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LAS VEGAS TOURISM: Drop in visitors accelerated toward end of 2008

4.4 percent decline fueled by December dip

The number of people who visited Las Vegas fell 4.4 percent to 37.5 million in 2008.

And now for the bad news.


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  • The decline accelerated toward the end of the year, paced by a 14.2 percent dip in December to 2.7 million.

    Ten of 12 months in 2008 showed declines.

    People who track the numbers say falling home prices and rising fuel costs contributed to the declines early in the year.

    More recently, massive layoffs and other frightening economic news cut further into the number of people willing to pay up for a trip to Las Vegas.

    "It has been decades since we've seen all these things happening at once," research director Kevin Bagger told the Las Vegas Convention and Visitors Authority board of directors on Tuesday when he presented the numbers. "They all reflect the impact of the economy. We saw challenges in every sector."

    In addition to the drop in visitor volume, the average daily room rate fell 9.8 percent to $119 for the year.

    In December, the average rate fell to $96. It is the first time the rate has fallen below $100 since December 2005.

    Convention attendance fell 5 percent to 5.9 million for the year.

    Bagger thinks the declines will continue in 2009.

    He projected visitation will fall another 4 percent to 5 percent this year and occupancy will hover around 81 percent to 83 percent.

    The impact of falling room prices is hurting stock values of major resort companies and also local governments.

    Brenda Siddall, the authority's vice president of finance, said room tax revenue was down 11.5 percent for the year. In December, it was down 25 percent.

    "Lower revenues are going to impact subsequent fiscal years also," she said.

    The authority has already implemented a hiring freeze and cut back on travel expenses.

    Outside Las Vegas, other Clark County destinations faced hard times in 2008.

    Visitation to Laughlin fell 7.6 percent to 2.9 million. Visitation to Mesquite was down 10.5 percent to 1.5 million people.

    Room rates in Laughlin were up 2.7 percent to $43.04. In Mesquite, rates fell 33 percent to $53.19.

    Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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    oprah wrote on February 18, 2009 08:41 PM: Alot of these issues could have been avoided if this town had a decent assortment of industries. think about it: the primary employers in this town are casinos and when the discretionary income dries up you get massive unemployment. Our elected officials are bought and paid for by the casinos, so we have no hope of getting any new industries in here anytime soon.


    Earl wrote on February 18, 2009 08:27 PM: Put the blame on politics, the economy, or whatever other cause you want, but the bottom line for Vegas failing is simply really tight slots. Sound too simple?

    Gambling built all the golden towers there and slots are the biggest cash cow of the gambling industry. But after tighten them so tight that slot players finally understand, in Vegas you aren't gambling but just donating, and eventually quit going. The CEO for MGM once said they didn't really need the gambling. This guy is so simple minded to not know that other cities have nice hotels, fine restaurants, great shopping, nightclubs and entertainment. People go to Vegas to gamble...bottom line.
    They alone have killed the golden egg that made Vegas work and until that is corrected it will continue to slide. And I don't know how they will ever convince the slot players in the rest of the country that Vegas is the place to go again.

    Each time one of the nice hotels, fine restaurants, great shopping, nightclubs or entertainment doesn't show a profit they make up the difference by tightening the slots once more. To the point there is no possible way to win anything. It may have took the last two or three years for slot players to understand this, but they do now and Vegas is paying for it.


    John wrote on February 17, 2009 09:43 AM: Vegas' problems have nothing to do with politics. ( I hate Harry Reed too).
    To fly from Albany NY to Vegas is about $400. Add another $400 for 4 nights room cost(if lucky). Food and drinks another $200-$300.
    Can drive to Turning Stone Casino in 1 1/2 hours. Bargain room and meals for under $500 total. Food is as good and people are less rude I have an extra $500 to gamble with on arrival.
    It's all about the money.


    Nick Stamoulis wrote on February 12, 2009 02:03 PM: As owner of the Las Vegas USA .org tourist blog, I have seen a significant decline in website visitors over the past 3 months as well.

    Hopefully things will improve this year!

    Nick
    http://lasvegasusa.org


    Jekil wrote on February 12, 2009 04:48 AM: "What do you expect, Obama has been in the office for a few months" Excuse me, President Obama has been in office for 4 weeks, not months.


    Bill wrote on February 11, 2009 11:10 PM: It is wishful thinking, at best, to think volume will drop only another 4 or 5 %. I would think a 75% occupancy would be expected in this horriffic economy. When does City Center open?

    Bill


    bob wrote on February 11, 2009 10:57 PM: We used to love LV. but after getting a room at Caesars that would make the Motel 6 look like the Ritz and the general attitude all over the city, byebye.


    Gary Ems wrote on February 11, 2009 09:27 PM: My wife and I used to come to Nevada every year. either Reno or Las Vegas. We are never coming again until you quit re-electing Harry Reed. You deserve to go broke.


    Tim wrote on February 11, 2009 09:16 PM: Vegas no longer offers incentives. Comps are scarce and great deals (dinners, etc) are rare.


    Michelle wrote on February 11, 2009 08:58 PM: Sorry to tell you. The economy was down before Obama got in. YOU HAVE BUSH TO THANK. What do you expect, Obama has been in the office for a few months and you think the economy would turn around in the blink of an eye.

    A lot of you are in la la land.


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