From beach vacations to business conferences, travel-related tourism is the lifeblood of the state economy, generating $6.8 billion in 2018, according to a report by R.I. Commerce Corp.
But with state borders closed and large social gatherings off-limits, the industry has ground to a halt, costing millions of dollars in direct spending at restaurants, hotels, attractions and events. Whether the losses will be even greater hinges on when the state will reopen its borders to out-of-state travelers – and whether they’ll want to come.
“If we don’t have open borders, this is going to be a finite season,” said Evan Smith, CEO and president of Discover Newport. “The ability to have visitation from out of state is going to define what this season is all about.”
While the fast-approaching summer season is the cornerstone of Newport’s tourism industry, the area has already felt the cost of COVID-19: roughly $40 million in lost revenue from tourism activities typically supported by Discover Newport, according to Smith.
Kristen Adamo, CEO and president of the Providence Warwick Convention & Visitors Bureau, recently revealed loss projections of about $43 million from canceled and postponed conventions, meeting and sporting events at the R.I. Convention Center and the Dunkin’ Donuts Center and other venues booked through the bureau.
‘People are going to want safety and value.’
KRISTEN ADAMO, Providence Warwick Convention & Visitors Bureau CEO and president
Those losses, based on calculations generated by industry professional organization Destinations International, represent more than half of the roughly $140 million of direct spending seen during a typical 12-month period in areas overseen by Discover Newport and PWCVB.
From empty hotels to shuttered restaurants struggling to cover overhead costs through takeout and the once-booming R.I. Convention Center now set up to serve as a makeshift hospital in the event that COVID-19 cases surge, the pain ripples through all sectors of the tourism industry, Adamo said. That includes the destination organizations and convention and visitors bureaus themselves; Adamo and Smith both reported laying off three-quarters of their employees, shuttering offices and slashing costs to stretch reserve funds as long as possible.
“It’s all really a waiting game, and we don’t know when it ends,” Adamo said.
As they wait, though, they are also getting ready for a tourism revival, albeit in a very different form, Smith said. Hotels are sanitizing and cleaning in preparation for reopening, although at one-third of their usual capacity. Restaurants are reimagining dining in the limited outdoor capacity now permitted, and attractions and event companies are considering new ways to give visitors the same fun experiences.
While tourism and travel will be slow to come back, Rhode Island is well-positioned to make the most of the gradual return. Its location, situated between Boston and New York City, offers an ideal destination for the “drive market,” less expensive than its metropolitan counterparts and without the severity of COVID-19 cases in either city.
“People are going to want safety and value,” Adamo said.
Smith echoed Adamo’s emphasis on sanitation and safety, coupled with the need for innovation – think picnics on Ocean Drive or biking tours rather than big festivals.
“A lot of tourism thinking in the past was based on the idea that the more fish in the net, the better,” Smith said. “That doesn’t work this year. It’s about what experiences can we deliver that will make people feel safe and inspired.”
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
