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  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Tourism Fuels Economic Growth in Michigan's Upper Peninsula, Generating $1.6 Billion in 2023

A new economic impact analysis reveals that tourism in Michigan's Upper Peninsula (UP) continues to be a powerful driver of regional growth, with $1.6 billion in total visitor spending in 2023.

UPPER PENINSULA, MI, May 05, 2025 /24-7PressRelease/ -- A new economic impact analysis reveals that tourism in Michigan's Upper Peninsula (UP) continues to be a powerful driver of regional growth, with $1.6 billion in total visitor spending in 2023. This represents an increase of 7.7% compared to 2022. The report, based on spending estimates provided by the Michigan Economic Development Corporation (MEDC), highlights significant increases in lodging, food and beverage sales, and outdoor recreation, reinforcing the UP's status as a premier travel destination.

"Tourism is the economic backbone of the Upper Peninsula," said Tom Nemacheck, Executive Director. "From lodging and dining to outdoor adventure and local shopping, visitors provide vital support to our communities, businesses, and workforce."

Key Economic Findings
● Top Counties by Visitor Spending:
○ Mackinac County led with $309.4 million, followed by Marquette County ($268.3 million) and Chippewa County ($176.2 million).
● Fastest-Growing Tourism Economies:
○ Menominee County saw the highest year-over-year growth (+11.8%), with strong gains also reported in Mackinac County (+10.4%) and Houghton County (+9.6%).
● Tourism's Statewide Impact:
○ Visitor spending in the UP accounted for 5.5% of Michigan's total visitor economy, with Mackinac (1.06%) and Marquette (0.92%) leading regional contributions.

Spending Trends Reflect Booming Travel Demand

The report highlights shifting visitor spending patterns that signal a strong post-pandemic tourism recovery:
● Lodging Sees Record Growth – Overnight stays accounted for $484 million in spending, with Mackinac County generating the highest lodging revenue ($116.5M).
● Dining Experiences on the Rise – Visitors spent heavily on food and beverage services, particularly in Marquette County ($62.6M).
● Outdoor Recreation Thrives – Spending on recreation activities totaled $351.9M.
● Transportation Spending Up – Increased road trips and regional travel contributed to $280.0M in transportation-related spending.

Tourism Supports Thousands of Local Jobs

The economic benefits of tourism extend beyond visitor spending, providing thousands of jobs and essential tax revenue:
● Employment Impact:
○ 11,643 direct jobs supported by tourism, with a total of 17,049 tourism-related jobs, representing 11% of the UP's total workforce.
○ Mackinac County (34.2%) and Keweenaw County (32.2%) rely most on tourism employment.
● Labor Income & Tax Revenue:
○ Tourism generates $392.3 million in direct wages and $654.8 million in total labor income.
○ Visitor spending contributed $170.9 million in state and local tax revenue, benefiting public services and infrastructure.

Looking Ahead

As travel demand continues to rise, the UP is well-positioned for continued growth. Expanding tourism offerings, enhancing outdoor experiences, and promoting sustainable travel will ensure the region remains a top destination for visitors nationwide.

"These findings reaffirm that tourism is not just a seasonal activity—it's a critical industry that fuels jobs, small businesses, and economic prosperity across the Upper Peninsula," said Tom Nemacheck.

About UP Travel & Recreation Association

Since 1911, the mission of UP Travel & Recreations has been to ignite wanderlust and equip visitors with resources to explore Michigan's Upper Peninsula, a mission that significantly impacts tourism by drawing national and international attention to the region's natural beauty and recreational opportunities, thereby bolstering the local economy. Visit UPtravel.com

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