Las Vegas consumers cut back on meals, cars, clothes amid tourism slump

Consumers cut back on buying cars and clothes and on dining out in the Las Vegas Valley over the past year, new data shows, amid an ongoing slump in tourism to America’s casino capital.

In Clark County, sales at food and beverage outlets; clothing, shoe and jewelry retailers; car and auto-parts dealers; and furniture, electronics and appliance stores all fell in the 12 months through June as compared to the prior yearlong stretch, according to recently released figures from the Nevada Department of Taxation.

Not every kind of spending showed annual drops, and for some types of retailers, buyers shelled out more in June than in the same month last year.

But overall, some categories of shrunken spending cover locals and visitors alike and show the huge piles of money at stake in Las Vegas’ tourism-dependent, discretionary spending-driven economy.

Sales drop

Food services and drinking places logged nearly $12.7 billion in taxable sales in Clark County in the recent fiscal year, down almost 2 percent from the prior year. The percentage dip appears small but amounts to a drop of $256.5 million in sales.

Clothing, shoe and jewelry stores reported almost $4.4 billion in sales this past fiscal year, down 3 percent, or a drop of $139.2 million, from the year before.

Las Vegas, known for its towering casino-resorts, is packed with restaurants, bars and retail stores that cater to the masses of tourists who come here.

Still, with almost 2.4 million residents in the Las Vegas area as of last year, other spending categories seem largely confined to locals.

Motor vehicle and parts dealers in Clark County reported $6.6 billion in sales this past fiscal year, down $124.7 million, while furniture, electronics and appliance stores logged nearly $1.9 billion in sales, down $18.9 million.

Sales bump for others

Buyers didn’t pull back everywhere. General merchandise retailers — which typically include big-box stores such as Costco and Target — booked $9.5 billion in sales this past fiscal year, up more than $550 million from the prior year.

Sporting goods retailers, music shops and other kinds of hobby stores reported around $2.7 billion in sales, up more than $91 million.

In June, sales at general-merchandise stores, car and parts dealers, hobby shops, and furniture and electronics retailers all climbed from the same month last year, state data shows.

Southern Nevada has long relied heavily on visitors traveling here to spend big eating, drinking, partying, gambling and going to shows and conventions to fuel the economy. Tourism, however, is sliding this year, meaning there have been fewer people in town who would spend money at bars, restaurants, clothing stores and the like.

Around 25.8 million people visited Las Vegas this year through August, down 7.8 percent, or a drop of more than 2 million people, from the same eight-month stretch last year, according to the Las Vegas Convention and Visitors Authority.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342.