Key Legal Considerations for Michigan Tourism-Based Businesses

From the beaches of Traverse City to the ski lodges of the Upper Peninsula, Northern Michigan’s tourism sector is an economic engine that draws millions of visitors each year. For entrepreneurs operating resorts, lodges, wineries, kayak rentals, or other seasonal attractions, the opportunity is real—but so are the risks.

Tourism-based businesses must contend with a unique patchwork of legal requirements, from liquor licensing and accessibility compliance to local zoning and insurance coverage. Whether you’re launching a new venture or fine-tuning operations for the next busy season, understanding these legal fundamentals is critical.

This guide outlines the most important legal considerations for tourism operators across Michigan, combining federal and state requirements with strategic recommendations tailored to the realities of running a seasonal or destination-based business.

Licensing and Permit Essentials for Tourism Operators

Alcohol Service and Resort Licensing

If your business involves serving alcohol—whether at a lakeside bar, ski resort, or boutique hotel—compliance with the Michigan Liquor Control Commission (MLCC) is non-negotiable. Resort licenses under MCL 436.1531 require proof that your primary business activity attracts tourists rather than revolving solely around alcohol sales. First-time applicants are subject to Livescan fingerprinting and a $20,000 license fee. If you're acquiring an existing license, proper transfer protocols—including executed purchase agreements—must be followed.

Convention hotels with more than 81 rooms may also be subject to additional excise taxes under the State Convention Facility Development Act, depending on location and usage.

Food and Temporary Vendor Compliance

Tourism businesses serving food must coordinate closely with local health departments. Applications for fixed or mobile food establishments must be submitted at least 30 days before opening. For festivals or short-term events, temporary food unit licenses are required and are inspected under Michigan’s Public Health Code. Waste disposal contracts and site plans are often reviewed as part of the permitting process.

Tax Compliance in the Tourism Sector

Few areas of tourism law move as quickly—or unpredictably—as tax. Michigan imposes a 6% state use tax on short-term rentals, including cleaning and pet fees. But that’s just the beginning.

Beginning January 2025, a new 3.5% tourist tax will apply to accommodations with 35 rooms or more, aimed at boosting regional tourism campaigns like Visit Detroit. At the local level, taxes vary widely—Kent County, for example, recently raised its hotel tax to 8% under HB 5048. Staying current with state and local changes is essential, especially if you operate in multiple jurisdictions.

Accessibility, Land Use, and Zoning

ADA Requirements for Lodging Businesses

Tourism businesses that provide lodging—especially hotels, cabins, or inns—are subject to federal Americans with Disabilities Act (ADA) guidelines. Under the most recent ADA standards, properties must offer:

• Accessible rooms equal to at least 3% of total inventory
• An additional 5% with accessible communication features
• Roll-in showers in at least 1% of rooms in larger hotels

Properties renovated or built after 2012 are required to follow the 2010 ADA Standards for Accessible Design. Retrofitting is often necessary for older facilities and can be planned in phases with the right legal and construction guidance.

Agricultural and Coastal Tourism Zoning

If your tourism business is connected to farmland—such as a winery, u-pick operation, or farm stay—zoning laws may allow conditional approvals. However, municipalities often impose noise, traffic, and setback limitations. Similarly, businesses near Michigan’s Great Lakes must pay close attention to shoreline construction rules. State permits are required for high-risk erosion areas, and new developments may be subject to wetland protection rules overseen by the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

Managing Employment Law for Seasonal and International Workers

Many tourism businesses rely on a seasonal workforce, which brings its own legal considerations.

Seasonal Labor and Visa Compliance

If your business uses H-2A or H-2B visa programs to fill temporary roles, you must demonstrate a lack of domestic labor, provide housing and transportation, and pay at least the state’s wage floor—currently $17.34/hour for agricultural workers. Public contractors are also subject to E-Verify mandates under Michigan’s HB 4061, and penalties for violations can reach $1,000 per occurrence.

Wage and Hour Rules

All Michigan workers—seasonal or otherwise—must receive overtime for hours worked beyond 40 per week and be paid no less than $12.48/hour, the current state minimum wage. Misclassifying employees as independent contractors or failing to maintain proper payroll records can lead to investigations and back-pay orders.

Insurance, Liability, and Risk Management

For many tourism operators, liability exposure is a real concern—especially when customers are engaging in high-risk activities or staying overnight.

To mitigate legal risk, tourism businesses should consider the following types of insurance:

1. General Liability Insurance – For common claims like slips, trips, and falls on your property.
2. Specialized Coverage – Outfitters, guides, and adventure-based businesses may require policies covering equipment rentals, watercraft, or participant injuries.
3. Railroad-Adjacent Operations – If your business operates near state-owned rail lines (e.g., scenic rail tours), Michigan mandates $2 million in occurrence-limit liability coverage.

Not having the proper insurance in place can void contracts, increase exposure to lawsuits, or even prevent regulatory approval in certain jurisdictions.

Data Privacy and Customer Protection

Tourism businesses frequently collect personal information—whether it’s through online bookings, marketing opt-ins, or loyalty programs. The pending Michigan Personal Data Privacy Act will restrict data collection to what is strictly necessary, prohibit targeted advertising to minors, and mandate breach notifications for exposed customer data.

This law isn’t in effect yet, but proactive compliance now will protect your business later. Updating privacy policies, improving encryption protocols, and limiting data sharing with third-party vendors are all worthwhile investments.

Strong Foundations Lead to Sustainable Growth

Michigan tourism businesses face a constantly shifting legal landscape. Whether it’s new lodging taxes, ADA compliance deadlines, or changing labor rules, staying ahead of the curve is essential for long-term success.

At True North Legal Group, we work with Northern Michigan tourism operators to provide proactive, tailored legal support that fits the seasonal nature of your business. Our flat fee legal services and legal membership programs offer predictable pricing and year-round access to experienced attorneys—so you can focus on guests, not guesswork.

With True North Legal Group, you get:

• Customized licensing support for liquor, lodging, and seasonal events
• Review and setup of employment policies for seasonal and visa-based workers
• Risk and insurance audits to ensure you’re fully covered
• Ongoing legal updates on tourism-related regulations in Michigan

Ready to safeguard your business and grow with confidence?

Reach out to True North Legal Group today to schedule your free initial consultation and learn how our legal membership services can support your tourism business—this season and every season.