recap report - njeda · 6 from this need was born the stronger than the storm (#stts) campaign. the...

RECAP REPORT DECEMBER 2013

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TABLE OF CONTENTS

0102

SUPERSTORM SANDY AND THE STATE’S RESPONSE

STRONGER THAN THE STORM 2013 SUMMER IN REVIEW

0304

IMPACTS OF THE #STTS CAMPAIGN

CONCLUSION

3 © 2013 MWW GROUP, ALL RIGHTS RESERVED | STRONGER THAN THE STORM RECAP REPORT | DECEMBER 2013

This summer was unlike any other. Many parts of the New Jersey

Shore were simply unable to welcome their traditional summer

visitors as they focused on rebuilding their communities. Despite

the unprecedented damage caused by Superstorm Sandy, a June

washout and dire predictions about the shore’s tourism economy,

New Jersey’s 2013 summer vacation season exceeded expectations.

Publicly available and objective third party data on beach passes,

transit activity, hotel taxes, hotel occupancy rates and employment

illustrate that despite the challenges of the storm and recovery

- the tourism industry was not only able to overcome low

expectations - it was able to grow and expand in several areas.

HOTEL TAX RECEIPTSTax receipts are a direct measure of economic activity. Municipal

and state hotel tax receipts were the second highest total in the

last five years for the four shore counties (Monmouth, Ocean,

Atlantic and Cape May) combined.

Although June was the wettest ever recorded in the state, overall

2013 receipts were down only 4% from 2012, the highest year

for tourism tax receipts on record.1

HOSPITALITY EMPLOYMENTFor the three metropolitan statistical areas that make up the

shore, August hospitality and leisure employment were very close

to 2012 levels or increased compared to 2012, according to data

from the Bureau of Labor Statistics. The anticipated loss of an

estimated 11,000 tourism-related jobs in the third quarter2

due to the storm did not materialize.

HOTEL OCCUPANCYThe Jersey Shore summer season finished on par or better

than some competing summer destinations. Data provided by

STR Analytics indicates the shore matched Cape Cod’s hotel

occupancy for the second two-thirds of the summer season and

beat out the Delaware Shore and Nassau and Suffolk county

hotels in increased occupancy from 2012 and was down less

than 1% year over year.3

BEACH PASS SUMMARYDespite significant damage from the storm, overall beach

pass revenue in 2013 decreased only slightly (-3%) when

compared to the previous four-year average. Beach pass

revenue in particular was reflective of the various states of

recovery along the shore with some towns realizing solid gains

(Asbury Park, Long Branch) and others seeing significant drop

offs (Toms River, Mantoloking).4

MWW, agency of record for the Stronger than the Storm campaign authored this report.

EXECUTIVE SUMMARY

4

01SUPERSTORM SANDY AND

THE STATE’S RESPONSE

5

STRONGER THAN THE STORM RECAP REPORT

© 2013 MWW GROUP, ALL RIGHTS RESERVED | STRONGER THAN THE STORM RECAP REPORT | DECEMBER 2013

Superstorm Sandy threatened a sizable portion of the state’s economy.

The state’s tourism industry directly supports 318,500 jobs in New Jersey

and sustains more than 500,000 jobs. These jobs represent 10% of total

employment. In 2012, the tourism sector generated $34.7 billion of the

state’s total GDP, or 7.0% of the entire state economy. The four shore

counties alone account for fully half of New Jersey’s tourism economy.

Including indirect and induced impacts, tourism in New Jersey generated

$4.5 billion in state and local taxes and $5.1 billion in Federal taxes in 2012.5

All of this was in jeopardy following Sandy.

Coupled with the magnitude of the storm and its resulting

damage was the problem of misperceptions about its true impact

on the state. While many communities up and down the shore

suffered significant damage, many others were largely spared or

able to quickly recover.

Nevertheless, in the wake of Sandy, media coverage of the storm

and its aftermath was unrelenting in its focus on the destruction

resulting from the storm with little coverage of recovery efforts

and those communities that were “back in business.” That needed

to change.

