Atlantic City’s Reinvention Plan Targets Meetings and Conventions

Responding to the closings of the Showboat Atlantic City Hotel and Casino, Revel and Trump Plaza Hotel and Casino, Atlantic City Mayor Don Guardian, along with Casino Reinvestment Development Authority Executive Director John Palmieri, Mark Giannantonio, president and CEO of Resorts Casino Hotel and Atlantic City Alliance President Liza Cartmell on August 26 informed residents and visitors that significant progress is being made in the destination’s ongoing transition to a burgeoning, multi-faceted tourism destination that is not focused solely on gaming.

“We have made great strides through the public-private partnership between the CRDA, ACA and Meet AC with the state of NJ, Atlantic County and the city,” Palmieri said. “We are on track to drive $1 billion into the Tourism District within these first five years, which is all part of our plan that focuses on four key initiatives: attraction visitation, building the visitor experience, targeting meeting and conventions and investing in neighborhoods and job training.”

To date, some $778 million worth of economic development projects are already completed, and there is an additional $475 million of development in process or already under construction, including the Bass Pro Shop, which will provide 86,000 sf of destination retail and bring with it almost 300 full- and part-time jobs, and Harrah’s Waterfront Conference Center, which will add more than 1,300 jobs.

There are also a significant number of pre-development concepts in the works, including the renovation of Tropicana and a new public market that will serve as an anchor attraction connecting Atlantic Avenue to the Boardwalk. And in an effort to capture more of the critical mid-week meetings and conventions business Meet AC was created as a non-profit and is expected to add a potential 251,000 group room nights in the next three to five years.

“We are making progress. Non-gaming spending has grown even as gaming declined,” Cartmell said. “Net gaming and non-gaming revenue is $3.3 billion in 2013 with 71.5 percent coming from gaming and 28.5 percent in non-gaming cash sales.”

Other figures of note that the officials cited include:

• Cash sales at non-gaming outlets now account for 28.5 percent of visitor spending at casino properties, up from 22.3 percent two years ago.
• Luxury tax receipts — particularly in such non-gaming activities as nightlife activities and shows — show strong gains across all seasons.
• Retail and F&B establishments have expanded payrolls in recent years. For example, bars have increased wages and salaries by 37.8 percent since 2010.
• Since 2001, regional gaming revenue has only increased 0.7 percent annually after adjusting for inflation, despite 14 casino openings in MD, NY, PA.
• Regional gaming revenue declined during the recession, and despite substantial new casino supply in MD, NY and PA, gaming revenue hasn’t recovered to 2007 levels but now there are more players fighting for the pie.
• Since 2001, there are three additional states, almost twice as many casinos, almost 50 percent more slot positions, and inflation adjusted slot revenue increased only 8.8 percent
• Since 2006, there are twice as many casinos, 34,000 new slot positions, and inflation adjusted slot revenue actually decreased 2.9 percent
• Between 2012–2013, other markets have declined more quickly than Atlantic City. Delaware, Indiana, Connecticut and now even Pennsylvania and Missouri are facing declining gaming revenues.

“We know that we are a tourism destination that has a huge amount of scale and enormous potential,” Giannantonio said. “It’s important to remember that there are still dozens of nightclubs, more than 100 restaurants, 15,000 hotel rooms and a full roster of year-round headline entertainment for visitors to enjoy. We also boast one of the most successful outlet shopping centers on the East Coast.

Cartmell said, “We hosted more than 130,000 people in just two days of free beach concerts with Blake Shelton and Lady Antebellum. In September alone, we have special events planned every weekend, including the DO AC Boardwalk Wine Promenade, the DO AC Pro Beach Volleyball Invitational, the iconic Miss America Pageant, the Longboard Invitational Surfing Competition and more. And we still have eight thriving casinos for those looking to game.”

www.meetinac.com