (Figure 4).
Regional Profile of Resort Accommodations
Minnesota resorts are concentrated in the northern half of
the state. Three of every four resorts in Minnesota are in
the Northcentral and Northeast Regions (Vis. 1). The
Northcentral Region contains 43 percent of the resorts in
the 1990 sample, followed in size by the Northeast Region
which contains 30 percent of the sample. Only 5 percent of
Minnesota's resorts are located in the southern one-third
to one-half of the state-including the Twin Cities.
There has been little change in the percentage of resorts
in each region over the period from 1986 to 1990. For
instance, there has been only a 1 percent increase in the
percentage of resorts in the Northeast Region, with a
corresponding decrease in the Northcentral and Northwest
Regions.
Seasonal Patterns for Minnesota Resorts
Most Minnesota resorts operate only during the summer
season, but increasingly more are open year-round.
Twenty-three percent of the sample of resorts in 1990 are
open on a year-round basis (Figure 5). This is an increase
of 4 percent over 1986.
Two percent of the resorts in the 1990 sample have unusual
open and close dates, such as only being open during the
winter months. The majority of Minnesota's resorts are
open only during the late spring, summer, and early fall.
Of the resorts that open for the summer months, the vast
majority have opened by May 15th (Figure 6). Some summer
oriented resorts tend to close beginning in mid-September,
with nearly half closed by the beginning of October
(Figure 7). There has been little change in opening and
closing dates between 1986 and 1990.
Amenities Offered at Minnesota Resorts
Minnesota resorts offer a variety of amenities for
tourists. One common feature, of course, is lakeshore
frontage. Ninety-six percent of resorts responding have
frontage on a lake (Figure 8). Tables 1 and 2 list
room-oriented and facility/outdoor-oriented amenities
available at resorts (first column), with the percentage
of all resorts in Minnesota that have the amenity on site
in 1986 and 1990 (second and third column, respectively).
Although an amenity may be available on the premises, it
may not be available in every unit at the resort (for
example, kitchens).
------------------------
FIGURE 2. Distribution of Resorts and Units by Size Class
(Minnesota 1990)
Number of Units at Resort (Size Class)
1-6 (Small Resorts): 35% Resorts, 14% Units
7-10 (Medium Resorts): 37% Resorts, 27% Units
11 + (Large Resorts): 28% Resorts, 59% Units
N=1,080
(12,439 units)
___________________________________
______________________________________
FIGURE 3. Campground Facilities at Resorts (Minnesota,
1990)
N=1,080
Campground: 46%
No Campground: 54%
_____________________________________
_____________________________________
FIGURE 4. Hotel/Motel Facilities at Resorts (Minnesota,
1990)
N=1,080
Hotel/Motel Facilities: 7%
No Hotel/Motel Facilities: 93%
________________________________________
Regional Amenities at Minnesota
Resorts Due to the high concentration of Minnesota resorts
in the Northcentral and Northeast Regions, these areas
also have the highest concentration of resorts offering
particular amenities. Some water based recreation services
are more likely to be found in Northcentral Minnesota. For
example, 48 percent of the resorts with canoes on the
premises are in the Northcentral Region; 31 percent in the
Northeast. However, a higher percentage of the
winter-related amenities occur in the Northeast Region.
For instance, cross-country ski trails and equipment
rental, snowmobile rentals, and saunas all are more common
in the Northeast Region (Vis. 9).
Amenities at Resorts Open in the Winter
The majority of the resorts open year around are in the
Northeast and Northcentral Regions (Vis. 1). As expected,
many resorts open year-round offer cold weather services
and amenities on their premises. For example, considering
all Minnesota resorts open year-round in 1990:
* 33 percent of the resorts have cross-country ski trails
* 13 percent offer cross-country ski equipment rentals
* 35 percent have snowmobile trails
* 8 percent offer snowshoe rentals
Amenities at the Largest Resorts
As expected, larger resorts have more amenities that might
be classified as "luxury" amenities. Resorts with 30 or
more units (or bedrooms) are among the largest resorts in
Minnesota. Only 3 percent of Minnesota resorts are in this
category. Nearly 68 percent of these resorts are open
year-round. These resorts offer more amenities than
smaller resorts. For instance, 71 percent of these largest
resorts offer fireplaces in rooms. Cable television in the
room is offered by 50 percent of these resorts and non-
smoking rooms are available in 35 percent of them.