Recent history from other disasters of comparable size

and impact – Hurricane Katrina and the BP oil spill – clearly

illustrate that changing the lingering perceptions needed to

happen immediately.

As New Jersey began to rebuild, its leaders in government,

tourism and economic policy at the highest levels were

determined not to let images of destruction impact the state.

Likewise, all shore communities shared two common goals – to

quickly recover and, just as importantly, change misperceptions

that the shore was “closed” for the upcoming 2013 tourist season

because of storm damage.

6

FROM THIS NEED WAS BORN THE STRONGER THAN THE STORM (#STTS) CAMPAIGN.

The $25 million public awareness campaign

was funded through a federal Community

Development Block Grant. The overarching goal

of the campaign was simple: to demonstrate that

the shore was open for business and still a terrific

destination for families to take their summer

vacations.

7



Elements of the campaign included:

ADVERTISINGAn aggressive TV campaign was developed

and aired in key markets. While the New

Jersey, New York and Philadelphia areas

were the primary focus, spots appeared in

outlets throughout the Eastern Seaboard,

including Washington, D.C., Baltimore,

Boston and Eastern Canada. In addition,

billboard advertising appeared in key

commuter locations around New York City

and in Times Square. Digital advertising

appeared on popular sites with our target

audiences, including NJ.com, Yahoo!,

ESPN and many others. Radio spots were

created and aired throughout New Jersey

and surrounding locales.

WEBSITEStrongerThanTheStorm.com was launched

to serve as a “one stop shop” for all

things related to the campaign and, just

as importantly, Jersey Shore tourism and

recovery. The website received 390,000

visits, and 105,000 online fans. The site

includes a calendar of events, news from

the shore, photo gallery, visitor guide with

tourism planning resources, business and

homeowner assistance programs, and

other assets to help promote the

Jersey Shore.

8

COMMUNITY ENGAGEMENTA core element of the STTS campaign

was to activate a number of events up

and down the Jersey Shore that would

attract tourists and media coverage to

help reinforce the message that the “Jersey

Shore is Open for Business.” The campaign

executed and supported 43 events in a

12 week period with over 334,000 event

attendees. Related activities included a

Guinness Record-breaking ribbon cutting

ceremony on Memorial Day Weekend

with the Governor at Seaside Heights and

on NBC’s Today Show, Kites & Castles

events in eight municipalities, a Tug of War

contest in Seaside Park, Boats & Boards in

Toms River, and the New Jersey Soundoff

Contest in Asbury Park. STTS also worked

side by side with the region’s Destination

Marketing Organizations, Chambers of

Commerce and local event organizers to

support and promote their events.

9



SOCIAL MEDIA In addition to the website, the campaign

established online “real estate” on a

number of other sites to help promote the

shore. These included Facebook, Twitter,

Instagram, Vine, Tumblr and YouTube.

Twitter in particular, was very strong with

217 million impressions.

FACEBOOK• 98,057 Likes

TWITTER• 6,616 Followers

INSTAGRAM• 726 Followers

YOUTUBE• 253 Subscribers

• 21,186 views on last video of Zombie

Walk Time Lapse

• 27 videos total

• Highest viewed video is the official

commercial with 83,304 views

10

DESTINATION MARKETING ORGANIZATION TOOLKITSCustomized digital assets that included

localized STTS logos for use on signs, hats,

t-shirts, etc. were created and posted to

the STTS website for downloading by

municipal officials. 2,588 was downloaded

from the site.

MEDIA RELATIONS Launching on Memorial Day weekend

the STTS campaign engaged in a

rigorous, proactive media campaign to

help spread the word that the shore was

open for business. The campaign had

1.25 billion total media impressions as

well as 1,746 total media placements.

Broadcast and print outlets, at the local,

regional, national and even international

levels, were targeted for related stories.

In addition to highlighting STTS events,

campaign resources were used to promote

local events to help drive tourist traffic

and media coverage.

11



02STRONGER THAN THE STORM

2013 SUMMER IN REVIEW

12

Before the Stronger than the Storm campaign

officially launched May 25th, 2013 the outlook

for the summer tourism season was uncertain.

