While virtually no Las Vegas casino operator would look fondly upon the Great Recession, many can thank the lessons learned from it for establishing a more robust local economy.
Today, Las Vegas has a far more diverse economy than it did 10 years ago, and that is helping to reduce its reliance on gaming dollars.
In 2010, about 80 percent of visitors to Las Vegas reported they gambled while staying in Sin City. Just four years later, that percentage dropped to 71 percent.
Yet, a focus on building new entertainment, convention, and other venues, and providing visitors with more entertainment and dining options while in Las Vegas is more than making up for reduced gaming.
MGM Resorts International is opening the new T-Mobile Arena in April, along with its companion property, the Park, which features tree-lined walkways, retail stores, restaurants, and other attractions for visitors.
MGM also is putting together a REIT investment offering, and will start charging for parking at most of its Las Vegas Strip facilities. Charging for parking should net about $93 million more per year in revenue. MGM officials estimate.
Caesars Entertainment two years ago completed its Linq project, which includes the High Roller observation wheel and the adjacent Linq promenade, where visitors can walk past trendy storefronts, enjoy a drink, take in a concert, dine, and spend money.
Hotel occupancy rates are averaging above 90 percent on the Las Vegas Strip, and a recent trend toward increasing convention and events space at the Las Vegas Convention Center, the Mandalay Bay casino, and several other Strip locations means demand for rooms and related event services, plus lucrative food and beverage sales, are likely to continue proving highly profitable for Las Vegas.
Las Vegas is the world’s top destination for trade shows and conventions, and with significant expansion of convention space and improvements to the hotels and properties serving them, Las Vegas is poised to remain a top destination for large events.
And that means Las Vegas is poised to continue diversifying its economy and reducing gaming’s grip, if not its importance, to better weather future economic downturns.
