Sustainable Tourism in Marquette County: A Roadmap

The Economic Impact:

• Tourism drives $270 million per year in economic impact in Marquette County

• Michigan’s outdoor recreation industry generates $13.9 billion per year in economic

• Michigan’s tourism industry generates $53 billion per year in economic impact

• Michigan’s mining industry generates $3.5 billion per year in economic impact

• Combined, mining and forestry generate $26.5 billion per year in economic impact for Michigan.

• That means that outdoor recreation and tourism generate 2.5x more dollars than mining and forestry in the state of Michigan.

The Problems:

• Tourism creates strain on infrastructure but does not pay for the use of it

• Tourism can cause rising property taxes due to strain on infrastructure

• Tourism can damage environment if not properly managed

• Tourism can cause increases in traffic congestion, overcrowding, and costs of living

• Tourism can cause loss of access to things like lake frontage

• Most communities in Michigan have a tourism tax that is collected by hotels and motels but can only be spent on marketing dollars

• Short term rentals (Airbnb or VRBO) do not pay any tourism taxes

• The State of Michigan does not allow for any community in the U.P. to collect tourism taxes for public amenities, though several communities in lower Michigan are eligible

• The State of Michigan does not allow for tourism taxes to be spent on critical infrastructure (roads, utilities, or emergency services)

Some Answers

• Strategically placed tourism destinations can alleviate strain on local communities, trails, and other frequented areas

  • Types of places that can be beneficial include: information and welcome centers, parking areas and trailheads, overnight accommodations such as campgrounds and hotels, and service areas such as rentals or guide services

• Marquette County has the ability to draft an amendment to the 1974 Tourism Act which would allow it to collect an additional tourism tax that could be spent on public amenities

  • Kent County (Grand Rapids) recently drafted a similar amendment, Michigan House Bill 5048, which was was passed and generated over $9 million dollars in 2025.

• Marquette County can help lobby for Michigan House Bills 5138, 5139, and 5140 which would allow another lodging tax to be collected and spent on critical infrastructure such as roads, utilities, and emergency services

  • For example, we could spend these dollars on helping to fund the new PFAS treatment facilities in Sands Township or funding local emergency response organizations

  • There are some negative effects of these bills that need to be consider and possibly changes like the removal of local caps on short term rentals

A Plan:

Tourism can make Marquette a better place if we use it correctly. In total, a 10% lodging tax in Marquette county with a slightly modified distribution would add an additional $3.5 million per yer to our budget. A sample breakdown could look like:

• 3% goes to Travel Marquette for marketing and promotion

• 3% goes to public amenities like the marina, museums, or local trail systems.

• 3% goes to critical infrastructure like our roads, fire departments, and waste services

• 1% continues to go to UP Travel & Rec.