New Jersey Increases Budget For Atlantic City Marketing

The New Jersey Casino Reinvestment Development Authority (CDRA) has approved the 2019 operating budget of $6.7 million that would be increased 10% from 2018.

During a monthly board meeting on Tuesday, the Board of Directors said the primary objective is to invest in a more aggressive Atlantic City marketing campaign and to increase the investments in the city.

Renaissance Must be d

According to Executive Director Matt Doherty, this significant ten percent boost was made possible due to medical benefits and payroll increment…

…as he explained, “keeping the CRDA on firm financial foundation allows us to continue to fund meaningful community projects while engaging potential new investors in attractions and events.”

Governor of New Jersey, Phil Murphy, has outlined plans for AC resorts’ future prosperity in Johnson Report, which advocates these specific actions which will be covered by the new budget:

• Funding the Atlantic City Project Office which will coordinate and execute the new initiatives for and investments in Atlantic City
• Providing Class II police officers for Atlantic and Pacific Avenues,
• Continuing the safe and clean investments through the Special Improvement District
• Investing in a new streetscape for the revitalizing Tennessee Avenue neighborhood to continue to attract private investment
• Allocating funding for destination leisure marketing initiatives

However, the primary motive for the budget increase is the enhancement of the Meet AC marketing campaign, both in volume and funds at its disposal. The lion’s share of the budget – more than $5 million – will be invested into ad campaigns.

Life Improvements and Private Investments

CRDA Chairman Robert Mulcahy comments:

“The budget actions we are taking reflect sound business practices and a commitment to fulfilling Governor Murphy’s vision for a new prosperity in Atlantic City. The CRDA and State are delivering on quality of life improvements while also encouraging greater private investment”.

The main point that the enhanced Meet AC marketing campaign will try to convey is that the city is undergoing a kind of a Renaissance.

The message will be directed primarily to out-of-towners…

…as New Jersey’s total gaming revenue keeps rising at a staggering rate, month-to-month (in October, total gross gambling revenue was $2.4 billion) and with the opening of Hard Rock and Ocean Resort in AC, the industry here has the best summer in years.

Not All is Perfect

But the opening of two massive resorts also signaled times of scarcity for six of seven casinos in town, as they report lower GGR this year – Borgata is down 6.2%, Bally’s 9.7%, Caesars 14.6%, Harrah’s 7.4%…

In total, there are nine casinos in town as of now and analysts are in agreement that city needs to boost its tourism rate in order to them.

Furthermore, there are critics that are voicing their opinion on poor use of funds demonstrated by CRDA in recent times. One of the state audits has said that the body “did not always ensure an effective and efficient use of its funds.”

Source:

“CRDA Board Approves 2019 Budgets”, njcrda.com, November 20, 2018.