NEWS & VIEWS

Pinky's Corner

Tough Times Ahead

By Pinky Kravitz
Add Comment Add Comment | Comments: 1 | Posted Oct. 2, 2008

It is time to take a reality check of the economy of our local tourism casino industries. The negative issues are piling up. What are they? Here are some of the major ones affecting us and these industries. The high cost of gas, the increase in the number of the unemployed (which will increase even more in the next few months), the rise in prices of items of basic necessity, the opening of racinos in neighboring states and the complete smoking ban at the casinos, which goes into effect Oct. 15.

One need only to ask those in just about every area of the retail, restaurant, entertainment and casino industry to see how they have been negatively impacted by the current economic conditions in southern New Jersey, the state and the nation. Hopefully, a bailout plan will be established to provide money for loans to help those who have lost or are close to losing their homes and, as a result, see the stock market go back to where it was before this calamity hit us.

As for the casinos, most of us know that the fall and winter seasons are their slowest times of the year. There are generally layoffs during those months. However, the following is an e-mail I received that was sent as news from local "human resources departments" that makes the forthcoming months look worse than normal for too many casino employees.

"Word is that at least four of the casinos will have to cut jobs in the fourth quarter in order to get through the expected slow economic winter," the e-mail states. "It will affect several thousand in services and some at table games along with security. This will be the most challenging winter in Atlantic City's history. The general slowdown in customers exacerbated by the loss of several conventions will test the cash in the pockets remaining."

What will be the effect on the Atlantic City casinos when the 100 percent smoking ban goes into effect on Oct. 15? The above e-mail notes that four casinos will be cutting their staffs. My sources tell me that just about all of the casinos will be making major cuts of casino employees as a result of the complete smoking ban. A lot of people will be out of a job because of the drop in the number of players because of the smoking ban. Hopefully my information is incorrect. However, it comes from very reliable sources.

Casino executives had told their employees that if the City Council approves a 100 percent smoking ban it would have a serious effect on the bottom line of the casinos. One should know if they have a drop in their income they will have no choice but to cut their expenses and a major expense is their employees. The Oct. 15 date coincides with the casino's slowest months of the year and that exacerbates the problem. It would have had less of an effect if the ban began in May. It also comes at a time when the economic conditions of the nation are shaky. There is little doubt that tough times are coming.

The impact of the Pennsylvania racinos and casinos has had a greater effect than had been anticipated. Will the effect of the smoking ban in 75 percent of Pennsylvania's casinos bring some of their players back to Atlantic City? It is doubtful, as Atlantic City will be 100 percent smoke-free in two weeks. Will those who were smoking in that 25 percent of the casinos in Atlantic City -- where they have been permitted to smoke -- be happy with the smoking areas that are being set up in some casinos or the heated outdoor facilities in others? Or will they go to another jurisdiction? By the way, there are those in Pennsylvania who are working to eliminate all smoking in that state's casinos. It will get done, but it won't be for at least a year or so. In the meantime, many will go to Connecticut's Indian casinos where there is no smoking ban.

It is time for all good men and women to come to the aid of their communities. Are we just going to sit still and accept the negative conditions around us or are we going to join together to come up with some ideas of programs that will entice some of that 80 percent who live within a five-hour drive and have never been here to come to Atlantic City? We put up a clarion call for our elected officials, casino representatives, Chamber of Commerce and every other entity that has a stake in southern New Jersey to join together at a meeting to plot how we can make our fall and winter seasons exciting enough to make people want to visit Atlantic City. We have the marketing and top public relations expertise in our community to make it happen. We just need to bring them together to work for the common good of us all.

 

 



Notes of Interest

Formica Brothers' new Bakery Café, located in the Kensington Square, at 200 Tilton Rd. in Northfield, is slated to be opening its doors in early November. It will feature Formica's hand-crafted breads and scrumptious Italian pastries. The new Café will function as a micro-bakery where customers will be able to see through a glass wall into the baking area and watch bread and pastries being made. It will be a welcome addition to the mainland community.

Pinky kravitz

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1. Nora said... on Oct 2, 2008 at 12:12AM

“Amen to non-smoking casinos! My husband and I live 30 minutes from Philly Park and 2 hours from Atlantic City. We will drive 2 hours to go to a 100% non-smoking casino in a hearbeat (pardon the pun), than ever step foot into that smoke infested Philly Park ever again. Hooray for Atlantic City - again being a trend setter.”

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