Determining the “New Normal” in Tourism on the Jersey Cape

By Diane Wieland, Director - Cape May County Department of Tourism

 

As we navigated the summer season on the Jersey Cape, we started asking ourselves early in the game, what we can expect from our tourism industry as we move forward. The “new normal” is the watchword for 2024, and we wondered what that would be for Cape May County.  From our research, we anticipated seeing a continued slowdown like what we saw in 2023, however, from what we are experiencing, the new normal is not totally defined, but we do know, we are not there yet. 
Challenges come in all forms, and while weather is a constant reminder of our fragile nature, there are other concerns lurking around every corner that have a potential to impact any or all sectors of tourism.  The pandemic is a case in point, and since then "normal" is a mystery and remains very difficult to predict. 
The lockdowns created a pent-up demand for people to travel, and as a result we saw two years of revenge travel, with vacation planners fast and furiously booking vacations to make up for lost time. The desire to travel anywhere anytime waned in 2023, and planners became more thoughtful in their vacation decisions; conscientious and experiential travel are currently a big part of the vacation plan. 

Both 2021 and 2022 were good years for tourism, and Cape May County saw a faster recovery than predicted by the experts. By 2021, Cape May County experienced a 94% recovery rate and fully recovered in 2022. We looked toward a great 2023. The economy put the brakes on discretionary spending.
Cape May County reached $7.7 billion in direct visitor spending in 2023, surpassing pre-COVID revenue of 2019 by $804 million over the three-year span. The county also saw an increase in visitors with 11.6 million travelers electing to take their 2023 vacation at the Jersey Cape.  Our goal, like every other destination is to increase visitation and visitor spending year over year. While we saw an increase and we met our goal, we also saw a slowdown in tourism spending.
Travel trends continue to change, and we needed to understand them and determine how we fit within the trends and wallets of the traveler. We had to craft our message to include the trends and research as well as value into our marketing efforts. Beach vacations remain popular, but visitors want much more and are willing to pay for it. Sustainability and conservation are not limited to one single demographic, but of interest at some level to all travelers. Road trips, festivals, local culture, wellness, and authenticity are some of the trends that we can offer and work well as part of our message.
To add to the challenges facing the tourism industry, the economy has taken a toll on visitor spending. Unfortunately, the businesses owners have also been hit with increased operating costs. It was no secret that for most, discretionary/vacation spending had been greatly impacted as core household expenses continued to rise and take a chunk out of the family budget. 
In our 2024 annual visitor’s survey, measuring 2023, we asked respondents about how the economy was impacting their vacation plans, 47% of respondents to our annual survey indicated that the economy did impact their plans, and 53% said it did not. 

Continuing the survey with those who indicated that the economy impacted their vacation plans, we found that 60% of respondents said they had reduced their vacation spending. This was a concern.
When asked how: 8% said they canceled their vacation and 44% said they took fewer vacations (54.5% of our visitors take more than one vacation in Cape May County annually). When asked about specific cuts in vacation spending 39% said they reduced spending for meals; 26% said they cut spending on attractions; 41% said they cut spending on shopping; 22% said they cut spending for recreational activities; 32% said they changed lodging options and shopped around for more budget-friendly accommodations; while 14% said they cut spending in other ways.
When asked if the economy will impact their 2024 vacation plans, 48% said it would. The comments from the respondents mentioned making the same cuts as they did in 2023, but on the positive side, many said they would still take a vacation to Cape May County. This points to the importance of vacations to the average family and our need to increase value for visitors.
We knew we needed to follow emerging travel trends and apply them with the data we gathered from our annual visitor’s survey, our branding efforts, and the comprehensive results from a research firm we hired to up our game and broaden our reach to keep up with a slowdown in vacation spending.  Our limited budget forced us to find new and innovative ways to expand tourism in Cape May County.

 

The brand elements of caring, charm, authentic, safe, and welcoming small towns was the focus and incorporated into a tagline and logo that captured the Jersey Cape. “Authentically Charming, Sincerely Yours, the Jersey Cape” was immediately preferred by focus groups and felt it summarized the unique vibe found in each of our towns. From Colonial to Victorian, to Mid-Century to Modern, each town and resort is real, restored and not recreated, our visitors all have a favorite.
With our brand, knowledge of the trends and research the driving force, we implemented a few strategies to enhance our multilevel marketing program and showcase the diversity of our resorts, attractions, and events that make up the Jersey Cape. These programs were implemented and became our "new normal."

As we move into fall and winter, we anticipate that 2024 will show growth.  Heading into 2025, we will continue to reinvent our marketing plan and find ways to expand our reach to increase tourism. From where we are today the "new normal" is evolving and, we’re not sure when we will see a "new normal" in tourism marketing.  What we do know is that we must include a mix of resilience, innovation, flexibility, and adaption to our marketing plan. The same old, same old will not bring visitors back or attract new ones.