Will Canadians vacation in Michigan this summer? Tourist towns brace for change
By Candice Williams, The Detroit News
As Michigan prepares for another warm-weather travel season, one thing is increasingly clear: President Donald Trump’s tariffs are sparking backlash that could reduce international visits to the United States — and deepening concerns that the levies may cause domestic travelers to adjust their plans.
The impact of tariffs amid a trade war is already showing up in travel from Canada to Michigan. The number of people crossing into the Great Lakes State from Canada fell 11% in both February and March, with vehicle crossings down 15% in February and 18% in March. Last fiscal year, 14.4 million travelers crossed the Canadian border into Michigan, according to U.S. Customs and Border Protection.
Tim Hygh, CEO of Mackinac Island Tourism, said he has heard of several cancellations from one day-trip tour operator based in Canada. Even though tariff-related cancellations may not impact the island’s overnight-stay business, there is concern that it could affect daytime traffic.
“You never want to see an interruption in business or any kind of a loss, especially when you’re only open six months out of the year,” he said. “So there are concerns. It won’t make or break us, but any loss is a concern.”
Dana Orlando, vice president of sales and marketing for Grand Hotel, said overall guest bookings are continuing as usual but the landmark property’s Canadian business has slowed. The hotel continues to focus on catering to a wide demographic, including multi-generational families.
“They love those traditions, and we stay true to those traditions,” she said. “So we’re trying to reach everyone.”
Tourism officials across the state are hoping for a busy summer, despite reduced air travel between the two North American neighbors and economic uncertainty threatening to cloud the outlook for hotels, restaurants and retailers up north. So far, operators say they are cautiously optimistic.
Trevor Tkach, president of Traverse City Tourism, expects more last-minute and budget-conscious travelers this summer, as many people scale back from long-distance or international trips. He described it as “a tale of two travelers” — those who are more conservative but still traveling and more affluent travelers who opt for closer destinations instead of going as far as they have in the past.
“It’s kind of reminding me of COVID, honestly,” he said. “It’s weird to say that. When we couldn’t travel as far, people still wanted to go somewhere. So we saw growth in affluent travelers then, too. Traverse City tends to find a customer one way, whether times are up or down. We end up being a pretty good landing spot because we’re a sought-after destination. We’re lucky in that way.”
Business owners like Bob Sutherland, owner of retailer Cherry Republic, are counting on people continuing their traditional summer trips to northern Michigan. The retailer has several stores in Michigan, including Traverse City, Charlevoix and Glen Arbor, with a new one opening this month in Mackinaw City.
“I think for Cherry Republic, in this time of uncertainty, we are going to be as rock solid, true to our brand, and certain and consistent,” he said. “For our customers coming north … they want that piece of peaceful, beautiful northern Michigan.”
On Mackinac Island, bookings are on par with last year so far, Hygh said. Early May is when many of the businesses at the popular tourist destination reopen to welcome tourists after a winter break.
“When I do a survey of our hotels almost weekly now, especially with the market turbulence at this point, their phone calls are steady,” Hygh said. “So at this point, it looks like it could be a good season, and we’re just grateful that all indications are good so far.”
Brian Bailey, general manager at Chippewa Hotel Waterfront, said Mackinac Island is fairly insulated from upheaval as people seek regional travel.
“People will travel shorter distances and go to a place that they know they can count on and they love,” he said.
Todd Callewaert, president of Island House Hotel, said bookings are up about 4% from the same time last year: “I’m sort of surprised at that. They’re coming in pretty strong. So I’m looking for a pretty good year.”
Canadian tourists are a small part of the hotel’s business, Callewaert said, booking about 60 nights total last year. As of early May, the hotel had booked 35 nights for Canadian residents.
“We’re going to do just fine with Canadians,” he said. “We’ll probably do the same, if not more.”
Staffing up
While some hotels say they are on pace with their summer bookings, most also report being fully or nearly fully staffed to accommodate guests.
Detroit-based immigration attorney Bob Birach estimates that about 20% of workers who staff businesses on Mackinac Island are foreign workers in the country through work visas, such as J1 and H2B.
Hygh on Mackinac Island said he doesn’t anticipate any changes to the J1 or H2B programs.
“Everything was laid in place with the last administration and the current administration has not changed anything, nor have they made any plans into the future,” Hygh said. “So no effect at this point.”
At the Grand Hotel, Orlando said the hotel is fully staffed with more than 700 employees during the peak of the season. About 80% are temporary employees, including foreign workers employed through the H2B program.
“It’s a big workforce for us,” she said. “We have to work with the government every year in order to get those. And you just never know what the number will be. And we’ve been thankful that this year we have everyone that we need.”
Mission Point expects to have all of its workers in place soon, said Leah Anderson, senior marketing and content manager. She said the hotel requests around 150 H2B work visas each year, but due to the nature of the program, there are delays. As of early May, the hotel had 68 H2B workers, she said.
“We expect the remainder to arrive by the end of May, but this does create significant challenges for us in the beginning of the season,” she said.
Promoting a ‘coolcation’
The Upper Peninsula saw $1.6 billion in total visitor spending — 5.5% of Michigan’s total visitor economy — in 2023, according to an economic impact analysis released last week by the Upper Peninsula Travel and Recreation Association. Mackinac County, which includes Mackinac Island, led with $309.4 million in visitor spending.
Visitors returning to Mackinac Island will notice some improvements this year. The Grand Hotel has completed renovations, including a new Mackinac Market and the Dorothy Draper Home shop. The Inn at Stonecliffe has updated its kitchen facilities, while Mackinac State Historic Parks is preparing a series of events to celebrate the 150th anniversary of Mackinac National Park.
