A new report commissioned by the Las Vegas Convention and Visitors Authority (LVCA) tallied the cost of the Covid-19 pandemic, which shut down Southern Nevada tourism for much of 2020.
Author Jeremy Aguero of Applied Analysis said the pandemic cost the industry $34 billion in total economic input: visitor spending, employee spending, and suppliers and vendors. He added that a total of 125,600 jobs may have been lost.
“The Covid-19 pandemic left an indelible imprint on the Southern Nevada tourism industry and the broader regional economy,” Aguero said in the report summary. “Compared to recent recessions, the Covid-19 recession’s magnitude was unprecedented in its depth and speed. … While the economic losses in 2020 were material, it is worth noting that many of the economic conditions and shortfalls have persisted into early 2021.”
The virus is still a threat, and a new indoor mask mandate has thrown a wet blanket on the party atmosphere in Vegas. Some tourists have canceled their plans to visit. But UNLV hospitality professor Amanda Belarmino told the Pahrump Valley Times that masks should “assuage some of those fears,” and not deter tourism. “Nobody does hospitality like Las Vegas, and our Covid-19 response has been second to none. We know the casino-hotels had previously implemented successful mitigation measures, and as those return, we will continue to host guests safely.”
But in a letter to employees, MGM Resorts President and CEO Bill Hornbuckle called it “another disheartening step backward when we should be focused on continuing our recovery. In addition to the heart-wrenching thought of more illness and death, I fear that progressively more restrictive measures, including a return to social distancing and capacity restrictions, could be around the corner if we continue on this path. This would be a significant blow to our community, industry and economy.”
MGM now requires employees to provide proof of vaccine or be subject to regular Covid-19 testing—for which they must pay $15 a week.
Despite the discouraging news, state gaming win exceeded $1 billion for the fourth straight month in June, reported the Las Vegas Review-Journal, and Clark County exceeded $1 billion for just the third time in history.
The last time the state had four consecutive months of $1 billion-plus win was January 2008 to April 2008, just before the Great Recession, the Review-Journal reported.
