LAS VEGAS (KTNV) — Las Vegas visitor numbers are down nearly 8% from last year, but convention traffic is up as the city faces mixed economic signals amid viral social media claims of tourism decline.
Las Vegas has been getting significant attention on social media lately, with viral videos showing empty streets and comments about sky-high prices. But what's really happening in America's playground?
According to the Las Vegas Convention and Visitors Authority, the city welcomed 3.39 million visitors in March, down nearly 8% from the same period last year. Officials attribute this decline to a lighter event calendar and economic uncertainty.
"I think it's still pretty busy for what you can say is the slow time," said one visitor.
"I've spent money like a maniac," said another tourist.
While leisure tourism shows signs of softening, business travel remains robust. More than 500,000 people attended trade shows in March, indicating strong convention traffic.
"I don't see a downfall at all," said a convention attendee.
Hotel metrics tell a more complex story. Occupancy rates have decreased slightly, especially midweek, while room rates have increased. However, revenue per available room has remained flat, suggesting a balancing act between pricing and demand.
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"What we're looking at right now we think is just a downturn in business for a period of time. It used to be a pretty normal thing. It does not mean that the public should extrapolate that into being COVID-like or Great Recession-like, we do not see that right now. There's no evidence that it'll turn into something like that," said Steve Hill, Chief Executive Officer and President of the Las Vegas Convention and Visitors Authority.
Questions about potential layoffs at major resorts have also circulated online. When asked about staff reductions, only MGM Resorts responded, confirming they have closed some concierge desks while shifting to more digital and self-service options. The company stated affected employees have been reassigned to other positions.
A spokesperson sent us an 'MGM Resorts Concierge Fact Sheet' saying: "MGM Resorts is streamlining Concierge operations to better match evolving guest preferences. Guest demand for in-person service has declined, while self-service and digital concierge use is rapidly growing. We’re adapting to serve guests more efficiently without compromising service quality."
During a quarterly earnings call on Tuesday, Caesars Entertainment reported they don't anticipate the Las Vegas market softening and have contingency measures in place if it does.
MGM held its own earnings call Wednesday, reporting decent first-quarter results despite some metrics dipping compared to last year. The company noted that 2023's numbers were boosted by the Super Bowl being held in Las Vegas.
The Culinary Union, which represents 60,000 hospitality workers in Las Vegas and Reno, addressed concerns about potential layoffs in a statement: "All Culinary Union members employed on the Las Vegas Strip and in Downtown Las Vegas are protected by strong union contracts. Casino resorts are dynamic workplaces, and the companies are constantly making changes… that's why strong Culinary Union contracts are necessary and in place to protect workers. Culinary Union remains committed to ensuring that workers' rights are respected, their jobs are protected, and the union contract is fully enforced."
