Jersey Shore Businesses See Modest Gains: Challenges And Opportunities For Post Labor Day Tourism

Published on September 8, 2025

The term “roller coaster” aptly describes the tourism experience at the Jersey Shore in 2025. Diane Wieland, the longtime tourism director of Cape May County, summed up the situation perfectly. On the one hand, early summer rains reduced visitor numbers, while on the other hand, a stretch of scorching 100-degree days brought beachgoers to the coast in large numbers. In some weekends, beach towns were flooded with visitors, making parking spaces scarce, and tensions flared over beach real estate. Despite this, many tourists limited their stays, opting for three or four-night visits instead of a full week.

Despite the ups and downs, Wieland confirmed that the tourism season was decent, though not exceptional. She added that businesses made money, but the profits were smaller compared to previous years due to increased expenses. Cape May County’s tourism economy is expected to show a modest increase of 2% to 3% compared to 2024, which is good but falls short of the 5% growth seen in previous years. For a region where tourism spending amounts to a hefty $8 billion, sustaining such growth can be a difficult task.

Challenges for Local Businesses

A key theme for the summer of 2025 was the tightening of profit margins for businesses along the Jersey Shore. Michael Busler, a finance professor at Stockton University, confirmed that business owners reported increased expenses due to inflation and rising wages. With the ongoing challenges in hiring workers, wages had to be elevated to attract staff, further impacting the bottom line. These pressures were compounded by rising operational costs. For some businesses, this included the introduction of new fees for credit card transactions, with restaurants charging an extra 2-3% to cover the cost of credit card payments.

The resistance to price hikes from consumers was a notable trend this year. Busler emphasized that despite increased operational costs, customers were unwilling to absorb these extra charges, opting instead to monitor their spending. This resulted in visitors opting for more economical vacation choices, such as shorter stays and preparing their meals rather than dining out for every meal.

Shifting Spending Habits

Tourists continued to flock to the shore, though their spending behavior appeared to be more cautious. Many visitors splurged on accommodations but looked to save elsewhere. This meant shorter visits, with guests often choosing to bring groceries for self-catered meals rather than dining out for every meal. As Wieland noted, it is a trend seen nationally: people simply aren’t spending as freely as they once did.

However, there were pockets of good news for certain sectors, particularly the casino industry. Busler noted that casinos reported a slight improvement in foot traffic compared to the previous year, marking a break from previous trends that had seen a steady decline in brick-and-mortar casino visits. The rise of remote gambling during the COVID-19 lockdowns, including online sports betting, had led many to believe that in-person gambling was on the decline. However, casinos in the Jersey Shore area saw signs of recovery, as some gamblers returned to the traditional casino experience.

Post-Labor Day Tourism: A Critical Time for Businesses

With most lifeguards returning to their academic duties and children back in school, September presented a crucial period for local businesses. Busler pointed out that, despite the shift in the season, the water remained warm, making the beach a popular destination for locals and a smaller influx of tourists. For businesses already operating on tight margins, a solid post-Labor Day period can be the difference between a profitable season and one that barely breaks even.

Wildwood, in particular, was making an effort to extend the tourist season beyond Labor Day, with a series of events designed to draw people to the area into the fall. The Thunder Over the Waves airshow, for example, was expected to attract a large crowd, with hundreds of thousands of visitors expected to attend. Events like the firefighters convention in Wildwood, along with other local gatherings, aimed to continue to drive traffic to the shore.

Ben Rose, the director of marketing for the Greater Wildwood Tourism Improvement and Development Authority, stated that the fall events were expected to bring hundreds of thousands of people to the area. The idea of a tourism “off-season” was being increasingly challenged by these kinds of events, which continue to attract crowds and inject money into the local economy well after Labor Day.

The Post-Pandemic Recovery and Changing Trends

Reflecting on the broader impacts of the pandemic, Diane Wieland noted that the Jersey Shore is finally returning to normal after the devastating economic hit taken in 2020. The effects of the COVID-19 pandemic were still apparent in the early days of recovery, with closed restaurants and restricted beach access in South Jersey during the height of the pandemic. However, as the pandemic fades into the background, local economies are stabilizing, and businesses are learning to adapt to a new normal.

A significant shift, however, remains in the gambling sector. As Busler mentioned, the surge in online gambling that occurred during the pandemic, especially through mobile casino apps and sports betting, seems to be a lasting change. While physical casinos are recovering, remote betting is expected to remain an integral part of the gambling landscape for years to come.

Looking Forward to the Fall

While many local businesses are still reflecting on a summer that was “good but not great,” the fall season offers hope for a strong finish. As September continues, many are hoping that the events planned throughout the season will continue to bring visitors to the region, helping to compensate for any financial shortfalls that businesses experienced during the peak of summer.

As for the rest of the shore, Cape May’s success in beach tag sales and Ocean City’s positive report about August numbers suggests that, despite the challenges, the area’s tourism economy may find a way to recover and continue growing in the coming years. However, the persistent pressures from inflation, staffing shortages, and cautious consumer spending will remain challenges for businesses that depend on tourism.