Whirlpools and waterbeds in rooms are offered by 18
percent; saunas on the premises by 68 percent. Certain
outdoor-related amenities also are offered at a high rate.
Cross-country ski outfitting and bicycle rental are
available at 50 percent and 64 percent of these resort,
respectively. Sailboat rental is available on the
premises at 43 percent of these resorts.
___________________________
FIGURE 5. Resorts Open Year-Round (Minnesota, 1986 and
1990)
1986 1990
Open Year-Round: 19% Open Year-Round: 23%
Other: 81% Other: 77%
N=1,076 N=1,080
_____________________________
______________________________
FIGURE. 6 Opening Dates for Summer Season Resorts
(Minnesota, 1990)
Percentage of Minnesota Resorts Open on:
April 1: 2%
April: 15: 4%
May 1: 36%
May 15: 95%
June 1: 99%
_________________________________
_________________________________
FIGURE 7. Closing Dates for Summer Season Resorts
(Minnesota, 1990)
Percentage of Minnesota Resorts Closed on:
Sept. 1: 1%
Sept. 15: 11%
Oct. 1: 51%
Oct. 15: 75%
Nov. 1: 87%
Nov. 15: 95%
Dec. 1: 100%
_________________________________
Rates at Minnesota Resorts
Operators of the resorts are surveyed about their rates
for individual units. The survey asks each respondent to
list their lowest and highest daily and weekly rates using
their highest (in-season) summer rates, assuming two
guests and two beds per unit. Respondents are asked not to
include charges for optional services. Table 3 shows the
mean and median rates for the entire state in both 1986
and 1990.
While the mean nominal daily and weekly minimum rates for
individual units increased substantially from 1986 to
1990, the rate of increase was actually not much greater
than the rate of inflation. Over this four-year period,
the travel price index increased 20.6 percent and the
lodging component of the travel price index increased 21.5
percent (U.S. Travel Data Center 1990). On the other hand,
the mean nominal daily and weekly maximum rates increased
31.5 and 34.2 percent, respectively. These increases were
10 and 12.7 percentage points higher, respectively, than
the inflation rate for lodging.
Discussion
Between 1986 and 1990, the Minnesota resort industry
remained relatively stable. This stability stands in
marked contrast to the earlier decade. In a 1984 study,
Chad Dawson, former marine recreation and tourism agent of
the Duluth Sea Grant program, found that ". . . from 1970
to 1984, the number of resort businesses declined 38
percent . . . the number of rental units declined
an estimated 18 percent. . . ." (Dawson 1985). Today there
is reason for optimism. During the last four years the
number of resorts has stabilized, the average number of
rental units per resort has increased, and many resorts
have broadened their appeal by adding amenities, such as
moving into the winter market or linking their properties
to outdoor trails.
To maintain this stability the industry will need to
appeal to a changing clientele who seek not only quality
service but also expect diverse activities. Direct capital
improvement is not the only way to meet these needs. Most
resorts are located in areas of many attractions, events,
and outdoor recreation opportunities that complement the
offerings of the resort. Marketing the attractions of the
region along with the specific features of the resort
broadens the appeal of the entire area.
There are many examples in Minnesota of area-wide
cooperative marketing campaigns. Businesses, chambers of
commerce, and public recreation providers work together to
provide information on visitor attractions and facilities.
The end product results in an information and marketing
message with wider audience appeal. This message is likely
to lure a greater number of travelers to the destination
and those travelers will be more satisfied.
To be successful the resort industry also must build for
its future. Two obvious population trends should be
considered when resorts think of their future business
health. The growing number of older, middle-aged people
(the empty nesters, 50-64) and seniors (over age 65) will
continue to be an increasingly important market. Older
Americans frequently have more time to travel and tend to
stay longer. They are willing to travel during the colder
seasons when prices are lower and areas less crowded.
These people tend to look for quieter, less physically
demanding activities such as golf, walking, and visiting
historic sites and museums. They also have led the demand
for seasonal campsites in lieu of a vacation home.
Identifying and meeting the needs of an aging market is
necessary for the industry to maintain its present state
of stability.
