A proposed $13 million investment in Rhode Island’s travel, tourism and events sectors would come as a well-timed boost, according to tourism leaders, but some say it wouldn’t be enough to fully address lingering problems caused by the COVID-19 pandemic.
On Oct. 7, Gov. Daniel J. McKee released a plan for spending almost 10% of the $1.1 billion granted to the state in American Rescue Plan Act funding – a plan that would earmark $8 million for direct grants to tourism, hospitality and events businesses, $3 million for “placemaking” initiatives such as public art and Main Street improvements, and $2 million for marketing coordinated among the state’s tourism councils and the R.I. Airport Corp.
Rhode Island is the only state in the Northeast that has yet to use any of its ARPA funding, and the hard-hit travel industry is eager for that to change, said Evan Smith, CEO and president of Discover Newport.
“The timeliness of this is critical in that we are looking at not only building the fourth quarter of this year and the first quarter of next year, but we are looking at our future and restoring consumer confidence,” Smith said. “So this is something we’ve been looking forward to with great anticipation.”
He said that the proposed allocation stands out as “one of the first times I can recall that the travel industry was included at this level, or on this scale.”
McKee’s plans for the ARPA money came as a proposed state budget amendment that still needs the approval of the General Assembly. It’s not clear when legislators will consider the plan.
Still, Smith said the proposed allocation sends “a clear signal that the travel industry is really important to the national economy and the state economy” – something that he says many have overlooked in the past.
The $13 million proposal isn’t large enough to fully address the industry’s COVID-19-related difficulties “but it’s a great start,” said Kristen Adamo, CEO and president of the Providence Warwick Convention & Visitors Bureau.
Recovery in the Greater Providence area, which relies heavily on business travelers, has been slower than in other tourism areas, Adamo said. While average daily hotel room rates have returned to typical levels, occupancy rates remain below 70%, when they would usually be at around 80%.
Since the beginning of the pandemic, PWCVB has needed to cancel or postpone events that were projected to lead to as much as $80 million in direct spending by visitors, according to Adamo.
“Each region is different, and we’re all funded by hotel taxes,” Adamo said. “Because Providence has been slow to recover, we haven’t been able to make up the budget shortfall as much as we’d like to.”
So far, Adamo has moved forward with spending as usual in hopes that anticipated funding, such as McKee’s ARPA plan, will fill in the financial gaps later in the year.
Adamo said the aid also could be used for more opportunities to attend trade shows where her staff would have a chance to persuade event and convention planners “to choose Rhode Island – Providence specifically, but all of Rhode Island,” Adamo said.
In Newport, Smith suggested the state set aside money for improving connections between tourism destinations and Rhode Island T.F. Green International Airport and the Amtrak station in South Kingstown. The airport and the train station are “lifelines to us,” he said.
Smith noted that leisure travel has recovered faster than business travel, though neither has fully rebounded.
“Both need nourishment,” Smith said. “We need those federal dollars to help both areas’ recovery.”
Jacquelyn Voghel is a PBN staff writer. Contact her at Voghel@PBN.com.