WILDWOOD — Taxes do not normally brings smiles. However when the tourism tax receipts jumped nearly 10 percent from 2009 to 2010, a glimmer of hope shone for the Wildwoods.
In his fourth annual local financial forecast Wed., Jan. 26, Jay Ford, president and chief executive officer of Crest Savings Bank, addressed the Greater Wildwood Chamber of Commerce members. Ford cited those figures, released by Greater Wildwood Tourism Development Authority to underscore, “So we have created a wonderful market niche we should be very proud of.”
As members munched a breakfast of pastries and scrambled eggs, Ford projected slide after slide that documented national and state economic data that could produce indigestion especially regarding national debt, $45,000 for every man, woman and child in the nation, and unemployment rate, which he said was 9.4 percent.
The local bright spot, according to Ford’s presentation, was that in 2010 tourism tax receipts here were $3.65 million, up 9.9 percent compared to the $3.48 million in 2009. The figure began to approach 2008, when the tourism tax generated $3.7 million.
Among “silver linings” Ford cited was that the job market had “turned the corner,” that housing prices were stabilizing, and consumer confidence was beginning to rebound.
Unemployment continues its drag on the economy.
“How quickly we forget that in 2008 there were 3.7 million unemployed,” he said.
Then came 3.6 million job losses nationally.
“The new (young) generation of those under age 20 has an unemployment rate of 25.4 percent. The new generation really seems to be extremely challenged,” said Ford.
“One in four under 20 is unemployed. That means they can’t get a summer or winter job. Talk about discouraging. It’s a true challenge. It’s not only in our economy, but in many economies that are struggling,” he added.
Still, the housing market is glutted, and mortgage loan delinquencies overshadow a brighter future. In the third quarter of 2010, 9.39 percent of mortgage loans were delinquent by 30 days or more, 4.39 percent were in foreclosure, and 8.7 percent of the total were delinquent for 90 days or longer. Those figures are only slightly improved over third quarter 2009, he said.
Wildwoods area housing has experienced “some stabilization,” he said, value on units averaged a decline of 25 percent, he added.
“We can see over the last 12 months, it settled down dramatically,” he said.
Casino revenue has plummeted in neighboring Atlantic City, with a ripple effect in Atlantic County. Ford cited state Casino Control Commission data that compared casino employment and revenue in 2006, 2009 and 11 months of 2010, which, at $3.3 billion, was down 9 percent from 2009. The casino industry in 2010 employed 35,100, compared with 44,600 in 2006 when revenues were pegged at $5.2 billion. In 2009, revenue was $3.95 billion and employment was 36,800.
“We wonder why real estate in Atlantic County is soft,” said Ford, “This is why. Ten thousand full time employees were displaced. Close as they are to us, it appears not to be having an impact on us.”
Putting in a “commercial” for his institution, Ford said Crest Savings Bank experienced good loan demand, which slowed in 2009, but which, in 2010, “has been relatively good.”
“I do pledge, as I’ve always said, if you give us a deposit dollar, we promise to lend it back into the community. At the end of 2010, we had approximately $295 million in deposits and over $300 million in loans, and 98 percent of those (loans) are in this community and county,” said Ford. “The preponderance are in this county.”
Ford was quick to note, “We have weathered the storm very well.” The same could be said of competitors Cape Bank, Sturdy Savings Bank, 1st Bank of Sea Isle City, Sun and other regional banks, he added. “Nothing threatened their survival because each developed a market niche,” Ford said.
As his parting thought, Ford projected on the screen Thomas Jefferson’s quote, “I, however, place economy among the first and most important virtues of the republic, and public debt as the greatest of the dangers to be feared.”
Contact Campbell at (609) 886-8600 Ext 28 or at: al.c@cmcherald.com
Cape May – Governor Murphy says he doesn't know anything about the drones and doesn't know what they are doing but he does know that they are not dangerous. Does anyone feel better now?
