Summer tourism was strong in the state's popular travel destinations this year, even as labor supply continues to be a challenge.

The Berkshires saw a 13% increase in short-term rentals this summer compared to the previous year, according to 1Berkshire, an economic development agency and tourism council. Visitors also stayed longer at the region's lodging establishments overall. Stays of six or more days, for instance, were higher this summer compared to last year.

"I did speak to a few inns and they said they had a waiting list all through the summer for the weekends," said Lindsey Schmid, the senior vice president of tourism and marketing at 1Berkshire.

Over on the Cape, bookings at traditional lodging (like inns and hotels) were down roughly 3% in July compared to the same month last year, according to the latest data from the Cape Cod Chamber of Commerce. But short-term rentals were up about 3% in that same time frame as the region saw more available inventory due to more second homeowners renting out their properties. The inventory of short-term rentals increased by 2,000 compared to last summer.

"We have 18,000 short-term rentals on the Cape now," said Cape Cod Chamber of Commerce CEO Paul Niedzwiecki. "We had a tremendous churn in the housing market during the pandemic, and a lot of people purchased second homes."

But despite the uptick in visitors, the state's busy tourist destinations continue to struggle with staffing up restaurants, hotels, shops and other businesses due to lingering effects of the pandemic that led to labor challenges.

The Cape usually relies on foreign workers during the summer, and typically employs 5,000 workers on J1 visas, according to Niedzwiecki. But that figure dropped drastically during the pandemic to just 300 in 2020, though it has been steadily increasing since then.

The region was back up to 4,000 J1 visa workers this summer, he said.

"So we're getting close to that pre-pandemic number. I think we'll probably be there next year," Niedzwiecki said. "The labor market is recovering and those visa holders, those foreign-born workers that really support our seasonal economy are returning. But, it's still a challenge."

Niedzwiecki said the main barrier in the region's labor market is housing. Sponsoring agencies require housing for the workers who come on visas. But there is little supply on the market. Many people snapped up second homes during the pandemic and later converted them to short-term rentals that are geared more toward tourists who can afford high rates. The average rate for short-term rentals was about $500 per night in July, according to Niedzwiecki.

Workers, on the other hand, need longer term housing. So in early 2023, the chamber hired a housing coordinator to help the J1 workers find housing. The organization is also building up a network of local hosts who are willing to house the workers.

"A lot of people really like to host a foreign student in their home for that cultural experience," Niedziwiecki said, adding that many of the J1 workers come from Europe. "And the Cape has a long history of this."

Housing is also a compounding factor in staffing in the Berkshires. The region's summertime workforce includes a lot of college students but there are also other workers who have more year-round positions and require longer term lodging, according to Schmid of 1Berkshire.

"These are folks who would be relocating to the Berkshires and they just can't find housing," said Schmid, who is also the state's regional tourism council director for Berkshire County. "And it's just an ongoing challenge. I think it's an ongoing challenge across the country."

Schmid said there are efforts in the region to try and find creative ways to build housing for seasonal and year-round workers. For example, there was a project to convert an inn into workforce housing. And some establishments provide housing for their workers. Schmid said the region needs to continue working with the state and local developers to find ways to create more solutions.

Figuring out the housing challenge is more of a priority as the state's travel destinations work to expand tourism activity into the offseason and year-round.

"We have a lot more access to hotel rooms that aren't at summer rates," Schmid pointed out. "It's a lot easier to get into restaurants. All of our museums are open. A lot of our theaters now continue into those shoulder seasons. And certainly access to the outdoors, continues to be year-round fun for folks when they visit the Berkshires."

Schmid said the region is also working to attract more people of color, LGBTQ visitors and younger travelers with outreach and new programming.

The tourism season is also extending over on the Cape due to "pent-up demand" from the summer months, according to Niedzwiecki. The fall season — or what the organization is branding as "second summer" — already seems promising, Niedzwiecki said. There's still a backlog of weddings that were rescheduled this year due to the pandemic. Businesses are holding more corporate events, and there is holiday programming coming up in late fall and winter.

"The Cape's definitely become more of a year-round destination with stronger shoulder seasons, which is good for everybody," Niedzwiecki said. "I mean, one of the advantages to having more of a year-round economy is it's just easier to manage your labor force and supply chain issues if you're open year-round rather than seasonally."