Ocean City, Sea Isle City, Wildwood, Avalon and Stone Harbor were all developed in the late 19th century. While planned to offer the most modern transportation and living conveniences they devastated the fragile ecology of their sites. Ranks of dunes covered with vegetation were flattened. Wetlands between the islands and the mainland were filled and bridged by causeways. Cape Island also sought to expand into surrounding wetlands by draining and filling. At the time, this conversion of wasteland to resort was touted as progress. The attractiveness of the new resorts began to signal a change in the primacy of Cape Island as a seaside resort. Improved rail and road transportation opened these resorts to a broad population who sought amusement, entertainment, religious retreat or relaxation for their summer vacation.
An amusement park, a modern fireproof hotel and trolley transportation were not enough to maintain Cape Island's status. The early twentieth century saw the advent of automobile transportation and fundamental changes in seaside tourism. The amusement park was converted to a WWI military base and the hotel stood as a lonely anchor to undeveloped East Cape May.
While Cape May City's tourism industry did not end, it also did not grow. The Victorian resort remained the same quaint traditional seaside resort for more than 50 years. A great storm in 1962 proved to be the crossroads where Cape May would choose its future.