It seems quite a few people like to tell you Las Vegas will never be what it once was. Gambling revenue is still recovering all these years after the recession, along with most of the economy. In all fairness, an industry such as this, especially linked with tourism, is directly tied to the economy. When people tighten those belts on their fun-money, typically the first thing to go is leisure travel, which Las Vegas obviously falls under.
The economic bounce back, coupled with the continual re-branding of Las Vegas have been factors in rising numbers for the oh-so-humble city. Skeptics point to mediocre gambling numbers and question the long-term profitability, while others point to numbers such as a citywide occupancy hotel rate of 86.8 percent, over 20 points higher than the national average.
Nearly 10 years ago, the problem was over-building, and if the city is not careful, it will be the problem again. There are currently over $9 billion in recent or planned developments. As the city eyes 45 million annual visitors, compared to the 41.1 million of 2014, success seems to be in the cards, so to say.
Art Jimenez, senior director of leisure sales for the Las Vegas Convention and Visitors Authority said, “Reinvention is the number-one factor in our success. But 84 percent of our visitors are repeat visitors. We have to continually refresh.” The “refreshing” comes in the form of transforming the landscape and feel of the city.
The recent $182.5 million purchase of the Riviera Hotel & Casino will also provide the new Global Business District room for expansion on the Las Vegas Convention Center, and a presence on the Las Vegas Strip, something the center currently lacks. The expansion is projected to bring in 480,000 new attendees for an estimated 20 new shows and conventions per year.
Downtown Las Vegas is going through a fun transformation, providing tourists with an alternative to the ostentation that the Strip provides, an “Old Vegas” feel, and nightlife options that may be a little more niche and off the beaten path. Due to the smaller overhead, businesses downtown have the opportunity to take more chances, often times providing for fun, unique experiences.
With a burgeoning cocktail and restaurant scene, the area is turning into a must see for tourists and locals alike. The giant “Slotzilla” in the middle of Fremont Street allows for people to zip line the Fremont Experience, even during the famous light shows.
With non-gaming amenities abound, and those revenues rising, one slightly troubling area is gaming itself. Statewide gaming was down 1.08 percent in February from the previous year, and down 1.99 percent on the fiscal year, which began last July 1. The Strip dropped down to $531.3 million, a decrease of 4.38 percent, from 2014. Baccarat revenue on the Strip dropped 22.58 percent.
Revenue in downtown Las Vegas grew a little under 1 percent to $43.3 million. Laughlin increased 7.16 percent, while the Boulder Strip ballooned 10.59 percent. A report from Union Gaming Group regarding February revenue said, “Overall, we remain confident in the locals recovery and view the consistent and consecutive gains in gaming volumes as a key positive coupled with the improving economic backdrop.”
While gaming was down slightly overall, convention attendance continued to grow, up 12.1 percent from 2014 to 550,271, and contributing to an overall 0.9 percent increase in overall tourism.
