How Coronavirus Could Impact Summer Business In Ocean City

OCEAN CITY, NJ — There are only 73 days until Memorial Day weekend, but this isn't a typical year. Ocean City businesses, especially boardwalk merchants, always deal with factors outside their control. But the novel coronavirus, and the unpredictability of how long it will persist, brings a potentially consequential factor to Ocean City's summer economy.

Governor Phil Murphy recommended Thursday canceling all public gatherings of 250 or more for the time being. That leaves some worried about how that could affect summer in Ocean City, when the city becomes packed.

Ocean City's spring can represent a preview of what's to come. The weather occasionally warms up enough for more people to visit the boardwalk. Seasonal businesses prepare to open. Prospective employees start applying for summer jobs. Visitors start looking for places to stay.

Typically, April begins Ocean City's season of frequent events. Some of the activities preview the shops and businesses that emerge in the busy summer.

Many Ocean City businesses make most of their money during the warmer months. But as health and safety remain the highest priorities, there's no telling how concerns about the coronavirus could affect gatherings this spring and summer.

Although the virus could become a new obstacle, unpredictability is nothing new for many Ocean City merchants.

"The truth is, boardwalk vendors are always concerned about situations beyond our control," said Wes Kazmarck, president of the Ocean City Boardwalk Merchants Association. "Our season is extremely short, so the weather and economy are always at the forefront of our minds. But the health and well-being of the public and our own families is certainly a new worry."

The Spring Months

Once April begins, Ocean City tends to hold multiple events every week. Gatherings include The Great Egg Hunt, OC Con and the Doo Dah Parade. Events such as Girls Weekend provide a preview of Ocean City's summer shopping.

David Fiorenza, a Villanova School of Business professor, visited his property last week in Ocean City. It was a typical midweek March day, with ample parking available.

Much has changed about coronavirus precautions since then. As of Friday morning, the state has confirmed 29 cases in New Jersey.

No one has tested positive in Cape May County as of yet. But events around the nation from small gatherings to NBA games have been canceled or postponed.

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Fiorenza, an expert in the economics of the hospitality industry, believes Easter weekend — April 11-12 — may provide a sign for Ocean City's summer success or obstacles.

"If people feel comfortable going down to Ocean City and other Shore points Easter," Fiorenza said, "then I think they’ll also feel comfortable going down for Memorial Day."

But in a worst-case economic scenario, Easter weekend could produce a negative ripple effect, according to Fiorenza.

If Ocean City isn't very busy during the time and the virus shows no signs of clearing up, that could mean fewer summer hirings. In an ideal scenario, people would feel safe to gather in crowds again by May, Fiorenza says.

"When it rains, they can’t make that day up," he said. "But if you have something of this nature like a coronavirus where people are staying away for two weeks at a time, that really has an economic impact on all those vendors."

Summertime

April, May and even June are Ocean City's best-kept secrets for vacationing and day trips, Kazmarck says.

"The sun shines brighter, and the boardwalk and beaches are all your own," he said. "So we believe people will want to escape the cities and suburbs and head for the fresh, salt air."

But during Ocean City's 100-day peak season, about 75 percent of sales occur in July and August.

It's difficult to predict the state of the virus for future months. The Center for Disease Control has prioritized "slowing the transmission" of the coronavirus. Part of the reasoning for slowing the spread is to ensure that medical facilities aren't overwhelmed with the number of patients needing treatment.

"There's a big shift in strategy going on right now towards what experts called mitigation," Rob Stein, a science writer for NPR, told the station, "which is actually basically keeping people apart to try to slow the spread of the virus. That's what will save lives."

And it could be a long time before health authorities deem large gatherings to be safe again.

"When you are a small-business owner, there is little to consider by way of 'contingency plans,'" Kazmarck said. "We will each do everything in our power to ensure we retain our staff and meet our financial obligations but we can't do it without our loyal customers."

But there could be a silver lining for Ocean City and other Shore towns that rely on tourism, Fiorenza says. Perhaps people may not travel as far this summer and will instead choose to vacation close by at the Shore.

Depending on the future, that could be for the best.

"With so many events canceled and venues closed, Ocean City's No. 1 asset is all the outdoor activity you can enjoy with your family and close friends," Kazmarck said. "It may be exactly what we need right now."

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