Saugatuck’s 48-Hour Economy

How One Weekend Fuels Parks, Jobs, and the Arts

On a Friday evening in midsummer, a couple checks into a century-old inn near Lake Michigan’s shore. They wander through the art galleries downtown, catch a sunset from Oval Beach, and end the night with craft cocktails and live music under string lights. Saturday brings a hike up Mt. Baldhead’s 300 steps, a lazy ride on the Chain Ferry, and a matinee at the Saugatuck Center for the Arts before a final toast aboard the Star of Saugatuck paddlewheel boat.

It’s the quintessential Saugatuck weekend—just two days on the “Art Coast of Michigan.” But behind those quiet streets and beach views lies a powerful truth: weekends like this one don’t just fill local inns. They fund a thriving small-town economy, support year-round jobs, and sustain the parks and arts that make this lakeshore community shine.

Michigan’s Tourism Engine in Motion

Michigan’s travel industry continues to be one of the state’s most reliable economic forces. In 2024, 131.2 million visitors spent a combined $30.7 billion, generating $3.6 billion in state and local tax revenue and supporting more than 350,000 jobs statewide. That’s not just vacation money—it’s infrastructure funding, parks maintenance, and cultural programming rolled into one massive economic driver.

“131.2 million visits. $30.7 billion spent. 350,000 jobs supported.”
Pure Michigan 2024 Tourism Impact Report

When visitors book a weekend at a small inn or enjoy a meal at a lakeside café, a portion of every dollar ultimately supports the public amenities residents enjoy year-round. Tourism-generated tax revenue helps keep beach access points clean, funds safety services, and underwrites cultural events that define towns like Saugatuck.

The West Michigan Wave: Regional Tourism Records

If Michigan’s overall tourism story is strong, West Michigan’s is exceptional. Kent County, home to Grand Rapids and the state’s second-largest metro area, set an all-time record in 2024:

  • 2,284,370 hotel rooms sold
  • $274 million in lodging revenue
  • +5% increase in rooms sold and +6% growth in revenue year-over-year

That surge in city tourism creates a spillover effect for smaller lake towns. As Grand Rapids hotels fill up for conventions, festivals, and business travel, visitors look west to extend their stays or add leisure days on Lake Michigan. Saugatuck, just a 40-minute drive away, benefits from that weekend migration.

“When Kent County hotels reach record occupancy, our beach towns feel the ripple,” says one local tourism board member. “Saugatuck becomes the natural weekend extension of the Grand Rapids experience.”

For Forest Inn and other boutique lodgings in the area, this momentum translates into high seasonal occupancy and longer booking windows that stretch beyond the traditional summer rush.

Where the Dollars Land: Parks, Arts, and Community

saugatuck live music performance

A busy weekend in Saugatuck doesn’t just fill rooms—it fills community coffers.

Consider the statewide picture: According to the Michigan DNR, 48% of state park operations and maintenance funding is sourced from camping and lodging reservation fees—meaning the nights visitors spend near the dunes directly support upkeep of those dunes and trails.

Locally, the region’s Convention & Visitors Bureau (CVB) has long been supported by lodging assessments: in one published report the Saugatuck/Douglas CVB received approximately $330,000, and city officials noted that increasing the assessment rate could generate an additional ~$425,000 in annual revenue.

Meanwhile, Michigan levies a 6% use tax on short-term rental stays of fewer than 30 days, and proposed legislation in 2024 sought an additional 6% excise tax on such stays—specifically framing the revenue as a way to “create, maintain and improve the very features that tourists come to Saugatuck to enjoy.”

Local Impact

The lodging and dining taxes that accompany visitor spending help maintain local parks, fund arts programs, and preserve the natural beauty that makes the town magnetic in the first place.

Parks & Public Spaces

Beach maintenance at Oval Beach, improvements to Mt. Baldhead Trail, and riverfront beautification projects all benefit indirectly from tourism revenue. When visitors pay for parking or stay overnight, those funds feed back into the preservation of dunes and access points.

Arts & Culture

Tourism also sustains Saugatuck’s “Art Coast” identity. Ticket sales, donations, and local taxes all help power the Saugatuck Center for the Arts, seasonal gallery walks, and public art installations that make the town a cultural hub far beyond its size.

Local Jobs & Services

From innkeepers and chefs to groundskeepers and gallery owners, the seasonal economy supports hundreds of local workers—and by extension, their families and neighborhoods. A single sold-out weekend can ripple through the entire community, it touches everything from park upkeep to payroll.

In practical terms, when a visitor books a stay, eats at a local restaurant, rents a dune ride and buys gallery tickets, that spend generates lodging tax, user/reservation fees and tourism tax revenue—all of which flow into the system that keeps beaches clean, dunes accessible, arts venues open, and local workers employed.

