Millennials have been revolutionizing Las Vegas’ investment strategy going on a decade or more, and the focus appears to be paying off.
The latest “Las Vegas Visitors Profile,” a report published annually by the Las Vegas Convention and Visitors Authority, shows the younger generation now accounts for one-third of visitors to the city, up from around 25 percent two years ago.
The report shows Generation X visitors dropped from 36 percent to 35 percent in 2016, and Baby Boomers fell from 35 percent to 28 percent, resulting in an average visitor age of 44 years, the youngest since the 1990s.
Additionally, the percentage of first-time visitors rose sharply to 27 percent, up from 16 percent in 2015.
“We had pretty significant growth in younger visitors, as the millennial visitor did increase that first-time visitation,” said Ken Bagger, executive director of the LVCVA’s Research Center. “If you’re a younger visitor, you’re less likely to have been here before, because you have less time to have done that.”
California remains the single largest feeder market, account for 33 percent of 2016’s visitation?27 percent from Southern California.
But a jump in international visitors is also playing into the first-time visitor increase, as overseas travelers are less likely to have visited as well, Bagger said.
Casinos have been investing heavily in new nightclubs, shows and restaurants as a way to attract younger visitors and offset stagnant gaming revenue?a post-recession strategy that appears to be bearing fruit. Interest continues to wane in slots and table games, but the city now boasts some of the top nightclubs, performers and restaurants in the nation.
In 2016, visitors on average gambled less than two hours, down from close to three hours over the previous four years. The number of visitors that gamble fell to 69 percent from the low 70s, continuing its steady decline.
Gaming wasn’t the only segment to see sagging interest. The number of people attending shows has steadily declined over the past few years, falling from 72 percent in 2013 to 52 percent last year. Tourists are substituting other forms of entertainment for shows, the study shows. Nearly one in two said they spent money on entertainment?such as a sporting event or museum?compared with about one-third in 2012. They also more than doubled the amount they spent on sightseeing last year from $15 to $36. This may be driven by the growing popularity of ride-sharing companies such as Uber and Lyft, which make getting off the Strip cheaper and easier. Visitors spent nearly $100 last year on local transportation, an increase of nearly one-third.
“The notion of entertainment continues to expand?it is broader than shows,” Bagger said. “It could be concerts, attractions, a celebrity DJ, night clubs day clubs, festivals and sports.”
He said this will continue, especially with major league sports teams coming to town. The NHL’s Vegas Golden Knights begin play at T-Mobile Arena on the Strip this fall, and the NFL’s Raiders will be playing in the next few years at a stadium whose site has yet to be determined.
