Rising fuel costs, political tensions impact summer tourism

WEIRS BEACH — Rep. Congressman Chris Pappas (D-NH) heard how rising fuel costs and tariffs can affect businesses and tourism as a whole on Tuesday, during a tour aboard the M/S Mount Washington with CEO Jared Maraio. 

“All of our businesses, especially those that serve a tourist population, are going to be impacted by higher gas prices, and the ongoing trade war with Canada that’s resulted in fewer businesses coming from across our northern border,” Pappas said in an interview.

Pappas acknowledged the tourism sector in the Granite State is strong, and has proven to be resilient. However, he said government leaders like him need to continue to fight to provide predictability and relief from Washington, D.C.

“That’s why I’ve introduced legislation to suspend the federal gas tax,” Pappas explained. “I think that’s one commonsense step we can take to make it a little bit easier for people to travel this summer, and try to bring down costs.”

Known as the Gas Prices Relief Act of 2026, it not only suspends the $0.184 cents per gallon gasoline tax through the end of the fiscal year on Oct. 1, but maintains backfill transportation for roads, bridges, and gas spill remediation. Pappas recognizes the importance of ensuring rehabilitation and repairs to roads and bridges continues.

The legislation is also designed to hold oil and gas producers accountable if they don’t pass the benefits on to consumers.

The act is related to legislation he supported after the COVID-19 pandemic, known as the Gas Prices Relief Act, in a time when global energy markets were struggling, and prices were high at the has pump. Pappas believes the government needs to be more practical about how to provide relief.

“I just hope that there is some bipartisan support that we can generate in Congress for this,” Pappas said. “It’s just one of the few levers we actually have to pull in this situation that can provide people some relief.”

Pappas said the war in Iran has driven up prices across the board, and even if there is an agreement coming to “end hostilities,” it will take months for turmoil in the energy market to subside. He called the war a “mistake from the beginning.”

“There were no clear objectives that this president presented to Congress, or to the American people, that he has worked to achieve.”

Pappas said the Strait of Hormuz was open before the start of the war, and now it’s “all tied in knots.” He said there is now potentially more instability and risk to national security as a result. He hopes negotiations can end the conflict as soon as possible.

“The unfortunate nature is that it’s going to impact the economic picture here in New Hampshire, in an adverse way,” Pappas said. “Just hearing from local businesses on the front lines, it’s really important to know what we can do in Washington, to help.”

It’s not just business and tourism. Pappas said other steps need to be taken when it comes to costs, and improving the economy. He said people are working harder than ever, but it has never been harder to provide for their families. This shows up from housing and energy, to childcare and healthcare, and a general cost-of-living crisis.

“I introduced legislation a couple months ago on energy prices and looking to create a new tax rebate for working class families for their energy bills,” Pappas said. “Whether it is home heating oil, or electricity costs, all those have gone up across the board. I think we’ve got to be sensible about how we provide help for folks who need it right now."

Touring the Mount

Pappas spent the early afternoon on May 5, touring the boat with Maraio, talking through what these issues mean to the business.

The M/S Mount Washington is the flagship craft on Lake Winnipesaukee for Mount Washington Cruises, with a headquarters in the Weirs, and ports in Alton Bay, Center Harbor, Meredith and Wolfeboro. The company also owns three smaller vessels: the Winnipesaukee Spirit, the Sophie C, and the Winnipesaukee Belle.

Affectionately called the Mount, the 230-foot vessel has three decks, three bars, two dance floors and two stages. While the boat as we know it was launched in 1940, Maraio told Pappas it is made up of pieces welded together from the original ship, built in 1888.

The Mount has a capacity of 1,000, but rarely hits that figure, Maraio told Pappas. He pointed to stacks of life vests, saying more than 1,100 were counted just that day. With the Mount traveling from its winter home, in Center Harbor, to its Weirs Beach summer docking location this month, employees were back to work as Maraio showed Pappas around, getting things ready for the first voyage of the season on Mother’s Day.

Much like the tourism industry itself, the Mount has been resilient and undergone many difficult periods, notably a pair of pandemics. Fuel disruptions are also not new, as occurred in 2022, when Maraio said there was a similar feeling of uncertainty after Russia invaded Ukraine.

“We found that year that ridership suffered early in the season, and made up for it later,” Maraio said. “We may see the same thing this year, but we don’t know.”

The two largest expenses for the Mount are fuel and labor. The boat runs on diesel, which is approaching $6 per gallon, which can be a huge burden with shipments of “thousands of gallons per week.”

“Even small price fluctuations can make a difference,” Pappas said to Maraio.

Maraio agreed, saying both the Mount and the tourism industry are resilient, but it would be beneficial to focus on growth instead of fixing problems. Pappas said the Mount is a historic aspect of Lake Winnipesaukee, and he hopes for a successful year.

“Even if you’ve been around for 150 years like they have, it’s still hard to navigate,” Pappas said. “I think it’s just another challenge on top of many others that our local businesses are going to have to work around this summer, as they seek to continue to do what they do best.”

While cruises on the Big Lake are part of a niche industry, Pappas said he's heard similar sentiments from businesses across the state. Last year, he visited Hampton Beach, and business leaders there said few tourists from Quebec were showing up, when they had visited in large numbers in previous summers.

“It’s all up and down the state, from the Lakes Region to the North Country, too,” Pappas said in an interview. “People just can’t understand why this is happening. The tariffs that the president has put in place are raising prices for things that we need, and it’s alienating some of our key partners, including countries in Europe, and Canada, that we should be working with as best as possible.”

Pappas said for New Hampshire residents who have family north of the border and love to travel there, it has created an unnecessary divide. He said the role of government should be to bolster the economy, and ensure it is fair while creating predictability, but he thinks this is not the case under the Trump administration.

“The tariff policies, and much of what we’ve seen from this administration, have created instability at a time where people can least afford it,” Pappas said.

Maraio said Pappas was just as responsive in 2022, during the last major fuel crisis, and he was thankful for the visit, to hear firsthand the obstacles local business leaders face.

“I really appreciate his visit to discuss some of the challenges that we are facing, specifically fuel prices,” Maraio said. “It was good to talk about tourism overall, what to expect, and how things are going.”