As a youngster growing up in Minnesota, my family participated in the time-honored tradition of vacationing at Minnesota resorts. Resorts then and today are part of the Minnesota mystique – part of what makes our state truly unique. In fact, Minnesota is the only state in the country with a trade association dedicated solely to the resort industry. But this unique Minnesota treasure faces a confluence of factors that threaten its very survival. In the past 60 years, Minnesota resorts have often faced challenges. These have included rationing in World War II, and gas shortages in the early 1970s. These have included challenges such as exotic species invading lakes, fish limits, septic system requirements, fire marshal regulations and schools beginning before Labor Day. But the issues resorts in Minnesota face today present perhaps the greatest challenge yet to the survival of the industry. Explore Minnesota Tourism, the state’s tourism marketing arm, estimates we’re losing approximately seven to 10 percent of the resorts in Minnesota each year. At a peak of more than 2,000 resorts in 1970, there are fewer than 900 operating in the state today. Why is this happening? Lakeshore property values are rising at a dramatic pace. Consequently, property taxes paid by Minnesota resort owners have become a significant burden, which the industry cannot sustain. In addition, when resort owners attempt to build new cabins, or expand existing units, they all too often are hamstrung by shoreland management regulations. Further, resort owners who might like to offer various amenities such as a water slide or horseback riding cannot due so because in our litigious society, insurance companies will no longer provide coverage, or will only do so at outrageous cost. Thus a resort operator finds him or herself trapped — unable to expand to meet consumer demand, unable to offer additional amenities on property and faced with even more burdensome regulation and rising taxes. As they chafe, frustrated by their inability to act, a developer knocks on the door and makes a very generous offer for their property, with plans to break it up and turn it into individual units, or to raze the cabins and build residential lake homes. With many years of hard work behind them, and facing imminent retirement, resort owners often make the painful decision to sell off their property for purposes other than operating as a resort. Why should the average Minnesotan care? – Resorts stimulate the local economy. In fact, a recent study by the University of Minnesota Tourism Center regarding Becker County found that it takes 60 private lakeshore homes to equal the economic impact of one 10-cabin resort. Ask any merchant in a rural Minnesota town with resorts about their impact and you’ll hear first-hand how vital it is to have hundreds of guests coming into town every summer. – It is these guests who often sustain local gift shops, attractions and stores. No resort equals no guests. We must work to sustain Minnesota resorts because resorts sustain our local economies. – Resorts provide access to Minnesota lakes. Hundreds of thousands of Minnesotans love our lakes, but cannot afford a cabin. Still others don’t want the long-term responsibility of cabin ownership, yet are willing to pay a reasonable rate for a week at the lake. Resorts provide that access to Minnesota lakes. Hundreds of thousands of Minnesotans have had their most significant nature experience at a Minnesota resort. – Finally, Minnesota resorts are great stewards of our lakes and the natural resources surrounding them. Resort operators rely on the lakes for their livelihood. They want quality lakes. Often, it is not the resort causing problems with effluent or other runoff, but the private lakeshore owner. Resorts after all are inspected by the state fire marshal, the health department and are also subject to a myriad of regulations. What can be done to preserve this grand Minnesota tradition? – First, remember there are still some 900 resorts across Minnesota’s beautiful landscape. They are eager to welcome your family and provide that unique, personal experience that onsite owners (often families) can offer. You can enjoy what Minnesota’s resorts have to offer, have an exceptional family vacation, experience nature and support the industry. Now is a great time to make your summer vacation plans. It’s not too late and you won’t be disappointed. – Second, the Minnesota legislature should consider several resort preservation measures to enhance the ability of these family businesses to survive. These could include limited market value for property taxes; reasonable shoreland management regulations, a sales tax exemption for renovation and expansion, reestablishment of the tourism loan program and increased tourism marketing funds for Explore Minnesota Tourism. – Third, Minnesota should subject lake houses that are consistently rented to transient customers to the same inspection and mandates the resorts must meet. These include reviews by the Department of Natural Resources, establishment of a tax identification number, submission of sales tax and lodging taxes where appropriate and inspection by the state fire marshal and the department of health. This not only creates a fair and level playing field, it ensures that public safety is protected. Resorts are not dissimilar to family farms. Minnesotans can help ensure the legacy of access to Minnesota’s natural resources by visiting resorts this summer, fall and winter. The Minnesota Legislature can provide assistance come January when it returns to session. The Minnesota Resort and Campground Association will continue fighting for this legendary business so the youngsters of the future can experience the joy I and countless others have heading up to the lake.
Dave Siegel is executive vice president of the Minnesota Resort and Campground Association, St. Paul. It’s the leading provider of lobbying, education and marketing to Minnesota’s resort and campground industry. More information can be found at www.hospitalitymn.com.