Used Pontoon Boats - Heckel’s Eagle River Marina files bankruptcy protection

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Wisconsin’s boating season hits rough waters in bad economy

It’s been unusually quiet this summer on the Chain O’ Lakes in Waupaca where, normally, the buzz of boat engines starts shortly after dawn and lasts until dusk.

For some lakefront residents, a decline in boat traffic is welcome because they never liked the noise and partying that’s associated with recreational boating. But it’s an uneasy silence for others whose livelihoods depend on summer tourism.

“It’s a short season to make money. Basically, we have six weeks for boat rentals,” said Bruce Becker, owner of Becker Marine, which has been in business since 1949.

Statewide, the 2008 boating and camping season got off to a slow start because of poor weather.

Now, boating especially has run into rough water because of the economy and high fuel prices.

This week, Heckel’s Eagle River Marina Inc. and three of its Wisconsin affiliates sought bankruptcy protection from creditors in U.S. Bankruptcy Court.

The closely held companies, Heckel’s Lake DuBay Marina, Heckel’s Madison Marina, and Heckel’s Outlet Stores, each listed assets of as much as $10 million and debt of up to $50 million.

No reason was given for the bankruptcy filings and owner Bob Heckel did not return calls seeking comment.

Several Wisconsin boat dealerships have gone out of business in recent months. Nationwide, powerboat sales have fallen to the lowest levels in more than 40 years as consumers have faced shrinking job prospects, record gasoline prices and declining home values, according to Brunswick Corp., the parent of Mercury Marine Inc., an outboard engine maker in Fond du Lac.

Tourism decline overall

This summer, many boaters are spending more time partying at the docks or anchored off a beach.

Some campgrounds and tourism businesses are seeing a decline in customers as people vacation closer to home.

The Fourth of July weekend was “absolutely nuts” in Waupaca, but otherwise the summer has been fairly quiet, said Maria Belke, owner of Ding’s Dock, a canoe and cottage rental business on the Chain O’ Lakes.

“People are being extremely conservative in their spending,” Belke said. “I think a lot of them don’t have the money to travel as much, so they used the July Fourth weekend as their summer vacation.”

Sales are down between 15% and 20% at some tourism businesses, especially on weekdays.

There are noticeably fewer power boats on the Chain O’ Lakes this summer, according to Belke and others in Waupaca.

Some vacationers are renting pontoon boats rather than spend hundreds of dollars in gas to haul their own watercraft to the lake.

Others are trying to save money by asking seasonal businesses for discounts, figuring the business owners will give up a few bucks just to get customers.

Don’t bother, Belke said, because business owners also are struggling with higher operating costs.

“I hate to be rude, but that’s just the way it is,” she said. “We already didn’t increase the price of our river trips this year, just trying to help people out, and we are making less money on the trips than we did a year ago.”

Camp reservations up

Campsite reservations at state-owned campgrounds are up about 1% from a year ago, according to the latest figures from the Department of Natural Resources, although attendance at some facilities is down 10% or more.

“We were heavily impacted by the storms in June. The campground system, as a whole, took a big numbers hit” then, said Peter Biermeier, DNR operations chief.

Campgrounds closest to large cities, such as Kohler-Andrae State Park about 45 miles north of Milwaukee, have weathered the latest economic storms better than some facilities farther away.

The Kohler-Andrae campground has been consistently full this summer. It’s one reason why the DNR is adding 30 campsites to the park and opening a new campground at Harrington Beach State Park about 35 miles north of Milwaukee.

Both new camping facilities will be open next year, Biermeier said.

The number of visitors to Peninsula State Park, in Door County, was down 10% in June from the same month last year, according to park officials. Camping was down 4%, and it was easier than usual to get a campsite without a reservation.

Many people are still bringing their motor homes and fifth-wheel trailers to Peninsula State Park, but some are downsizing.

“Our campground hosts have said they’re seeing more tents and pop-up trailers than they’ve seen in the past,” said Gene Tiser, assistant park superintendent.

Vacation habits change

Vacationers’ habits are different this year in Bayfield, one of the North Woods’ hot spots about 300 miles northwest of Milwaukee.

“People are staying longer rather than the quick day-or-two visit. And we are seeing a lot more apartment and condo rentals where the units have kitchens,” said Kristen Sandstrom, Bayfield Chamber of Commerce marketing manager.

Bayfield’s tourism got off to a slow start in June, largely because of the weather and the economy. Lately, business has rebounded.

“Our numbers aren’t necessarily down at this point, but the season is different. People are certainly being more careful in deciding where to spend their money,” Sandstrom said.

August is one of the busiest tourism months in Wisconsin, so there’s still time for businesses to recover from the summer’s sluggish start. But in some cases, people are probably making one or two trips this summer instead of three or four, said Steve Petersen, property superintendent for the Northern Highland-American Legion State Forest.

On a recent Friday at Lake Tomahawk, in Oneida County, local officials collected boat launching fees from only about eight people. But the next day they collected fees from about 200 boaters.

“That’s still a lot of action,” even if there are fewer boats on the water, Petersen said.

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