It’s a problem that’s playing out across New England as the summer tourism season begins.
Tourism is the number one or number two largest industry for each of New England’s six states, said Michele Cota, the executive director of Discover New England, making visitors to New England vital to the region’s economy and workforce. But foreign travel is already showing signs of slowing down.
In 2024, Canadian tourists spent about $700 million in New England. But from January to April 2025, overseas visitors were down 4.3 percent from a year ago. Canadian visitors are down more than 21 percent in the first quarter of the year, Cota said.
“That impact is being felt the hardest in our bordering New England states and we haven’t heard of those bookings picking up yet,” said Cota.
Last year, 6,060 Canadian group tour visitors from Quebec alone traveled to visit the Newport Mansions, one of Rhode Island’s top draws for tourists. So far this year, 47 tour groups — 40 of them from Quebec — have canceled, a loss of more than 2,520 visitors.
“If current trends continue I would estimate our total Canadian visitation – including groups, families and individuals – will drop by more than half,” said Kevin O’Leary, the director of marketing for the Preservation of Newport County.
On Block Island, most foreign tourists are day-trippers coming over from Newport. But even ahead of peak season, those numbers are already in question.
Jessica Willi, the executive director of the Block Island Tourism Council, said she’s hearing about the cancellations on the mainland.
“So I assume that we aren’t seeing those folks,” said Willi.
Other New England states could also be competing for those same tourist dollars.
Smaller cities, like Providence, get fewer international visitors compared to large cities like Boston. But if Boston experiences a reduction in transient occupancy due to decreased international tourism, it may lower hotel rates, which could have an adverse trickle-down effect on Providence, said Thomas Riel, senior vice president of the Providence Warwick Convention & Visitors Bureau.
“Boston is typically not a direct competitor to Providence, except during economic or market downturns,” said Riel. “When that happens, Boston becomes a bit more affordable, and that opens up more options for both leisure travelers and group business shopping the region.”
While international travelers are declining, American visitors to New England’s destinations are hesitant to book their trips, or are staying fewer nights, on average, than in years past.
“We’re bracing for it,” said Paul Niedzwiecki, CEO of the Cape Cod Chamber of Commerce. “People are hesitant to spend.”
“In years past, a stay was five or six days. Now it’s three or four,” added Niedzwiecki. “There’s more availability and more inventory out there at a later time than there was in the last three or four years.”
Restaurants, which already face razor-thin margins, have been feeling the heat.
In Providence’s Federal Hill, restaurant owners are watching their invoice totals spike. The cost of wine, lettuce, avocados, and some spices are all climbing.
“It’s all been heating up in the last two weeks,” said Rick Simone, the president of the Federal Hill Commerce Association, which represents many restaurants and other businesses in the neighborhood.
In New Hampshire, chef Evan Hennessey, owner and chef of Stages at One Washington and The Living Room in Dover, said diners will commit to a reservation they have made far in advance, but spontaneous nights out have dropped significantly. Hennessey is already making changes: He’s minimized and downsized any expense he can — from changing internet companies to holding back on equipment repairs.
“With revenues trending downwards, anyone in the restaurant business is scared right now,” said Hennessey. “If attendance drops much lower than we won’t be able to sustain our staff costs as their costs of living continue to rise but our revenue drops.”
Some business owners said they haven’t yet raised their prices, but that it’s a “constant factor in our cost management strategy,” said Emshika Alberini, the owner and chef of Chang Thai Cafe and The Surf Shack in Littleton, N.H.
“We’ve been cutting back on our staff during slower times and focusing more on takeout or improving staff efficiency,” said Alberini.
Economic pessimism has ticked upward in New Hampshire, where nearly 40 percent of residents who responded to a recent survey said they expect rough times for local businesses during the next year. Employers in Massachusetts also face increased uncertainty, according to economic advisors.
Some businesses are trying to work with consumers to get them in the door.
Rachel Miller, chef and owner of Nightshade Noodle Bar in Lynn, Mass., recently put a call out to diners on social media, asking where they are eating out, if anywhere. The responses poured in from people describing rising rents and the high costs of groceries, though some said they were saving restaurant meals for special occasions. In response, Miller tweaked her restaurant’s prices: A five-course tasting menu used to cost $82, but now diners can get a seven-course menu for $75.
“Our aim is simply to make that good feeling and great experience more accessible, especially in today’s world where everything feels more expensive and tense,” wrote Miller in a social media post about the price change.
Trump’s tariffs affect the prices of more than just food. Acts affecting the cost of steel and aluminum imports also raise the cost of opening a new restaurant or replacing old equipment.
Chris Trosin, the owner of Rhode Island-based distributor Metro Lobster & Seafood, said he planned to expand his facility and fleet of trucks this year, but hit the brakes on major investments.
“We were growing 10 percent per year for the last three years. This year, we’re flat,” Trosnin said. “The economy is slowing a little bit. I can’t spend the money. I’ve got to hunker down.”
“Anything discretionary is gone,” he added.
The Trump administration’s attacks on New England’s states and institutions could also have a ripple effect throughout the region’s economy. The White House has slashed funding that has been essential to New England’s education, health care, and life sciences industries. Catastrophic cuts to Ivy League institutions, including Harvard and Brown University have sparked hiring freezes and job losses, so people are are saving their money instead of spending it.
“Cape Cod relies on the health and wealth of Boston and the greater Boston community,” said Hay. “I don’t stay up at night worrying about how the millions Harvard isn’t going to get is going to affect my bottom line. I just want to focus more on making sure my chowder tastes good every day.”
“But it’s certainly part of the whole landscape. It’s something that is incredibly concerning that could potentially wreak havoc on our business,” Hay added.
There are few bright spots in the region, mostly in the luxury market.
Four- and five-star hotels are holding strong, bolstered by high-end travelers who still have disposable income. Some places are even trending ahead in bookings compared to last year, said Niedzwiecki.
“It’s more families that are middle-class and budget conscious who aren’t coming,” said Niedzwiecki.
Omar Mohammed of the Globe staff contributed to this report.
Alexa Gagosz can be reached at [email protected]. Follow her @alexagagosz and on Instagram @AlexaGagosz.
