Experts Laud Las Vegas Economic Outlook Over Next Few MonthsMajor Events Scheduled Include Formula One Racing And Super Bowl |
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With several major events on the horizon, Las Vegas could see a major economic boom through the first quarter of 2024.
John DeCree, an equity analyst with CBRE Equity Research, recently met with gaming executives from several companies at the Global Gaming Expo (G2E). In a report for investors, DeCree outlined some of what he learned and pointed to positive signs that the city could see record visitation numbers over the next few months. This is in spite of inflation and some other economic factors that could be having an effect on the overall economy.
“Broadly speaking, the message we heard throughout G2E was more of the same,” DeCree noted. “Fundamentals across all segments and verticals remain sound in spite of ongoing macroeconomic concerns and a significant pullback in the shares of most casino and gaming companies since (second-quarter) earnings.”
Building On Strong Numbers
Several factors look to be aligned for solid casino industry numbers through March. That includes the city hosting numerous events in the coming months, highlighted by this weekend’s When We Were Young music festival, the Las Vegas Grand Prix Formula One race in November, and the Super Bowl in February. The Fountainbleu and Durango casinos will also open soon, adding more hotel capacity and interest in the new properties, and the recent opening of The Sphere has been drawing tourists in droves.
“The demand in Vegas is abundantly clear, with sold-out flights, rooms, dinner reservations and concert tickets,” DeCree reports. “Pricing on all items continues to rise, and the question remains: At what point does the consumer balk?
“From now until at least March, the group, convention, and entertainment schedule is bursting at the seams, so visibility for continued strength remains clear. This year is shaping up to be a banner convention year, and 2024 is positioned to be even better.”
Visitation Remains Strong, Sports Becoming More Important
These predictions align with recent trends in visitation to the city. Las Vegas welcomed 38.8 million visitors in 2022, according to the Las Vegas Convention and Visitors Authority. That was nearing pre-pandemic numbers and up 21% from 2021.
Jeremy Aguero, principal financial analyst at Applied Analysis, reported earlier this year that much of the city’s convention business has returned as well, and international travel may also be seeing an uptick in 2023.
Vegas now boasts numerous sporting events and teams, such as the NHL’s defending champion Golden Knights, two-time WNBA champion Aces, the NFL’s Raiders, and soon will be the new home of MLB’s Oakland A’s. Sports are becoming an increasingly-important driver of tourism..
“Prior to COVID-19, we saw that things like sports and entertainment were the seventh-highest in motivation for somebody to get in a car or get on a plane and come to Las Vegas,” Aguero told KTNV. “Today, that number is two — it is the second-most noted motivation for someone coming.”
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