The Hollowing Out of Downtown Lake Geneva

As leases expire storefront stand empty

For decades, Lake Geneva, Wisconsin, thrived as a seasonal tourist town, drawing Midwestern visitors to its lakeside charm. But signs of decline are increasingly evident, with vacant storefronts multiplying downtown. The culprit? A combination of shifting travel habits, changing consumer preferences, and a funding shake-up that has left local businesses vulnerable.

A decade and a half ago, only a small fraction of Americans 3% to 5% ventured abroad for leisure. By 2024, that figure had soared to 36%. Social media has played a role, offering Americans a window into European and Asian destinations once seen as out of reach. A strong dollar has further sweetened the deal, making overseas travel effectively a 30% discount compared to previous years. Lake Geneva, a third-tier domestic destination, has found itself squeezed out.

The pandemic provided a temporary reprieve. With international travel off-limits, affluent visitors flocked to Lake Geneva, and government subsidies kept businesses afloat. But those support mechanisms have evaporated. The federal spending tap has run dry, and the local tourism commission’s ability to prop up businesses has diminished.

Meanwhile, broader economic trends are exacerbating the town’s struggles. E-commerce sales in the U.S. have been growing at an annual rate of 14% to 18% in recent years, accelerating a shift away from traditional brick and mortar retail. While downtown businesses rely heavily on tourists, year-round residents increasingly favor large shopping centers along Edwards Boulevard, where Geneva Square is expanding. Even in dining, locals opt for practical choices like the reasonably priced Next Door Pub and Joni’s Diner rather than downtown’s tourist-focused establishments.

Commercial real estate pressures are adding to the malaise. Many leases signed during the pandemic boom are expiring, with few takers for the steep triple-net rents landlords demand. Without tenants, the market will eventually adjust likely at lower price points, as seen in nearby Delavan. In the meantime, however, downtown’s tax base is eroding. Even large-scale interventions, such as a $1 million grant to convert the Geneva Theater into a beer taproom, have done little to stem the decline.

Complicating matters further is a shift in how tourism funds are allocated. Lake Geneva’s tourism commission, overseen by local business figures Brian Waspi and Zakai Pirzada, manages more than $2 million in annual room tax revenue. Until December 2023, about 34% of that budget was dedicated to local business promotion. But a policy change that month handed 51% of the funds to the regional Lake Geneva Chamber of Commerce, which prioritizes marketing resorts outside the downtown core, including in Delavan, Fontana, and Lyons Township that is Grand Geneva. The local commission’s share was cut to 19%, much of which now supports events at out-of-town resorts rather than businesses in downtown Lake Geneva.

Recent funding decisions reflect this shift. At a March 2025 meeting, the commission approved $20,000 for a Whiskey Festival hosted by the Geneva Lakes Whiskey Club an event based at Geneva National and Grand Geneva Resort. The budget included $15,000 for facilities rental and $7,500 for website modifications, with only a vague plan to shuttle festival attendees to downtown bars.

Resorts, by design, are self-contained ecosystems. They offer guests not only accommodation but also dining, shopping, and entertainment golf courses, spas, ski facilities ensuring that visitors have little reason to venture elsewhere. For downtown Lake Geneva, the challenge is clear: as resorts grow stronger, and tourists look further afield, the town risks becoming an afterthought.