Atlantic City Faces Economic Challenges Amid Thriving Entertainment Industry
Atlantic City, N.J. — Although the city’s entertainment sector is booming, attracting large crowds for concerts, festivals, and sporting events, experts caution that the local economy is facing underlying challenges.
This assessment was shared during the seventh annual Jersey Shoreview panel, held on October 8 at Stockton University’s Atlantic City campus. The event, co-hosted by Stockton’s Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) and Visit Atlantic City, was a platform for tourism and economic experts to discuss the state of the local economy.
While industry representatives reported a successful summer with positive outlooks for the coming year, Stockton Associate Professor of Economics Oliver Cooke presented a more tempered view. He noted that summer employment figures were approximately 3% lower than the previous year, translating to around 5,500 fewer jobs. Casino employment fell by 1.1%, while jobs in restaurants and bars decreased by about 6%.
Cooke characterized the summer as one marked by caution among employers and consumers alike, citing economic factors such as inflation and high gas prices that have contributed to low consumer confidence. “The top end of the consumer market continues to fly along very well,” he remarked, noting that others are significantly more cautious.
Despite these concerns, visitors continued to spend money on entertainment in Atlantic City. The panel highlighted an impressive lineup of summer events, including concerts by Shakira and Phish, WWE wrestling at Jim Whelan Boardwalk Hall, and the Atlantic City Airshow. Boardwalk Hall’s general manager, Jim McDonald, emphasized the business’s strength, with many attendees traveling long distances—around 95% come from over 60 miles away, and 65% of Phish concertgoers traveled more than 150 miles.
Michael Chait from the Casino Reinvestment Development Authority noted that consumers remain keen on entertainment experiences, despite being more selective about other purchases. The need to expand Atlantic City’s appeal beyond the summer season was also discussed. With winter typically seeing a dip in leisure tourism, convention business plays a crucial role. Anthony Molino from Visit Atlantic City reported a full schedule for the convention center through the rest of the year, though he acknowledged the competitive landscape.
Concerns were raised about the uncertain future of the Sheraton Atlantic City Convention Center Hotel, which may close if it doesn’t secure $100 million in state tax credits. This hotel’s vicinity to the convention center makes it vital for meetings and events, and losing such accommodations could hinder the city’s ability to attract major conventions.
Panelists also highlighted other challenges, including rising operating costs and competition from new casinos in New York. Cooke and Chait both reiterated that the city’s future partly hinges on consumer spending trends in travel and entertainment.
As the discussion wrapped up, it was clear that for Atlantic City to thrive amidst these challenges, ongoing investment in its properties and infrastructure would be essential.
