Big Profits Lost Due to Floods
Tuesday, June 26, 2012 - 6:45pm
By:
Maya Holmes
Photojournalist:
Kristian Tharaldson
FOX 21 News, KQDS-DT
DULUTH - The debris isn't the only thing swimming up the stream from the recent record flooding, profits for Duluth businesses are too.
Businesses say so far it's not a great start to summer tourism.
"Being next to the lake of course people were very concerned," Grandma's Restaurant President Brian Daugherty said.
The water typically brings millions of tourists and dollars into Duluth, but last week’s floods kept them away.
"People come to Duluth for the Great Lakes absolutely, not the great flood," said Daugherty.
The floods are not just ripping through streets and homes but also big profits for businesses.
"This is probably the biggest hit to our sales from one specific event," Canal Park Lodge General Manager Jim Paquette said.
Managers say people didn't want to come into town because they were either afraid or thought businesses were submerged and closed.
"They saw a lot of photos and you know a lot of media that had Duluth looking like it was falling into the sea," said Paquette.
The week of the storm the Radisson lost 65% of their business.
Canal Park Lodge lost half of their reservations.
"We lost probably about $25,000 in sales," said Paquette.
One of Grandma's Restaurants is completely flooded, while the others that sit in the heart of Canal Park are dry.
The lack of leisure tourists left them thirsty for sales.
"We had a lot of banquets and reservations cancel because people are going through personal hardships as well,” said Daugherty. “They can't make that work into their schedule anymore."
That week the franchise lost up to 30% of their revenue.
"More than hundreds of thousands of dollars," said Daugherty.
The pictures and roads may tell a different story, but mangers say Duluth is open for business.
"Just hanging the sign up, we're open," said Daugherty.
"We're alive and well and waiting for the influx of summer visitors," said Paquette.
Some businesses say they are seeing business starting to pick up this week.