One Boundary Waters outfitter lost 98% of his July revenue. Another refunded $60,000 after 128 groups canceled. A downtown shop owner saw sales drop 60%. And across northeast Minnesota’s tourism corridor, business interruption insurance is offering no help at all.
Small business owners in northeastern Minnesota told state legislators on August 1 that wildfires burning in and around the Boundary Waters for almost a month have had a “disastrous” impact on their bottom lines. The roundtable was organized by the Cook County Chamber of Commerce along with State Sen. Grant Hauschild and state Rep. Roger Skraba.
David Seaton, co-owner of Hungry Jack Outfitters, said he suffered a 98% loss in revenue, calling the month of July “disastrous.” Jason Zabokrtsky of Ely Outfitting Company reported 128 canceled groups totaling about 500 individuals. Zabokrtsky said he will be waiving around $60,000 in cancellation fees, but the actual financial loss will be much greater.
How the closure happened
The U.S. Forest Service temporarily closed public access to the entire BWCAW beginning July 14 after a surge of wildfires and unusually hot, dry weather caused fires to spread fast and unpredictably. It was only the third full closure of the BWCAW in history.
The Forest Service announced a partial reopening starting July 30, covering 41 entry points in the central and eastern portions, roughly 39% of the wilderness. But by then, two weeks of peak season had already been wiped out.
Cook County Commissioner Ann Sullivan said small businesses are facing losses between 40% and 98%, with cash flow “turned off” while large bills for canoe fleets, merchandise, and mortgages remain. She added that business interruption insurance coverage “is either not available to them or is being denied.”
Insurance gap and what comes next
One Ely outfitter said there is no insurance that covers businesses affected this way, and has begun moving money from his personal savings into his company as a loan, reactivating a line of credit, and cutting employee hours.
A bipartisan pair of state lawmakers are laying the groundwork to help businesses hit by the fires, co-hosting events with the Cook County Chamber of Commerce and preparing a plan to bring economic relief to the region. Gov. Tim Walz has indicated he might call a special session of the Legislature on August 12 to extend a peacetime emergency in response to the fires.
Tourism, especially the canoe country experience during summer, is a major driver of the region’s economy. Cook, Lake, and St. Louis counties have a combined economic output of $973 million from outdoor recreation, according to a 2026 report from Explore Minnesota.
Small business owners affected should document every canceled reservation, refund, and revenue loss in detail. Outfitters report there is no insurance that covers this type of disruption, so detailed records will likely be required if state or federal aid programs materialize. Business owners can also monitor BWCAW reopening updates from the Forest Service to adjust trip offerings as more entry points come back online.
The key date to watch is August 12. If Walz calls a special session, lawmakers say they will have a relief proposal ready. If he does not, tourism businesses heading into September with empty books and drained savings will have to wait even longer for help.
