From Ocean City to Cape May, Jersey Shore businesses saw a mixed bag this summer amid shorter stays and inflation woes

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Across the Jersey Shore, hotels, retailers and restaurateurs described a summer shaped by tariffs, rising costs and unpredictable weather forecasts that kept tourists cautious in 2025.

While the crowds came, merchants say it took more energy and more expenses to keep their doors open and their profits intact.

“This season, we did see a slightly lower amount of foot traffic,” said Rachel Xavier, operations manager at Making Waves, a long-standing shop with four locations that’s been in business for more than 45 years. “But not enough to affect any sales or our overall growth year to year. We’ve been fortunate enough to have a loyal customer base. Some of the newer stores, though, have noticed some fluctuation. The foot traffic was lower this year, especially compared to the past two.”

Chambers of commerce in the greater Cape May area, Ocean City and Stone Harbor said that while holiday weekends for the Fourth of July and Labor Day were strong, the overall season took more work to sustain.

“We had a good season after June,” said Michelle Gillian, executive director of the Ocean City Regional Chamber of Commerce. “June certainly was a challenge. We got a little bit of a late start. July and August really kicked in, and the second season that we’re experiencing now has been very productive for small businesses.”

But as merchants headed into the fall, Columbus Day weekend underscored how much weather can still dictate success at the shore. Many merchants lost two full business days because of the nor’easter that added to an already wet summer season.

At the Beach Club Hotel and Beach Club Suites, manager Karen Barlow said the weather dynamic has become increasingly costly.

“If the weather forecast shows a rain icon in a seven-day forecast, even if it’s only going to rain in the pre-dawn hours, guests will cancel,” she said.

Tourists at the shore are booking shorter stays, spending less

Officials said more visitors are choosing long weekends instead of weeklong vacations.

“There’s only so much parking, so many houses, so many rooms,” Xavier said. “It’s harder to afford to stay as long.”

Doreen Talley, executive director of the Chamber of Commerce of Greater Cape May, said businesses have adjusted to a new rhythm.

“We’ve seen changes in our visitors since 2020. This is the new normal,” she said. “More day trips, shorter stays, three or four days instead of a week. People plan their vacations and spend according to the experiences they want and what their budget allows.”

Beach tag data reflects tourism slowdown

Ocean City reported $5.9 million in beach tag revenue for 2025, down slightly from $6.2 million in 2024 and $6 million in 2023. Daily tag sales fell to 144,149, down from 167,180 last year.

Officials said a wet, chilly June played a major role, while July and August remained stable year over year.

In Stone Harbor, Marnie Lengle, coordinator for the town’s chamber of commerce, said members reported a solid season, though not without strain.

“Our restaurants and bars had strong summers,” she said. “Retailers were a little more concerned. Costs of items, taxes and tariffs are the top challenges. They’re working harder, being more efficient and buying smarter just to get the same results.”

Those rising costs, combined with higher fees, insurance and overall expenses, such as utilities and cost of goods, are cutting into profits.

“While safety and inspections are of the highest importance, the costs of these fees, permits and regulations have increased disproportionately,” Barlow said. “We need regulations for utilities and insurance costs, which have risen much higher than the ratio of other costs and profits.”

For merchants, the frustration isn’t just about costs, but about where tax dollars are being spent.

“The biggest thing is more tax dollars coming back to Cape May County,” Lengle said. “Cape May County tourism is a very large part of New Jersey’s income. Our members want to see it come back to specifically our area, the southern shore. We’re one of the top luxury-tax counties, but we get the least coming back from the state.”

That view was echoed by Gillian in Ocean City.

“We don’t get our fair share of the contributions made to tourism,” she said. “We don’t even get a quarter of it back, and other areas that don’t contribute as much get more put in. That’s a challenge for us. Hopefully, our elected officials can bring legislation forward to fix that.”

On its site, Cape May County’s chamber shared numbers from the New Jersey Division of Travel and Tourism showing the beach counties of Atlantic, Cape May, Monmouth and Ocean generated $53.13 million, or 27.46% of the statewide occupancy tax collected in 2024, and received grant awards worth $6.8 million.

Local officials and chamber leaders also pointed to infrastructure and preservation as ongoing priorities for Trenton’s attention.

“Bridges and infrastructure are huge,” Lengle said. “Investing in what makes this area easy to get to, that’s what will keep tourism strong.”

Xavier agreed.

“The easier it is for the island[s] to be accessible in a safe manner, the more people want to come down and the longer they will want to stay too because they can reach a lot more things,” she said.

She noted that Cape May stands out among shore towns for its accessibility and transportation options. The city offers jitneys, trolleys and NJ Transit stops that make it easy for visitors to reach the Washington Street Mall and other attractions without worrying about parking or traffic.

Business leaders also stressed beach replenishment as a top need across all shore communities, as well as preserving wetlands and their history.

For several months, the American Coastal Coalition has raised concerns that the federal fiscal year 2025 budget included no beach erosion renourishment money for the U.S. Army Corps of Engineers for the first time in nearly 30 years.

“Beach replenishment would be a huge help,” she said. “And the state’s tourism advertising needs to be more intense in the pre-summer. There’s so much to offer here — Cape May County, Atlantic County, Ocean County — and I hope they start a strong campaign: TV, billboards, online.”

Despite the challenges, business owners and chamber leaders say they remain optimistic and proud of what makes the southern shore unique.

“Having this treasure of an area that’s made up of probably 90% independent businesses, that’s what makes this place so special,” Lengle said. “We don’t have big box stores. We’re hanging in there, and we’re proud of that.”

As the offseason turns toward the holidays, merchants say they’re ready to keep going, even after a summer that demanded more grit than usual.

“I’m just looking forward to a great winter season,” Xavier said. “All of our towns are open through the new year, and we’re open every single day. The cities put in so much effort to make it a winter wonderland on the beach, and it really does look like that.”

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