Occupancy tax up for July; more choose casual dining
As the summer season comes to a close, tourism and business leaders are looking back to gauge the region’s success.
While final numbers have yet to be calculated, initial indicators show growth in tourism throughout Cape May County in summer 2026.
County Tourism Director Diane Wieland said the Department of Treasury would not provide data on all sectors until the year has concluded, but she uses the occupancy tax to determine the level of growth or recession.
“What I’m looking at is June and July were up on occupancy tax, indicating an increase in overnight stays. July was up more than a $500,000 year over year,” Wieland said.
The state treasury collected $3.148 million last July and $3.776 million this year. She said July was up “across the board.”
“We were a little down in May, but June and July outpaced all other counties, which is usually a pretty good indicator,” Wieland said, noting August numbers have yet to be reported.
She said she expects the same number of visitors as last year, 12.3 million.
The Ocean City Regional Chamber of Commerce reported much the same.
At its recent board of directors meeting, the chamber heard reports from businesses representing many of Ocean City’s key sectors, including accommodations, restaurants, retail and events. The overall message was encouraging: 2026 was a good year for business in Ocean City.
Spending trends
Wieland said through talking with business owners and chambers of commerce, and looking at results of its annual surveys, there is a “noticeable change in spending trends.”
“The economy has affected vacation plans,” she said. “We knew people were shopping around for less-costly places to stay, but they are cutting spending on food and beverage, retail and recreation and shortening their stays.”
Doreen Talley, executive director of the Chamber of Commerce of Greater Cape May, agreed, saying weekends were consistently busy but weekdays “not so much.”
“The new normal is Thursday to Sunday now, a long weekend,” Talley said, adding that fine dining was a little off but casual dining, outdoor bar and dining, were all pretty busy.
Wieland said there has been a shift in food and beverage sales, indicating a change in the way tourists are eating and what style. Last year, Cape May County outpaced every other county in the state with $1.45 billion in sales.
However, she said, now “when they get here, they’re spending not so much on fine dining but more on casual grab-and-go dining.”
She said ice cream and pizza are really doing well as people adjust to not eating out three times a day.
Wieland said hotels have reported an increase in recyclables and trash, indicating more people are eating in their rooms. In addition, she said, they are reporting an increase in use of on-site propane for grills.
On the retail side, the picture is not as pretty. Wieland said reports indicate sales are down 20 percent to 30 percent.
“People are changing spending habits for things they don’t need,” she said.
The same was true in Cape May.
“I didn’t hear from every retailer but across the board retail was down this year over last year,” Talley said.
Different visitors
At one time, Canadians made up a significant portion of summer visitors, so much so that the county had a tourism office north of the border.
“We still have Canadians, second- and third-generation families,” Wieland said. “A lot say they won’t tell their neighbors they are coming.”
That may be because of President Donald Trump’s public dispute with our northern neighbor over tariffs. In addition, the border was closed for a lengthy period during the COVID-19 pandemic, leading to a drop off that may not have fully rebounded.
“Last year we did not have as many new people coming, but at campgrounds they are saying they filled their sites up,” Wieland said. County campgrounds are popular spots for Canadians.
She said the county would continue its social media marketing in Canada and “keep hoping the domestic market continues to grow because road trips are a major factor, we are a drive-to destination.”
Wieland said the county is now seeing more people from the Mid-Atlantic Region, especially the Washington, D.C., and Baltimore area.
“Most tourists go south but we are seeing them come north. They want to have a road trip and a new experience, and they are finding that with us,” she said, noting they are visiting for the area’s wineries, nature centers, birding, beaches and boardwalks.
Filling the void
Wieland said second home owners are a big part of the mix.
“They support not rooms but support a lot of the other sectors — attractions, recreation, things like that. They are not spending money on souvenirs as much as services.”
She said 47 percent of county dwellings are second homes and that more than 50 percent of those rent, which helps support tourism across the board.
Wieland said that while July and August used to be the height of season, now because of school schedules August tourism has been shortened to the first two weeks.
“August has become iffy but more people are coming in the fall,” she said, noting the county realized a 15 percent increase in visitors for last September, October and into November.
The holiday season also increasingly brings visitors to the county, led by terrific family events such as the West Cape May Christmas Parade, which she called “one of the top attractions in the country.”
Wieland said Thanksgiving and Christmas are big with second home owners, too.
Ocean City
From busy restaurants and retail shops to full accommodations and strong attendance at the many events held throughout the summer, businesses reported steady activity and a continued interest in Ocean City as a destination for visitors and families, according to the chamber.
“We are very pleased with what we are hearing from our members,” chamber President Patrick McMahon said. “Our businesses put in an incredible amount of work to make the summer season successful, and it is great to hear that their efforts paid off. From our hotels and restaurants to our retailers and event organizers, there is a real sense of pride in what Ocean City accomplished this year.”
McMahon has no hard data to back up his report but said members “overwhelmingly said it was a good summer, full rooms, they were busy all summer.”
“No one has said it was a banner year for them but no one has complained that it was a slow year or a down year,” he added.
McMahon said the success of the summer season is a reflection of the entire community.
“None of this happens because of one business or one organization,” McMahon said. “It takes all of us — our business owners, employees, residents, volunteers and visitors — working together. Ocean City has a tremendous business community, and we are grateful to everyone who helped make 2026 such a positive season.”
By CRAIG D. SCHENCK/Cape May Star and Wave