Pre-season predictions from Rutgers University

estimated the state’s tourism industry would

have losses of $950 million in the third quarter

alone.6

13



The challenges at the time of launch were significant:

In addition to the concerns and issues leading into the summer, New Jersey also experienced the wettest June since record keeping began in 1895 which further dampened potential tourism activity and threatened recovery even more.10

New Jersey residents themselves began the season with an overall negative

perception of the state of the shore. More than 50% stated they did not

believe the shore would be “back to normal” for at least another three years.7

15,600 summer rental properties

reported suffering “severe” or

“major” damage which represents

approximately 1.5 million potential

lost accommodation nights along the

Shore for the peak tourism season.8

About 30% of New Jersey

residents who had previously taken

shore vacations of at least 4 days in

previous summers were planning to

cut back on their visits to the shore.9

14

By the end of the summer, a review of publicly available and

independent third party data revealed the post-Sandy 2013

summer vacation season was much stronger than expected.

While beach pass revenue numbers were mixed and slightly

down overall, leisure and hospitality employment numbers and

hotel occupancy numbers for the shore were the highest and

second highest in the last five years, respectively.

15



No single measure tells the complete story of the impacts, losses and

recovery of the shore. But a comprehensive review of the tourism

industry’s condition can be constructed by looking at several key

indicators: hospitality employment, hotel occupancy, hotel tax

receipts, beach pass sales and transit ridership.

Hospitality employment is an unambiguous bottom-line

indicator of the health of the tourism industry, and employment

numbers for August 2013 were well ahead of expectations.

Hotel occupancy is a more complex issue. Broadly speaking, there

are three types of vacation housing available – hotels, bed &

breakfast/inns and rental homes. While all exist in the four shore

counties, certain forms tend to be more prominent in one county

versus another. Overall, the hotel sector fared well compared to

alternative eastern seaboard summer destinations in 2013.

Hotel tax receipts provide additional insight. As a general rule,

hotels have more resources and were repaired and reopened

more quickly than many single family vacation homes. For

example, counties like Monmouth, Cape May and Atlantic, who

have more hotel rentals, were “up and running.” Ocean County

relies on a larger stock of home rentals than hotels. Consequently,

Ocean County experienced a greater loss in this sector.

Another influence of the storm was seen in the sales of beach

passes for the 2013 season. Some of the hardest hit communities

were again located in Ocean County, and beach pass revenues

dropped compared to previous years. However, some

communities such as Asbury Park and Avalon saw growth even

above and beyond their record 2012 beach pass sales.

Areas serviced by the major shore public transit alternatives all

saw a boost in arrivals compared to 2012. The Coast and Atlantic

City rail lines on NJ Transit experienced ridership increases from

the July 4th holiday through to Labor Day, while all four major

bus lines serving the shore also saw an aggregate increase in

ridership over their 2012 figures.11

In summary, the 2013 summer season differed from the 2012

season on many levels. While shifts in destination choices, length

of stay and accommodations were apparent, the changes were

more concentrated on where to stay, when to go and how long

to visit the shore, as opposed to not going at all or visiting a

competing destination.

In that regard, the New Jersey Shore clearly held its own.

16

BEACH PASS SALES

(as of Labor Day 2013)

HOTEL OCCUPANCY

(June - August)

HOTEL REVENUE PER AVAILABLE ROOM

(June - August)

HOTEL TAX RECEIPTS

(June - August)

HOSPITALITY EMPLOYMENT

(in thousands)

2009 $20,963,881 60.8% 75.26 11,787,778 165.8

2010 $22,593,957 64.5% 81.36 12,742,891 166.8

2011 $23,569,642 65.3% 81.39 12,967,055 166.4

2012 $24,852,653 68.0% 85.72 14,236,708 174.5

2013 $22,309,375 67.3% 84.55 13,673,292 180.9

SOURCE:Municipal administrators,

clerks and mayorsSTR Analytics STR Analytics

State of New Jersey, Department of Treasury

Division of Taxation

Total leisure and hospitality employment for Atlantic

City, Ocean City and Edison metropolitan areas in August of each year. Retrieved from

the Bureau of Labor Statistics.

