Despite an 11-percent drop in tourism revenue in 2009 and the layoff of about 300 of the 700-member work force at Bay Shipbuilding, the peninsula’s largest employer, Door County leaders are optimistic about their county’s economy.

There’s good reason for optimism.

First, many Door County resort and hospitality venues did well last year despite the Great Recession, and by most estimates, tourism visits and revenue will be up this year.

Second, Fincantieri Marine Group, the parent company of Bay Shipbuilding Co., has invested more than $10 million in the Sturgeon Bay shipyard in anticipation of future shipbuilding contracts. That investment is part of a $100 million investment by the Italian shipbuilding group in its three shipyards in northeast Wisconsin, Marinette Marine Corp., ACE Marine LLC in Green Bay and Bay Shipbuilding.

Tourism fuels the economy

Even in a tough economy, tourists spent an estimated $430.5 million in the county in 2009, which supported 7,563 jobs.  More than 2 million people visit the peninsula each year, 54 percent during the months of June, July and August.

And the number of visitors in 2009 wasn’t much different than the previous year. “Last year was similar in the number of visitors, but those who came spent less,” says Jon Jarosh, director of communications and public relations for the Door County Visitor Bureau.

That’s consistent with the budget and value focus for tourists throughout Wisconsin in 2009, according to state tourism officials. People still took vacations; they just traveled closer to home and kept a much closer watch on their spending. They used the Internet more and more to find the best values and made fewer advance reservations to avoid locking in to expensive trips. Tourists spent $1 billion less in the state in 2009 compared to the previous year.     

For 2010, Jarosh says room tax receipts and anecdotal accounts indicate growth in the county’s tourist industry. Room tax receipts were up 4 percent in May. “Visits to the Visitor Bureau Web site were 25 percent higher,” he adds. While the exact number of actual visits resulting from Internet hits isn’t known, there’s a correlation between more Internet visits and the number of actual trips to Door County. In addition, traffic counts have been up on roads in the county and the number of visitors to the Visitor Center in Sturgeon Bay has increased in 2010. 

Greg Stillman, owner of Parkwood Lodge in Fish Creek and the management company for three other lodging venues — Westwood Shores in Sturgeon Bay, Newport Resort in Egg Harbor and the Inn at Little Sister Hill in Sister Bay — says, his resorts had good years in 2009. He adds, however, that visitors appeared to be saving money by cooking more meals in the kitchens at his units, rather than going out to eat at restaurants. They also made fewer advanced reservations, all of which seems to be changing a little this year with more advanced reservations and support of local restaurants and shops.

For Rob Pollman, chief operating officer of Door Peninsula Winery in Carlsville and other tourist attractions in the county, 2009 was a “great year, and this year we expect to exceed last year’s numbers.”  The winery, Door County’s first and now Wisconsin’s largest, produces 50,000 cases of wine each year. Since his family purchased the winery in 1984, its retail space and production areas have tripled in size, and the winery has added the adjoining Bistro 42 restaurant. In 2009, the winery was honored as a Small Business Success story by this magazine and was named the Door County Industry of the Year.

In mid-October, Pollman plans to break ground for the Door County Distillery next to the winery, which will produce cherry vodka and brandy.

The two-level, circular distillery will include an upper level visitors area and the distillery on the first floor. A walkway at the second story will connect the distillery with the winery.

The Door County Distillery is just one of a number of new ventures on the peninsula this year:

• Pollman and his family also opened Cooper’s Corners restaurant, a remodeled, casual, upscale venue at the site of the former C & C Supper Club at the main corner of Highway 42 in Fish Creek. The new restaurant, which Pollman says is “exceeding expectations,” features indoor dining, an open-air patio and a second-floor dining patio overlooking Fish Creek’s Main Street.

• Another Pollman venue, Shipwrecked Restaurant and Brewery in Egg Harbor, is expanding its brew house and its beers are now being distributed throughout the state.

• J.J. Johnson, owner of JJ’s La Puerta Restaurant and the Waterfront in Sister Bay, opened a new restaurant JJ’s of Jacksonport last August. A few days later, a fire in JJ’s La Puerta forced the restaurant to close for six months before reopening in February. Johnson notes that all three of his restaurants “seem quite busy.”

• Skydive Wisconsin has been averaging about 20 customers a week since its opening Memorial Day weekend, according to Mercedes Wadkins, co-owner of the business with her husband, Michael.  “This [volume] should sustain us, but we’re hoping to get more customers in the coming years,” she says. “We knew we probably wouldn’t be making a profit for a couple of years.”

Shipbuilding stays strong

At Bay Shipbuilding, Fincantieri has added a new floating dry dock, training facility, cranes and transporter to modernize the shipyard. The buildup at Fincantieri’s three shipyards is in anticipation of Marinette Marine and its partner, Lockheed-Martin Corp,. winning a U.S. Navy contract for 10 Littoral Combat Ships, the smaller and more nimble ships designed for near-shore operations. The total contract for the ships would be more than $4.8 billion, and it would be the largest shipbuilding contract at Marinette since World War II. The decision on the LCS contract was expected in mid to late August.

Marinette Marine President, CEO and General Manager Richard McCreary says that even without the LCS contract, the improvements are part of the firm’s long-term growth vision.

“Fincantieri is aggressively seeking U.S. government and other contracts,” he says.

The company recently won a $63 million contract to build ships for the U.S. Coast Guard. And Marinette Marine is combining with Boeing Co. to build a ship-to-shore connector system for the U.S. Navy.

If Marinette Marines gets the LCS contract, McCreary says, it would have an indirect impact on Door County. The Marinette shipyard would be building two LCS ship at the same time when it reaches full production. That means other work would be shifted to Bay Shipbuilding or ACE Marine.

Door County and the Wisconsin-Upper Peninsula region could also benefit from numerous supplier contracts for the LCS construction in Marinette, McCreary says.

“It would have a $500 million a year impact and create 7,000 jobs in addition to doubling Marinette Marine’s work force from 1,000 to 2,000 employees,” he estimates.     

Contemplating the result of a successful bid on the LCS ships, McCreary says, “The roar you’ll hear in Door County will be coming from Marinette.” Another big boost to Door County’s economic development, according to Sam Perlman of the Door County Economic Development Corp., could result from a $15 million broadband stimulus grant from the U.S. government to Nsight and Cellcom of Green Bay to expand broadband and wireless coverage for the county. The Nsight application was not among a first round of approvals earlier this summer, but Door County and Nsight officials were optimistic about their chances in a second round likely to be decided soon.

A bright future for the peninsula appears in the offing as a result of the timeless charm of Door County for tourists and summer residents, the continuing success of its long-time agriculture and modernization of shipyards and communications bode well for the future of the peninsula.

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A spotlight story on Roen Salvage Co. of Sturgeon Bay can be read here.

By John Hill

You can contact John Hill by e-mail at jhoythill@sbcglobal.net.

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