ATLANTIC CITY — The city’s tourism market continued to expand during the first six months of the year, according to a report by the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University.
The report based its findings on indicators for lodging fees, casino parking revenue and non-casino spending. All three indicators were up, the report noted.
The indicators are year-over-year percentage changes in the Atlantic County lodging fee per 100 rooms, the Atlantic City casino parking fee per 100 spaces and Atlantic County noncasino revenue per available room.
All three performance indicators showed healthy gains in the second quarter year over year, with the parking fee per 100 spaces up 10 percent, lodging fee per 100 rooms up 8 percent and “Atlantic County Noncasino RevPAR,” or revenue generated per room up 8 percent, according to Brian Tyrrell, professor of hospitality and tourism management studies at Stockton.
The report suggests the remaining casinos were able to take advantage of the closing of the Trump Taj Mahal Casino Resort. The property, formerly owned by President Donald J. Trump, closed in October. The closing generated more traffic for the remaining casino properties, according to the report.
“How much of the Taj Mahal business remains with the other casino properties in the resort is not a straightforward question to answer, but the per-space performance by the parking fee collections would suggest that a good deal of this business has remained in the resort,” according to the 15-page report.
The Taj closing also led to an increase in Atlantic County lodging fees, according to the report.
“After the 2014 and 2016 closures, Atlantic County reports an inventory of 19,321 rooms, supplying 590 thousand room nights in the month of June of 2017,” according to the report. “Importantly, following the closure of the Taj Mahal in October, significant gains were realized for the final nine months of the period. Altogether, the lodging market in Atlantic County experienced healthy year-over-year gains.”
The report comes on the heels of the city’s seven remaining casinos reporting 20 percent growth in gross operating profits during the first six months of the year.
“In the wake of the casino closures, Atlantic County’s lodging industry has become highly efficient,” said Rummy Pandit, executive director. “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 noncasino hotels increased in eight of the past 12 months. ”