Vermont’s summer tourism had hits and misses; making nice with Canada

Photo: Commissioner of the  Department of Tourism &  Marketing Heather Pelham,  Member of Canadian Parliament  Marianne Dandurand and Canada’s Consul General in Boston Bernadette Jordan. Courtesy photo.

by Matt Crawford, Vermont Business Magazine

It’s a late-summer evening and Burlington’s Waterfront Park is bumping. A Sprinter van, complete with U.K. plates and the steering wheel on the right-hand side, parallel parks near the Burlington Bay store. A retired couple from Pennsylvania asks for directions to the Church Street marketplace. Out-of-towners post photos of their creemees to their social media feeds.

As a stand-alone snapshot, that moment on the Burlington waterfront at the end of a gorgeous day suggests that all is well and good in Vermont’s summer tourism season. And in some regard, that’s not far off the mark.

Here comes the “but.“

By most accounts, the summer tourism season in Vermont — generally, June, July and August, with some nods to the end of May and the start of September — was decent. There were some concerning shortcomings and some solid wins. 

“To be honest, it was a mixed bag,“ said Heather Pelham, commissioner of the Vermont Department of Tourism and Marketing, who noted that summer tourism accounts — whether that’s dollars, visits or jobs — for about 30% of Vermont’s annual $4 billion tourism industry.

It’s impossible to clearly define a trend in Vermont’s summer tourism market since the start of the COVID pandemic in 2020. The rebound effect of pent-up travel demands in 2021, the floods of 2023 and 2024, and the draw of the solar eclipse in 2024 are impactful variables that distort the long-term view. This summer saw other weighty influences added to the equation.

“When people ask us what the new normal is, we don’t really have an answer for that yet,“ said Pelham. “We can’t say with any certainty that this year was a return to normal. It certainly had some challenges.“

The effect of the drought this summer will not be knows for a little while, as tourism numbers tend to lag, but anecdotally, it appears that despite all the negative impulses, foliage tourism was solid.

Photo: Okemo’s Adventure Zone in Ludlow. Courtesy photo.

Snapshot: Rooms and Meals Tax

A good measure of the strength of Vermont’s tourism economy is the money collected through state rooms and meals tax. Annually, the rooms and meals tax is the third-highest source of general fund revenue for the state, with 69% allocated to the General Fund, 25% to the Education Fund and 6% to the Clean Water Fund.

Preliminary numbers indicate that for the 2025 fiscal year ending on June 30, 2025, Vermont’s rooms and meals tax revenue reached $247 million, reflecting a 6.75% increase from the prior year. However, that total fell within a percentage point of what was forecast in the annual budget. Some of that increase was expected: The state implemented an additional 3% surcharge on short-term rental properties that went into effect Aug. 1, 2024.

A closer inspection of rooms and meals revenue from summer 2025 reveals a mixed bag: May’s rooms and meals taxes earmarked for the General Fund ($10.16 million) missed projections by over 10%, while June’s ($12.25 million) exceeded projections by about 2%, and July’s ($14.81 million) were nearly on target. August tax rooms and meals tax revenues continued to tend down, with revenues -4.5% below targets. August is the second month of the FY2026 fiscal year.

The sluggish trajectory of the rooms and meals tax figures is reflected in other spending data Pelham and her office measure.

“We keep track of credit card spending, which is showing about the same trajectory,“ Pelham said. “It may be down a little bit. One trend we do see is that those with higher incomes are still traveling and spending, but folks with a more limited budget — those in lower to mid-range income brackets — are pulling back somewhat.“

The Canadian Conundrum

Make no mistake: Vermont’s tepid summer tourism picture was heavily colored by a dramatic downturn in Canadian visitors. Canadians have long been the largest source of international visitors to Vermont, and Canada’s boycott of U.S. travel this year amid the Trump administration’s aggressive tariff policy and anti-welcoming rhetoric has reverberated throughout the Green Mountain State.

“There is no doubt the lack of Canadian visitors has put a dent into the summer season,“ Pelham said.

Steve Wright, president and general manager at Jay Peak Resort, echoes Pelham’s comments. Jay Peak, tucked up within five miles of the Quebec border, actively courts Canadian business year-round, including offering a hockey rink open for tournaments and camps.

