With Memorial Day weekend underway, visitors eager to hike mountains, raft rivers and explore Montana in the summer have arrived.
But gas prices are averaging about $4.60 today. That’s more than a dollar higher compared to this time last year. Bureau of Business and Economic Research Director Jeff Michael says 25 percent of visitor spending in Montana goes to gas.
"And for an average group visiting Montana, it's about $200 of their expenditures, so that part goes up to about $300 this year. The trip becomes 10 percent more expensive."
The state projected a moderately busy tourism season before gas prices spiked. But that outlook hasn’t changed despite what people are shelling out for gas.
Michael does say hotels may see fewer rooms booked far in advance as people may make more last minute decisions about their trip because of gas prices. Racene Friede oversees the Department of Commerce’s Glacier Country tourism region, which is most of western Montana. She says where tourists spend their money is expected to shift.
"They're just going to be looking at things that might be a little less expensive if they're spending more on other things such as fuel."
Freide says industries like retail, entertainment and recreation have already seen drops in visitor spending. Canadian tourism also remains around 20 percent below an average year. And water levels and wildfire smoke are also concerns heading into the summer.
For now, western Montana is welcoming the first wave of summer visitors with open arms.
