Climate Change Threatens Small Hotel Owners in the US

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Imagine waking up every morning, hoping to see your hotel covered in a beautiful blanket of snow. For Kelli Doyen, owner of Gwinn Model Towne hotel in Georgia, this was a dream that became harder to achieve. As a small business, the hotel used to attract around 800 snow enthusiasts every winter, thanks to its prime location near a popular ski trail. However, this year has been different. Instead of snow, all Doyen sees are muddy roads.

The National Oceanic and Atmospheric Administration (NOAA) reported that the 2023-2024 winter was the warmest on record in 48 US states. This change in weather has had a significant impact on the culture and economy of regions like the Great Lakes. States such as Wisconsin, Michigan, New York, and Minnesota experienced record warm winters, along with North Dakota, Iowa, Vermont, and New Hampshire.

This reduction in snowfall means fewer outdoor activities and, consequently, a significant impact on small business owners and industries in the area. Doyen has suffered a loss of approximately $70,000 in revenue. As one of the many small business owners in the Midwest who rely on winter sales to sustain their operations until the summer tourist season, Doyen invested most of her profits into renovating the hotel. However, the lack of snow and subsequent decrease in winter tourism have put her business at risk.

According to the US Drought Monitor, the reduced snowfall and widespread drought in Wisconsin, Michigan, and Iowa during the winter months have become so severe that the governors of these states declared affected businesses eligible for loans from the Small Business Administration.

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Susan Estler, the executive director of Travel Marquette in Michigan, reported a 16% decrease in hotel bookings from Christmas to March. For a region that depends on snow for outdoor activities, this decline has had a profound impact on local businesses.

The economic significance of snow activities is evident in the data provided by the Bureau of Economic Analysis (BEA). The BEA notes that snow-related activities in the Great Lakes region contribute hundreds of millions of dollars to the local economy. For example, in 2022, snow activities in Wisconsin generated an additional $83.6 million, while Michigan saw an increase of approximately $130 million.

As climate change continues to alter weather patterns, small hotel owners and businesses dependent on winter tourism must adapt to survive. With less outdoor snow activities, indoor alternatives such as ice skating rinks may become more popular. However, the economic impact extends beyond the hotels themselves, affecting local gas stations, grocery stores, and restaurants.

It’s imperative that these small business owners receive support and assistance to weather the challenges posed by climate change. From government initiatives to private sector collaboration, efforts must be made to protect and sustain these businesses and the livelihoods they support.

To learn more about the impact of climate change on small businesses and stay informed about the latest financial and economic news, visit Business Today.