COVID pandemic disruptions in previous summers, inflation, a potential recession. Still, NH’s summer tourism season seems solid. The Department of Business and Economic Affairs’ Division of Travel and Tourism Development estimates 4.3 million visitors will come to NH this summer and that they will spend
$2.35 billion.
That would mean a 4.8% increase in visitation and a 6.5% increase in spending from last summer. And that has been part of a healthy trend for the state, which has seen summer tourism spending increase 47% between 2012 and 2022. Summer season earnings for NH’s tourism businesses in the leisure and hospitality industry increased from $401 million in 2021 to $426 million in 2022, according to Dean Runyan Associates.
Challenges
With 7,800 fewer people overall working in the state than in 2020, according to the NH Fiscal Policy Institute, businesses continue to contend with workforce shortages. Yet demand for hospitality workers has only increased as the tourism industry has rebounded. Employment in NH’s leisure and hospitality industry skyrocketed from 31,900 in summer 2020 to 47,000 in 2022, according to Dean Runyan Associates.
There are other factors affecting growth in the tourism industry, particularly in lodging and restaurants. Challenges include access to credit, rising interest rates, and increased energy prices, says Mike Somers, president of the NH Lodging and Restaurant Association.
Despite these challenges, Somers remains cautiously optimistic. “We picked up some market share in 2021 and 2022 particularly in northern New England,” he says, adding that gas prices, compared to last year, are not as high. “Provided the weather is good, we’ll have agood season.”
Somers says many hotels are fully or close to fully booked for the summer. The fall tourism season, he says, is usually strong as well. “Where we start to get worried is late this year and into next year,” he says, noting the lingering question of where consumers will be with their discretionary spending as winter approaches. “We’re hoping the workforce will get better, and that fuel prices will come down more along with inflation,” he says, adding that many businesses “thought we would be in a recession now” and are wondering if it will happen.
State Tourism Strategy
The NH Division of Travel and Tourism Development has begun addressing some of the challenges with a statewide development strategy. The division conducted surveys to gather input from both NH residents and tourism and
hospitality stakeholders.
“We’re currently reviewing all the qualitative and quantitative research and determining a list of priorities and recommendations with Jones Lang LaSalle consultants,” says NH Travel and Tourism Director Lori Harnois. “This strategy will provide a blueprint for the state’s tourism industry for the upcoming five years.” The tourism development strategy will be released later this month.
As for attracting that projected record number of tourists this summer, the department’s summer marketing campaign will continue to focus on its “Discover Your New” program created in 2020 and target states close enough for road trips, Harnois says. The state’s core markets include New England and New York and extend to Eastern Pennsylvania, New Jersey, Montreal, and Quebec City for its road trip markets. The campaign launched in the road trip and Canadian markets in mid-March and in the core markets on May 1.
To improve the visitor experience and protect the state’s natural assets that draw visitors, the NH Division of Travel and Tourism Development is continuing to partner with Leave No Trace, a national organization that provides education, skills, research, and science to help people care for the outdoors. “New Hampshire’s initiative prioritizes bringing awareness to visitor impacts,” Harnois says.
Current Issue - April 2024