“There was a decrease in Canadian visitors,“ said Wright. “Business held up surprisingly well considering the Canadian softness. We forecasted issues well enough in advance so that we refocused our sales efforts on more U.S. markets. Hockey held up particularly well, even out of Canada, but the spending patterns, when Canadians were here, were all soft.“

There’s more to it than international politics, said Wright.

“The federal narrative relating to our Canadian relationship impacted things for sure,“ Wright said, “as did a sluggish Canadian economy that continues to weaken.“

Those forces were also observed at Vermont state parks, where Canadians historically make up about 10% of all users, according to Nate McKeen, director of Vermont State Parks. This year, McKeen said, numbers indicate about a 60% decline in Canadian visitors to Vermont’s 55 state parks.

Since 2021, camping and day-use visitation by out-of-staters at Vermont state parks has averaged about 365,000 people annually — approximately one-third of the roughly 1 million annual visitors. The vast majority come during the summer months. While state parks close to the Canadian border in Grand Isle, Franklin, Orleans and Essex counties have generally lagged in visitations this year, statewide numbers have rebounded after a slow start.

“We are now running pretty close to what we expected,“ said McKeen. “With a decent fall, we will be pretty close to having a million visitors in the system again this year.“

A significant measure of this summer’s decline in Canadian visitors to Vermont can be seen in the stark numbers from Vermont-Canada border crossings: May recorded just over 112,000 passenger crossings at five Vermont ports of entry, a 39.6% decrease from May 2024; June saw approximately 153,000 crossings, down 37% from June 2024; and July reported about 210,600 crossings, a 38.7% drop from July 2024. August numbers are still pending.

For the year, Vermont is seeing about a 30% decline in Canadian border crossings. This dip is felt most significantly at restaurants, campgrounds, inns, marinas, retail stores and festivals.

Consider the turnout for the 2025 Vermont Brewers Festival held at the height of summer. Annually, the festival attracts upwards of 7,000 people to Burlington’s Waterfront Park to sip on a wide array of craft beer and ciders. With 77 breweries in Vermont producing more than 353,000 barrels of craft beer each year, festival-goers certainly can quench their thirst.

Photo: 2025 Vermont Brewers Festival in Burlington. Courtesy photo.

But Canadian craft beer enthusiasts were few and far between this year.

Canadian attendance typically accounts for 6% to 10% of ticketholders, or about 300 to 700 people annually, but in 2025, only about 75 attendees came from Canada, according to Emma Arian, executive director of the Vermont Brewers Association. Arian’s association attempted to attract Canadian visitors by offering event tickets at par with Canadian currency.

The low Canadian turnout at a Burlington beer festival likely reflects wider tourism challenges Vermont’s largest city experienced during the summer.

Queen City Blues

Across the state, several individual businesses reported solid summer traffic and revenue equal to or above last year. That wasn’t necessarily the case in Burlington. “It has been a very tricky summer in Burlington,“ said Jeff Lawson, vice president of tourism and marketing at the Lake Champlain Chamber. “A lot of things came to a head this summer, affecting tourism in our community.“

Lawson’s statement is supported by this year’s hotel occupancy rates, which show an approximate 11% decline across Burlington, South Burlington and Chittenden County. Despite relatively steady room rates, revenue per available room has decreased by about 6%, and room demand has dropped by approximately 12%, resulting in fewer bookings, fewer guests and empty rooms during what should be peak season.

“Things are definitely down for a variety of reasons,“ said Alan Hebert, director of sales and marketing at DoubleTree by Hilton Burlington. “April, May and June we were off about 38%, and while the Canadian traffic is certainly part of it, there’s more to it.“

Besides the downturn in Canadian traffic, Burlington experienced an aggressive infrastructure construction season that disrupted downtown traffic patterns and larger societal issues, casting a negative shadow over public safety. In May, more than 100 local businesspeople submitted a letter to Burlington Mayor Emma Mulvaney-Stanak requesting her administration address problems of public intoxication, open drug use, property crime and homelessness.