NEW JERSEY SHORE TOURISM METRICS

17



HOSPITALITY EMPLOYMENT

Our analysis of the state of the shore begins with

employment and hotel tax data as more than other

available data types, they are most directly reflective

of the economy.

The latest data from the Bureau of Labor Statistics

clearly demonstrates that the anticipated loss of

11,000 tourism related jobs in the third quarter of

2013 was not realized.2 In fact, August hospitality and

leisure employment has gone up for two of the three

metropolitan statistical areas that make up the shore

and for the shore overall.

LEISURE AND HOSPITALITY EMPLOYMENT

349,500

AUGUST 2012 EMPLOYMENT

358,000


CHANGE INEMPLOYMENT

+8,500

NEW JERSEY

CHANGE (%)

+2.4%

103,100


109,100


CHANGE INEMPLOYMENT

+6,000

CHANGE (%)

+5.8%

51,600


52,100


CHANGE INEMPLOYMENT

+500

CHANGE (%)

+1.0%

Edison, NJ Metropolitan Divison (Includes both Monmouth and Ocean Counties)

Atlantic County (Atlantic City MSA)

19,800


19,700


CHANGE INEMPLOYMENT

-100

CHANGE (%)

-0.5%

Cape May County (Ocean City MSA)

18

Source: Bureau of Labor Statistics (figures updated seasonally)

19



HOTEL TAX RECEIPTS

Tax receipts are a direct measure of economic activity.

In the accommodation sector, municipal and state hotel

tax receipts still registered as the second highest total in

the last five years for the four shore counties combined.

Overall, 2013 receipts were down only 4% from 2012

(which was the highest tourism season on record).1 The

drop was primarily driven by the slow start, inclement

weather in June and a more significant drop in receipts

for Ocean County compared to the remainder of the

shore.

CHANGE IN MUNICIPAL AND HOTEL TAX RECEIPTS

-4.0%% CHANGE V. 2012

ALL FOUR COUNTIES

-10.3%% CHANGE V. JUNE 2012

+5.6%% CHANGE V. JUNE 2008–2012 (AVG)

-3.0%% CHANGE V. JULY 2012

+4.3%% CHANGE V. JULY 2008–2012 (AVG)

-0.8%% CHANGE V. AUGUST 2012

+6.7%% CHANGE V. AUGUST 2008–2012 (AVG)

+5.5%% CHANGE V. 2008–2012 (AVG)

-14.3%% CHANGE V. 2012

Ocean County

-6.1%% CHANGE V. 2008–2012 (AVG)

-1.5%% CHANGE V. 2012

Cape May County

+8.4%% CHANGE V. 2008–2012 (AVG)

-1.7%% CHANGE V. 2012

Atlantic County

+10.5%% CHANGE V. 2008–2012 (AVG)

-3.7%% CHANGE V. 2012

Monmouth County

+3.5%% CHANGE V. 2008–2012 (AVG)

20

Source: State of New Jersey, Department of Treasury,

Division of Taxation

21



HOTEL OCCUPANCY

Hotel occupancy data further illustrates that after

a slow beginning to the summer the New Jersey Shore

rebounded as a destination.

