Visitor numbers drop in August - Business

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Oct. 11, 2008
Copyright © Las Vegas Review-Journal

Visitor numbers drop in August

Convention segment shows signs of pullback

By ARNOLD M. KNIGHTLY
REVIEW-JOURNAL

A drop in conventions and the number of people attending them drove Las Vegas tourism numbers down sharply in August.

The Las Vegas Convention and Visitors Authority on Friday reported that nearly 3.2 million people visited Las Vegas in August, a 4.3 percent drop from the same month last year.

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It was the sixth month this year that tourism decreased from 2007. Overall, visitor numbers are down 1.5 percent for 2008.

The monthly drop was driven by a 22.3 percent decrease in convention attendance to 574,184, with 165,031 fewer people attending 103 fewer conventions.

"The convention and business segment is starting to show some signs of pullback," said Brian Gordon, a principal in the local economic research firm Applied Analysis. "Businesses today are struggling with the financial markets, access to capital and a whole host of other issues. That may be factoring in what we're seeing here in these one-month numbers."

Three large conventions held in August 2007 with nearly 71,000 attendees -- World Shoe, Cisco and Orgill -- were moved to different months or rotated out of Las Vegas, said Kevin Bagger, director of Internet marketing and research for the authority.

However, the economic downturn and increased fuel prices are causing fewer smaller conventions to be scheduled and some to be canceled.

"We are seeing small corporate meetings are being affected by the economy," said Bagger, referring to gatherings of 500 attendees or less, which historically have represented half the area's convention attendees.

The trend of lower room rates continued with a 15.3 percent drop to $107.01 per night, marking the third consecutive month of double-digit percentage decreases.

Occupancy dropped 2.9 percent to 88.3 percent and total room nights occupied slipped 0.4 percent.

However, tourist room occupancy nights increased 20.8 percent, offsetting a 29.8 percent decrease by convention attendees.

The increase in tourist occupancy could be a reflection of bargain travelers taking advantage of package deals and incentives offered by hotel-casinos, Gordon said.

The room rate and occupancy figures are from a monthly survey of Las Vegas hotel operators representing about 75 percent of the total inventory, according to the authority.

Overall airline traffic was down 9.9 percent, the largest drop this year, with 3.9 million passengers, the fewest since April.

Charters and direct international service declined 12.2 percent, the fifth consecutive month of sharp declines.

Visitation to Clark County tourist outposts Laughlin and Mesquite also declined.

Laughlin visitation slipped 1.6 percent to 263,267, but room rates increased 14.9 percent to $47.21.

Mesquite visitation dropped 3.2 percent to 118,555, and the room rate was down 41.2 percent to $46.11.

Visitor volumes for 2008 is down 5.9 percent in Laughlin and 2.7 percent in Mesquite.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. 2zero wrote on October 11, 2008 06:50 PM: The good news is......sorry there isn't any. On another subject; Jan Jones is working weekend nights at Glitter Gulch. oy wrote on October 11, 2008 10:59 AM: I agree with Todd, stop screwing with the convention attendees. Rumors abound that CES is looking for another city to host its convention... We certainly don't want to loose this one! LVCasinoInfo.com wrote on October 11, 2008 09:44 AM: Mel, while I 100% agree with your general point that Vegas needs to return to its value roots... you had an all you can eat seafood buffet for less than $20 a piece and you are complaining? My dinner last night here in California was the same price for far less. South Point is one of the few places that actually "gets it." Michael Gaughan has good games and a decent slot club, nice rooms at reasonable rates and I have always found the food to be a great value. Unfortunately, you caught the buffet on the most expensive night. Now if only MGM and Harrahs would wake up and smell the recession!!! roman wrote on October 11, 2008 09:18 AM: Those numbers seem a bit optimisitic. I drive a cab in LV. My numbers are down more than that. There are more cabs on the road thanks to our brilliant Taxi Cab Authority but my eye tells me there are less people as well. sharon sapp wrote on October 11, 2008 08:37 AM: I live in Houston. We were in Las Vegas last week. My husband plays table games, I play slots. I kept reading that the slots were tighter and they sure were. If the casinos want to keep people coming they need to make it fair. We will return in February. Hope things are better then! Mel White wrote on October 11, 2008 08:25 AM: Todd your right, plus stop screwing the locals.. dang went to the Buffet and the South Point last night, 78.00 for two Adults and two Kids! If I wasn't running on empty I would have left,,, but be sure I will not return, not at those prices. Todd wrote on October 11, 2008 05:56 AM: Look, in Las Vegas the money has and always will come from gaming. Price gouging during certain evens drives conventions to other places like Houston, Denver, or Atlanta. Stop screwing the conventions and the money will return.