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Vermont tourism leaders warn Canadian visitation drop, tariffs and federal rhetoric threaten businesses
Summary
Tourism industry witnesses told a joint House and Senate hearing April 10 that falling Canadian travel, possible tariffs and hostile federal rhetoric are already cutting bookings and could put federal grant-funded projects and seasonal businesses at risk.
State tourism leaders, regional business owners and Quebec officials told a joint hearing of the Vermont House Commerce & Economic Development Committee and the Senate Economic Development, Housing and General Affairs Committee on April 10 that a recent national political climate and possible tariffs are depressing Canadian visitation and threatening local businesses.
“Tourism is a huge economic engine for Vermont, employing over 30,000 Vermonters all over the state and bringing in $4,000,000 in visitor spending in 2023,” said Heather Pelham, Commissioner of the Department of Enforcement and Marketing for the state of Vermont. Pelham told lawmakers Canada accounts for about 5% of statewide visitation and roughly 750,000 visits that generate about $150,000,000 in spending annually, but she warned the effect is concentrated in border communities where Canadian visitors can make up 30% or more of people who come to a town.
Why it matters: Canadian visitors are a major source of revenue for northern resorts and for small businesses that rely on summer and fall travel. Several witnesses said declines in cross‑border travel are already showing up in reservations and season‑pass sales and could ripple through lodging, events and restaurants.
Jay Peak Resort’s general manager, Steve Wright, said the resort’s United States customer base is up year‑over‑year but Canadian season pass sales are down sharply. “Our US side is up 15%. We are off 80% with Canadian season pass sales at this point,” Wright said, adding that Canadian hockey teams and golf groups also canceled bookings and that those losses reduce revenue that supports hundreds of jobs.
Rene Sylvester, Quebec’s delegate to New England, told the committees that trade and tourism ties are deep: “Bilateral trades reach 2,300,000,000.0 US dollars,” and said Canadians are watching developments in Washington. He urged Vermont to continue outreach and joint events to reassure Quebecers they remain welcome.
Small businesses described immediate effects. A Red Hen Baking Company owner said bakery sales rely on a summer‑to‑fall tourism surge and that tariff‑related input price increases would force higher customer prices. Will Greenwald of Basin Harbor Resort said group business and housing for seasonal workers are particular pressure points for resorts that operate a short, intensive season.
State tourism officials and industry groups asked lawmakers to support continued marketing and engagement with Canadian markets and to watch federal grant timelines. Pelham said the agency is managing a roughly $10,000,000 Economic Development Administration (EDA) award and that about $5,000,000 remains to be billed; because the grant is reimbursement‑based, delayed billing and payment could put those subgrants at risk.
No formal actions or votes were taken at the hearing. Committees and industry groups said they will continue outreach, marketing and coordination to try to limit further declines in cross‑border travel and to support businesses that report immediate revenue, staffing and capital‑spending stress.
“The state should continue to invest in the Canadian market and be thoughtful about what we are saying to them,” Wright said.
The hearing continued with additional industry panels and a planned press conference later in the day.
