Cape May County second only to Atlantic in visitor spending; up 3 to 4%
CAPE MAY COURT HOUSE — “We’ll take 3.5 percent of $7.7 billion,” Diane Wieland said of the anticipated increase in tourism spending in Cape May County through 2024.
Final numbers have yet to be calculated, but the director of the county Tourism Department said the region saw a 3.5 percent increase through August and expects another annual increase in the 3.5 to 4 percent range.
She said Tourism Economics, the company that creates reports for the state, reported during the tourism conference held in early December that the county remained second only to Atlantic County in visitor spending ($8.1 billion).
“That’s not bad for us — they used to double what we are,” Wieland said. “We’ve always been second to them, but about 24 percent of our visitors go to Atlantic County, so it’s good for us as an extension to create longer stays.”
Wieland said the 2024 season was not a blockbuster but the region still had growth of 3.5 to 4 percent. She expects the same for 2025 barring a rapid reduction in inflation that would loosen up discretionary spending.
“We were concerned about having another soft season,” Wieland said, “but they had us at an increase of 3.5 percent through August.”
Wieland said the state and national economies, along with the all-important weather, would play a large role in the region’s ability to continue in a positive direction.
She said the county saw a 4.1 percent increase through 2023, calling that “a little soft,” and so asked in its tourism surveys whether people expected their spending habits to change for 2024.
Wieland said the survey asked whether the economy affected travel plans and found that it did. Another question asked whether visitors expected that would continue in 2025 and found people felt about the same.
“It all comes down to discretionary spending,” she said. “If the economy affects the core spending 365 days a year, you have to spend less.”
She said the survey found 60 percent said the economy affects their spending and 60 percent of that said they would cut spending.
Wieland said the spending data is generated using lodging, food and beverage, retail, recreation and transportation expenditures.
“Cape May County outpaces every other county in food and beverage, retail and recreation,” she said. “Across the board we are seeing increases.”
She said that is amazing considering most of the businesses throughout the county are small.
“We are just mom and pops and have outpaced all 21 counties,” Wieland said.
Occupancy tax
Wieland said the best barometer for identifying growth is the sate occupancy tax, which she said was up month over month except for April due to Easter being late and October.
“I was a little surprised to see a 5.8 percent decline in October — that had me a little nervous,” she said, noting the tax does not include visits by second homeowners, who are a large part of the fall market, but does include short-term rentals.
“We continue to grow occupancy tax because we create marketing to get people here,” she said. “This is a great destination. We saw 11.6 million visitors in 2023. When you take into consideration there are 9.2 million residents in the state, and we had more than that, that’s pretty impressive.”
Wieland said the county generated $21.987 million in occupancy tax last year, third in the state, but sees little in return.
Getting little back from taxes
Wieland said the occupancy tax was enacted in 2005 to support marketing for tourism, arts and history and that the region “never has received close to what we generated.” In 2023, she said, the county generated $22 million and got back just $1.3 million, or 6 percent, in grants.
“There are counties that generate far less and receive much more,” she said. “Where is the equity? Where is balance?”
Wieland said the tax is collected “on the backs of hoteliers and they need to know what the result is,” noting they bear the expense of collecting the tax and sending it to Trenton “but are not getting anything back.”
She said that in 2023, the tax generated $189 million statewide but only $50 million was returned for tourism marketing.
“We are getting the short end of the stick again,” she said.
Marketing new year
Wieland said the Tourism Department already has started its marketing campaign through social media — “It has become a very important part of our campaign, allowing us to reach an extended audience” — print, broadcast media, streaming, “all kinds of new things that allow us to expand and target visitors.”
“We continue social media throughout the year because it builds excitement and awareness and we can do sponsored content,” Wieland said.
She said they continue to use traditional marketing methods as well because 47 percent of visitors are baby boomers and still like to hold reading materials.
“We need to provide a message in the form they want,” she said.
They also will start attending travel shows in Philadelphia, Pittsburgh and Canada.
By CRAIG D. SCHENCK/Cape May Star and Wave