Vol. 4, No. 11, November 2007
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Gotta Wear Shades
The future of Atlantic City is bright, and it is here today
Summer in Atlantic City has come to an end, and 2008 isn’t too far away. As we take a look at this year, which has been both exciting and challenging for Atlantic City, many indicators show positive growth in the region.
I know, we’ve all read the doom and gloom in the press about the challenges the casino industry has faced this year. Increased competition from the Pennsylvania market has negatively impacted the slot revenue of most of the casino resorts. A partial smoking ban that limited smoking to 25 percent of the casino floors also was reported as contributing to that decline.
But while gaming revenue declined, several key indicators for Atlantic City have actually increased. Occupied room nights are up 1.7 percent. Overall occupancy rates are up 2.5 percent and average daily hotel rates in Atlantic City are up 7.1 percent.
Looking at the transportation end of things, in 2007, New Jersey Transit’s Atlantic City Rail Line is setting a ridership record for the fourth consecutive year, with riders taking approximately 1.3 million trips between Atlantic City and Philadelphia. Traffic on the Atlantic City Expressway increased between 1 percent and 1.5 percent during the months of June, July and August. And, so far in 2007, scheduled commercial service has increased nearly 40 percent at the Atlantic City International Airport, with a record 1.2 million passengers expected for all of 2007.
Visitation figures at several Atlantic City attractions has also increased during the summer. The Atlantic City Aquarium Ocean Life Center in Historic Gardner’s Basin saw a dramatic increase of 63.4 percent over 2006. Attendance at the Noyes Museum of Art in Oceanville increased 18 percent. And the Greater Atlantic City Golf Association, marketed exclusively by the ACCVA, booked substantially more rounds of golf at member courses throughout the prime summer months including August, showing an increase of 104.79 percent.
The ACCVA’s own website showed a 10.1 percent increase in visitors in 2007 over the previous year. And summer visitation to ACCVA’s two information centers, located on the Atlantic City Expressway and the Boardwalk, was up 6.4 percent year over year.
Interest in Atlantic City has resulted in continued growth of meetings, conventions and trade-show sales at the Atlantic City Convention Center and local hotel and casino properties. In the past two years, room nights associated with future business in this market has increased by nearly 100 percent. In 2005, the convention sales department produced 73,000 room nights associated with future events.
In 2007, convention sales is projected to produce 145,000 future room nights by year end. This increase has resulted in more diverse meetings, conventions and trade shows coming to Atlantic City from a broader part of the country.
All this shows that marketing Atlantic City as a full-service destination is proving successful. Focusing on the overnight customer, rather than the day-trip slot customer, will solidify the future of Atlantic City as a world-class destination. The enhancements and additions made throughout the city will play an integral part of this success.
Atlantic City Outlets: The Walk saw the opening of 25 new stores, including Eddie Bauer Outlet, Adidas, Perry Ellis, Big Dog Sportswear, LongHorn Steakhouse and Converse, among others. Eight more should be open before the end of the year. The Pool, Waterfront Buffet and shopping at Harrah’s all opened to rave reviews, along with Spice Road at Trump Taj Mahal, Providence nightclub at the Quarter at Tropicana, the continued openings at the Pier Shops at Caesars, Finestra at Trump Marina and much more. All these new developments have made Atlantic City a popular destination for gamblers and non-gamblers alike.
And what do we expect for the future? The transportation infrastructure will continue to expand, including the introduction of direct rail service from New York City, which has the potential of bringing 300 passengers round-trip nine times each weekend. Three new hotel towers, at Borgata, Harrah’s and Trump Taj Mahal, will open, along with non-casino properties such as the Courtyard at Marriott, formerly Quality Inn, at South Carolina and Pacific avenues, and the Holiday Inn/Howard Johnson redevelopment to be named the Chelsea.
Of course, on the horizon are Revel and Pinnacle’s projects. With the promise of new developments in the years to come, one can be assured that Atlantic City will remain “Always Turned On.”
