Las Vegas Tourism Slumps in August but Gaming Revenue and Rural Destinations Surge

Visitation to Las Vegas continued to decline in August, with the Las Vegas Convention and Visitors Authority reporting 3.2 million visitors, a 6.7 percent drop compared to a year earlier. Every major tourism category saw decreases except gross gaming revenue. While the downturn was less severe than July’s 12 percent decline, the slump was still notable. Convention attendance fell 8 percent, hotel occupancy dropped by 3.7 percentage points to 77.5 percent, and the average daily room rate decreased 7.4 percent to $162.38.

The report coincided with the end of the LVCVA’s “Fabulous Escape” sale, which featured discounts of up to 50 percent on hotel rooms and attractions. However, these incentives did not prevent the downward trend.

Airport traffic also reflected the decline, with Harry Reid International Airport seeing an 8.5 percent drop in passenger counts to 4.5 million, largely due to reduced activity from Spirit Airlines, which is under Chapter 11 bankruptcy protection.

Convention attendance suffered partly because the World Market Center summer show, which draws tens of thousands, was counted in July instead of August this year.

Despite the overall tourism decline, casino gaming revenue defied trends. According to the Nevada Gaming Control Board, statewide gaming win rose 5.5 percent year-over-year to $1.23 billion, with Clark County up 5.3 percent to $1 billion. The Las Vegas Strip saw a 5.5 percent increase to $679.4 million, and downtown Las Vegas rose 8.3 percent to $63.2 million. This marked the 54th consecutive month with gaming win above $1 billion.

Strong performances were seen in several Southern Nevada submarkets. Laughlin led with a 10.8 percent increase to $36.3 million, while the Boulder Strip and Mesquite each posted gains of more than 9 percent. Only outlying Clark County saw a slight decline.

The timing of the Labor Day weekend, which included two days in August, helped boost activity, especially in Elko County, which also benefited from annual fairground events.

In contrast to Las Vegas, Laughlin and Mesquite saw improved visitation. Laughlin’s visitation was up 14.5 percent to 134,000, and its occupancy rate climbed to 53.7 percent. Mesquite’s visitation increased 11.5 percent to 68,000, with average daily room rates jumping 22.3 percent to $88.49.

While Las Vegas faced challenges in attracting visitors this summer, gaming revenue and rural destinations like Laughlin and Mesquite showed resilience, benefiting from value offerings and special events.

 

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