Although the Great Lakes attract tourists from overseas, some of the most frequent visitors are from neighboring Midwestern countries.
AirDNA, a software company that analyzes Airbnb data covering 10 million listings in 120,000 markets around the world, broke down the top cities of origin for each of Michigan’s coastal communities.
“Michigan is a very interesting state from a short-term rental perspective because it has such an extensive coastline. There’s been a lot of interest in the coast,” said Bram Gallagher, director of economic forecasting at AirDNA.
Data obtained from Airbnb for 2021-2023 shows that the majority of travel to Michigan is coming from guests from Detroit and Chicago.
Let’s take a look at where the tourists coming to the Great Lakes come from:
An estimated 36% of West Coast overnight guests come from Chicago, with Detroit coming in second and Indianapolis third, according to AirDNA.
In the North, the largest numbers of travelers come from the Detroit area, Chicago and Grand Rapids, according to AirDNA.
According to AirDNA, the Upper Peninsula draws tourists from Detroit and Chicago, as well as neighboring Midwestern cities such as Minneapolis, Minnesota, and Madison, Wisconsin.
By AirDNA’s statistical standards, Traverse City could have its own category due to the number of short-term rental listings it has: Detroit receives the most visitors, followed by Chicago and Grand Rapids.
RELATED: Michigan makes list of worst short-term rental growth over next five years
This summer, AirDNA released a forecasting model that ranks rental market growth based on feeder cities. AirDNA created a list of markets that are likely to see increases or decreases in overnight guests based on the population of feeder cities that drain into a vacation spot.
Despite the allure of the Great Lakes, Michigan’s west and north coasts ranked second and 10th, respectively, with the worst growth projections. These low rankings are due to the population losses of Detroit and Chicago in recent years.
Related: Homes or hotels? Short-term rentals remain caught in the crosshairs of the law
Gallagher added that because the report is based on population data, it doesn’t give a full picture of other socio-economic demographics that impact tourism.
For example, Chicago’s population is declining, but its higher-income residents are more likely to stay and Chicago is becoming wealthier, so while the total number of visitors who might come to Chicago may decline, its feeder cities are likely to have more people with disposable income willing to travel.
This growth projection also doesn’t take into account existing or proposed bans on short-term rentals.
Looking for more fun things to do along Michigan’s Great Lakes? Check out MLive’s Lake Shore Travel series.
Other lakeside stories:
Michigan beach town competes with Hawaii, California for best B&B
Luxury and coziness combine at this colonial bed and breakfast in Michigan’s best beach town.
Tourism and housing: 5 lessons learned from Michigan’s short-term rental report
Renovated Bed & Breakfast in the Woods, a Short Walk from Lake Michigan
Saugatuck’s newest lodging combines private luxury with coastal bed and breakfast
Take in the spectacular “Visit the Blue” from the top of Michigan’s oldest lighthouse