Projo Biz Blog

The hottest topic in the tourism business is what impact record-high gasoline prices will have on the business.

Will people decide to cut back their vacations this summer? Will Rhode Island benefit from people who choose to stay close to home, rather than spend their money elsewhere?

Tourism officials aren’t quite sure what the answers are to these questions, and they are coming up with promotions they hope will keep visitors coming to the state.

“We really are going into uncharted territory with the prediction of continued increases in gas prices,” said David DePetrillo, director of tourism for the Rhode Island Economic Development Corporation.

Gas prices have spiked before, but the latest increases that have pushed gasoline to nearly $3.60 a gallon, is unprecedented. How vacationers will react is unclear, DePetrillo said.

“It spells concern, there’s no question about it,” said Robert Billington, president of the Blackstone Valley Tourism Council.

“I’m sure we’re going to lose a few people that will probably think extra hard about making the extra trek if they are a-ways away.”

“We’re very cautious about the next 9 to 12 months, not just for gas prices, but the economy is just something that people don’t understand,” said Trudy Coxe, chief executive officer, of the Preservation Society of Newport County.

Tourism is one of the most important industries to the Rhode Island economy. It brings in annual revenues of over $4 billion, and employs 55,000 to 60,000 workings, according to the state’s Department of Labor and Training.

Read more Tuesday online at projo.com and in the Business Section of the Providence Journal.

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