The 16th annual Jersey Shorecast took place on May 8 at Stockton University, Atlantic City.
The featured panelists agreed; the general business outlook for Summer 2024 at the Jersey Shore is pretty robust, but there are concerns.
No beach concerts. Airshow budget troubles. Inflation. Crime. Drugs. Homelessness. Multiple fires under Boardwalk. Mayor and wife under investigation. Understaffed police dept. Perception of Atlantic City being unsafe. Needle exchange and open use of marijuana within Tourism District. CRDA cutbacks.
This year’s ‘Shorecast’ panelists included the outspoken and often politically incorrect, Mark Callazzo.
Callazzo is a managing partner with RMS Capital. Callazzo is also co-owner of various Atlantic City bars and eateries.
How would you describe the region’s current economic circumstances?
Callazzo said 2023 wasn’t great for his businesses, and he attributed some of that to a belief that many people finally felt comfortable taking big trips — three years after the COVID-19 pandemic.
“Yeah (last year) was not, not good,” he said. “Our customer count was down. Our average check was down. … I think that a lot of the tourism was lost to people taking the trips that they had put off for three years.”
Describe region’s current economic circumstances.
Mark Callazzo: I hate to be all doom and gloom. But first quarter wasn’t great. I think we had a lot of weather problems. I do have concerns about the overall economy. So, I’m optimistic for a good summer, but first quarter wasn’t a great start.
Labor shortages. Will that impact 2024 summer tourism?
Callazzo: I mean, I’m not seeing it near as much as it was. I think there are plenty of people looking for jobs, but I think the wage inflation is not going away. Pre-pandemic, I think pizza makers made $15 to $20 an hour, and now they make $25 to $30 an hour. And it’s not going to go back because wage inflation is sticky. So, we’re just stuck with those higher wages. But I think there’s plenty of people that are looking and willing to work now.
No AC beach concerts. Will that affect local economy?
Callazzo: I’ll say honestly, the beach concerts, with the exception of Phish, were bad for our business. We were typically down. I think people came, went to the beach concert, got in their car and left, went to the hotel and slept, but didn’t venture out into the city.
New challenges / opportunities to consider in 2024?
Callazzo: Atlantic City needs to fix itself. Bringing people to the city is really what we need to change. People come here. They work here. They get in their car. They drive offshore to where their house is. The city’s not going to change until we have more of a population that lives here. Adding people also helps the clean and safe perception.
Callazzo on population. You need people to live here. You need people to get engaged in politics and vote and get involved with the clean and safe meetings and all of that other stuff. We have high taxes. We have the perception of clean and safe. So it’s not really an attractive offer to live in the city, and those are the things that need to change.
Two things, and they both require tax incentives: give homebuyers an abatement on real estate taxes if they reside in the home and bring it up to some code standards; identify an industry that meshes with the city’s needs and image, such as the travel/tourism industry, and figure out some incentives to lure them, and their good paying jobs.
Perhaps some floors of the various hotels/casinos could be built out to office specs, which would provide an ongoing source of revenue rather than a mostly seasonal source.
World class dining, gambling, beaches, entertainment, the boardwalk…am I writing about Monte Carlo?
That should be AC.
Simple.
1) get rid of crime and drugs;
2) increase punishment and eliminate no cash bail;
3) get homeless that want a helping hand short-term housing and job support;
4) stop with all the damn weed dispensaries;
5) more police by car, bike, walking around the city not just the boardwalk;
6) demolish run down buildings and create gardens in empty lots temporarily;
7) hold city officials accountable and vote accordingly;
8) more tax incentives for businesses that bring more science, technology, academic, consulting, vocational jobs;
9) cleanup the boardwalk by eliminating the many junk stores that sell the same products (most are not family friendly);
10) we have the beach so create more waterfront restaurants, beer gardens, lounges;
11) make parking free at casinos so people can play, eat, and enjoy the amenities without forking $20-30 (or remember to get a voucher).
I can keep going. Just look at OC or Cape May. AC can change but you have to ensure the right government is in place and focus on the points above.
OC has no alcohol. AC has bars and liquor stores every 2 feet legal) yet you whine about dispensaries (also legal). You can’t control what stores are on the boardwalk. You can’t force casinos to give free parking. There are several reasonable things you’re suggesting – how about doing a couple first.
Atlantic City needs eminent domain and gentrification.
People hate those words, but those are the same people living in rundown homes who don’t maintain them and have crime festering in every corner that they cry about, but don’t want the cops policing the area.
Gentrify Atlantic City and build luxury apartments and townhouses and you will see the city flourish like Hoboken and downtown Jersey City
I don’t understand why he’s labeled “politically incorrect” without seeing any examples of it. Kind of a weird thing to point out.
Anyway, he is one of the people trying to do good here. It’s worth listening to what he has to say.
Interesting POV, Mark. I agree about increasing the full-time population. As a developer, are you focusing on residential development in your current properties, like the space above Beer Hall, and in your upcoming projects?