This story was originally produced by Business NH Magazine. NHPR is republishing it in partnership with the Granite State News Collaborative.
In March, three NH chamber executives traveled to Montreal for The Outdoor Adventure & Travel Show, one of the region’s key touchpoints for Canadian travelers. Last year, the tone of the show reflected a contentious political landscape, with many Canadians unsettled by President Trump’s tariffs and his stated desire to make Canada “the 51st state.” This year, they were met by less concern, but a lingering hesitation about traveling to the United States.
Now, heading into the 2026 summer season, tourism leaders say they are planning with a mix of caution, realism and guarded optimism. Last summer, Canadian visits were down 30% from a typical year. Adding to that uncertainty is a war in the Middle East pushing fuel prices higher, stricter screening for international visitors, and inflation holding at 3.8%, all of which could affect tourism.
Tourism is the second-largest revenue generating industry in NH with approximately $7.5 billion in annual visitor spending from about 14.6 million travelers. It supports roughly 70,000 jobs and generates more than $320 million annually in tax revenue. Summer, the busiest season, accounted for $2.6 billion in travel spending last year, up slightly from 2024, according to Dean Runyan Associates.
Charyl Reardon, president of White Mountains Attractions Association, says despite such challenges, plenty of people are still planning to vacation in the White Mountains, one of NH’s most visited regions.
“We’re still looking to have a positive summer season,” she says. “No matter what’s going on with the economy, people still want to travel. I think COVID really reinforced how important that is for people.”
Coming off a strong winter season, Reardon describes the outlook going into summer as “cautiously optimistic,” acknowledging that uncertainty, particularly around Canadian visitors and broader economic conditions, continues to shape expectations.
Two of Reardon’s team members, along with, along with Julie Schloezel of the Greater Monadnock Collaborative and John Nyhan of the Hampton Area Chamber of Commerce, attended The Outdoor Adventure & Travel Show in Montreal.
“People still have questions, but it felt a little softer this year,” Reardon says, noting that NH continues to appeal to many people because of its proximity, affordability, and breadth of outdoor experiences.
Those experiences remain a central selling point in the White Mountains, Reardon says, adding, “Visitors can hike in Franconia Notch State Park, drive the scenic Kancamagus Highway, ride the Mount Washington Cog Railway, or explore family attractions like Story Land and Santa’s Village.”
Canadian Visitors Decline
Canada, long NH’s top international market, remains a concern for those in the tourism industry, Reardon says. The roughly 30% drop in visitation across the state has had ripple effects across lodging, dining, and retail sectors that depend on repeat cross-border travelers.
Schloezel, president of the Greater Monadnock Collaborative, saw the shift firsthand during her outreach in Montreal.
“In 2024, I gave away somewhere between 300 and 400 brochures about our region,” she says. “In 2025 it was about 50, and pretty much all I heard was a very polite but clear, ‘we are not coming.’”
This year, she saw modest improvement, distributing closer to 75 brochures, but she noticed that hesitation persists.
“A number of people said they felt it was more important than ever to come visit the United States,” she says. “Others said they’re not coming now but definitely plan to [come] again someday.”
Data from Statistics Canada, a government agency producing demographic and economic data, reflects many Canadians’ ambivalence. Canadian residents took 6.1 million trips to the United States in the first quarter of 2025, down 10.8% year-over-year, with cross-border car travel seeing particularly steep declines.
Schloezel says concerns aren’t limited to rhetoric. During a recent trip to Washington, D.C., she joined other tourism leaders in meetings with NH’s congressional delegation, where policies affecting international travel were front and center.
“One issue that came up both in Washington and in Montreal was concern about potential changes to the Electronic System for Travel Authorization,” she says, referring to proposed requirements that international visitors disclose five years of social media and other personal information. “These changes haven’t been implemented, [but] a handful of Canadians at the show expressed concern and uncertainty about what it could mean.”
The group also advocated for restoring funding for Brand USA, the nation’s destination marketing organization, which is funded through international visitor fees and generates an estimated $24 in visitor spending for every $1 invested.
And the stakes extend beyond NH, Schloezel says. The U.S. has lost 41% of its long-haul international travel market share since 2000 and international visitation declined 5.5% last year, making the U.S. the only major global destination to see a decline in international visitation. All this contributes to a travel trade deficit now exceeding $70 billion, she adds.
Rising Costs
As businesses brace for fewer Canadians, domestic travel patterns are shifting due to higher overall costs. According to the American Automobile Association, the cost of gas in NH was $4.49 per gallon in May—nearly 40% higher than a year ago—raising concerns about discretionary trips.
“If we go into summer with gas over $4 a gallon, that could hurt our tourism—not those already planning a vacation, but the day-trippers,” says John Nyhan, president of the Hampton Area Chamber of Commerce.
