Business & Tech
Jersey Shore Tourism Was 'OK' This Summer, Businesses Say
Inflation and bad weather hurt the economy in Cape May County and the Atlantic City area this summer, but things weren't as bad as thought.
JERSEY SHORE, NJ — Summer tourism was "OK" at the Jersey Shore this year, as bad weather and inflation brought things down, but visitor numbers were up and labor shortages weren't as bad as anticipated.
A panel of business owners shared these thoughts at the fourth annual Jersey Shoreview, sponsored by the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) in Stockton University's School of Business.
The panel featured:
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- Sandy Chu, financial and professional services sector lead, Strategic Sector Development for the New Jersey Economic Development Authority (NJEDA)
- Sharon Franz, sales and marketing director of Steel Pier
- Phyllis Lacca, president and owner of Masterpiece Advertising
- Diane Wieland, director of tourism for the Cape May County Department of Tourism
“We are seeing that we were up a little (over last year),” Wieland said, adding that Cape May County generated $5.2 million in occupancy tax just in July 2023, a 17 percent increase from 2022 and outpaced pre-COVID 2019. “Our businesses are saying (the summer) wasn’t great. They are saying they did OK. And OK is good with us.”
There was an 8 percent increase in overnight stays, Wieland said, but inflation meant that families did not stay as long.
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“In the past, we had 39 percent of our visitors stay seven days or longer, now we are seeing that down to 28 percent,” she said. “We’ve found that they want to go on vacation. They love the Jersey Shore, however they don’t have the money so they’ve changed their length of stay.”
Lacca said that summer was "hugely successful" in the Atlantic City area. Numbers show that gaming revenue was up, but now, nongaming revenue is becoming almost equally as important. Through the second quarter of 2023, 55 percent of total annual casino net revenue came from gaming and 45 percent from nongaming sources.
“It’s getting closer to the model of Las Vegas where much of the revenue comes from nongaming attractions, and that’s a sign of the industry trying to diversify its offerings,” Bokunewicz said.
Focusing on nongaming amenities helps promote businesses outside of casinos, which Lacca said is the key to continued success in Atlantic City.
“People are looking for authentic experiences outside the casino walls,” said Lacca.
Challenges this summer were poor weather and labor shortages, though the latter was more of an impact to Cape May County than Atlantic City.
Chu said the NJEDA recognizes the challenges for Jersey Shore companies and wants to help with grants, tax cuts and other incentives.
“My goal is to outreach further, deeper and wider, particularly in the Jersey Shore area,” she said. “The Jersey Shore is a huge area with huge competitive advantages. … If we can realize those potential opportunities that would create a win-win for everybody. … It’s a work in progress, but we are making nice progress.”
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