When compared to competing destinations, the Jersey

Shore performed strongly over the last two months

of the summer vacation season. The shore was able to

outperform three other benchmark shore destinations,

Delaware, Nassau and Suffolk County, and Cape Cod,

for the month of August in terms of increasing its

year-over-year occupancy. The summer had such a

strong finish that the August spike allowed the shore to

perform on par with the benchmark shore destinations

when looking at the summer in its entirety.12

-7.5%JUNE

0.5%JULY AUGUST

4.5%

NJ ShoreChange in Hotel Occupancy 2012 – 2013

TOTAL SUMMER

-0.8%

-5.1%JUNE

2.0%JULY AUGUST

4.0%

NJ Shore vs. Benchmarked AverageChange in Hotel Occupancy 2012 – 2013

TOTAL SUMMER

0.3%

-4.3%JUNE

-1.6%JULY AUGUST

0.3%

Delaware ShoreChange in Hotel Occupancy 2012 – 2013

TOTAL SUMMER

-1.9%

2.1%JUNE

-3.2%JULY AUGUST

-1.1%

Nassau and Suffolk County ShoresChange in Hotel Occupancy 2012 – 2013

TOTAL SUMMER

-0.7%

-4.9%JUNE

0.4%JULY AUGUST

2.3%

Cape CodChange in Hotel Occupancy 2012 – 2013

TOTAL SUMMER

-0.7%

HOTEL OCCUPANCY CHANGES

22

Source: STR Analytics

23



BEACH PASSES

Beach pass data for each of the past five years was

collected from nineteen communities representing the

entire length of the shore. Overall, beach pass revenue

was down just slightly (-3.0%) compared to average

revenue collected across the entire shore for each of

the previous four years. The year-over-year revenue

numbers across the shore were reflective of the

changing patterns of shore visitation happening during

the summer with some towns realizing significant gains

while others suffered significant losses.

BEACH PASS DATA

$22,995,0342009–2012 AVG REVENUE 2013 REVENUE

$22,309,375% CHANGE

-3.0%

ALL LOCATIONS

2009–2012 Avg. Revenue

Beach Haven $432,443 $417,660

Ventnor City $203,808 $199,685

Ocean City $3,630,430 $3,901,500

Sea Isle City $1,174,956 $1,329,475

Avalon $1,152,096 $1,190,518

Stone Harbor $687,110 $699,230

Cape May $1,962,999 $1,976,641

Long Beach $1,618,969 $1,569,000

Barnegat Light $228,416 $209,310

Seaside Park $1,618,271 $1,416,170

Seaside Heights $1,613,330 $1,317,943

Toms River $654,964 $154,073

Location 2013 Revenue% Change

Lavallette $838,054 $697,578

Mantoloking $54,517 $28,380

Long Branch $1,311,178 $1,706,696

Asbury Park $846,188 $1,088,453

Belmar $2,898,683 $2,776,532

Manasquan $1,705,041 $1,369,567

+30.2%

+28.6%

-4.2%

-19.7%

-47.9%

-16.8%

-76.5%

-18.3%

-12.5%

-8.4%

-3.1%

-3.4%

-2.0%

+7.5%

+13.2%

+3.3%

+1.8%

+0.7%

Sea Bright $363,581 $260,965 -28.2%

24

Source: Data collected directly from each community via

the mayor’s office, borough clerks and administrators

25



TRANSIT

The Stronger than the Storm campaign had a singular

mandate to encourage visits to the New Jersey Shore.

A direct measure of the campaign’s impact is available

in transit ridership data for both rail and bus lines. These

options traditionally serve an important market segment

by providing access to the shore for visitors from feeder

markets in New York City, Philadelphia and Northern

New Jersey.

Despite the same slow start to the summer experienced

across other measures, the summer as a whole realized

an uptick in transit ridership across all of the primary

shore routes. The year-over-year increase in transit

ridership is a direct indicator of the campaign’s success

in activating this important segment of shore vistors.11

TRANSIT RIDERSHIP

+2.5%% CHANGE

NJ TRANSIT TOTALJuly 4th through Labor Day v. 2012

+2.1%% CHANGE

Coast Line (Long Brand through Bay Head)

+3.8%% CHANGE

Atlantic City Line

+2.1%% CHANGE

Shore Bus Lines (137, 319, 551, 316)

Coast Line (Long Branch through Bay Head)

26

Source: NJ Transit

27



03IMPACTS OF THE

#STTS CAMPAIGN

28

After a June washout, the New Jersey Shore

roared back, showing that it is indeed Stronger

than the Storm. The STTS campaign was designed

with one singular purpose: to convince residents

of the New Jersey, New York and Philadelphia

metro areas and beyond to visit the shore

that summer.

Employment, hotel, transit and beach pass data all come

together to tell a unified story: that despite prominent media

coverage of Superstorm Sandy’s devastating impact, we were

able to restore people’s pride in the shore and conjure up

positive memories associated with years past.

