DULUTH, Minn. – Tourism tax revenue in Duluth was hit hard last year as some bars, restaurants and hotels had to close during the pandemic to protect public health. However, Duluth’s estimated drop in tourism tax was less than expected.

Based on the trends observed during the pandemic, the city of Duluth forecast a significant decline in tourism tax revenue in 2020.

The restrictions caused by the pandemic resulted in a drop in visitor numbers in the region.

Tax dollars from hotels, bars and restaurants also fell as fewer people came here.

“As we tracked what was going on with closings and the rapid rise in positive tests and exposures, we saw a 50% decrease in accommodation, food and drinks while traveling,” said Jen Carlson, Duluth City financial director.

The trend eventually had a major turnaround after COVID-19 restrictions began to loosen.

“What we saw was a very surprisingly strong summer and fall season which really helped us see signs of recovery,” said Anna Tanski, President of Visit Duluth.

The year 2020 ended with a decline in tourism in Duluth of around 30%.

City officials say if the initial sharp drop in tourism tax had continued throughout the year, money would now be much scarcer to meet financial obligations.

“If we continued to see the 50% in 2020, that would have been about enough to pay off our debts.

Tanski says while the year-end sales increase resulted in a more positive result, they remain ready for the unknown.

“We are preparing for every possible scenario as it currently exists, but we are very aware that things can change very quickly. We are ready to respond accordingly, ”said Tanski.

Now the main goal is to work even harder to make 2021 a better year for tourism.

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