Paul Szydelko
The Las Vegas tourism industry lost $ 34 billion in 2020 due to the pandemic, according to a new report commissioned by the Las Vegas Convention and Visitors Authority.
With fewer visitors and less overall visitor spending in Las Vegas, total tourism-related economic output fell from $ 63.6 billion in 2019 to $ 29.6 billion in 2020.
The Las Vegas Applied Analysis report considered direct, indirect, and induced sources. What visitors spend directly on rooms, food, shopping, local transport, and other activities supports suppliers and sellers (indirect impact), as well as employee spending on goods and services in the community (induced impact).
“The Covid-19 pandemic has left an indelible mark on the tourism industry in southern Nevada and the wider regional economy,” the report’s executive summary begins. “Compared to the most recent recessions, the magnitude of the Covid-19 recession was unprecedented in its depth and speed.”
Other numbers from the report that weren’t unexpected but grim nonetheless:
• Travel restrictions, resort closures and other pandemic-related responses resulted in a 55% drop in visitor traffic in southern Nevada to 19 million, the lowest annual total since 1989.
• Visitor spending decreased from $ 36.9 billion in 2019 to $ 17.6 billion in 2020, a decrease of 52.2%.
• The number of congress attendees fell to its lowest level in 21 years. The 1.7 million congress attendees in 2020 (mostly only from January to mid-March) meant a decrease of 74% from the record of 6.6 million in 2019.
• Approximately 125,600 jobs were lost as a result of the closure, resulting in a $ 3.3 billion decline in wages.
• As the region is heavily dependent on tourism, unemployment in the region rose to 33.3% in April 2020 and reached an annual average of 14.7%.
The U.S. Bureau of Labor Statistics reported that 9.6% of the workforce in Las Vegas remained unemployed in June 2021, the highest percentage among the largest metropolitan areas in the country.
“We’ve fallen harder, but we’re recovering faster,” said Brian Gordon, a director at Applied Analysis, in an interview with the State of Nevada on KNPR radio.
The pandemic caused a stronger economic downturn than 9/11 and the Great Recession, but drive-in traffic from California is at or above pre-pandemic levels.
However, before the convention business and international travel recover, the region’s recovery is far from over, Gordon said. Those who travel to conventions, trade shows, and meetings keep room rates and occupancy stable during the week, and make a huge contribution to restaurant, retail, and entertainment sales, he noted.
“You’re a key component of the equation and tend to spend more,” said Gordon. “People who come to Las Vegas for conventions and trade shows – their spending profile reflects a premium compared to a typical leisure traveler.”
He said convention bookings seem strong for the remainder of 2021 and through 2022, but of course international travel remains restricted due to Covid-19.
Gordon said he expects many of the pandemic-related changes that have been introduced at Las Vegas resorts, such as check-in machines, cashless concessions, and mobile room keys, will be kept as they reduce costs, increase efficiency, and improve the environment Restrict person-to-person encounters.
