A report from AAA named Las Vegas as a top travel destination for the Memorial Day weekend, the unofficial kickoff of the summer season. Analysts say the city is rebounding quickly from a year-plus of Covid-19 shutdowns and restrictions. AAA pointed to Las Vegas as a favorite among travelers for the long holiday weekend—it was the No. 1 road trip destination, followed by Orlando, Florida, Myrtle Beach, South Carolina, Denver, Colorado and Nashville, Tennessee.
“As more people get the Covid-19 vaccine and consumer confidence grows, Americans are demonstrating a strong desire to travel this Memorial Day,” said Paula Twidale, senior vice president of AAA Travel. “This pent-up demand will result in a significant increase in Memorial Day travel, which is a strong indicator for summer.”
The Las Vegas Review-Journal reports that gaming and tourism experts aren’t ready to pop the cork right yet; they say it will take more time for Vegas to truly return to pre-Covid levels of visitation and business.
But the start of the recovery is reason enough for celebration, and it’s been evident for months. “It’s been great to see Las Vegas come alive again to the vibrant destination that we’ve all come to know and enjoy,” CEO Bill Hornbuckle told investors on a late April earnings call. “Our gross bookings in March were one of the best months in the company’s history, clearly backed by pent-up leisure and casino demand.”
“I’m pretty bullish on the summer, which is typically a lull in the year for the business,” said Josh Swissman, partner at the Strategy Organization. “It felt almost like pre-pandemic times. “I think the summer is going to be a big, big volume season for us in Vegas this year.”
In March, Nevada casinos brought in $1 billion in gaming win, and 2.23 million visitors came to Las Vegas. Both were the highest totals since February 2020. It was the best month for Nevada casinos in eight years.
And according to a statement from the Las Vegas Convention and Visitors Authority, “We continue to see an increase in leisure visitation with every passing month since vaccines have become widely available throughout the U.S. With pent-up demand for travel, even greater pent-up demand for the unrivaled Las Vegas experience, we anticipate visitation continuing to grow.”
An MGM Resorts International spokeswoman told the Review-Journal it’s important to maintain health and safety precautions to “ensure we keep this incredible recovery moving forward.”
“Las Vegas is recovering much faster than expected, and it’s incredibly exciting to witness,” said Callie Driehorst, manager of corporate media relations. “It’s thrilling for us to be bringing employees back and hiring new team members at a pace and scale unlike anything our company or community has seen before.”
Nevada Resort Association President Virginia Valentine said resort operators have gone out of their way to ensure that workers are vaccinated, “an extra level of reassurance for visitors. It’s been wonderful to see more and more visitors returning and returning with real excitement and energy, ready to have fun.”
Alan Feldman, gaming industry expert and a distinguished fellow at UNLV’s International Gaming Institute, said leisure travel has come “roaring back.”
“There is no road map to compare this to, but I would say the ramp-up has been a bit faster than I expected it to be, at least in the leisure travel sector,” he said. “Remember that we still haven’t seen business and meeting travel return yet.”
The annual World of Concrete trade show, scheduled for June 8-10, will be the first major convention in Las Vegas since the pandemic’s onset. As business travel returns, Swissman said, “There’s nothing economically I see that could slow things down, nothing from a business trend standpoint.”
As for gaming revenues, May’s numbers are expected to be strong with most casinos opening at 100 percent capacity and vaccinated customers no longer required to wear masks. The Nevada Gaming Control Board lifted all Covid restrictions on casinos starting at 12:01 a.m. on June 1.
“The economic outlook has improved dramatically since December,” said Gaming Control Board Research Analyst Michael Lawton. “The rollout of vaccines, the decrease in infection rates and the subsequent increases to capacity, along with federal stimulus, have allowed for gaming win amounts to quite honestly exceed our expectations throughout the year.”
In April, according to J.P. Morgan, Strip slot revenues of $327 million increased 19 percent compared to April 2019. Slot handle was up 16 percent and hold was 8.5 percent. Table game win decreased 26 percent in April compared to 2019 to $150 million. Table drop decreased 18 percent and hold was down to 11.5 percent, and when baccarat was omitted, table game win decreased 10 percent and drop fell 3 percent.
CNN reported that the comeback is especially welcome, given high unemployment in Las Vegas. “It has been more difficult on Las Vegas than probably any city in the United States,” said Las Vegas Convention and Visitors Authority President Steve Hill.
