With airlines struggling, a world in chaos, and consumers cautious about spending in a presidential election year, you might think that would project a bleak outlook for the upcoming tourism season.
But to the contrary. Evan Smith, President and CEO of Discover Newport, says those factors leave him with “a lot of reasons to be optimistic” about the 2024 tourism season in Newport and Rhode Island.
We recently had a conversation with Smith, touching on a myriad of issues that impact tourism not only in 2024, but well into the future – from Newport’s Cliff Walk the long-term impact of sea rise, and the industry’s struggle to find employees for its restaurants and hotels.
The Outlook
While people may be cautious about spending in a presidential election year, Smith also believes that consumers are continuing to “travel (more) in a post covid environment.”
He says within the industry there have been “corrections in rates, structure, and affordability. Consumers are more skeptical, better shoppers.” He sees these price corrections continuing through 2024.
“Historically,” he says, “consumers get a bit clammy around election years” … “spend less money” and are “nervous about the economy. We’re living in a strange world right now. A lot of bizarre things are going on nationally and internationally.”
Yet, he says, “the spirit to travel and desire to travel is quite strong … Rhode Island will fare well. Thirty million people live within four hours of Rhode Island. Being in a highly populated area is helpful.”
He believes regional travel will exceed international travel, as “turmoil around the world gets a little nervous.”
Meanwhile, in Newport the wedding market is strong, and the meeting and conference market is “coming back nicely,” Smith says.
Airline industry
Aiding local travel is an airline industry that Smith says “is still struggling, trying to find its pathway back. Rate structures are inflated.”
“I’ve never seen airlines in a worse place than they are today,” he says. “They can only go up from here. The challenge in the industry are the legacy airlines (like American, Delta and United).”
“Hopefully, ’24 will bring about a new renaissance for the airline industry … how we make reservations, routes …”
‘There was a day not too long ago when flying was fun,” Smith says. “I hope we get back to a day when flying is fun again.”
Labor
While, he says, “the rebound for the travel industry has been remarkable (from the pandemic),” the labor situation remains a challenge.
“Will local restaurants and hotels have sufficient staff? That will be a major challenge.”
While Visa problems are easing, housing problems are not.
“Owners are moving to short term rentals,” and that’s “playing into a lack of employee housing.”
Climate change and a rising sea
He characterizes climate change, particularly sea level rise, as an ongoing problem that will continue to get worse.
“When do you stop fixing … and when can’t you do this anymore. It’s not a question of if, but a question of when.”
Newport’s Cliff Walk is a prime example. It remains open, with only a section from 40 steps to Ochre Court that is closed. People “walk around that segment that collapsed.” Some $40 million has been raised to “fix the spot,” but “when is the next part going to collapse. When will the next thing happen and how do we deal with it?”
Editor’s Note: Since talking with Smith, a second section of the Cliff Walk has been closed to the public.
He talks about areas in Jamestown, Newport and along the coast where the sea claims land and beach.
“Sea level rises will continue and continue to create problems.” People will continue to “lift structures or move them away from the water. People own land on the water. What options do they have?”
Cruise ships
The industry has made a “big rebound,” but as part of the “New England, Canada area,” the frequency of these cruise ships coming to the region, can be inconsistent.
“We have these peaks and valleys, hot years and down years,” Smith says. This year, 2024, is a down year. “We had more than 60 ships last year, and this year we’ll be slightly down.”
It is a spectacle to see these big ships docked off Newport, but it is only a fraction of the city’s tourism industry – some 75,000 passengers, Smith says, of the three million plus tourists who visit the city annually.”
Meanwhile, Newport hopes to capture a little more of the cruise passengers’ dollars, asking the General Assembly to increase the port tax from $6 to $10.
