When Hurricane Sandy furiously struck the New Jersey coastline last October, Atlantic City, in its path and seemingly doomed, was lucky to escape the full wrath of the storm.
The famed seaside resort was not left without property damage and loss entirely, however, with many local residents experiencing devastation of their homes and livelihoods. Yet, erroneous, overblown reporting from some media outlets about the extent of the damage spawned misinformation that negatively affected Atlantic City’s tourism and convention trade. Along with the physical cleanup, the city diligently went into “damage control” mode to correct these harmful misperceptions.
“Several of our largest conventions and meetings cancelled because of the storm’s impact on their constituency,” says Kim Butler, communications director of the Casino Reinvestment Development Authority (CRDA).
The city’s subsequent efforts in getting the word out that Atlantic City was in fact open and ready for business made all the difference, however.
“To date, every single convention center group event disrupted by Sandy in 2012 has returned to Atlantic City in 2013,” Butler says.
The only agency of its kind nationwide, CRDA reinvests casino revenue into development projects statewide, committing nearly $2 billion to more than 400 projects since its inception in 1984.
Closely allied with its Atlantic City Convention & Visitors Authority (ACCVA) division, the organization’s diverse charter includes attracting and retaining conventions and meetings at the Atlantic City Convention Center and Boardwalk Hall, and supporting the Atlantic City Alliance (ACA) in branding and marketing the city.
“Our partners at the ACA provided a $1 million convention subsidy that attracted new business to Atlantic City,” Butler says. “That program was very successful and has now grown into a three-year, $3 million incentive program, putting Atlantic City in contention with other meetings destinations, such as Philadelphia and Washington, D.C.”
As the city continues to invest in non-gaming assets and major events as part of its ongoing transition into a four-season visitor destination, the forecast, like sunbeams breaking through a cloudy sky, is for brighter days ahead.PageBreak
Smart Bets
Opened in 2003 as Atlantic City’s first new hotel property in 13 years, the luxurious Borgata Hotel Casino & Spa ushered in a bold new era for the city, sparking economic turnaround and catalyzing the movement toward a broader portfolio of non-gaming attractions. A decade later, that vision has become a reality, as Atlantic City has established a new identity via investment in four- and five-star restaurants, upscale retail shopping, first-rate nightlife and entertainment, and a distinct spa culture.
“The creation of the Tourism District by Governor Christie and the State Legislature in 2011 has seen more than $200 million of just CRDA investment into building more visitation to Atlantic City,” Butler explains. “That includes creating more opportunities to host more meetings and conventions and more amenities and activities to complement the convention experience.”
For example, CRDA has partnered with Harrah’s to help fund Caesars Entertainment’s construction of the $135 million Harrah’s Meeting Center. While a completion date has yet to be announced, construction is under way on the 250,000-square-foot facility, which will offer 125,000 square feet of meeting space and feature two 50,000-square-foot pillar-less ballrooms, each divisible into as many as 27 separate breakout rooms. Geared specifically toward attracting more Fortune 500 corporate meetings, the project is also aimed at expanding current meeting space inventory.
Highlighting CRDA’s ongoing role in enhancing the non-gambling side of Atlantic City under the 2011 Atlantic City Tourism Master Plan is its collaborative role in creating the new $38.4 million Wave parking garage. With space for 1,180 cars, the five-level facility addresses in part the shortage and expense of parking at The Walk, a 100-store outdoor complex operated by Tanger Outlets. Its other purpose is to serve as home base for the city’s proposed Arts and Culture District, with 16,170 square feet of street-accessible space to be devoted to artistic and retail use.
Other new attractions are also boosting the city’s appeal, including Bass Pro Shops and new retail and restaurant additions at Tropicana and Trump Taj Mahal, as well as new culinary options at Resorts Casino Hotel and Revel resort.
“[They] all work in tandem to refresh and raise the bar on offerings and deliver an incomparable experience both for the business traveler and leisure visitor,” Butler says.
The city’s renewed focus on hosting major events, such as the celebrated return of the Miss America pageant this year, is another investment yielding positive returns.PageBreak
Event Horizon
Founded as the “Fall Frolic” in 1921, Miss America was synonymous with Atlantic City until departing to Las Vegas in 2006. Returning with much fanfare this September, the event, combined with other gatherings such as the Atlantic City Triathlon, the Atlantic City Seafood Festival and the always entertaining Miss’d America Pageant (the drag queen equivalent, and along with its mainstream counterpart, a significant contributor to charity), generated a welcome lift in visitor numbers.
As reported by Hotel Interactive, overall visitation in September 2013 was up 49 percent over September 2012, coming mainly from first-time guests or people returning after extended absences. Of the nearly 200,000 unique visitors to the ACCVA’s website in September, 70 percent were first-timers, indicating strong interest in future visitation.
Bullish, too, is the news on the meetings front, with the solar-powered Atlantic City Convention Center reporting an 8 percent growth in business for 2013. This represents the fifth straight year that the venue, currently full through this December, has posted an increase. With nearly 70 shows bringing a projected attendance of nearly 385,000 people committing to Atlantic City in 2014, the trend looks strong to continue.
“2014 is currently shaping up to be a very successful convention year for us,” says Gary Musich, vice president of convention sales for the CRDA’s Convention Center division. “We are budgeting for 80 events next year at the convention center, which is double the number of events that the Philadelphia Convention Center will host.”
According to the ACCVA, more than $800,000 of that $1 million convention subsidy plan adopted by the ACA has been committed to bringing new events to the convention center. Geared toward attracting new and repeat business, the subsidy gives priority to first-time events willing to book at the venue during non-summer, mid-week times.
“After just two months since it was launched, the subsidy program is making a tremendous impact for us this year and through 2016,” Musich says. “The program is picking up momentum with 13 new events currently considering Atlantic City.”
The city is actively pursuing other development projects to enhance its appeal as a year-round destination, such as the $100 million, three-phase makeover of the landmark Steel Pier. With its new amusement rides, food court and arcade completed last year, the final two phases, slated for completion by 2015, call for a new museum, retail and entertainment space, a 200-foot-high Ferris wheel and a 2,000-seat ballroom.
Resilient throughout its long and storied history, Atlantic City, like the rest of the state, is proving “Jersey Strong” in coming back from Sandy.
Long-time contributor Jeff Heilman routinely covers Atlantic City for Meetings Focus.
