Jersey Shoreview panel reflects on summer, looks ahead to challenges

The Jersey Shoreview took place at Stockton University Atlantic City recently, with business leaders discussing how the summer fared as well as the many challenges companies face now — and down the road.

The Oct. 19 panel, which was moderated by Jane Bokunewicz, faculty director of Stockton’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism, included: Michael Busler, professor of business studies and finance at Stockton University; Anthony Catanoso, president and principal owner of Steel Pier; Emily Paul, president and CEO of the Cape May County Chamber of Commerce; and Jim Ziereis, vice president of hotel sales, Caesars Entertainment, Atlantic City region.

Bokunewicz said while overall panelists reported positive results for the summer with meetings and convention bookings up, they say that higher gas prices and inflation had some impact on visitation and spending.

“Visitors are still coming to the Jersey Shore,” said Bokunewicz. “They may spend a little less when they get here, but they are still looking at it as a good option.”

Bokunewicz asked the panel how this past summer measured up to predictions and whether it met, exceeded, or disappointed expectations.

“The volume was definitely there. We were absolutely packed,” said Ziereis. “What we did see, however, was the tightening of the wallet. Inflation was real. The gas prices were real. So, the spend was not as much as we anticipated.”

“In Cape May County, it was similar. So far with the data we’ve seen through the end of June, we’ve exceeded expectations,” said Paul. “We saw people maybe not staying as long, not spending as much, but the numbers show that we had more people coming down this summer. And then we’re, of course, looking forward to a great fall season.”

“We saw the volume. We didn’t see the spend,” said Catanoso. “The interesting part was our more expensive, higher-end attractions, like the helicopter rides were up. We had a record Fourth of July. So, it was very sporadic, but overall down a little bit. But we weren’t disappointed.”

“Fortunately, the weather this past summer was excellent,” said Busler. “We had great weekends, plenty of sunshine and high temperatures, which drives everybody to the shore. The small business people that I’ve talked to tell me that their revenue is about five to 10% higher in 2022 than it was in 2019. Now that’s good, except that prices were at least 10% higher in 2022 than back in 2019. So, in real terms, adjusting for inflation, their numbers were not quite as good as they appeared.”

ICYMI

A record crowd of more than 550,000 people took to the Atlantic City beaches this summer to experience the sights and sounds of the Meet AC Atlantic City Airshow. Click here to see more photos.

Bokunewicz also presented the panel with the topic of staffing levels and the cost of labor, a challenge it seems all businesses currently face.

“Earlier this summer we had two big wins with J-1 workers back this summer, and then there was the teen worker bill, which really helps a lot of the businesses down in Cape May County,” said Paul. “But housing is definitely an issue where we didn’t have places for them to stay. So you know that is going to be a challenge going into future summers where we just don’t have the housing stock.”

“Housing is a big issue,” said Catanoso. “Before we didn’t have to worry about it. Now we do. There’s a big shortage in Atlantic City. We had to get into the business of finding housing for them, which is very difficult.”

“There was a shortage of about 600 housekeepers in the entire city collectively, and that prevents you from selling out 100% every night,” said Ziereis. “And you’re doing a lot of overtime at that point, too. So, you know it’s very tough on the workforce.”

“Most of the small business people I talked to told me they never got up the full capacity in terms of staffing,” said Busler. “They were paying much more than they expected to pay. And they were hiring younger people.”

Busler added that he believes this labor problem is going to continue into next year.

“Even if the economy slows down, and if it goes into recession, I still think the labor issue is going to be a problem moving forward,” said Busler.