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May 31, 2022

Las Vegas Tourism Bounces Back While Bracing for 'New Normal'



LAS VEGAS, Nevada
- Few cities were hit as hard by the pandemic as Las Vegas. The region’s economy - almost entirely dependent on tourism - ground to a halt during the peak of COVID-19. But as more and more people make their way back to Sin City, experts warn of a permanent dip in visitor volume compared to pre-pandemic levels.



On the heels of a somewhat dire economic report released by the University of Nevada Las Vegas in April 2022, economics professor Stephen Miller explained that while tourism has increased in recent months, the number of visitors is expected to remain low compared to 2019. According to Miller, a limited number of scheduled conventions - which usually draw millions of people to Vegas each year - and a continued reduction of international visitors - are the driving factors behind what he expects to be the ‘new normal’ for Las Vegas tourism.

It’s notable that while tourism rates are predicted to flatline, gaming revenues continue to grow. Many people attribute this to the rise of online gambling, much of which is virtually controlled by corporations based in Vegas. But restaurants, casinos, and hotels in Las Vegas need tourists and convention attendees to stay profitable. If the region’s visitor volume doesn’t return to pre-pandemic levels, these brick-and-mortar businesses will continue to suffer.

Making Sense of the ‘New Normal’

Take a step back, and it doesn’t make sense; how can the Las Vegas tourist industry be weaker in 2023 than in 2022? Do the economists at UNLV know something we don’t.

Take another step back, and it starts to make sense. The following are reasons why Vegas is bracing for a localized recession in 2023:

The advent of online gambling

The pandemic kept most of us at home. Those who love to try their luck at the tables and slots - unable to do so for over a year - found ways to do so online. Now that things have opened up again, some are venturing out in search of the real thing, while others have settled into the new way to gamble. Experts anticipate that once the novelty of coming back to Vegas runs its course, the prevailing sentiment will be that online gambling is more accessible and convenient.

A limited number of large conventions

As mentioned earlier, COVID-19 put many large conventions on ice for 2020 and 2021. Several are making a comeback this year, but others may never return. Two years of video conferencing and remote-based collaboration proved to many that business travel - and all the expenses that go with it - is unnecessary. The result is reduced demand for conventions and other large gatherings.

Closer alternatives

For the longest time, those who wanted to legally gamble had two options: Atlantic City and Las Vegas. The only alternative was to engage in unlawful gambling controlled by organized crime. These days, however, casinos are found across the country. Folks aren’t making the trip out of state as often as they did when casino gaming was limited.

How Vegas Can Rebound

Establish greater economic diversity

When it comes to the Las Vegas economy, entertainment and hospitality are everything. The region has a healthy dose of commercial and industrial enterprise, but the fortunes rise and fall with tourism. To bounce back, Vegas will need to further diversify its economy to include a greater number of traditional businesses.

Provide a more family-friendly atmosphere

Las Vegas is already very welcoming to families, with many casino resorts providing kids with fun things to do while the parents go gamble. There are also theme parks and waterparks for families to enjoy together. But it’s not enough. Establishing an even more family-friendly atmosphere will be essential to replace some of the revenue lost to reduced gaming-based tourism.

Offer something you can’t get online

Given the ease in which people can gamble at home - from sports betting to virtual casinos to pay-to-play gaming apps - the allure of Vegas must go beyond the tables and slots. Sin City is no stranger to bells and whistles, but the veneer will need more substance if they want to get people to come back in droves. From “Certified Quiet” restaurants to similarly low-volume casino environments, something must be done to draw people back.

Tourism-driven cities like Las Vegas were the hardest hit during the pandemic. Many fear the long-term damage has already been done despite a short-term bounce back. Will that hold, or will Vegas recover? Place your bets!



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