Those visitors, often families making short, spontaneous trips, are particularly sensitive to price increases. “You’re adding up gas, parking, fried dough and ice cream for the kids,” Nyhan says. “We’re hoping gas prices drop before the summer.”
Even when visitors do come, their behavior is shifting. “People are still coming, but they’re spending differently,” he says, noting that visitors are “buying less, bringing more food from home, and maybe heading home earlier.”
To counter that, Hampton Beach is leaning more into programming designed to draw visitors for shorter stays or repeat trips. Events like Key West Days (a multi-day festival featuring performers), concerts at the bandshell and the annual seafood festival are designed to give travelers a reason to make the trip, even if only for a day or two. “We’re trying to give people reasons to come,” Nyhan says.
The increased costs faced to get to NH are just the start. Businesses also face rising costs, and tourism is an industry already operating on thin margins. Rising food costs, driven by ingredient inflation and increased labor expenses, have caused U.S. restaurant menu prices to rise by 3.8% annually as of March 2026, according to the U.S. Department of Agriculture. To maintain slim profit margins, many operators have implemented steep price increases—often 25% to 30% higher than 2019 levels—or adopted smaller portions and fewer menu items.
“Fuel costs and inflation are constant concerns,” says Mike Somers, president of the NH Lodging & Restaurant Association. “Fuel surcharges on deliveries drive up the cost of everything.”
With restaurant margins typically in the 3% to 5% range, operators have limited room to maneuver. “About the only way to adjust is to raise prices,” Somers says. “But consumers are experiencing price increase fatigue, so it’s a tricky balancing act to attract and retain customers while covering expenses.”
And not all segments of the tourism industry are affected equally.
“Upscale properties seem to be doing well,” Somers says, adding that day trippers and folks traveling on a budget may find other ways to spend their money. “Where we see demand softness is in the casual and value tiers.”
At the same time, operators at the high end say resilience depends on more than pricing. Ed Rocco, general manager of The Lake Estate on Winnisquam, says bookings are strong heading into the summer, particularly from corporate groups, but the property is still adjusting to evolving expectations.
“We always pay attention to the economy,” says Rocco, a 45-year hospitality veteran. “If demand softens, hoteliers typically drop their rates. It’s about putting heads in beds.”
To offset rising travel costs, the Lake Estate recently launched a campaign called “Just a Tank Away,” offering gas cards ranging from $50 for a one-night stay to $100 for three nights, as well as free-night incentives. “This gives people a chance to curtail spending a bit,” he says.
But Rocco emphasizes that long-term success hinges on consistency. “Travelers are always evaluating the price-value relationship,” he says. “If it’s worth it, they come back.”
Workforce Challenges Remain
Layered on top of cost pressures is the ongoing challenge of staffing. Somers says conditions have improved somewhat, but gaps remain, particularly in culinary roles. The federal H-2B visa program continues to create uncertainty with its lottery-based system.
“Staffing is slightly better than in the last few years, but finding culinary staff remains a challenge,” he says.
For operators like Rocco, workforce stability is essential in a highly seasonal industry. At the Lake Estate, that means investing in wages, benefits and training for a staff of roughly 150 employees, an approach aimed at maintaining service quality and employee retention.
“Summer is our number one season,” he says, adding that the months of January through March are the slow season. “We have a responsibility to the people who work with us to keep them working.”
A Season of Recalibration
Across the state, tourism organizations are recalibrating their strategies. Marketing efforts are increasingly focused on regional travelers, while destinations are emphasizing flexibility, shorter stays and experience-based travel, whether that’s a quick trip to Hampton Beach for an event or a multi-day stay exploring the White Mountains.
Nyhan highlights Hampton Beach’s events and day trip activities like surfing and swimming that reflects a broader shift toward attracting shorter stays and repeat visits.
Even Canadian visitors, though fewer, remain a big part of the equation, particularly repeat travelers and younger visitors seeking affordable getaways. Nyhan says in Canada he noticed the population aged 50 and over seemed more dug in for political reasons about not traveling to the U.S., while the 25 to 50 age range were less so.
“They want to have a vacation and they see New Hampshire as a doable vacation because they can drive there without paying airfare. It’s only a four drive from Montreal to here,” he says.
Nyhan also notes that Hampton experienced a 10% drop in Canadian tourism compared to higher percentages in other parts of the state last year. “This could have to do with the many repeat Canadian visitors who have come here for years. I’ve been talking to hotel owners and they say many people booked for the following year at the end of their stay last year.”
Taken together, tourism leaders say the outlook for 2026 is less about growth than about aligning pricing, experience, and new expectations in a tighter economic environment.
“I’m an optimist,” Rocco says. “People need to take vacations. And there’s no place more beautiful than New Hampshire in the summer.”
