ST. JOSEPH, Mich. — The lake and the beaches make St. Joseph a hot spot for tourists. But businesses say people have cut back on their spending lately, and they think gas prices aren’t the only thing to blame.

Roosters is known for great food and a perfect location.

”Right down the road here is the walkway to Lions Beach, so if they drop anchor they can just walk right up this little ramp here — it’s a tenth of mile — and they can get everything they possibly need,” said Kent Shade, who works at Roosters.

But workers say that hasn’t been happening as often as it used to.

“We haven’t been selling as much,” Shade said. “I haven’t seen as many customers coming in, getting the big orders that they did before.”

The tourism industry is taking a hit across the state. According to Travel Michigan, tourists spent $18.1 billion last year. That's down from $18.8 billion in 2006.

Local businesses say several factors are to blame. The biggest is record high gas prices.

“Diesel in general went from $3.06 last summer to $4.98 currently,” said Kathy Myers, who owns Pier 1000.

Boating is one of the most popular activities in the area. But marinas like Harbor Isle say some boaters are becoming more reluctant to fork over hundreds of thousands of dollars for gas.

“It’s a severe problem,” said Harbor Isle General Manager Jeff Daniel. “When you’re talking about a boat that takes 800 gallons of fuel and it’s $4,000 if it’s empty, that has a severe impact.”

Marinas say the weather also plays a major role in the area's economy. They say if it's bad outside, boaters are staying inside.

“Tomorrow is supposed to be 20-25 mph wind and thunderstorms,” Daniel said. “That’s a day that we can’t physically put boats in the water.”

With summer right around the corner, places like Roosters are staying optimistic about what the future may hold.

“I’m just hoping that it gets better off — people will actually be able to find some way to spend a little bit more money and be able to pick sales back up,” Shade said.