MOORHEAD, Minn. — Minnesota resorts got a reprieve this week. For many, it might keep them in business through the coronavirus pandemic.
Gov. Tim Walz's office directed the state Department of Tourism to tell resort owners they could open and accept guests, clearing up an area in the state's shelter-in-place order that some considered gray. Previous orders allowed those who rented an RV spot or cabin for the summer at a resort to use their lake place while cabins rented by the days or weeks could not be used.
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The state recently posted on its Explore Minnesota website that "the hotel portions of resorts (including rented cabins) can open as planned and can accept guests."
This will come as a huge relief to resort owners. Minnesota lake resorts make their money in June, July and August. They cover their yearly expenses, and hope for some leftover income, in those three months. So owners were anxiously awaiting May 4, the end of the current shelter-in-place order directed by Walz, hoping the restrictions were lifted.
Christmas, or maybe in this case the Fourth of July, came early.
"Not being able to open would crush us," says Amy Wolf, who with her husband, Kregg, owns Lakecrest Resort on Long Lake near Detroit Lakes. "It would certainly threaten the business. I don't know of any resort that makes a ton of money. You go year-to-year and the money you do make you put back into the business. Those three months are the entire year for us, basically."
As businesses across the spectrum suffer greatly from the ramifications of the coronavirus, resorts found themselves in a unique position. Most are seasonal, meaning they're currently idle but awaiting the money-making weeks ahead like the fishing opener and Memorial Day weekend, followed by the plum-full summer months.
Resort lobbyists were working the governor's office and crossing their fingers since Walz allowed golf courses, shooting ranges and other outdoors-related businesses to get humming last weekend.
As with most things in these wacky times, there are mixed messages. The state directive still urges people to not travel long distances, which seems an impossibility given most resorts are located many miles from where their customers live.
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"While resorts can accept visitors, the Stay-at-Home Order continues to discourage unnecessary travel, and the Order asks people to remain close to their homes," the new directive reads.
(Read Minnesota Gov. Tim Walz's executive order regarding outdoors recreation and travel:)
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"We as resort owners are committed to the health and well-being of our guests, and we also want to be socially responsible to our neighbors and communities," says Jim Wherley, who owns Sunset Bay Resort on Dead Lake near Dent and also serves as the president of the Community of Minnesota Resorts, a trade association. "We've been telling our members, as an association, to prepare as if they are going to open. We've been sharing tips and best practices on cleaning, social distancing, signage."
The directive also says resorts do not have to open if they are not comfortable doing so.
The biggest obstacle for resort owners, like many other businesses, is the current uncertainty. It was leading to reservations being cancelled or guests forwarding their deposits from this summer to next before the latest directive.
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"The reservation bell is absolutely dead as far as anything coming in," said Tim Saitta, who with his wife Margaret owns Four Seasons Resort on Rush Lake near Ottertail. "We've had three cabins cancel for the opener. People from out of state are calling wondering if they should cancel for the summer. Their state is on lockdown and they're wondering if they'll be able to travel and if they do travel, whether they'll have to quarantine for two weeks when they get home."
The issues are not unique to Minnesota. Kyle Blanchfield, who owns Woodland Resort on Devils Lake in North Dakota, said cancellations "are coming in droves." He said he's lost about 40% of his May bookings and cancellations are starting to creep into June. Blanchfield said about 80% of his business is from out of state.
"I'd say the cancellations mostly fall into three categories. One, families have lost jobs and they can't afford to take their vacation. Two, there are older people who are rightly concerned about their health situation. And three, some people are just scared. They are uneasy about traveling or really concerned about the virus," Blanchfield said.
If not for Walz's latest decision, the existence of some resorts might've been threatened. Small, family-owned lake resorts have dwindled in recent decades as the Minnesota lakeshore underneath them became more valuable than the business itself. Many have shuttered and the land sold off for cabins.
"I hope that doesn't happen," Wherley said. "Once a resort is gone, it's gone and they are not coming back. Nobody's starting any new ones. Hopefully we'll get this figured out and I'm confident we will."
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