Research conducted by the Las Vegas Convention and Visitors Authority (LVCVA) suggests that concerns about the delta variant of Covid-19 were behind a drop in visitation to Southern Nevada in August.
Last week, the LVCVA reported a 9.2 percent decline in visitation compared to July—though it was also 95 percent higher than in August 2020.
“With the delta variant of the Covid-19 virus spiking during the month, August visitation receded from the pandemic-era peak in July, coming in at just under 3 million visitors, down 9.2 percent month over month and down 16.2 percent from August 2019,” said Kevin Bagger, vice president of the LVCVA research center.
According to the Las Vegas Review-Journal, hotel occupancy and average daily room rates were also down. The LVCVA reported occupancy of 72.8 percent, down 6.6 percentage points from July and down 14.9 points from August 2019. The average daily room rate fell 7.8 percent from July to $140.32, but up 16 percent from August 2019.
Not unexpectedly, from January to August 2021, about 19.8 million visitors traveled to Las Vegas, up 55.7 percent from 2020, but 30.3 percent less than the first eight months of 2019.
Notwithstanding the touch-and-go visitation, Nevada casinos continued their strong 2021, logging more than $1 billion in gaming revenues for the sixth straight months, despite the fact that Governor Steve Sisolak reinstating the requirement that all customers wear masks inside casinos to battle the resurgent virus.
The Las Vegas Strip led the way in August, reporting $625 million in Revenue, which not only is a 97 percent increase over the capacity-restricted August 2020, but 20.2 percent higher than August 2019. Local casinos logged $250 million in August, a 41.2 percent jump compared to August 2019. Reno casinos were up 1.5 percent over August 2019, with Lake Tahoe off significantly due to the Caldor Fire.
Overall, Nevada casinos reported gaming revenue of $1.16 billion, up 57 percent over August 2020 and 22.3 percent over August 2019.
A report released October 1 by the Las Vegas Convention and Visitors Authority looked at the next 90 days. While the National Association of Broadcasters pulled out its convention due to the pandemic, the city has the Golden Knights and the Raiders in action, concerts by Lady Gaga, Céline Dion and the Rolling Stones, and conventions for the NBAA Business Aviation, American Rental Association, National Hardware Show, the automotive aftermarket shows SEMA and AAPEX and the International Council of Shopping Centers.
“Room rates accelerating is definitely a good sign,” said Josh Swissman, a casino consultant and founder of the Strategy Organization. “The operators wouldn’t be increasing room rates if there weren’t underlying volume predictions. The gaming figures give me some confidence as well.”
The key will be the sustainability of large-scale conventions, Swissman said. “It seems like the Covid case counts are trending in the right direction in Vegas and hopefully, that keeps people feeling safer about making a trip out,” Swissman said.
Also trending up is air travel. Foreign travelers must have proof of vaccination.
Global Market Advisors analyst Brendan Bussmann said last week’s Global Gaming Expo sends a sign to the convention industry that Las Vegas can safely conduct meetings. “It shows the gaming industry is back and is pushing forward, but it also shows you can have safe meetings here regardless of current conditions that are part of the government mandates,” Bussmann said. “We have to get business back and thankfully we have a target to get international visitors back now.”
