A new report paints a downbeat economic outlook for Minnesota.
A Federal Reserve Bank of Minneapolis and Hospitality Minnesota survey shows consumers are pulling back due to economic uncertainty and tightening budgets. They’re becoming less likely to visit their favorite restaurants, hotels and resorts.
Mohamed Sewiean, owner of New Victorian Mansion Bed and Breakfast, says he’s lost 20% of his business because of ICE raids, tariffs and higher gas prices.
“I was getting cancelations at least every other day,” Sewiean said.
They’ve added new pricing packages to try to attract more guests.
“It makes the mansion more accessible for more people to come and visit,” Sewiean said.
The survey shows nearly half were pessimistic for the next six months. A majority of business owners expected revenue to be down and to increase prices.