September visitor number up 2 percent from last year

Visitor traffic to Las Vegas continued to gain momentum in September but at a slower pace than during the summer.

According to the monthly report from the Las Vegas Convention and Visitors Authority, the number of visitors rose 2 percent compared with a year ago, the seventh consecutive monthly gain. Growth rates in each of the three summer months ran at least 3.5 percent.

In a research report, Union Gaming Group combined the September number with other indicators to conclude, "(A)ll signs are pointing to some recovery on the Strip."

A relatively weak summer in 2009 led to better growth rates this year, said Kevin Bagger, the authority's senior marketing director. By autumn last year, a rebound had started to take hold.

Still, Greg Carlson noted the overall growth curve as a cause for concern.

"There are still some pretty tough macroeconomic conditions across the country," he said. "So we shouldn't expect growth to be quick and up-sloping."

In March, the visitor count rose 0.7 percent and the rate increased steadily to a peak of 4.7 percent in July. The following two months, the rate fell by more than half.

In their third-quarter earnings reports, the publicly traded casino companies gave split views of the near-term prospects.

"Visitor volume depends on the pace of overall economic activity," said Stephen Brown, the director of the Center for Business and Economic Research at the University of Nevada, Las Vegas.

He downplayed relying on month to month data, saying it contains too much "noise" and forecasts "a slow recovery in general."

Bagger, added that visitor spending growth has continued to lag the growth in the numbers of people arriving, although the numbers were not included in the monthly report.

With more rooms on the market, hotel occupancy fell 1.1 percent to 82.1 percent in September.

But contrary to normal, where declining occupancy would lead to discounting, the average daily room rates rose 6.7 percent in September to $97.25, the authority said.

Union Gaming Group attributed part of this gain to the proliferation of surcharges, often called resort fees, that are included in the fine print of hotel bills.

Following the pattern of recent months, the number of people driving in rose 2.9 percent while airport arrivals dropped 2 percent.

Convention traffic sank 27.4 percent in September due partly to the scheduling of some major shows in other months. For the first nine months of the year, attendance has fallen 1.1 percent and the number of events 6.7 percent, reflecting softness in bookings by small and midsized group meetings that offset the better attendance at major conventions, Bagger said.

So far this year, 28.1 million people have come to Las Vegas, 2.4 percent more than the same period in 2009.

Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.