Traverse City is the self-proclaimed Cherry Capital of the World, holding an annual week-long Cherry Festival the first full week in July to celebrate. Besides cherries, the surrounding Tuscany-like countryside produces grapes, and is one of the centers of wine production in the Midwest. Tourism, both summer and winter, is another key industry.

Freshwater beaches, a mild summer climate, upscale golf resorts, vineyards, a nearby National Lakeshore, prodigious snowfall, nearby ski resorts and thousands of square miles of surrounding forests make Traverse City the second most popular tourist destination in the state behind Mackinaw City. In addition, the historic downtown area of Traverse City is the home of many shops, restaurants, and offices.