CONSTRUCTION CAPE MAY OVERVIEW
According to the county, on average, the overnight visitor spends about $374 per day, per person, spread across all sectors measured. Figures for 1Q21 further fuel optimism of a strong recovery for the tourism industry. According to the New Jersey Treasury, Occupancy Tax collection in the quarter indicated an increase in overnight stays in Cape May County. The increase for January, February and March 2021 was 12.7% above the same period in 2019 and 26.9% better than 1Q20, the county reported. April Occupancy Tax collection saw an increase of 23.7% over April 2019, indicating a strong rebound entering the summer season. Following tourism, the fishing industry is another pillar of the local economy. The port of Cape MayWildwood is among the largest on the East Coast and ranks among the Top 15 ports in the country in commercial landings. According to Rutgers University research, “In 2018, the port of Cape May-Wildwood which is the largest commercial fishing port in New Jersey, landed 101 million pounds of seafood worth 66 million dollars. This port ranked 14th in pounds landed and 10th in value for all ports in the United States and in the Northeast (Maine to Virginia) ranked second in pounds harvested and value and is the center of fish processing and freezing in New Jersey.” Rounding out the economic ecosystem are eco- and agri-tourism, with ecotourism itself generating nearly $700 million in annual revenue. Cape May County is one of the top birding hotspots in North America with spring and fall bird migration attracting international visitors to the region. The World Series of Birding, in its 38th year, draws teams from across the country as well as teams from the United Kingdom and beyond. In another sign the economy is rebounding nicely, the county is home to 20 breweries, wineries and distilleries, with multiple new businesses opening in the past year. Agri-tourism continues to grow with local businesses sourcing locally grown produce and products for production of spirits and farm-to-table menu options. As the county’s economy diversifies further, academia will be pivotal in providing the skilled workforce these industries require to establish continuity and success. Atlantic Cape May Community College, which has a strong presence in the county, is among the partners ensuring a skills-ready labor pool. “Atlantic Cape Community College is proud to partner with Cape May County in its economic development initiatives,” said Dr. Barbara Gaba, president of Atlantic Cape Community College. “Through our work at the Cape May County campus under the leadership of Maria Kellett, Campus Dean, we collaborate with the county,
Vicki Clark President Cape May County Chamber of Commerce
What differentiates the Cape May County business community from the rest of South Jersey? Cape May County’s economy is based on our tourism industry. During COVID, we did exceptionally well, looking strictly at our tourism economy. Cape May County was viewed as the place to escape to. The New Jersey tourism impact report shows that we outpaced all other counties in the state. This is a good indicator, even in a year in which the tourism and hospitality industry was devastated by the pandemic. Our economy was only down 21.1% over 2019 numbers. To put that into perspective, in 2019, Cape May County’s tourism economy measured $6.9 billion and in 2020 the number was almost $5.5 billion. What are some ways in which you hope to see the economy diversify going forward? Tech Village is an offshoot of the UAS (unmanned air systems) development that Cape May County had been working on for several years. Cape May County was hosting UAS conferences, and attendees of these conferences were mostly tech companies. That led to good outcomes in the development of other technology fields as well, like medical devices. The development of one industry transfers to other industries. Cape May County is a low-population peninsula with lots of open and undeveloped space. This is attractive for UAS test flights. However, a challenge for us is the unavailability of a ready-to-work workforce with higher qualifications. What is your outlook for the next two years? Cape May County will rebound from the COVID pandemic as long as we continue to move forward on this path. Cape May County will rebound in two to three years, which should be faster than the rest of the state and the country. I know that the national forecast is that between 30-35% of small businesses may have gone or will go out of business due to COVID-related causes but I don’t think it will be that high in Cape May County. We think that percentage will be closer to 10% here. www.capitalanalyticsassociates.com
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