We understood that this campaign wasn’t just about the shore

being open for business. The real story was that the shore is an

integral part of our lives and communities, and that only by

coming together could we begin to repair it in a meaningful way.

29



OVER 334,000 PEOPLE IN ATTENDANCE

16,320PIECES OF COLLATERAL

DISTRIBUTED

390,000 WEBSITE VISITS

43EVENTS IN COMMUNITIES

ACROSS THE SHORE

We are proud of what we were able to accomplish in one summer.

Campaign highlights compiled by MWW from May 1st through

December 18, 2013 include:

30

1,746TOTAL MEDIA PLACEMENTS IN BROADCAST, PRINT AND

ONLINE OUTLETS

105,000 ONLINE FANS

1.25 BILLION TOTAL MEDIA IMPRESSIONS

217 MILLION TWITTER IMPRESSIONS

31



04CONCLUSION

32

In the end, STTS is part of the story of New Jersey,

its resilience and determination to overcome the

impacts of a natural disaster. It is about using new

and traditional communication tools to correct

misconceptions, and celebrate the enormous effort

of its citizens to rebuild, reopen and recreate all that

makes the Jersey Shore such a special place.

MWW, agency of record for the STTS campaign compiled this data.

33



NOTES AND SOURCES1. State of New Jersey, Department of Treasury, Division of Taxation (October 2013) http://www.state.nj.us/treasury/taxation/

hotelcounty.shtml

2. Economic and Statistics Administration. United States Department of Commerce (October 2013). Economic Impact

of Hurricane Sandy: Potential Economic Activity Lost and Gained in New Jersey and New York. Retrieved from

http://www.esa.doc.gov/print/Reports/economic-impact-hurricane-sandy and employment data from the Bureau of

Labor Statistics.

3. Data provided by STR Analytics. Based on occupancy and daily rate data collected directly from hotels within two miles of the

New Jersey shoreline by STR. A complete list of participating hotels is available on upon request.

4. Information provided by town mayors, borough clerks and administrators.

5. Tourism Economics, “The Economic Impact of Tourism in New Jersey: Tourism Satellite Account, Calendar Year 2012.”

Retrieved from http://www.visitnj.org/new-jersey-tourism-research-and-information

34

6. Mantell, N., Seneca, J., Lahr, M. & Irving, W. (January 2013). The Economic and Fiscal Impacts of Hurricane Sandy

in New Jersey: A Macroeconomic Analysis. Retrieved from http://policy.rutgers.edu/reports/rrr/RRR34jan13.pdf

7. Quinnipiac University Poll (January 23, 2013). Retrieved from http://www.quinnipiac.edu/institutes-and-centers/polling-institute/

new-jersey/release-detail?ReleaseID=1833. See Q49.

8. Star-Ledger. Jersey Shore Summer Rentals Took a Hit Months After Hurricane Sandy. (October 2013) Retrieved from

http://www.nj.com/business/index.ssf/2013/10/summer_shore_rentals_took_a_hi.html (1.5 million estimated accommodation

nights is calculated by assuming 96 rental nights are available per property from Memorial day to Labor Day).

9. Rutgers-Eagleton Poll (February 2013). Retrieved from http://eagletonpoll.rutgers.edu/polls/release_02-18-13.pdf

10. Office of the New Jersey State Climatologist. Record Wet: June 2013 Summary and Mid-Year. (July 2013). Retrieved from http://

climate.rutgers.edu/stateclim/?section=menu&%20target=june13

11. Data provided by New Jersey Transit.

12. Data provided by STR Analytics (comparative hotels were included if they were within 2 miles of the coast for the New Jersey,

Delaware, Nassau county and Suffolk county shorelines. The entirety of Cape Cod was used as the final benchmark).

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FOR MORE INFORMATION, PLEASE CONTACT:

Scott Oliva Communications Coordinator

New Jersey Economic Development Authority

(609) 858-6685 | [email protected]

recap report - njeda · 6 from this need was born the stronger than the storm (#stts) campaign. the...

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