As Vermont’s economic hub and largest city, Burlington is crucial to the state’s prosperity. A downturn in Burlington’s business could have cascading effects across Vermont, especially since a significant portion of the state’s hotel accommodations are concentrated in and around the downtown area.

In Stowe, Fly Rod Shop owner Bob Shannon reported his best May through August ever for his shop and fishing guide service. His team led more half-day and full-day excursions than in any previous year, though he attracted very little business from visitors in Burlington.

“In years past, we always got calls from people who were staying in Burlington and booking with us because we’re only about 45 minutes down the road,“ Shannon said. “I can’t say why for sure, but we’re getting nowhere near the volume of trips from people in and around Burlington that we used to get.“

Photo: Fly Rod Shop customers fishing. Courtesy photo.

Airport Taking Off

Burlington’s Patrick Leahy International Airport, contrary to the city’s general travel woes, enjoyed a very busy summer in 2025, according to Jeff Bartley, director of innovation and marketing. He noted that United, Delta and American Airlines, which collectively transport nearly 80% of the airport’s travelers, all saw high load factors.

’When you look at our numbers in aggregate, we’re getting really close to what we did in 2008-09, which was as busy as the airport has ever been,“ he said. “There were times this summer when we had 3,000 passengers go through TSA on multiple days in a row.“

However, mirroring other northern Vermont businesses, the airport did experience a noticeable decline in Canadian traffic. Bartley emphasized the potential impact, saying, “If we can get Canadian flyers back, we’ll see an additional increase of about 10% to our numbers.“

Other Observations

French-speaking Quebecers might describe Vermont’s 2025 summer tourism season as “comme ci, comme ça“ — middling — a term Hebert found fitting.

Though Burlington saw no significant visitor surge, some areas thrived. Mark Avery, co-owner of the Lake Morey Resort in Fairlee, enjoyed a “fantastic“ summer, crediting a popular free concert series that drew national acts and 8,000-strong crowds, significantly boosting July and August room sales.

Yet, Avery’s success appears to be an exception. Willie Docto, co-owner of Waterbury’s Moose Meadow Lodge & Treehouse, reported over a 30% drop in room nights and revenue for June, July and August, a trend echoed by other Mad River Valley lodging establishments. Docto attributed this downturn to economic anxieties stemming from political actions in Washington, including tariffs, inflation and job insecurity, which make people cautious about luxury spending like vacations.

Autumnal (And Beyond) Optimism

As the memory of summer 2025 fades, Vermont’s tourism industry looks ahead to the vital fall foliage and ski seasons. Autumn delivers about 25% of the state’s tourism business, and despite lingering challenges, there’s reason for hope.

Vermont’s ski areas significantly contribute to foliage tourism with activities like scenic lift rides, music festivals and mountain biking.

“I don’t have hard numbers, but things are looking to be pretty on par with last year,“ said Bryan Rivard, director of communications at Ski Vermont.“ He added that ski areas have been expanding their offerings, and “in general, things are looking pretty good heading into the winter season.“

Jay Peak’s Wright echoed this, expecting his northern Vermont resort to offset any summer softness with weddings and conferences. Additionally, Wright stated that season pass sales for 2025-26 are ahead of last year’s record pace, despite soft Canadian sales. Lodging and vacation package bookings are 8% to 10% ahead of last year’s record pace as well.

Burlington also has bright spots, according to the Chamber’s Lawson.

“As hard as it was this summer, the construction projects are going to be generational changes,“ he said. “We also have 1,000 more rooms that are coming into the market, and we’re continuing to improve the public safety issues. We feel pretty optimistic moving forward.“

Collectively, Vermont’s tourism industry has weathered a challenging summer and is planning for fall and winter seasons that will undoubtedly be filled with unexpected struggles and surprise windfalls.

As Pelham summarized, “Every year can’t be a banner year, but that doesn’t mean it’s a disaster either. Tourism has a $4 billion economic impact in Vermont, and it’s not going away. It’s important to the quality of life for all of us here, and it remains the lifeblood for a lot of small businesses throughout the entire state.’“

Matt Crawford is a journalist and writer from northern Vermont.

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