Michigan’s tourism industry is heading into summer with a mix of cautious optimism and real concern. The state welcomed more than 131 million visitors in 2024, generating nearly $55 billion in economic impact and supporting over 350,000 jobs. But this year, surging gas prices, already topping $5 a gallon at some Michigan stations, combined with spring flooding, cold weather, and broad economic uncertainty, are making it harder to predict how the season will unfold.
A national survey found that 55% of Americans expect this to be their most financially stressful summer ever, and nearly half have already considered canceling travel plans. At the same time, AAA projects more than 1.3 million Michiganders will hit the road over Memorial Day weekend, suggesting that the desire to get away remains strong even when budgets are squeezed.
What may matter most is not whether people show up, but how much they spend once they arrive. Industry leaders across Michigan, from Traverse City to Petoskey to Copper Harbor, are watching closely to see whether visitors will cut back on dining, attractions, and shopping to offset the cost of getting there.
The situation is further complicated by what economists are calling a “K-shaped” economy, where higher-income travelers are largely unaffected by rising fuel costs while lower- and middle-income households face real pressure on every dollar they spend.
The Cardiff Connection
Cardiff Founder, William Stern, is watching these same pressures play out directly through the small businesses the company serves. His observation that consumers are increasingly relying on credit just to cover basic necessities like groceries speaks to a deeper shift in spending behavior that goes well beyond vacation planning.
The businesses feeling this shift most acutely are those that depend on walk-in consumer traffic, and Stern has noted that many Cardiff clients are already pivoting in response. Some are moving away from retail foot traffic models and toward corporate and business-to-business contracts as a more dependable source of revenue. That kind of strategic shift doesn’t happen without capital.
Cardiff works with small business owners who need financing to adapt quickly, whether that means reaching new customer segments, covering higher operating costs, or simply staying afloat while consumer behavior evolves. In an environment where waiting for customers to walk through the door is no longer a reliable plan, Cardiff helps businesses take action.
