Positive economic factors, including declining unemployment and rising wages, could lead to a better tourism season this year and set the table for a banner 2018, when Hard Rock Casino and Hotel Atlantic City and Stockton’s Gateway Project open.
“This is the first time in a decade that I can say that casino revenues and employment are both up,” said Joe Kelly, president of the Greater Atlantic City Chamber, during the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at Stockton University’s ninth annual Jersey Shorecast tourism panel.
Industry experts on the panel, held at the Carnegie Center, discussed the outlook for the upcoming season.
“I’m a little more conservative on 2017. We expect growth, and we should be growing. I’m optimistic about 2017, but I’m bullish about 2018,” Kelly said.
In summer 2018, Hard Rock is expected to open its new property at the site of the former Trump Taj Mahal. Hard Rock International and investors Joe Jingoli and Jack Morris plan to spend nearly $400 million renovating and rebranding the property.
In fall 2018, Stockton plans to open its 675,000-square-foot, $220 million Stockton Gateway Project — the new headquarters for South Jersey Gas and a campus for Stockton University that includes an academic building, housing for more than 500 students and a parking garage.
“You are going to add a thousand college students to the marketplace,” Kelly said of Gateway. “I think in the theme of diversifying, the Gateway is a game-changer.”
In 2016, the state’s tourism industry generated $41.8 billion in revenue, and the counties along the coast were responsible for half of that, said Rummy Pandit, executive director of the Levenson Institute.
“Unemployment is down, incomes are going up, gasoline prices are holding, most of the conditions are set to see tourism dollars increase,” said Michael Busler, professor of finance at Stockton University.
“Retailers always start asking me around this time of year if they should be more cautious or a little more aggressive with inventory,” Busler said. “Last year, I said I would lean more toward the aggressive side. This year, I feel even more confident.”
After years of decline, the resort might be starting to turn the corner, Busler said.
“I think finally Atlantic City has hit bottom and is starting to go back up,” Busler said. “We had a lot of private investment come into the city, but to lure more investment, the city’s financial issues have to be resolved.”
Despite the Taj Mahal closing in October and the loss of more than 2,000 hotel rooms, hotel tax revenue in Atlantic County was up about 2 percent, said Brian Tyrrell, associated professor of hospitality and tourism management studies at Stockton University.
“I expect the same type of growth this year,” Tyrrell said.
Cape May County is already off to a strong tourism start, said Diane Wieland, director of the Cape May County Department of Tourism.
“Reservations are up, and Cape May is telling me they have 95 percent occupancy for July and August already,” Wieland said.