The Ecocenter as Tourist Attraction: Ely and the International Wolf Center David T. Schaller Department of Geography University of Minnesota

Section 6: Impact of the International Wolf Center on Tourism and the Economy

For some tourists, the International Wolf Center is the main reason for choosing Ely as their vacation destination. As noted above, these tourists number 24% of all visitors to the IWC, or about 11,000 people. These figures include tourists who said that the Wolf Center either had a great influence on their decision to visit Ely, and those who listed the IWC as the top reason for their trip. (Overlap between the two groups, of course, was substantial.) The percentage of IWC visitors who fell into these groups never dipped below 23% in the summer and rose to 30% in the spring and winter. Although these tourists represent only five to seven percent of everyone who visited Ely in 1995, they still had a notable impact on the area. This section examines in depth several behavioral and socioeconomic aspects of these visitors before estimating their economic impact. Not all of these respondents, of course, are necessarily in Ely just to visit the IWC. In some cases, campers, hikers, canoeists or fishermen who have a range of possible destinations in northern Minnesota may decide on Ely because they are also interested in visiting the IWC. For example, while the large majority reported that the Wolf Center was the main reason for their visit, one-fourth of respondents listed another activity such as fishing or camping (Table 8).

Table 8.--Main Reasons for Vacation: IWC-Influenced Tourists
n=106

	First Reason	Second Reason
International Wolf Center	76%	19%
Fishing	7%	10%
Canoeing	3%	8%
Hiking	3%	16%
Camping	7%	10%
Relaxing/Family or Friends	2%	7%
Winter Sports	0%	10%
Other	2%	20%

These tourists were drawn to the Wolf Center for similar reasons as were IWC visitors as a whole. The great majority (84%) said they had a special interest in wolves and nature, and 53% said they wanted to learn something new. Only 14%, however, said they came in order to attend a special program at the IWC--fewer than might be hoped considering the range of programs offered. While more respondents from this group knew about the IWC's educational programs and courses (45% compared to 33% for all IWC visitors), more than half remained unaware of them even after their visit.

The ways in which this group first learned of the IWC are similar to those for IWC visitors as a whole. Thirty percent heard about it from friends or relatives, 17% from a newspaper article, 12% from the IWC's brochure, 9% from either a magazine article or a Minnesota tourist brochure, and 8% from a television show. These visitors were, however, more satisfied with their visit than were IWC visitors in general. More than two-thirds (68%) reported that the IWC met their expectations "very well," and 75% said they would return to the IWC if visiting Ely again, compared to 59% and 56%, respectively, for all IWC visitors. While these visitors might have higher expectations of the Wolf Center, since they have planned their trip around it, they apparently also found it more rewarding, perhaps due to their heightened interest in what the IWC has to offer.

Unlike other IWC visitors, these visitors who came to Ely primarily on account of the IWC differ markedly from Ely tourists as a whole (Table 9). IWC-influenced visitors tend to travel shorter distances, spend fewer nights in Ely, and spend less money compared to the broad spectrum of Ely tourists. None of this is unexpected. Somewhat surprising is that IWC-influenced visitors are less likely to have children in their group. Apparently the Wolf Center does not greatly attract families looking for something to entertain the children.

Table 9.--Differences Between IWC-Influenced Tourists and All Ely Tourists
Means and Significance Levels

Although IWC-influenced visitors come from a smaller "tourism shed" than do Ely visitors as a whole, the average distance traveled still seems remarkably high, considering that few visitors spend more than a day at the Wolf Center. This is partially due to visitors who were vacationing in northern Minnesota--in Duluth or on the North Shore, for example--and who traveled to Ely primarily to visit the IWC. While they may have traveled 600 miles from their home, only the last 50 or 100 miles were on account of the Wolf Center. The survey, however, was not designed to identify these respondents. The majority (54%) of all IWC-influenced tourists were from Minnesota, a percentage slightly less than that for all Ely tourists. About another third were from the nearby states of Wisconsin, Iowa and Illinois. As with fishermen and canoeists, these tourists come from both urban and rural areas, though notably none are from central Chicago. The survey data show additional differences in matters of education and income (Figures 11, 12). IWC-influenced tourists have somewhat lower levels of education, though the difference is not statistically significant (chi-square p of .2). In household income, however, the difference is significant (chi-square p=.00). IWC-influenced tourists tend to have lower incomes compared to all Ely tourists. The Wolf Center appears to appeal most to middle-income people with some degree of higher education.

Although relatively few tourists visit Ely primarily on account of the Wolf Center, their impact is by no means inconsequential. For one, these tourists are much more likely to be unfamiliar with the Ely area. While 50% of all Ely tourists had previously visited the area since 1993, this was the case for only 26% of IWC-influenced tourists. These tourists, then, appear not to be regular Ely vacationers. Although they are usually in the area only for a day or two, it is possible that these tourists will remember Ely when planning a future vacation. By drawing this "new blood" to Ely, the IWC may well be enlarging the pool of future tourists. While in the Ely area, these tourists also have a notable economic impact. With average group expenditures of $185, in 1995 they spent an estimated $655,000 in the Ely area. Another $70,000 was spent by the 20% of IWC visitors who said they extended their vacation, usually by only a few hours but in a few cases overnight, in order to visit the Wolf Center. Total tourist expenditures which are directly attributable to the presence of the IWC in Ely amount to about $725,000. This is, of course, a small fraction of total expenditures by all tourists, but it remains a substantial sum. Furthermore, it reflects only the first round of spending; an input-output analysis can estimate the additional effects of these dollars as they ripple through the economy.¹ Tourist spending was divided into various economic sectors such as lodging, restaurants, and retail shops and is associated with the creation of as many as 21 new jobs, primarily in tourist-oriented businesses.² Furthermore, the ripple effects of this increased tourism affect other sectors of the regional economy, creating another 16 jobs. The increase in total industrial output in the region amounts to $1.2 million, indicating a multiplier effect of 2.2 (Table 10).

