Impacts of COVID-19 on Coastal Tourism in Maine: Evidence from Bar Harbor

Gabe, Todd (2021): Impacts of COVID-19 on Coastal Tourism in Maine: Evidence from Bar Harbor.

Abstract

This paper examines the effects of COVID-19 on coastal tourism in Bar Harbor, Maine, which was among the hardest hit regions statewide. The impacts of COVID-19 on Bar Harbor’s restaurant sector are separated into those related to the reduction in overnight tourists, the decrease in the recreational activities of day visitors and local residents (e.g., Acadia National Park users), the cancellation of cruise ship visits, and the nationwide decline in hospitality sales due to the COVID-19 shutdown. In July, which is during Bar Harbor’s peak tourist season, 52 percent of the area’s 2019 to 2020 year-over-year reduction in restaurant sales is due to the decrease in overnight visitors. In October, the decrease in overnight visitors explains only about 8 percent of the 2019 to 2020 year-over-year loss of restaurant sales, while the cancellation of cruise ships accounted for 47 percent of the impact on restaurant sales during this peak month for ships. Across all of 2020, Bar Harbor’s loss of overnight visitors explains 40 percent of the area’s reduction in restaurant sales, 35 percent of the decline is due to the nationwide impact of the pandemic and shutdown, 14 percent is related to the decrease in the recreational activities of day visitors and local residents, and the cancellation of cruise ships explains 11 percent of Bar Harbor’s loss of restaurant sales between 2019 and 2020. Knowing more about the channels by which COVID-19 impacted hospitality in Bar Harbor can help state and local officials with recovery efforts and support tourism along the Maine coast.

• Item Type: MPRA Paper
• Language: English
• Keywords: COVID-19, Tourism, Maine, Hospitality Industry
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

References

Gabe, Todd. (2016). “Effects of the October 2013 U.S. Federal Government Shutdown on National Park Gateway Communities: The Case of Acadia National Park and Bar Harbor, Maine,” Applied Economics Letters, 23(5), 313-317.

Gabe, Todd. (2021a). “Yelp.com Ratings and the Businesses Visited by Cruise Passengers in Bar Harbor, Maine,” Applied Economics Letters, 28(2), 119-123.

Gabe, Todd. (2021b). “Measurement and Analysis of Neighborhood Congestion: Evidence from Sidewalk Pedestrian Traffic and Walking Speeds,” Growth and Change, forthcoming.

Gabe, Todd and Andrew Crawley. (2021). “Effects of the COVID-Related Stay-at-Home Order on Hospitality Sales and Automobile Traffic Counts.” Economics and Business Letters, forthcoming.

Gabe, Todd and Richard Florida. (2021). “Impacts of Jobs Requiring Close Physical Proximity and High Interaction with the Public on U.S. Industry Employment Change During the Early Stages of the COVID-19 Pandemic,” The BE Journal of Economic Analysis & Policy, forthcoming.

Gabe, Todd and James McConnon Jr. (2018). “Popping the Question: The Influence of Survey Design on Estimated Visitor Spending in a Region,” Journal of Regional Analysis & Policy, 48(4), 9-24.