____________________________
FIGURE 8. Lake Frontage at Resorts (Minnesota, 1990)
No Lake Frontage: 4%
Lake Frontage: 96%
N = 1,080
_____________________________
__________________________________
TABLE 1. Minnesota Resorts Offering Various Unit or Room
Amenities on site in 1986 and 1990
Unit or Room Amenity 1986 1990
Percent Percent
_________________________________________________
Units with kitchens 90.1 93.2
Indoor plumbing in all units 89.1 93.0
Individual units are secluded
from each other by trees
or distance 60.6 63.1
Pets allowed in rooms 50.1 50.6
Units with patio or balcony 33.1 42.1
Units with fireplace in room 20.0 21.9
Units are usable by guests
in wheelchairs (including
bathrooms) 17.7 19.3
Cable television in rooms 10.2 10.6
Non-smoking units 3.3 5.7
Whirlpool in room 1.1 1.5
Selected highlights:
* A low percentage of Minnesota resorts offer
non-smoking units.
* A low percentage of resorts have wheelchair
accessible units.
* Pets are allowed in units at half of the resorts
surveyed.
* The percentage of resorts with these amenities has
changed little between 1986 and 1990, when viewed on a
statewide basis, other than the number of resorts
offering units with a patio or balcony.
------------------------------
The resort industry must also meet the needs of the
growing number of families who vacation with their
children. These families want active recreation and
participatory attractions. A recent Gallup Poll (Edmondson
1991) reports that baby boomers (born between 1946 and
1964) consider family as a "very important" part of their
lives. They plan to spend more time taking short vacations
and pursuing hobbies and recreational activities.
Increasingly they are placing higher value on meaningful
family experiences over job commitments. This means
families may have more time together but perhaps less
money to spend.
-------------------------------
TABLE 2. Minnesota Resorts Offering Various Facility or
Outdoor Amenities on Site in 1986 and 1990
_____________________________________________
Facility/Outdoor Amenity 1986 1990
Percent Percent
______________________________________________
Fishing boats 92.8 91.4
Swimming beach 80.1 79.6
Playground 55.5 61.9
Canoes 51.3 56.2
Hiking trails 29.4 34.7
Day care or babysitting 26.9 26.0
Laundry 14.3 21.1
Sauna 12.3 14.0
Bike trails 11.2 12.7
Outdoor pool 7.4 8.4
Bike rental 5.2 7.8
Tennis courts 7.1 7.0
Golf course 2.6 3.0
Selected highlights:
* A variety of trails increasingly are offered at
Minnesota resorts.
* Water based recreation services, other than swimming
pools, are offered by a majority of Minnesota
resorts.
* More resorts are offering playgrounds, but the number
of resorts where day care or babysitting is available
has not changed.
* More resorts have laundry facilities in 1990.
FIGURE 9. Outdoor Amenities by Region (Minnesota Resorts,
1990)
(Vis. 9)
TABLE 3. Mean and Median Rates at Resorts in Minnesota in
1986 and 1990
______________________________________________________
1986 1986 1990 1990
Mean Median Mean Median
_____________________________________________________
Daily Minimum $40 $38 $49 $49
(% responding) (70%) (70%) (72%) (72%)
Daily Maximum $54 $50 $71 $64
(% responding) (59%) (59%) (64%) (64%)
Weekly Minimum $210 $200 $263 $250
(% responding) (81%) (81%) (82%) (82%)
Weekly Maximum $281 $252 $377 $340
(% responding) (70%) (70%) (74%) (74%)
These rates are nominal rates and they have not been
adjusted for inflation. 1986 n=1,076; 1990 n=1,080
____________________________________________________
Selected highlights:
* Mean nominal daily minimum rates have increased by 23
percent from 1986 to 1990.
* Mean nominal weekly minimum rates have increased by 25
percent from 1986 to 1990.
Literature Cited
Dawson, Chad. "Growth in Minnesota's Lodging Industry."
Tourist Travel Notes 22 (1985): 2.
Edmondson, Brad. "Burned-Out Boomers Flee to Families."
American Demographics 13 (December 1991): 17.
U.S. Travel Data Center. The 1989-90 Economic Review of
Travel in America. Washington, DC: U.S. Travel Data
Center, 1990.
This information is for educational purposes only. References
to commercial products or trade names does not imply
endorsement by MSU Extension or bias against those not
mentioned. This information becomes public property upon
publication and may be printed verbatim with credit to MSU
Extension. Reprinting cannot be used to endorse or advertise
a commercial product or company.
This file was generated from data base TD on 09/30/03.
Data base TD was last revised on 06/06/02.
For more information about this data base or its contents please contact
alexande@msue.msu.edu . Please read our
disclaimer for important
information about using our site.
