The Conference Board of Canada doesn't think 2011 is going to be a good year for tourism on P.E.I., despite the royal visit.
The provincial government expect the visit of the Duke and Duchess of Cambridge this week will provide a significant boost to tourism, but the conference board is forecasting less than one per cent growth in overnight stays.
Economist Fares Bounajm said high gas prices and the strong Canadian dollar are discouraging American visitors.
The Island's main market, the Maritimes, could also be slow. Bounajm expects the Island will take a hit this year with the financial belt-tightening in New Brunswick.
"We don't expect their economy to be doing very well. Disposable income is not going to grow a lot, so we think that they're not going to be doing as much traveling," said Bounajm.
"If they are they're likely to look other destinations, such as the United States, as a relatively cheaper destination."
Bounajm said many Canadians would likely be lured to the U.S. this summer, because of the strong dollar.