Despite no beach concerts in Atlantic City this year and a New York casino on the horizon, the general outlook for Jersey Shore business heading into the summer is “pretty solid,” but there are some concerns. There is also.
That was the general sentiment of a panel of local experts who spoke Wednesday at the 16th Annual Jersey ShoreCast, sponsored by the Stockton University School of Business’s Lloyd D. Levenson Institute for Gaming, Hospitality and Tourism.
The discussion took place at Stockton University’s John F. Scarpa Academic Center in Atlantic City.
“I’m cautiously optimistic about the summer,” said Oliver Cook, an associate professor of economics at Stockton University and editor of the South Jersey Economic Review. “Compared to the situation in the second half of 2023, current job growth in Atlantic City has accelerated slightly compared to the first quarter. Unemployment remains very low. My sense is that all I think we’re in a pretty decent position on the headline metrics.”
Prior to the discussion, LIGHT Faculty Director Jane Bochnevich presented statistics highlighting the successes of 2023, particularly in Atlantic City casinos. Total gaming revenue ($1.4 billion) increased by 11% from 2022, primarily due to growth in internet gaming and sports betting. Total revenue for face-to-face games ($811 million) increased by 1% from 2022. Also, non-gaming net revenue was his 45% of total net revenue, compared to 39% the year before.
However, although the number of nights increased by 8%, it was shorter than previous years, so not all the numbers were positive. Although casino employment increased overall, labor shortages remained a factor. Several panelists on the fall Jersey Show Review also reported that weather was a negative factor in the summer of 2023, Bochnevich said.
Mark Carrazzo, managing partner at RMS Capital, said 2023 wasn’t a very good year for his company’s business, in part because three years into the COVID-19 pandemic, many I think this is because I finally felt a sense of security about going on a big trip.
“Yeah, (last year) wasn’t great, it wasn’t great,” he said. “Customer numbers were down. Our average check was going down. … I think we lost a lot of tourism by people taking trips that they had put off for three years.”
How did the local tourism industry perform in 2023?
Gary Musich, vice president of sales and destination services for Visit Atlantic City, said he is very bullish on the trend. “Bookings for 2023 were the highest ever. It’s a rebound in the event business. …That volume continues to grow, and we’re seeing an increase in interest in Atlantic City in the short term.”
“Sports is one of the biggest growth markets, probably behind cannabis,” said Daniel Gallagher, director of sports sales for the Atlantic City Sports Commission. “We had a great year, with about 75,000 overnight stays in sports alone, 250,000 participants, and $1 million in economic impact. And there’s no question that’s here to stay. No. The question is how do you diversify your portfolio to get these athletes, spectators, and wealthy people to increase the price of their checks?”
Panelists described the region’s current economic situation as concerned about the overall economy, but optimistic that it will be a good summer.
Musici said part of the discussion needs to be how to market Atlantic City. We’re changing some gears in the way we develop and focus and talk about how we market this city. We have stopped talking about what makes our community unique. ”
What will happen to the labor shortage, which was a concern even in 2023, and whether the labor force will affect tourism in the summer of 2024?
“You don’t see them as close as you used to,” Carazzo said. “I think there are a lot of people looking for work, but I don’t think wage inflation is going to stop. Before the pandemic, I think pizza makers were making $15 to $20 an hour, and now they’re making $25 to $30 an hour. And wage inflation is persistent, so it’s not going to go back up. So we’re just stuck with that higher wage. But people who want to work now and who are willing. I think there are a lot of them.”
Looking to the future, when asked if there was anything else that could impact expected results, the panelists said that because no one has a crystal ball and weather plays a big role; That said, it’s a big wild card.
“It’s also always a question to what extent inflation affects certain segments or demographic groups differently, because one could argue for continued high inflation, especially dining out inflation. I think everyone who goes to thinks, “Wow, that bill is way more expensive than it was before.” Get used to it. ‘It may also influence you to stay rather than fly somewhere else. Now it’s like, ‘Okay, let’s tighten it up and get closer to home,'” Cook said.
Panelists were asked what they thought would be the impact of the loss of beach concerts and new events like the North to Shore Festival.
Musici said he believes beach concerts will need to be subsidized if they are to be held again. And he said he doesn’t have an answer as to how.
“But Bader Field is an option, or going back to Boardwalk Hall and subsidizing it is also an option. Let’s see how that affects the summer. Beach on a summer weekend. 70,000 people, I don’t think it’s going to have a huge impact overall. I think it creates a product for the city and people who talk about the city,” he said.
Looking to the future, panelists gave insight into what new challenges and new opportunities to consider in 2024. Responses ranged from the growth of women’s sports, to improved marketing efforts, to diversifying the city beyond just leisure and hospitality, to changes in Atlantic City itself. .
“I think what’s being overlooked here is that cities need to improve themselves. What we really need to change is attracting people to cities. People are coming here. They work here. They drive offshore to where their homes are. This city won’t change. Adding it also helps with clean and safe awareness,” Carazzo said.
