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Sin City Posts the Highest Visitation Volume Since the Onset of Covid-19
By Jeff Osienya Sep 06, 2022 IndustryData from the Las Vegas Convention and Visitors Authority indicates that visitation numbers in Sin City hit pre-pandemic highs in July. The gaming sector has also recorded its 14th straight month of winning over $1 billion in revenue.A new report released by the Las Vegas Convention and Visitors Authority (LVCVA) Research Center, Las Vegas received a record number of monthly visitors in July since the beginning of the Covid pandemic. LVCVA reported that about 3.5 million people sought Sin City as their travel destination, a 5.7% jump from last year, amid increased demand for gaming and a full event calendar in Vegas. These numbers provided by LVCVA suggest a strong recovery despite soaring inflation and the fear of a potential economic depression globally.
When citing visitation purposes in Las Vegas, Kevin Bagger, the LVCA Vice President, said in a statement:
Quote“Las Vegas visitors have no shortage of ‘Only Vegas’ experiences to enjoy, including entertainment residencies such as Luke Bryan at Resorts World, Shania Twain at Planet Hollywood and Usher at Park MGM and a dynamic restaurant scene buzzing with the recent openings of The Bedford by Martha Stewart at Paris Las Vegas and Carversteak at Resorts World Las Vegas.”
Trade Conventions and Meetings Boosted Sin City’s Hotel Occupancy
As holidaymakers flocked Las Vegas in July, the overall occupancy in the 151,000 guest rooms stood at 83%, four percent more than last July due to trade conventions and meetings. Additionally, the average weekend occupancy was at 91%, a 3% hike from last year, and during mid-week, median hotel occupancy was at 79%, a 4.5% increase year over year.
The average hotel prices declined from prior months; however, the rates were still higher than in July 2019 and 2021. For example, hotel rates a night averaged $160.43 in July, with $95.12 charged in hotels in downtown Vegas and $170.48 on the Vegas Strip. In comparison, the average room rates in July 2019 and 2021 were $126.92 and $152.13, respectively.
Convention attendees visiting Vegas were 307,000, almost double the number recorded in July 2021. On the events calendar in July, some tradeshows that attracted convention attendees were the American Culinary Federation held at Caesars Forum, Las Vegas Market at the World Market Center, and Cosmoprof held at the Las Vegas Convention Center.
Furthermore, Conventions scheduled for the coming months are proof of the continued economic recovery for Vegas’s $11 billion meeting and convention business. For example, the 27th World Route Development Forum will be held between 16 and 18 October 2022 and bring together the aviation stakeholders who determine the world’s air services, such as new air routes. Additionally, between September 28 to 30, 2022, Las Vegas will host the first mobile and telecom industry tradeshow, Mobile World Congress (MWC). Some of the key mobile decision makers in the mobile industry are expected to be present at the convention, including AT&T, Verizon, and T-Mobile.
Gaming industry analyst at J.P Morgan securities, Joseph Greff, noted that three main factors resulted in revenue-per-available room increasing by 16% in the Las Vegas Strip over the 2019 levels. Besides increased room occupancy, room inventory was 1.7% above the 2019 levels, and the average daily room rate was also higher.
Aviation Industry Reaps Big in July
In the report, the LVCVA disclosed that the high seat capacity and the increased number of passengers on flights to Harry Reid International Airport had confirmed Las Vegas’s visitation figures. With 31 airlines under their belt serving 146 domestic and international markets, the Harry Reid International Airport authority stated:
Quote“Harry Reid International Airport is the most recovered of the top 20 largest airports in the U.S. based on a percentage of pre-pandemic seat capacity.”
However, Reid International is yet to release its July passenger data.
Meanwhile, despite a hike in the number of tourists, the number of vehicles entering Vegas has dropped compared to July 2021. The Nevada Department of Transportation (NDOT) statistics revealed an average of 138,275 vehicles got into Sin City, a 4% drop from July last year.
For example, at the Nevada-California border, the Nevada Department of Transportation recorded an average of 52,551 vehicles per day which is a 7.3% drop from July 2021. Nonetheless, it’s worth noting the data on the number of vehicles entering Las Vegas by NDOT does not separate vehicles with visitors and those having locals.
Nevada Casinos Record their 17th Consecutive Billion Dollar Month
Good fortunes at the Silver State are far from over. In July, Nevada recorded $1.31 billion monthly totals, the fourth highest in Nevada’s gaming history and the second highest on the Vegas Strip. That said, for the 17th consecutive month, since March 2021, the state’s gaming has exceeded the $ 1 billion mark in revenue.
In July 2022, the revenue was 28.4% more than the gaming revenue posted pre-covid pandemic in July 2019, revealing a solid rebound in Nevada’s gaming market. However, based on figures from the Nevada Gaming Control Board (NGCB) in July 2022, revenue was down by 3.2% compared to the $1.35 billion recorded in July 2021.
Regarding the reduced revenue posted in July, Michael Lawton, a senior NGCB economic analyst, said in a correspondence with Forbes:
Quote“We were down this month, yet I don’t see any softness—it was down slightly against the all-time high. The bar was set really high last July. We didn’t hit it, but we still came in with the fourth highest total all-time statewide, second-highest total all time for The Strip.”
Furthermore, Lawton noted that the prediction of whether Nevada’s revenue in 2022 will beat 2021’s revenue is debatable. He added:
Quote“I think July 2021’s $1.359 billion is safe—I don’t think that will get beat for a long time. It’s up there with [Joe DiMaggio’s] 56-game hitting streak. It was a perfect storm.”
In July of last year, gaming wins in the Las Vegas Strip amounted to $792.6 million, a monthly record high, and the $773.3 million posted in July this year was a 2.42% decrease.
A Slight Decline in the Gaming Scene Compared to July 2021
Revenues posted from all local Vegas casinos dropped by 3.3%. However, they were 9.8% higher than recorded in July 2019, with Nevada’s downtown suffering the most of any Nevada market at 15.6% from July 2021.
According to Michael Lawton, the slot volumes in Nevada state stood at $12.1 billion in July, a third highest record. The slot volumes record was set in March 2007, and the second-highest slot machine showing was posted in July 2021. Referring to slot machine performance, Lawton commented:
Quote“You can’t say the sky is falling—the state has done $12 billion in slot volume only five times.”
The table and card games brought in $476.4 million, a 1.9% decline from July 2021, while Baccarat generated $138 million, reflecting a 13.4% dip. In sportsbooks, wagers totaled $419.4 million, a 2.3% increase from 2021. However, the revenue stood at $16.2 million, a 51.3% decrease from July 2021. In addition, mobile wagering accounted for 65% of the handle, with $14.5 million in revenue for Nevada.
Due to the prediction of a recession, when asked if Nevada’s gaming sector would take a blow, Lawton told Forbes it was still too soon to tell, and the numbers recorded in July are not predicting an economic decline. He said:
Quote“I’m comfortable with the streak of a billion dollars continuing through the fall. But we’re going to start seeing some choppiness.”
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