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Industry Summary

Tourism and Leisure: Accommodation and Food Services, Arts, Entertainment, and Recreation

Tourism and leisure on the Lower Eastern Shore consists of travel accommodations, food services, arts, entertainment and recreation. Travel accommodations include hotels and motels, bed‐ and‐breakfast inns and RV parks. Food services include food service contractors, bars, restaurants, caterers, special food services and mobile food services. Tourism and leisure has been a key component to the regional economy for many years due to the large diversity of tourism offerings. This in turn has provided the opportunity to attract many individuals with a variety of interests. Ocean City is the most well‐known summer resort town in the industry; however, there are a growing number of sports, natural, cultural, and historical tourism attractions.

Undoubtedly the Lower Eastern Shore of Maryland is one of the most attractive playgrounds for the Mid‐Atlantic Region. From the beaches to the rivers, from the bustling nightlife in Ocean City to the quiet elegance and serenity of historic landscapes and the state and national parks, there is a host of outstanding options for all segments of the region’s population. The region is now exploring ways to leverage these assets in a more deliberate and data driven way to extend and enhance the high and shoulder seasons.

According to the U.S. Census, from 2012 to 2023 the overall number of tourism and leisure establishments in the region remained relatively constant; however, there was a 25% increase in the number of food and drink service employees even with a 18% decrease in the number of associated establishments. Tourism is weighted very heavily in Worcester and Wicomico County compared to Somerset County. In 2023, there were 131 hotel and motel establishments in the region and 93% of them were located in either Worcester or Wicomico County, with 75% of them being located in Worcester County alone. Out of all the restaurants in the region, 96.7% were located in Worcester or Wicomico County, with 64.6% located in Worcester County alone. 

Ocean City is the primary reason tourism destinations are weighted so heavily in Worcester County . It should be noted the total number of paid employees in Worcester County increased by roughly 20% from 2012(16,879) to 2023(20,249). This is a good sign for the region. As expected, the majority of employees are located in Worcester and Wicomico Counties.

The tourism and leisure industry within the region does well during summer months, particularly on the weekends; however, the lack of fresh marketing promotions and experiential tourism attractions has caused a downturn in tourism during the offseason in the region. As opposed to simply visiting the beach Millennials in particular are attracted to areas offering experiences not found elsewhere.

Marketing tactics therefore need to be adjusted to address changing demand and address additional trends that should be implemented within the region to attract a more diverse group of visitors. This can be done in a variety of ways, including boat excursions, sports marketing, and agricultural tourism. An increase in experiential tourism will also address the issue of midweek weakness by providing a wider breadth of activities for individuals and families of all ages. There is also a push to increase the number of large events hosted in the region in order to further expand the range of attractions. Tourism and leisure has traditionally been viewed as the backbone of economic development on the Lower Eastern Shore. Because of its high performance over a long period of time it is possible it may have previously escaped a more detailed analysis. As with any segment of the economy it is important to address not only the challenges in this area, but also build off its strengths, particularly as competition for tourists continues to increase.

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U.S. Census Bureau County Business Patterns
Number of restaurants