Table 10.--Impacts of Increased Tourism on Regional Employment
(Number of New Jobs)

*Includes backcountry guides, gear outfitters, as well as museums such as the IWC
**Finance, Insurance, and Real Estate

The IWC's economic impact is not limited to increased tourism expenditures, however. The Wolf Center itself plays a role in the regional economy by hiring employees, purchasing maintenance and heating supplies, and buying books and apparel from local merchants for resale in the gift shop. It employs 13 people year-round and another 15 in the summer. With an annual operating budget (excluding expenses associated with the Minneapolis branch office) of about $735,000, the Wolf Center certainly counts as an economic entity in the region (Table 11). The model's estimate of the IWC's direct impact on employment, about 14 new jobs, is close to the actual number of people employed by the IWC in Ely (11 full-time equivalent positions), since IMPLAN's estimates are not necessarily all full-time jobs. Over time, an additional 15 jobs are created in the region as a result of input purchases by the IWC, as well as by household spending attributable to these employees. The total industrial output resulting from the establishment of the IWC facility in Ely amounts to $1.5 million dollars, or twice the IWC's operating budget of approximately $735,000.

Table 11.--Impact of IWC Operations on Regional Employment
(Number of New Jobs)

	Direct	Indirect	Induced	Total
TOURISM-RELATED BUSINESSES
Tourism Services and Organizations*	14	0	.2	14.2
Lodging	0	.7	.2	.9
Eating (Restaurants and Groceries)	0	0	2.0	2.0
Retail	0	0	1.5	1.5
OTHER INDUSTRIES
Agriculture	0	0	0	0
Mining/ Manufacturing/ Construction	0	.5	.3	.8
Trade/ Transportation	0	.6	1.6	2.2
FIRE**/ Services	0	1.8	5.0	6.8
Government	0	.2	.2	.4
TOTAL	14	3.8	11	28.8

*Includes backcountry guides, gear outfitters, as well as museums such as the IWC
**Finance, Insurance, and Real Estate

All in all, as much as $3 million in annual economic activity can be traced back to the IWC (Table 12). While most of the new economic activity is concentrated in tourism-related businesses, new jobs are also created in other sectors such as trade and services. All these figures, of course, are estimates, and their accuracy is limited by the assumptions of the IMPLAN model itself and those taken in this particular analysis.

Table 12.--Combined Impact of IWC Operations and Increased Tourism
Total Effects

	Total Industrial Output ($000s)	Employee Compensation ($000s)	New Jobs
TOURISM-RELATED BUSINESSES
Tourism Services and Organizations*	$ 756.4	$ 197.2	14.2
Lodging	236.6	111.8	9.5
Eating (Restaurants and Groceries)	397.6	152.7	16.75
Retail	124.8	50.2	4.22
OTHER INDUSTRIES
Agriculture	$ 6.4	$ 1.3	0.2
Mining/Manufacturing/ Construction	152.8	42.0	1.39
Trade/Transportation	370.3	141.5	4.9
FIRE**/Services	878.1	273.1	13.6
Government	63.6	41.9	1.2
TOTAL	$3,006.6	$1,011.7	66.3

*Includes backcountry guides, camps, and gear outfitters, as well as museums and zoos such as the IWC
**Finance, Insurance, and Real Estate

These impacts are considerable, and they may be just the beginning. Over time, the Wolf Center's profile may continue to rise in the Upper Midwest region and become even more of a draw for tourists. Projections indicate that, if the number of people who visit Ely because of the IWC were to double to 22,000, another 30 jobs might be created within the region, with an increase of $900,000 in economic output and $420,000 in employee compensation. While this remains a tiny portion of the regional economy, it is still remarkable. That such a small tourist attraction as the IWC can be linked to the creation of as many as 66 jobs in the region indicates the potent role that tourism plays in rural economies.

Conclusion

The International Wolf Center in Ely, Minnesota, functions both as an environmental education facility and as a tourist attraction. Based on this study of the role of the IWC in tourism to the area, it appears that the Wolf Center relies to a large extent, but not entirely, on its proximity to the BWCA and nearby lakes and forests. While the IWC could not continue operating for long without business from Ely's existing base of tourists, it has carved itself a surprisingly large niche as a tourist attraction in its own right. About 24% of all IWC visitors report that the Wolf Center had a great influence on their decision to visit Ely. While most of these visitors stay in the area only a day or two, they are likely to be new to the area and may decide to return on a future vacation. These visitors have also had a substantial economic impact; along with effects from the IWC's operations, they can be linked to the creation of as many as 66 new jobs in the region. The International Wolf Center is an appealing tourist destination which attracts both casual tourists and people who are willing to make the trip to Ely primarily to learn more about wolves. There is a strong existing base of tourists in Ely on which the IWC can draw for many years, though it should also make concerted efforts to become a regular stop for frequent Ely tourists. If it continues to serve as the primary attraction for a significant number of tourists, it will cement its role as a small but distinct contributor to the health of Ely's economy.

to Research References
to IWC Summary
to Ecotourism Research Home Page