Michael Chait, President, Greater Atlantic City Chamber

Greater Atlantic City Chamber President Michael Chait talked to Invest: about Atlantic City’s unparalleled potential for continued growth and the myriad ways in which the Chamber continues to work with both the public and private sectors to ensure this upward trajectory.

Could you describe some recent chamber efforts to promote economic growth in Atlantic City?

We have been highly engaged with the Neighborhood Revitalization Tax Credit Program through the state’s Department of Community Affairs. There are 90 municipalities currently eligible for this program. It’s essentially a diversion of business tax that would go to the state and is then diverted into a nonprofit that can improve hyper-local communities and neighborhoods. In Atlantic City, there are four community development corporations. They each receive the maximum of $1 million per year, which leaves $11 million for the rest of the state. We recently gave testimony on a bill from Sen. Troy Singleton to expand funding to $65 million. This is probably the most successful government program I’ve seen that has impacted community development with boots on the ground and specific courses of action. Around 60% of this funding has to be used for affordable housing. We are seeing communities become more connected and an increase in public safety and awareness. Businesses also have a better understanding of the other businesses in their neighborhoods. There have been a tremendous number of benefits to this program, and this is probably the best thing happening right now in Atlantic City. A major focus of our organization is to both sustain and grow this program.

What business sectors have seen the most growth in Atlantic City over the past few years?

The cannabis industry has seen major growth recently, the after-effects of which have been both good and bad. The chamber is supportive of the industry but has concerns about oversaturation. We understand the reliance on tourism, with over 20 million visitors a year, but in the shoulder seasons, can the local economy support that industry with only 37,000 residents? Over 50 cannabis licenses have already been approved, and 13 are already open. We want to ensure that the local businesses have time to understand the market and give them opportunities to succeed. Though competition is good, oversaturation will lead to businesses closing.

How is the casino industry impacting Atlantic City’s local economy today?

While the 2024 economic impact report has not yet been released, in 2023, Atlantic City generated over $8 billion in visitor spending and welcomed 23.5 million visitors, which is the highest visitor volume in the state for our region. The tourism industry supports over 55,000 jobs and generates over $867 million in physical tax impacts. This is the dominant industry in our area, which includes nine casinos. We are seeing online gaming increase, and the tax revenue from this has changed drastically. There is a real focus on casinos investing hundreds of millions of dollars in their properties to enhance rooms, entertainment, and amenities. The properties look better than ever, which continues to drive the brick-and-mortar industry while maximizing online gaming. We are also known for our restaurants and dining scene, and there are options for everyone. The city does a fantastic job bringing in convention business, with over 200 events in the past year.  

How is the state government fostering economic growth in Atlantic City?

There is a small-business grant program, which has been a fantastic source of assistance, and there is also the Atlantic City Revitalization Program, which has already awarded grants for additional development. This year could see more pilings in the ground, more development, and more construction for housing and entertainment. We just received an announcement about the expansion of Margaritaville Bar. We also have the New Jersey Business Action Center that offers a variety of training and opportunities at no charge for small businesses, which has offered significant support. We do our best to disseminate that information to community members because we want them to take advantage of these offerings and understand the available opportunities.

How has your partnership with the Atlantic County Economic Alliance progressed in further investing in the Atlantic City Rail Line?

Better transportation is needed, but there has not been much progress made on this front yet. This is a long-term project that will require significant investment. Rail ridership took a significant dip during the pandemic and has not picked back up. We have always been a drive-in market, though the rail line is a critical piece. Remote and hybrid work has made the connection between Atlantic City and Philadelphia increasingly important.

How do you see the corporate transit fee in New Jersey influencing the business landscape in Atlantic City?

We have one of the highest corporate tax structures in the country, and that structure needs to be consistently reevaluated, especially if it is encouraging businesses to leave the state or preventing businesses from entering the state. New Jersey is an incredibly expensive state to do business in. Our policymakers should always try to make the state more affordable and encourage economic diversification, which will result in more residents and higher-paying jobs in New Jersey.

What are the main challenges faced by businesses in the Atlantic City market?

In addition to taxes, talent retention and attraction are major challenges. Our chamber recently spearheaded a nonprofit to create career exploration programming with area youth to show them what careers exist here. New Jersey remains a high exporter of college freshmen, with 25,000 more students exiting each year than we take in. There is tremendous talent here, and finding ways to connect students with career opportunities is a massive untapped resource. A concern for the community going forward involves extreme regulations that did not require legislation that would significantly increase development but cause unintended negative consequences to the local community. The NJEDA Aspire Program is a tax credit program supporting development, wherein we work together with elected officials to address challenges.

What are your priorities for Atlantic City’s economy for the next two to three years?

No. 1 on our priority list is economic diversification. We rely heavily on tourism, so continued attempts at diversification through aviation and our airport will be an intentional focus, as well as health and medicine. The city will also try to protect and strengthen itself against shrinking tourism and seek to create more revenue.