Cape May County Tourism Revenue Took Big Hit Due To Coronavirus

CAPE MAY COUNTY, NJ — As predicted, revenue from tourism took a major hit this year because of the coronavirus pandemic, according to Cape May County officials. But the county feel optimistic about the ensuing months.

County officials calculated tourism losses at 42.06 percent, based off occupancy-tax revenue collected from January through July. The state occupancy tax represents 5 percent of the room rate and is levied on the lodging industry.

It includes hotels, motels and bed and breakfast locations — rentals and campsites are excluded. The tax data serves as a benchmark to measure overnight stays and reflects visitor spending across industry sectors.

Cape May County calculated $4,072,130.44 produced from the occupancy tax from January through July — significantly less than the $7,029,340.11 generated from that timeframe last year. August's totals have not yet been released.

The county's steepest monthly loss percentage-wise came in April, the first full month of New Jersey's coronavirus lockdown. The tax generated $3,058.96 last April compared to $347,885.17 in April 2019.

"The COVID-19 shutdown came at a critical time for our tourism industry," County Freeholder Director Gerald M. Thornton said in a statement. "After coming off a record 2019, with direct tourism spending at $6.9 billion and indications that the County was well on its way to another record year, the bottom fell out and there was nothing we could do but assist small businesses in applying for State and Federal loans and programs."

Here are Cape May County's monthly occupancy tax collection numbers:

• January: $131,955.20 in 2020, $98,002.52 in 2019 (29.5 percent increase)
• February: $149,140.90 in 2020, $128,585.65 (14.8 percent increase)
• March: $66,338.94 in 2020, $192,916.18 in 2019 (65.6 percent decrease)
• April: $3,058.96 in 2020, $347,885.17 in 2019 (99 percent decrease)
• May: $28,340.70 in 2020, $879,397.47 in 2019 (95.6 percent decrease)
• June: $1,060,131 in 2020, $1,988,580 in 2019 (46.6 percent decrease)
• July: $2,633,125.44 in 2020, $3,393,974.11 in 2019 (22.4 percent decrease)

Cape May County began seeing greater revenue as the state gradually reduced restrictions. New Jersey's coronavirus restrictions affected key Jersey Shore venues such as beaches, dining and attractions.

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The county also took a hit because of the closure of the U.S.-Canadian border, officials said. Canadian visitors from the Province of Quebec represent 7 percent of Cape May County's summer visitor base. Canadian visitors tend to stay longer and fill the midweek slump, according to Diane Wieland, the county's Department of Tourism director.

But several local businesses told Patch they feel optimistic about the shoulder season. More people are sticking around the Jersey Shore because of remote work and education. Read more: Ocean City Businesses Feel Optimistic About Post-Summer Months

County officials have reason to feel optimistic too.

"September and October reservations and rentals are indicating a record fall," Wieland said, "with more second homeowners staying, increased rentals and an uptick in home purchases, allowing more people to take advantage of the mild temperatures, and our great assets."

Read more: NJ Coronavirus, Reopen Updates: Here's What You Need To Know

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