Newport holding its own this summer despite economy

DESPITE AN UNFAVORABLE economic picture, NCCVB President Evan Smith said the region’s tourism and hospitality sector is performing “reasonably” well. /
DESPITE AN UNFAVORABLE economic picture, NCCVB President Evan Smith said the region’s tourism and hospitality sector is performing “reasonably” well. /

Evan Smith is the president and CEO of Newport County Convention & Visitor’s Bureau. He recently spoke with Providence Business News about the current tourism season in Newport, one of New England’s top summer destinations.

PBN: Tell us about early summer returns on the tourism season.
SMITH: Some of the numbers we have in through June show we’re having a reasonably good season – not record-setting, certainly, but in light of the economy, reasonably well. There are peaks and valleys that parallel what’s happening nationally. The economy has been a problem. It cannibalizes money from people’s wallets that they would otherwise spend on vacationing.
Weather is still the largest single element that affects us. The financial difference between a sunny forecast and a rainy forecast can cost the local economy hundreds of thousands of dollars. We need good weather for all the August and September weekends to do well.

PBN: How have gasoline prices and the slow economy affected the season?
SMITH: A new trend has emerged – Thursday is the new Friday. This summer a lot of people are starting the weekend a day early. They’re taking four-day vacations instead of a seven-day week. It’s not the result of any promotion, it just evolved. Travelers are staying closer to home, and for Newport, that’s good, because for 12-million Americans we’re within a three-hour drive. People are re-acquainting themselves with their own back yard. They are rediscovering Rhode Island and Newport.
Something else we’ve noticed is that performance is up for hotels in Middletown. The mid-priced national chains – Hampton Inn, Howard Johnson’s, Courtyard by Marriott, Holiday Inn Express – they’re all in Middletown, and they’re all going slightly better than last year, while hotels in Newport are showing a slight decline.

PBN: But it sounds as though there are also some positive things happening.
SMITH: Yes. For one thing, we’ve had a record-high number of European visitors to America this summer, because the Euro dollar and the British pound so strong right now. In Newport, that number is up 6.75 percent.
Weddings are another strong market. In the summer we average about 20 weddings each weekend. The booking trend is very strong, although we are seeing brides scaling down on the total budget.
Events are one of the things that have helped stabilize Newport through thick and thin – the tennis tournaments, the regattas and the music festivals. They’re all doing well.

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PBN: Earlier this year there were predictions of a labor shortage in some resort areas because the federal government refused to grant seasonal work visas to workers from overseas. How was that resolved?
SMITH: When the season began we thought the loss of the H-2B visas would be our No. 1 problem, but it’s become less of an issue, for several reasons. First, because we got early notification that we would not be getting the visas, the hotels and other businesses had time to prepare. They held job fairs and used their resources to recruit new employees. Secondly, because of the slow economy more local workers need jobs.

PBN: Any predictions for the fall season?
SMITH: The fall forecast right now is very strong — with cruise ships, with motor coaches and with business travel. We’re going to see cruise ship arrivals grow by 10 percent this year, from 27 to 30, which will bring an additional 16,000 passengers into Newport.

PBN: What about business travel?
SMITH: The trend in the meetings industry is short-term bookings involving smaller groups. Planners are paying close attention to their budgets. They’re more conscious of hotel room rates, and especially the costs associated with functions and events. Of course, rising travel costs mean they’re planning regional meetings rather than national ones, and that benefits Newport because of our location and the concentration of businesses within a 200- to 300-mile radius.

PBN: Have government budget woes affected your bureau directly?
SMITH: We get 84 percent of our funding from the lodging tax. Overall, in Newport County lodging tax revenue is down 1 percent. That’s not too bad, but if the trend continues it will lead to budget cuts.
These are difficult economic times. Everyone could be throwing in the towel and saying, ‘Hey, we’re going to have a bad year,’ but they’re not. I’m really proud of the optimism and innovation shown by the Newport County hospitality industry. We’re making the best of what are not the best times. •

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