A recent report finds that Atlantic City’s seven remaining casinos have seen a benefit from the closing of the Trump Taj Mahal in 2016 by reviewing key tourism indicators.
The report, however, also finds that the city is generating more visitor trips and that the casinos aren’t simply divvying up the Taj’s former customers.
The report by Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism analyzed three key tourism indicators. The report based the findings on taxes generated by hotel stays at casinos, parking fees at resorts, and non-casino spending. The report says the three measurements “serve as an effective proxy for the performance of the tourism economy in Atlantic City.”
“All three performance indicators showed healthy gains in the second quarter with the Parking Fee per 100 spaces, Lodging Fee per 100 rooms and Atlantic County Non-Casino RevPAR showing ten percent, eight percent and eight percent increases over the prior 12 months,” said Brian Tyrrell, professor of Hospitality and Tourism Management Studies at Stockton University.
Parking fees are an indicator of trips to casinos. The study found that Atlantic City parking garages have collected more revenue on a per space basis in each of the past six months. The study did acknowledge that part of the increase at the city’s casinos resulted from the closing of the Taj Mahal’s 6,300 space parking garage.
The study also analyzed the Atlantic County Lodging Fee, the county’s take of a state tax on Atlantic City Hotel rooms. The closing of the Taj Mahal reduced the city’s total rooms, allowing for rate increases. During the second quarter of 2017, Atlantic City casinos reported an occupancy rate of over 90 percent on a nightly average rate of $107.43, the report said.
“In the wake of the casino closures, Atlantic County’s lodging industry has become highly efficient,” said Rummy Pandit, executive director of the Institute. “The Twelve-Month Trailing Total for the Atlantic County Lodging Fee is up 7.4 percent over the previous twelve-month period and, at $686 per 100 rooms, is the highest on record. Both Average Daily Room Rates and Occupancy for non-casino hotels increased in eight of the past 12 months.”
In another Atlantic City story, legislators announced a plan to rename the city’s main entertainment venue Boardwalk Hall after former Mayor James Whelan, who died of a heart attack last month. Whelan was later State Senator for Atlantic City and had a long, influential career advocating for the resort.
The legislation is sponsored by Senate President Steve Sweeney, Senator Raymond Lesniak, Assemblyman Vince Mazzeo and Assembly Deputy Speaker John Burzichelli.
“Senator Whelan spent decades in public service fighting for the residents of the region and the city he loved. The transformation of Atlantic City we are seeing now is a result of his tireless work and will be part of his legacy,” said Sweeney in a press release. “Boardwalk Hall is one of Atlantic City’s most historic and revered places, and it is only fitting that Atlantic City’s biggest champion is honored by having his name forever associated with it.”
