A new report detailing the impact of the pandemic on tourism in Las Vegas takes few words when it comes to the pain inflicted on Southern Nevada’s economic engine.
With sentences such as “The travel industry has collapsed”, “indelible impression”, “a 44.5 percent decline in employment”, “The deficits persist”, the study for the Las Vegas Convention and Visitors Authority paints a bleak picture of tourism-based Economy in Southern Nevada.
“There’s no doubt that this recent economic downturn was the steepest we’ve seen here in southern Nevada,” said Brian Gordon, a director of the Applied Analysis consultancy that produced the report.
The 25-page study says the pandemic caused Las Vegas visitor traffic to drop 55 percent to 19 million, the lowest annual total since 1989. Convention business also fell to its lowest level in 21 years.
Gordon said the sharp decline was followed by a sharp rebound, saying, “We have fallen harder but we are recovering faster.”
Gaming revenues have rebounded and many employers are reporting hiring challenges, but Gordon told the state of Nevada there was “a long way to go”.
“About two-thirds of all the jobs that are coming back are specifically focused on the leisure and hotel industries,” he said. “That’s a pretty significant number and it has an impact on the whole economy.
“We have the highest percentage of people employed in the tourism industry” among the major cities that draw many travelers, such as Orlando, San Diego and Los Angeles, Gordon told Travel Decisions. “
Gordon said that reliance on tourism reflects the success of the South that is attracting southern Nevada, which is attracting leisure and convention travelers, something that needs to be kept in mind in the face of calls for more economic diversification.
“Going forward, it is important not to forget what has brought us here in terms of the growth that southern Nevada has seen, the economic prosperity that has developed,” he said. “The leisure and hotel industry offers many economic opportunities.”
Gordon said many of the changes brought about by the pandemic – like check-in machines and cashless concessions – will remain with COVID-19’s departure as they reduce costs.
“I have a feeling that resort property operators will focus on maintaining these top levels of efficiency and reducing human interaction going forward,” he said.
A return to normal for the industry could take by the end of 2022, he said, but the rapidly changing nature of the pandemic makes it difficult to predict.
Gordon said he was watching the numbers for: the return of convention business; international visitors; and passengers passing through McCarran International Airport. These travelers, he said, typically spend more than those arriving from Los Angeles.
“I think we’re seeing more and more cost-conscious consumers coming from California and driving down the highway,” he said.