New transportation options could also help boost visitation. Starting in May, United Express will begin daily direct flights from Chicago O’Hare to both Chippewa County International Airport and Pellston Airport.
Officials say ferry service to the island has improved as well. Hygh, CEO of Mackinac Island Tourism, said service is back on track following fleet issues last year, and the schedule has increased by 10%. The Arnold Transit brand has returned after a 12-year absence.
Hygh said cooler summer temperatures — 10 to 15 degrees lower than many Southern locations — are being used to promote the island as a “coolcation” destination.
“Mackinac Island is cool,” Hygh said. “Take that any way you want. The St Louises of the world, the Memphises of the world, the high heat, high humidity. We’re really trying to reach out and tell them, don’t go south, come north and get a break. Get out of the heat.”
Mission Point Resort completed a redesign of its fine dining restaurant, Chianti, and added a new Lilac Lounge. “Brighter colors, along the water,” said Mark Ware, CEO of Mission Point. “Really exquisite food.”
Liz Ware, co-owner of Mission Point, said the hotel is seeing a mix of travel behaviors, with some guests making weather-dependent, last-minute plans and others booking early. October and May travel is on the rise, she said, as guests seek more affordable shoulder-season trips.
“Summer is peak season and everyone wants to come to the island,” she said. “It’s going to be a strong season for us. And I think the other thing that people want is the experience. And Mackinac, you get this really great feeling of being able to disconnect and then reconnect with your family and your friends.”
Jeri-Lynn Bailey, spokesperson for Arnold Transit Company, said the company, previously known as Mackinac Island Ferry Company, rebranded back to Arnold Transit after a difficult 2024 that saw major fleet issues. The company invested $6 million in repairs and is now focused on dependable, no-frills service.
“We stripped it down,” Bailey said. “We’re a ferry boat company again — no gimmicks.”
A new ticketless boarding system is launching June 1, and a slower, scenic “classic service” from St. Ignace will offer rides as low as $22.50, $11.50 below a regular adult round-trip.
“It’s like you step back to the pace of Mackinac before you even step on the island,” she said.
The new season starts as Mackinac Island and the ferry companies are in a dispute over ferry operations. Shepler’s Inc. filed a complaint earlier this year alleging the city has overstepped its authority in regulating the company’s fares and schedules for ferries, prices for parking and its business operations.
Mackinac Island has filed a countersuit, saying that it has the right to regulate fees for parking and fares for Shepler’s Inc. and Arnold Transit Company, claiming that the companies’ common ownership, Hoffmann Marine, created a monopoly and eliminated competition.
Jenny Gezella, president of Hoffmann Marine, said she couldn’t discuss the ongoing litigation between the ferry companies and the city. However, she noted the $6 million investment in what is now known as the Arnold Transit ferry fleet. Shepler’s picked up the slack while Arnold Transit’s fleet was out of service.
“Shepler’s … it was hard on their equipment last year,” she said.
Regarding the rebranding of Arnold Transit, Gezella said, “You’re gonna see a whole different look and feel … the yellow star is gone. It’s back to that traditional brand of that green and red, and so lots of enhancements you’re gonna see.”
‘Maximizing our potential’
Tkach of Traverse City Tourism said the city has had ongoing development, a sign of investor confidence. Several new hotels are opening this year, including a Residence Inn on the East Bay side, plus Home2 Suites and Fairfield Inn on U.S. 31 south of the city. The old Fairfield Inn on U.S. 31 just south of the city is being converted into a Spark hotel that is scheduled to open in June. Short-term rental inventory continues to expand, and new downtown condos offer visitors a more urban option.
Traverse City is leaning heavily on its food and wine scene, he added: “As a destination, there’s some strategizing going on, so I think you’ll see more opportunities, maybe just more strategic alignment between growers, the farmers and the vendors. Being a little more deliberate to make sure we’re maximizing our potential with the consumer.”
In several northern Michigan communities, including Traverse City and Glen Arbor, Cherry Republic is fully staffed for the season, Sutherland said. The company — which does about half of its annual business between June and September — will carry 20 new products this summer. Cherry Republic has developed a balanced staffing model that includes J1 visa holders, H2B workers, college students and retirees.
“We provide spaces in an RV park so that we can have camp workers — people that own RVs and drive up here for the summer,” he said. “Usually semi-retired, and they’re terrific workers.”
Sutherland believes the workforce improvements are paying off in customer service. “We’re excited to have enough employees and fresh employees and really rock-solid people to serve our customers,” he said. “It makes a huge difference … to not have an exhausted employee whose lips are too tired to smile.”
In Grand Rapids, a year-round destination, 2025 is pacing ahead of last year in terms of visitors, said Janet Korn, senior vice president with Experience Grand Rapids.
“Through the end of March, (we’re) about 3.4% ahead of last year,” she said. “So currently we’re ahead of what we hope to be for the end of the year. So that’s a ray of optimism.”
Korn said June and July are shaping up to be “really strong” with group business. “That might hold true, because people that are planning to go to their meeting and convention at this point are likely coming,” she said. “Of course, there is all this uncertainty, but we have many reasons to believe that people who are traveling to visit their friends and relatives and coming to the Grand Rapids-Kent County area for tourism are going to come here.”
Korn noted the city’s proximity to major Midwest markets as another advantage: “We’re in this wonderful three-hour drive from Chicago, which is a large market. We’re only a four-and-a-half-hour drive from Indianapolis. And we’re only two, two-and-a-half hours from Metro Detroit,” she said. “We do get a lot of visitors coming from there.”