Cape May County led state last year with 5% increase to $8.1 billion in direct visitor spending
DIAMOND BEACH — “Tourism is Cape May County’s economic cornerstone. It drives job creation, supports thousands of small businesses and fuels year-round growth throughout our towns,” Eli Massood told those gathered May 15 for a tourism conference at ICONA Diamond Beach.
The county experienced record tourism growth in 2024, leading the state with a 5 percent increase, or $388 million, and an economic impact of $8.1 billion in direct spending.
The Cape May County Chamber of Commerce chairman said it takes a team to achieve such success.
“Tourism is supported by countless industries and hard-working people in transportation, hospitality, education, construction, finance and public service. It’s that whole ecosystem that gives our region its resilience,” Massood said.
Board of County Commissioners Director Len Desiderio said he is optimistic that the region will continue on an upward trajectory.
“Tourism is about to explode in Cape May County in about five or 10 days, and we are ready because it has been a looooooong winter,” Desiderio said. “We are looking forward to the 2025 summer season and we are confident that Cape May County will once again reach record-breaking numbers of visitors and achieve unprecedented levels of visitor spending.”
According to the data, the county welcomed 12.11 million visitors, supporting 4,703 jobs and generating $668.5 million in state and local taxes.
The county’s direct tourism spending has quadrupled from $2 billion in 1994.
“Nearly one in 10 visitors to New Jersey came here in 2024, with each visitor spending an average of $669, the highest per-person statewide,” Desiderio said.
Cape May County outperformed all other counties in revenue across the food and beverage, retail and recreational sectors.
“Our 85 percent visitor return rate speaks volumes about the lasting appeal of this incredible place,” Desiderio said. “Together we will continue to grow, thrive and make Cape May County an unforgettable destination for years and years to come.”
County Tourism Director Diane Wieland outlined the 2024 data.
— Lodging: $3.344 billion
— Food and beverage: $1.7 billion
— Retail: $1.52 billion
— Recreation: $838.1 million
— Transportation: $546.3 million
“Cape May County ranks second to Atlantic County in total direct spending,” Wieland said, noting that lodging includes rentals and casino spending and that in-person spending in Atlantic City was $2.81 billion.
The county generated $668.5 million in state and local taxes, an increase of 4.9 percent – 13.4 percent of the total collected statewide.
Visitor-supported direct jobs grew 2.3 percent to 32,501, equating to 44.7 percent of local employment and 9.6 percent of total tourism jobs statewide.
Wieland said the state’s four beach counties — Atlantic, Cape May, Ocean and Monmouth — together generated 49.86 percent of state revenues, nearly equaling the other 17 counties combined.
‘No incentive to work harder’
Occupancy tax collection is a strong metric of economic impact. Wieland said the tax revenue, which is intended to support tourism and arts marketing, has increased significantly, while the grant award to recipients, particularly those generating the most revenue, has not kept pace.
From 2016 to 2024, Cape May County’s occupancy tax revenue more than doubled, from $11.418 million to $23.067 million.
In 2024 the county, which is the second-highest generator of occupancy tax in the state, collected $23.067 million and received a return of only 6 percent, amounting to $1.4 million. In contrast, two other counties received returns exceeding 100 percent, while one county received an 88.5 percent return.
“There’s no incentive to work harder, no return on the dollar,” Wieland said.
The four beach counties generated $53.13 million, or 27.46 percent of the state total, and received grant awards of $6.8 million, or just 12.8 percent.
International visitation falls
Cape May County has been marketing to Quebec visitors since 1968 and maintained a full-time office there from 1970-95. Visitors from Quebec, who usually come in July and August, made up 7 percent to 9 percent of pre-pandemic guests, while Ontario visitors amounted to less than 1 percent.
Due to a combination of politics and economics, foreign travel to the country has decreased and now represents only a small percentage of visitors.
Wieland said some reservations from Canadian travelers were canceled in the first quarter, although there have been reports of new bookings made in recent weeks.
“We are monitoring cancellations and reduced bookings from hotels, motels, campgrounds and rentals. Reports from the lodging sector indicate that not all Canadians have canceled, and new reservations are trickling in,” Wieland said.
She said while politics certainly plays a part, the reduction in the number of Canadian visitors is influenced by several factors beyond tariffs, annexation discussions and general political dissatisfaction.
Wieland said the economic situation in Canada has affected travel to the U.S. over the past three years and has not yet returned to pre-2019 levels.
The U.S.-Canadian border was closed from March 2020 to November 2021, representing two summer seasons with no travel between the two countries.
She said soaring debt, inflation, a housing crisis, a lack of private investment and stagnant growth have affected core Canadian household expenses, leading to reduced discretionary spending.
In addition, the Canadian dollar has, on average, been trading at below 69 to 70 cents against the U.S. dollar.
On the plus side, according to survey data from MMGY, international travel plans to Europe have dropped by 8 percent to 36 percent, marking the lowest level since 2021. Only 18 percent of those surveyed indicated they would travel to Europe, a decrease from 28 percent in 2024.
Nearly a third, or 29 percent, of Americans surveyed reported that they will shift from international to U.S destinations this year, with 24 percent planning less-expensive modes of transportation. About 72 percent of U.S. travelers are expected to take road trips.
“This trend is promising for Cape May County as a drive-to destination,” Wieland said.
“Cape May County’s success would not be possible without the dedication of businesses and business owners, their families and their employees. You are the backbone of our industry, resilient individuals who rebuild, innovate and push forward to ensure Cape May County remains a premier destination,” Desiderio said. “The saying ‘strength in numbers’ has proven true year after year as we work together to build our economic-driving industry.”
By CRAIG D. SCHENCK/Cape May Star and Wave
