STURGEON BAY - Door County would see major increases in economic benefits through an expansion of broadband availability in its communities just from the county's part-time residents, a new study said.
The study was commissioned by the Door County Economic Development Corporation and the County of Door Broadband Office and focuses specifically on secondary residents, those who own a home in Door County but do not list Door County as their primary residence, unlike people that would be considered "tourists."
The number of secondary residents in Door County is not insignificant. The study cited data from the 2020 U.S. Census that showed the Peninsula has more than 9,570 seasonal units or secondary homes compared to 10,718 primary homes, or about 47%, and county broadband committee chair Hugh Zettel said they are integral parts of the community.
“The impact of this study amplifies the importance of secondary resident activity in Door County,” Zettel said in a press release. “Secondary residents pay property taxes, serve as volunteers for Door County organizations and provide philanthropic support for local nonprofits. They are an integral part of the county’s societal fabric.”
The University of Wisconsin-Whitewater College of Business and Economics Fiscal and Economic Research Center conducted the study by surveying secondary residents to measure the impact an expansion in the availability of high-speed broadband, which is lacking in rural and remote areas and which the county and communities are striving to improve, would have on their economic behaviors. The results were presented to the broadband committee in a July 11 meeting.
“We knew from anecdotal evidence that residents desired enhanced broadband capabilities,” DCEDC executive director and broadband committee vice-chair Michelle Lawrie said in a press release. “What we did not know was the economic impact that broadband expansion would have as a result of increased secondary resident activity.”
The economic impacts just from secondary residents would be significant, the study said. Among its key findings:
- Secondary residents would stay in Door County about 15 more days per year if they had access to high-speed broadband, generating an additional $750,000 in state and local taxes (not property taxes, mainly sales and other use taxes).
- They would generate more than $18.6 million in additional annual economic impact on top of the $110 million they already generate annually. Of that $18.6 million, $13 million would be through direct spending, $3.4 through indirect effect (the added spending businesses would do to provide goods and services) and $2.2 million through induced effect (changes in household spending because of additional employment from direct and indirect effects).
- More than 137 new full-time equivalent jobs would be created, providing employees with more than $5.5 million in income. Ninety-seven jobs and $4 million of that would be through direct effect, 25 jobs and $820,000 by indirect effect, 16 jobs and $630,000 by induced effect.
Other noteworthy findings were that 31.4% of households responding for the study said internet access is a major barrier that prevents them from enjoying Door County for longer periods of time and 64.8% of secondary residents said broadband availability would influence whether or not they eventually decide to move permanently to Door County.
"The lack of reliable internet access prevents secondary residents in the area from enjoying an extended stay," a summary of the study said. "Considering (the number of secondary compared to primary residents), it would be greatly beneficial to the local economy for secondary residents to extend their stay. … If internet connectivity in the area were to be improved, Door County residents would lengthen their stay, which would generate an increase in spending and the impact on the overall economy."
Along with those impacts, Lawrie said to the Advocate that improved broadband access likely would encourage people working remotely to spend more time in, or perhaps move to, the Peninsula.
The county and its municipalities have been working for several years to bring high-speed internet to as many people as possible.
Quantum Technologies is working with the Washington Island Electric Cooperative to bring fiber-optic broadband access to all of the Island's residents and businesses by 2027 and recently completed the first 400-plus connections. Bertram Communications has started work in the town of Baileys Harbor. AT&T recently entered into public-private partnerships with the towns of Egg Harbor and Sevastopol to bring broadband. Other communities are looking into funding and public feedback.
But there's still a long way to go to make broadband widely available, not to mention reliable.
Regarding broadband availability, the study said just 56.1% of the secondary residents who responded to the survey said they possess internet speeds needed to download without excessive buffering (25 megabytes per second, or Mbps, per device is considered the minimum). And, more than 80% of respondents are seeking speeds of more than 25 Mpbs.
Maintaining connection also is a sore spot with many of those surveyed. According to the study, less than half − 43% − said they never or rarely lose their connection with another 24.5% saying they lost connection occasionally.
To see the full 46-page study or a 12-page summary of its key points, visit livedoorcounty.org/broadband-access-study/.
Contact Christopher Clough at 920-562-8900 or cclough@gannett.com.
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