Six Signature Activities That Turn Two Nights into Three

If you’re planning your own 48-hour getaway, here are six quintessential Saugatuck experiences that make it worth stretching to a third night:

  1. Book a Fishing Charter – You have multiple options to enjoy a day on the water and catching trophy fish, either on Lake Michigan or inland.
  2. Climb Mt. Baldhead – 303 steps to panoramic views of the harbor and Lake Michigan.
  3. Rent a Boat – Cruise the channel and get an entirely new perspective of the Saugatuck/Douglas area.
  4. Cruise the Star of Saugatuck – A classic paddlewheel boat offering scenic and sunset tours.
  5. Take a Dune Ride Adventure – Thrilling and educational trips through the rolling sand hills.
  6. Catch a Show at the Saugatuck Center for the Arts – Theater, music, and exhibits in a vibrant creative hub.

Pro tip: Midweek stays often include lower lodging rates and quieter trails—perfect for artists, photographers, or anyone who wants a more relaxed Art Coast experience.

check in saugatuck

From Check-In to Community

The beauty of Saugatuck’s tourism model lies in its circular benefit: visitors come for the charm and culture, and their spending keeps that charm alive. What begins with a reservation often ends with a stronger community.

It’s also a reminder that tourism isn’t separate from civic life—it’s one of its key foundations. Parks stay beautiful, local theaters stay open, and historic inns stay restored precisely because guests keep coming back.

That’s why Saugatuck’s tourism advocates and local businesses are urging a simple message: “Come for two nights—stay for three.”

Extending even one extra day means more local meals, more tickets sold, and a deeper connection between visitor and place.

>>Check out our guide – The Best Time to Visit Saugatuck

 

The Takeaway: Small Town, Big Return

Saugatuck’s charm may be timeless, but its success is no accident. Each guest’s two-day visit contributes to the fabric of the town’s quality of life—keeping beaches clean, trails walkable, and galleries vibrant.

Michigan’s $30.7 billion tourism economy may seem like a statewide story, but it’s built one weekend at a time, in small communities like this one.

So when visitors check into a lakeside inn, they’re not just starting their vacation—they’re helping sustain the very spirit of Saugatuck.

A busy weekend in Saugatuck doesn’t just fill rooms—it fills community coffers.

Consider the statewide picture: According to the Michigan DNR, 48% of state park operations and maintenance funding is sourced from camping and lodging reservation fees—meaning the nights visitors spend near the dunes directly support upkeep of those dunes and trails.

 

Local Impact

The lodging and dining taxes that accompany visitor spending help maintain local parks, fund arts programs, and preserve the natural beauty that makes the town magnetic in the first place.

Parks & Public Spaces

Beach maintenance at Oval Beach, improvements to Mt. Baldhead Trail, and riverfront beautification projects all benefit indirectly from tourism revenue. When visitors pay for parking or stay overnight, those funds feed back into the preservation of dunes and access points.

Arts & Culture

Tourism also sustains Saugatuck’s “Art Coast” identity. Ticket sales, donations, and local taxes all help power the Saugatuck Center for the Arts, seasonal gallery walks, and public art installations that make the town a cultural hub far beyond its size.

Local Jobs & Services

From innkeepers and chefs to groundskeepers and gallery owners, the seasonal economy supports hundreds of local workers—and by extension, their families and neighborhoods. A single sold-out weekend can ripple through the entire community, it touches everything from park upkeep to payroll.

In practical terms, when a visitor books a stay, eats at a local restaurant, rents a dune ride and buys gallery tickets, that spend generates lodging tax, user/reservation fees and tourism tax revenue—all of which flow into the system that keeps beaches clean, dunes accessible, arts venues open, and local workers employed.

From Check-In to Community

The beauty of Saugatuck’s tourism model lies in its circular benefit: visitors come for the charm and culture, and their spending keeps that charm alive. What begins with a reservation often ends with a stronger community.

It’s also a reminder that tourism isn’t separate from civic life—it’s one of its key foundations. Parks stay beautiful, local theaters stay open, and historic inns stay restored precisely because guests keep coming back.

That’s why Saugatuck’s tourism advocates and local businesses are urging a simple message: “Come for two nights—stay for three.”

Extending even one extra day means more local meals, more tickets sold, and a deeper connection between visitor and place.

flair

Book Your Adventure

Whether your idea of a perfect adventure includes peaceful solitude; exploring the trails, dunes, water, and beaches of spectacular Lake Michigan; fine dining, live music, world-class art, craft beer, renowned vineyards, or all of the above...

Forest Inn is an extraordinary setting for you to make memories and take full advantage of all that Michigan’s Art Coast offers. We look forward to welcoming you!