Destination New Hampshire

The story of the Balsams Grand Resort Hotel is the story of tourism in New Hampshire. From the time it was built in 1866, the Balsams was more than just a waystation for travelers who happened to be visiting Dixville Notch or passing through. The first of the state's grand hotels, it was a reason to travel in the first place--a destination in itself.

In the 136 years since the Balsams first opened its doors, the entire state has become a tourist destination, attracting 26 million people every year. Tourism is the second largest industry in New Hampshire (behind manufacturing), employing some 65,000 people and contributing an estimated $8.6 billion to the state's economy. Of the 50 states, New Hampshire ranks seventh in economic dependence on travel and tourism.

That being the case, state officials were understandably concerned when tourism declined across the country in the wake of the Sept. 11 terrorist attacks. The Travel Industry Association of America forecast a 7.6 percent decline in travel expenditures in the U.S. in 2001 compared to 2000, with a slight recovery predicted for 2002. But so far, New Hampshire does not appear to have been hit as hard as some other areas. In December, the state's Division of Travel and Tourism Development reported that revenue from the room-and-meals tax for October and November totaled $2 million less than anticipated, but that's a drop of only 1.2 percent in the annual revenue from that tax.

The Granite State's durable appeal for tourists is due to several factors, including its history, scenery and accessibility. "New Hampshire's scenery and outdoor recreation have always been the strongest attractions for visitors," says Lauri Klefos, director of the Division of Travel and Tourism Development. "But over the past few years, we have seen a new trend develop: more vacationers are looking to visit historical sites and attend cultural events." This is a trend that seems to cross the market, applying to every tourist category, from retirees to young families. "When asked what is important to them, parents of young children want to be somewhere where their children can learn something, as well as have fun," Klefos says.

They can do both in New Hampshire and a whole lot more. As Klefos notes, one of the key selling points of a vacation in New Hampshire is proximity. Visitors can hike in the White Mountains, attend a band concert in Wolfeboro and visit Strawbery Banke in Portsmouth without having to travel more than two hours between any of those destinations. "And there is so much more that no one knows about," Klefos observes. "In any given town in New Hampshire, you might stumble across a really interesting historical society or a spectacular art collection. For people looking for an authentic experience, New Hampshire has so much to offer."

The state is trying to do more to capitalize on that. This year, the legislature increased the budget for the Division of Travel and Tourism Development from $3.4 million to $5.4 million, which is still a small amount in comparison to other New England states (Maine spends $8 million; Vermont, $7 million). "New Hampshire's tourism industry is relatively immature," says Stephen Barba, president and managing partner of the Balsams. "For a long time, the state was content to leave tourism to its own devices, so people in the industry would basically hang out a sign and hope that people would come. There is a lot of room for growth."

Barba has been watching the development of tourism in New Hampshire since 1959, when he arrived at the Balsams to attend its caddy camp. The hotel bought golf carts the following year and canceled the camp, but a local caddy program was instituted, and Barba attended. By his 18th summer, he had a full-time job there. "I owe a lot to the Balsams," he says. "My love of golf, of mountains, of freedom--all that grew here."

Barba is confident that tourism will continue to thrive in New Hampshire. "In the long-term, I think that travel will strengthen its hold on the American imagination," he says. "There are 80 million people living within a day's drive of New Hampshire. If fear of flying is a factor in anyone's travel decisions, the Northeast will probably see a boom."

Raymond Goodman, chair of the hospitality management department at UNH, agrees. Goodman forecasts economic trends for many major hotel chains, and he believes that New Hampshire's tourism industry will do better than the national average over the next five years. "New Hampshire is primarily a drive-to market, accessible from Boston and New York," Goodman explains. "If people are afraid to fly and gas prices come down, New Hampshire is in a very good position."

The hospitality management program has helped to put the state in that position. Many of its graduates are now working for New Hampshire businesses, and some are leaders in the tourism industry. "Many of our graduates go off to work for big hotel chains," Goodman says, "but a lot of them come back and bring their skills with them. For example, there are currently five alumni on the board of the New Hampshire Lodging and Restaurant Association. People come back because they love the quality of life that they can have here."

--Anne Downey '95G