Economist: ‘County’s Future Is Very Bright’

OCEAN CITY – Local politicians, business leaders and community members joined together Wednesday in Ocean City to gather information on the region’s economic climate at the annual Worcester County Economic Development Summit.

The summit’s returning keynote speaker, Anirban Basu, chairman and chief financial officer of Sage Policy Group, gave the audience insight to this year’s economic performance and its relevance to Worcester County’s own commercial interests.

According to Basu, the nation’s weak economic recovery could hold promising signs for the Town of Ocean City and surrounding areas.

This year’s gross domestic product, a measure of the economy’s performance, was largely driven by household consumption, he said, and tourism-based industries, such as Ocean City, are reaping the benefits.

“Worcester County has a tendency to do well during times like these because it is very much a consumer-oriented economy,” he said.

Ocean City in particular has seen some promising statistics in recent years, according to Andy Malis, president of the town’s advertising agency, MGH.

In the past five years, Malis said average daily hotel rates have increased by $10, room taxes have brought in an additional $2 million, and occupancies and revenue per hotel room have both steadily increased.

“I am no economist, but I can tell you that says there is demand,” he said.

Basu added that Worcester County had much more to offer than leisure and hospitality and noted various emerging industries within the region. Since 2010, he said the county has seen a larger interest in scientific research development and computer systems, particularly at the county’s north end.

Basu said 416 more Worcester County residents had jobs in October of this year compared to the same month last year and added emerging markets could reduce the area’s seasonal unemployment rate, making the resort and surrounding towns a year-round operation.

“All the seeds are here for a more diversified economy,” he said.

Yet, the state and county’s metrics also point to concerns about the economy’s recovery, according to Basu.

Low interest rates still aren’t motivating people to invest in homes, he said, and Maryland’s economic growth continues to be a “middle-performer” among the states, ranking lower than neighboring Delaware and Virginia.

Homeownership is now at a 51-year low, according to Basu. But he said people in their twenties, the nation’s largest age group, can change these demographics as they grow older and have families.

“This county’s future is very bright, and the No. 1 reason it is bright is because the quality of living is so high here,” he said. “That is what people want. They will choose to live in places that have the nicest schools, the nicest people, the strongest institutions, the lowest taxes, and Worcester County offers all of those things.”

He added, “But on the other hand there is a lot of work that Worcester County needs to do. It is still very much a seasonal economy. There is a lot of unemployment during the off-season. Wages are pretty low. So it’s a work in progress, but the future is very promising.”

Also at the summir, County Commissioner President Jim Bunting gave a commendation to Robert Cook, one of Worcester County’s first advocates for economic development. Worcester County Economic Development Director Merry Mears said Cook has played a strong role in the development of Wor-Wic Community College and the Delmarva Water Transport Committee, among many other contributions.