The recent headline in Crain’s Detroit Business’ Morning 10 was big news: “Metro Detroit hotel occupancy growth outpaces the nation’s largest cities.” In the article, Reporter Kirk Pinho cites recent data from CoStar Group Inc., a Washington, D.C.-based real estate information service. CoStar found that Metro Detroit’s 70.7 average occupancy rate in July exceeded the national average and was the only one of the 25 largest U.S. markets to post a double-digit (10.7 percent) increase.
Claude Molinari, president and CEO of Visit Detroit, was quoted, “results like these reflect the exceptional work of the hospitality professionals who make every visit to Detroit memorable. The article also listed some of the exciting projects coming online, particularly in Downtown Detroit, that will dramatically increase the need for rooms for future conventioneers.
However, as Paul Harvey would say, “the rest of the (Detroit) story” is the continuous drumbeat of excitement surrounding Detroit’s transformation, the multiplier effect that happens when impressed visitors tell others, and the continuing efforts from numerous parties — including the Downtown Detroit Partnership — to make Detroit a great place to live, work, and, in this case, visit.
Hotels are one leading indicator of a successful market. Visitors are another, and from June 1 through August 31, Downtown Detroit’s visitor numbers hit post-pandemic highs.
The Downtown Detroit Partnership Data Team picks up the rest of the story:
How big was it?
Over the summer, roughly four million people (excluding daily employees and residents) came Downtown and made more than nine million visits, an increase of more than 9 percent from last summer. To put that in perspective, it’s equivalent to selling out Comerica Park 100 times.
Who was it?
While visits were up more than 9 percent, the number of repeat visits was up 2 percent. That equates to about 2.2 visits per person this summer versus about 2.0 last summer. This suggests that organizations like the Downtown Detroit Partnership, Detroit Riverfront Conservancy, Greektown Neighborhood Association, Visit Detroit, and a host of other partners are creating enjoyable and memorable experiences compelling visitors to keep coming back.
This is precisely how sustainable communities where people want to live and visit and who are excited to frequent parks and public spaces, events, restaurants, and retail are created.
Where did they come from?
Using Placer.ai, the DDP cites that visitors came from more than 8,000 ZIP codes and all 50 states. Of all 9 million visits, about a quarter were from Detroit ZIP codes, and more than 60 percent from the rest of Michigan, mainly Metro Detroit. Detroiters made more than 2 million visits Downtown, and the region brought another 6.8 million on top of that.
While 86 percent of visitors are from Michigan, the 14 percent from out of state is a critical segment as well. The farther the visitor travels the more impact they have on our economy and perception. Outdated perspectives of the city’s reputation are not just changed, they’re shared. For example, attendees at the International Placemaking Week in late June were so impressed with Detroit that many vowed to return and tell their friends and families. Out of state visitors also drive higher spending in our local economy— supporting hotels, restaurants, shops, sporting events, theatres, cultural institutions, and more.
The Bottom Line?
It’s virtually impossible to come up with a definitive economic impact from this data, since visitors come to Downtown for so many reasons. It could easily be for one of DDP’s more than 1,200 FREE events, or just as easily a night at the opera, baseball game, or any paid attraction.
Overall, visitors spent more than three hours Downtown on each day they came, and many of them took advantage of our incredible food scene—5.9 percent when they arrived and 8.7 percent on their way out.
Needless to say, the economic impact of that many visitors Downtown is significant.
More Good News to Come
Fall is shaping up to be just as promising for local, national, and international visitors and tourism. Engagement in our public spaces remains robust thanks to the DDP’s team innovative programming. Detroit Homecoming, for which the DDP is the fiduciary, brings dozens of Detroiters back home to experience first-hand all the momentum as well as how and why they should invest in Detroit. National and international conferences will bring more revenue to our hospitality venues.
There is always more to do as we solidify Detroit’s place as a top destination, but you can be assured the DDP will continue to proactively steward a clean, safe and welcoming Downtown. For now, let’s recognize that for this piece of the “best places” pie, we’re exceeding beyond measure.
