The profile of those who visit Las Vegas was changed dramatically and possibly permanently by the Covid-19 pandemic. That’s what data taken last year shows.
That demographic is now younger, single, more diverse and, most alarmingly, not all that interesting in gambling. More of them came from California than ever before. Many just wanted to get away on a vacation and to bring the kids.
That’s according to the Visitor Profile Survey released March 3 by the Las Vegas Convention and Visitors Authority (LVCVA) and GLS Research.
The results showed that 80 percent were repeat visitors, an increase of 4 percent from 2019. But they spent a larger percentage of their time dining, shopping, sightseeing and drinking. The percentage who gambled was 75 percent, compared to 81 percent two years ago.
Of the reasons given for the visits, 52 percent they were on vacation, compared to 36 percent and 45 percent last year and the year before. Only 8 percent said they were in Las Vegas to gamble, compared to 14 percent two years ago.
According to a release from the LVCVA: “Fewer visitors than pre-pandemic said they were visiting primarily to gamble, for a convention, or were just passing through Las Vegas.” It added, “Visitors were more willing to go to Las Vegas attractions for which they had to pay and go to bars and lounges. The amount spent on food and drink, transportation, shopping, and sightseeing increased from past results, while the amount visitors spent on shows and entertainment decreased.”
The visitors were also not as likely to be attending a convention, however conventions are expected to make a comeback this year as more companies are willing to let employees mingle with others.
Meanwhile, with the price of gas nationwide hitting record highs, Southern Nevada tourism leaders are split on how the sudden spike nearing $5 a gallon will affect resorts, according to the Las Vegas Review-Journal.
“It’s premature to know if rising gas prices will impact travel,” said Lori Kraft, senior vice president of communications for the Las Vegas Convention and Visitors Authority. “We will continue to monitor the situation.”
Virginia Valentine, the president and CEO of the Nevada Resorts Association said she concurs but noted that even if consumers curtail travel spending, Las Vegas is still in prime position as a value proposition.
“We are not seeing an immediate impact,” Valentine said. “After two long years of the pandemic, visitors are eager to take a trip to Las Vegas to escape and recharge. Many have saved up for their vacations, and as they make choices on where to focus their spending, Las Vegas continues to provide the best value for their entertainment and vacation dollar.”
While some see potential visitors to Las Vegas making travel decisions based on looking more closely at how much a trip will cost them, others say short-term plans to visit for special events to view and wager on—like the NCAA March Madness basketball tournament—won’t be affected.
Some also expect resorts to cut room rates or offer special promotions such as gasoline gift cards to guests to incentivize a Las Vegas trip.
“Unless as a country we are able to secure a cheaper source of gas that is less controversial than oil and gas from Russia, such as reopening domestic pipelines and drilling operations, I foresee a drastic halt to domestic travel as consumers are feeling constraints with inflation,” said Amanda Belarmino, an assistant professor at UNLV’s William F. Harrah College of Hospitality.
Still, she noted, “I do think that casinos could shift to providing gas incentives, such as vouchers and gift cards, that would be able to successfully shift travel towards us rather than other destinations, but these prices will probably have an impact on all domestic travel.”
Brendan Bussmann, director of government affairs for Las Vegas-based Global Market Advisors, said the spike in fuel prices comes at a time when many resorts are still struggling to maintain higher average daily room rates so they may be reluctant to cut their rates.”
“As we have seen in the past, there will likely be some that provide promotions within their player programs to try and offset some of these costs,” Bussmann said.
Given the geopolitical dynamics at play, the spikes are liable to become the norm, Bussmann said. “At least in the short term, that will continue to cause further strain on consumer wallets in addition to the existing constraints caused by inflation and supply-chain issues.”
Josh Swissman, founding partner of the Las Vegas-based Strategy Organization, expects resorts to be full this and next week because visitors have already made plans and bought tickets purchased for numerous college basketball tournaments all over town this week. And the first four days of the “March Madness” tournament is always a big special event draw.
“But you’ll see a little less in terms of drive-in traffic over the next couple of weeks or at least some people will be more vocal about paying more for gas,” he said. “To counter that, March Madness will be kicking off so there’s going to be plenty of people. Come hell or high water, they’re going to want to come to Vegas and enjoy all that Vegas has to offer for the first weekend of the tournament.”
Belarmino and Bussmann expect the spike in gasoline prices might also foreshadow higher airfares in the future, and that could have a long-term effect on Las Vegas.
“Not only will this mean pain at the pump, but it will drive up fuel prices and increase the price of domestic air travel,” Belarmino said. “Finally, the added price of gas for daily activities will decrease the amount of money consumers have to spend on leisure activities.”
