Maryland's Eastern Shore
Business Continues to Boom at Ocean City

By Sean Rice

ST. MARY’S TODAY

One of many beach sculptures along the boardwalk at Ocean City.  ST. MARY'S TODAY photos

OCEAN CITY – Maryland’s biggest tourism destination is also one of the most popular driving destinations on the East Coast, as Ocean City’s tax dollars and visitor numbers continue to pour in.

An estimated 8 million people travel to Ocean City each year, with about half or those visitors arriving between Memorial Day a Labor Day.

A town of only 7,266 residents, the barrier island was founded 125 years ago as a fishing village. Oh how things have changed.

More than $400 million dollars in new developments were approved for construction in 2004, including near 1,000 hotel rooms and condo units.

“Business has been very well,” town public relations director Donna Abbot told ST. MARY’S TODAY.

The town takes in a bed tax of 3 percent of hotel room rates charged. In fiscal year 2005, the town took in $1,886,436 from this tax, up from $1,761,758 in 2004 and $1,499,670 in 2003.

The town also collects a 1 percent tax on food and beverage sales, which totaled $280,769 in fiscal year 2005, up from $264,714 in 2004 and $249,829 in 2003.

“Overall our season seems to be going well,” Abbot said. “We are definitely up in June.”

Town officials have been working on boosting the area’s off-season crowd.

“We’ve experienced great success with expansion of our convention center in 1997,” Abbot said. “We’re putting heads in beds.”

The success of Ocean City has provides a boon for all of Worcester County. The county took in $56.45 million from sales and use taxes in 2004, a nearly 8 percent jump from the 2003 net of $52.29 million.

Abbot said the effects of the terrorist attacks in 2001 did not have a major effect on visitors as it did in other fly-to destinations.

“We continue to be a drive-to destination,” she said. “We actually saw our numbers hold (after Spet. 11, 200) and that has been a good thing … any destination that was been able to hold their numbers is a good thing, because a lot of destinations saw declines in visitors.”

“Overall travel is rebounding nationwide,” Abbot said. “People are getting back in their cars and traveling again.”

The rise in gasoline prices is also benefiting the town, she estimates, because Ocean City is more attractive for visitors 6 or 7 hours away as opposed to spots in Florida.

As for redevelopment, builders are renovating existing older properties into new classy condominiums and hotels, in addition to brand new construction going up.

“People are looking for condos that have a little more space,” she said Thursday. “There are a certainly a lot of people in town right now.”

Evening strolls on the boardwalk bring out a big crowd even on a Tuesday.   ST. MARY'S TODAY Photos