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Despite its rich history and popularity, a series of missteps contributed to Atlantic City's decline. The emergence of alternative vacation destinations, such as Disneyland and Las Vegas, began to siphon off potential tourists. Meanwhile, the advent of affordable air travel enabled families to explore far-flung locales, further diminishing Atlantic City’s allure.

Additionally, as automobile ownership surged in the mid-20th century, the city faced a pressing need to accommodate cars, prompting the replacement of historic buildings with surface parking lots. This decision not only diminished the area's aesthetic but also disrupted the vibrant community atmosphere that had previously drawn visitors.