The latest edition of the Nevada Resort Association’s bi-annual tourism and hospitality report, known as The Facts, was recently published, and the data showed that the tourism industry generated over $90 billion ($91 billion to be exact) in economic activity throughout the state in 2022.
The report also posited that the industry supported some 386,000 jobs and kicked in just over $2 billion in state taxes last year. Applied Analysis, a prominent economic research firm, helped the Resort Association compile the figures for the report.
By and large, the state’s recovery from the Covid-19 pandemic has been up and down, as consumer spending reached record levels in 2022 whereas overall visitor volume and convention attendance have both lagged behind pre-pandemic averages.
Per the report, in 2022 the tourism industry in Nevada:
- Supported more than a quarter (27 percent) of the state’s workforce
- Paid $21.4 billion in wages and compensation
- Produced $14.6 billion in gaming revenue
- Generated 35 percent of the revenue for the state’s general fund
- Generated 43 percent of the state’s total GDP
- Invested $23 billion in current and future tourism-related capital projects
“Our report demonstrates in detail how the gaming and tourism industry drives our state’s economy and is foundational to Nevada’s quality of life,” Ellen Whittemore, chair of the Resort Association’s board of directors, said in a statement. “As the state’s largest employment generator, biggest taxpayer and source of nearly $91 billion in economic activity, a strong resort industry lifts other businesses, creates more jobs, assists community organizations and is fundamental in ensuring our state thrives.
“In addition to being Nevada’s economic engine, the resort industry is equally proud of our leadership in corporate social and environmental responsibility. As outlined in the report, our industry is dedicated to making positive contributions that help Nevadans now and in the future.”
With regards to employment, tourism unsurprisingly supported the largest number of total jobs in the state, and also insured the most employees as well. The resort industry alone paid over $6.7 billion in employee compensation, the most of any individual sector under tourism.
Not to be outdone, the gaming industry retained its spot as the largest tax contributor in the state—per the report, the industry’s contributions were such that the tax burden for each Nevada household decreased by about $2,700.
Room tax revenue was also highlighted in the report, as southern Nevada room taxes were said to have raised over $1.5 billion since 2000 for school construction throughout the Clark County School District, which is the equivalent of building nearly 50 elementary schools.
Last year aside, the newest data from March has also been published by the Nevada Gaming Control Board (NGCB), and statewide gaming revenue came in at $1.312 billion, which is the 25th straight month above the $1 billion-plus mark but a 3.17 percent decrease year-over-year.
The Strip reported $724.6 million in March revenue, a 2.9 percent decrease that experts say is directly attributable to baccarat, as the game’s revenue plummeted 50 percent, to just $63.2 million.
Though the revenue figures were not exactly eye-popping, the visitor volume was 3.6 million, which is a 10 percent increase from the same period last year and the highest total since the beginning of the Covid pandemic.
Kevin Bagger, vice president of research for the Las Vegas Convention and Visitors Authority (LVCVA), said in the agency’s report that a slew of big-name performances by the likes of Taylor Swift, Maroon 5 and Keith Urban drove the average room rate to $213.25 per night, setting a new all-time record.
Convention attendance, which has also lagged behind pre-Covid rates, jumped 56 percent year-over-year in March to 771,000. CONEXPO-CON/AGG, the largest construction tradeshow in North America, accounted for just under 150,000 on its own.
To the north, record late-season snowfalls in Reno and northern California had a tangible impact on revenue, as Washoe County as a whole reported a six percent decline year-over-year. North and South Lake Tahoe reported declines of 17.7 and 34 percent respectively.
Sparks, however, saw a 5 percent boost, thanks largely to the opening of the new Legends Bay Casino.
