CMCo Tourism Report: Strong Late-summer, Early-fall Visitors Offset Losses in Revenue

COURT HOUSE – A strong end of summer and early fall lift in visitors to the county has helped to offset the lodging revenue losses created by the pandemic shut down in March, April and May. 
According to a release, April losses were 99% compared to April 2019, generation slightly over $3,000 for the month. Hotels and motels opening to full capacity in July started the increase in occupancy tax collection. Cape May County’s occupancy tax rate exceeded all other counties in both August and September, with a combined total of more than $5 million collected and 80% of the year-to-date amount. Overall, as of Sept. 30, tourism revenue is down 24.7% over the same time period in 2019.
The latest occupancy tax data released by the New Jersey Treasury shows August numbers to be 7.5% under the rate collected in 2019. September data exceeded expectations and came in at 17.3% over the same period in 2019. This represents an increase of $247,415.91 and is 5% of the room rate. 
Cape May County has not seen an increase in monthly occupancy tax collections since February 2020.
The occupancy tax data is posted monthly and used as a benchmark to measure overnight stays in hotels, motels, and bed and breakfast inns. Based on the Department of Tourism’s annual survey, the average overnight visitor spends $374 per day, this spending spreads over all sectors and impacts, food and beverage, retail, recreation, and transportation.
“We knew by the size of the crowds, August and September were busy months, but we did not expect to see September numbers exceed last year. The summer season started at 46% below last year, and we have been able to bridge the gap by almost half. While this is encouraging, we still have segments of the industry that are having difficulty recovering from the shutdown and subsequent restrictions. Restaurants have been the hardest hit, and we are still dealing with reduced capacity. Many cannot continue to operate much longer with 25% indoor capacity and colder weather will curtail most outdoor dining”, stated Freeholder Director Gerald M. Thornton, liaison to the Department of Tourism.
Short-term rentals are booming with some realtors reporting double and triple the number of rentals this time last year. Remote work and virtual learning is keeping second homeowners in the county during the fall and into the winter months. Home sales are reaching record numbers among beach counties, and Cape May County is part of the boon in sales. These new homeowners, along with second homeowners, will support local businesses and attractions.
“Cape May County has topped all other counties, in New Jersey, in August, with $3.3 million generated in occupancy tax collection. In September, we were the only county that generated more than $1 million with $1.67 million collected. Visitor behavior during the pandemic has changed the dynamics of the traditional vacation season and has created a new visitor looking for non-beach experiences. Our diverse assets that include eco and agri-tourism activities give residents and visitors the opportunity to be safe outside with room to social distance,” reported Diane Wieland, county tourism director.
“It is our hope that the vaccine will turn things around quickly and we can go back to some semblance of a healthy tourism industry. While we are showing signs of recovery, the impact of losing one in every four dollars generated last year is huge. With the balance of the year looking promising, any loss of tourism revenue is devastating to our small businesses, in Cape May County,” added Thornton.
Cape May County launched a confidence campaign, in April, promoting the outdoors and open spaces, with CDC restrictions clearly part of the message. This was coupled with a dedicated safety campaign called “Safely Together” that featured television, print, radio and social media reminders to follow protocols while visiting the county. Cape May County COVID-19 cases were among the lowest compared to other areas in the state and region.