PROVIDENCE – A new joint report from the Rhode Island Hospitality Association and Salve Regina University econometrics students projects the state has taken a major negative economic hit not only as a result of the ongoing partial closure of the Washington Bridge thus far but how much worse it may get four years from now.
The 20-page report released Tuesday by Salve students and the hospitality association, titled “
Washington Bridge Economic Impact Report,” utilized regional input-output modeling system data developed by the U.S. Bureau of Economic Analysis. The association and Salve students say the framework analyzed direct, indirect and induced monetary impacts of the closure, specifically focusing on hospitality industries defined by North American Industry Classification System codes such as full-service restaurants, hotels, entertainment venues, breweries and food service providers.
The study also drew on data from the revenue analysis office of the R.I. Department of Revenue, applying conservative inflation projections to model economic activity both before the partial closure occurred and after.
The report notes “significant economic consequences” to Rhode Island's hospitality sector have been revealed since the bridge’s westbound side connecting Interstate 195 from the state’s East Bay to downtown Providence
abruptly closed on Dec. 11, 2023, due to the discovery of structural deficiencies.
The hospitality industry suffered a projected $114 million loss in revenue across the state during the first 12 months of the closure, according to the report. Additionally, the report states an estimated 1,342 hospitality jobs were lost statewide in that same time period after the bridge’s westbound side was shut down.
“It feels like it’s just one more hit to the industry,” Rhode Island Hospitality Association Chief Operating Officer Heather Singleton told Providence Business News. “When it closed, it was right before the holidays. People were canceling dinner reservations, New Year’s Eve reservations, corporate holiday parties. Things just stopped. That was a huge hit.”
Singleton said some restaurant and hospitality business owners informed her that they were just getting back to normalcy after the COVID-19 pandemic in 2020 hammered all industries, and now “this [bridge closure] happened.”
“You take two steps forward, and then five steps back,” she said.
The report also broke down the hospitality economic impacts in each county. Unsurprisingly, Providence County suffered the worst impacts in all of Rhode Island, with a $56.7 million total hospitality revenue loss and 668 hospitality-related jobs eliminated, per the report.
Kent County saw a $29.8 million hospitality economic loss in the last 12 months, the report states, while Washington County incurred a $17.6 million hospitality economic hit and Newport County suffered a $16.5 million economic downturn. Only Bristol County saw a hospitality economic gain – $6.6 million – after the bridge partially closed more than a year ago, mainly because of changing consumer travel patterns and some activity being redistributed to areas less impacted by the bridge.
Long term, the impacts on the industry could be worse. The study projects the total impact on the state’s hospitality industry due to the closure could reach $748 million by 2029.
Rhode Island Hospitality Association CEO and President Farouk Rajab said in a statement that the report data underscores the urgency for “continued legislative support” to mitigate long-term challenges. Restaurants, hotels and other small businesses are “the backbone” of Rhode Island’s economy, Rajab said, and “we need collaborative efforts with state lawmakers, as well as the community’s help to sustain them.”
In September, the state
allocated $2.6 million in grants to help affected businesses. Of that, $1.2 million was earmarked for businesses in East Providence; $800,000 for businesses in Providence; and $600,000 for businesses located in all other municipalities across the state. Also, hundreds of businesses
applied for U.S. Small Business Administration relief loans in the immediate aftermath of the closure.
However, local business owners in areas hardest hit by the bridge closure have told officials
it will take more than a loan to help them recover. Singleton told PBN it is too early to tell if this new report, which still needs to be reviewed by the association, will be part of any advocacy plan calling on state leaders to provide more financial support for local businesses impacted by the closure.
“Our board of directors … and the regular members have to see [the report first],” Singleton said.
Singleton said she knows state leaders are anticipating being asked about other community needs and
facing a 2026 fiscal year deficit of more than $330 million, a gulf that could widen to more than $680 million by 2030, in addition to the hospitality industry seeking needs.
It is unclear if the state has reviewed the report and/or if it plans to allocate more financial resources to help impacted businesses, both within the area of the Washington Bridge and beyond. Gov. Daniel J. McKee’s office did not immediately respond Tuesday to questions for comment from PBN.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on X at @James_Bessette.
