OCEAN CITY, Md. - Once a staple of family vacations, the traditional routine of packing luggage, checking into a hotel, and dining out has begun to change in Ocean City. Though the winning white marlin earned the Waste Knot $3,699,630.67, businesses in the area continue to be down this summer.
The shift is prompting concern among local business owners, including Thomas Fager, manager of Fager's Island. Fager notes a decline in business compared to last year, echoing a broader sentiment among local restaurant owners and hospitality workers. “All my friends around town and other restaurant owners, I've been hearing the same thing, that it's just not here,” Fager said. “They're like, summer hasn't quite come yet and they're saying, I don't think it really is going to come.”
A comparison between this year and last reveals a downturn in revenue for local hotels and restaurants. Susan Jones, Executive Director of the Hotel-Motel-Restaurant Association, identifies a key trend driving this change. “What we're seeing is the amount of people who are staying in the condominiums. That's increased and it has surpassed the occupancy in the hotels,” Jones said.
As vacationers opt for condominium rentals over traditional hotel stays, hotels face increased competition, leading to a 3% decrease in the average daily rate this year, according to the Ocean City Tourism Report. This trend also affects local restaurants, as visitors who stay in condos are more likely to prepare their own meals rather than dining out.
“So when somebody is staying in a condo, what are they going to do? They’re going to cook food in the condo,” Jones explained. “So when they stay more in the condominiums, they’re going to do more cooking in the condominiums, and that’s hurting the restaurants.”
Fager attributes the sluggish summer to broader economic factors, noting that tourists are visiting less frequently due to financial constraints. “I think you look at it from a standpoint of tourists coming down and they might come generally 5 to 6 times a year. And then this year they just don't have the income to spend there to say, oh, we're only going to come 2 to 3 times a year instead,” he said.
Over the past three months, restaurants have reported lower income compared to last year. Fager hopes that upcoming concerts in Ocean City will boost business in September and October. However, Jones remains cautious about the immediate impact of such events on the broader trend.